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By Henrique Dubugras, Brex CEO

True innovation is driven by aggressive targets. Not by slides and ball pits.

I am not talking about innovation of a product or idea. I am talking about a type of innovation that is often overlooked: innovation of internal processes. I never cease to be amazed by the number of problems that people are solving with and within technology. However, I am always surprised to see how many companies with very innovative product ideas still use outdated methods to conduct their daily operations.

How Not To Innovate

I’ll use recruiting and sales as two examples. Most companies still recruit through “spray and pray” LinkedIn mass messages that are often overlooked. For sales, they sell via online ads that don’t stand out. Then, they hope that ping pong tables and colorful bean bags will act as magic talismans that will enhance imagination and trigger innovation in the company. (I have nothing against ping pong or bean bags! They do help attract employees, but they don’t solve your problems). In contrast to all of these tactics, I have never seen so much creativity happen so fast than when we established our first quarterly targets. Because I like specific examples and think that you do too, I will tell you how this process worked in more detail for these two areas.

When we started Brex, we also started off with the obvious recruiting and sales tactics. LinkedIn and online ads were our tools for recruiting and inbound sales, respectively. We were still in our beta phase and there was no information about us online yet—which made these tasks that much harder. However, once we were able to get a potential customer on the phone or a prospect through the door, our conversion rates were very high. Our problem? Getting them to pay attention to us and take that call.

Our Famously Aggressive Quarterly Targets

Once the Brex team was large enough, we employed a tactic that we learned at our previous company, Pagar.me. We set our famously aggressive quarterly targets. These very high numbers set the bar high for individuals and teams, but we backed them up with industry benchmarks (to show that they were humanly possible) and with high compensation rewards (to show that they were worth it). Two weeks after the target setting meeting, the team realized that they would not hit the new targets if they stuck to old methods. Soon, creative solutions started popping out. My favorite ideas were handwritten letters for recruiting and a Brazilian chocolate campaign for sales.

Handwritten Recruiting

Instead of sending 5,000 Linkedin messages, the recruiting team selected 500 profiles that we thought would be an excellent fit, did some more extensive research on their backgrounds and wrote 500 handwritten letters that we had delivered over the course of a few weeks. The letters were personal and kind of mysterious. We were trying to get these candidates’ attention, and we definitely did. One thing that worked for us was to specifically target the candidates and messaging to South Americans, whom we thought were most likely to resonate with our story and background. The conversion into actual interviews was six times higher than when we were using LinkedIn only. It was a manual process, but we got invaluable talent that was crucial at that phase of our company, and continues to be today.

Chocolatey, Delicious Sales

Sales followed a similarly thoughtful strategy. Rather than just blast online ads for “corporate credit card,” which has $20+ CPC and is clearly too broad so it doesn’t convert, the sales team mapped the coworking spaces in downtown San Francisco, did some research on concentration of target leads and the hours of the week these spaces were the most crowded. For two weeks, they had boxes of artisan Brazilian chocolates delivered to companies in the coworking spaces and followed up with an email. Once again, unprecedented conversion rates. The cool thing about this campaign is that it didn’t just catch the attention of the companies that received the chocolate. It also sparked the curiosity of others in their coworking spaces who did not get one—which was great for driving word of mouth.

In my experience, aggressive targets forced us to innovative aggressively. The more creative our approaches to common challenges, the better the result. Stretched targets drive this. Innovation is born from necessity.

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