Inside the startup teaching the Pentagon to think like Silicon Valley

Key Concepts

Bridging the Gap: The core mission of Decode, connecting emerging technology with the federal government.
Valley of Death: The challenging period for companies trying to sell to the federal government due to long sales cycles and bureaucratic hurdles.
Commercial Off-the-Shelf (COTS): A concept of using readily available commercial products instead of custom-built solutions.
Acquisition Reform: Efforts to improve the government's procurement processes.
Rapid Prototyping: Quickly developing and testing new technologies.
Military Spouse Employment: The challenges and opportunities for spouses of service members.
Veteran Innovation: The inherent problem-solving and innovative capabilities of veterans.
Artificial Intelligence (AI): Its impact on government operations, opportunities, and risks.
Data Repositories: The vast amounts of data within the Department of Defense (DoD) and its potential for AI.
Demystifying the DoD: Decode's role in simplifying the complex federal government acquisition and sales landscape.
Problem-Solving Focus: The importance of identifying and solving real problems rather than just selling technology.
Trust and Credibility: Key elements for gaining access and influence within the DoD.
Continuity of Effort: The consistent focus on innovation and AI across different administrations.
Defense Entrepreneurs Forum (DEF): An organization fostering entrepreneurship within the defense sector.
Comfortable Being Uncomfortable: A mindset crucial for navigating challenges and transitions.

Decoding Innovation: Bridging Tech and the Federal Government

This summary details a conversation with Megan Mezer, founder and CEO of Decode, a company focused on integrating emerging technology into the federal government, with a particular emphasis on leveraging the skills of veterans. The discussion highlights the challenges of government contracting, the innovative spirit of veterans, the transformative potential of AI, and strategies for success in this complex ecosystem.

Navigating the "Valley of Death" in Government Contracting

Core Strategy: Mezer advises companies to start with "easy wins" and, crucially, to "not give up" and "find some friends."
Problem-Solving Imperative: A fundamental requirement is to clearly define and solve a "real problem." Companies often fail by focusing on "shiny tech" without a clear application or need. Aligning with the problem is paramount.
Government Sales Cycle: The extended duration of government sales cycles is a primary reason for the "valley of death." Companies often place all their hopes on government contracts, which can be a risky sole focus.
Targeted Approach: It's essential to identify specific government entities to sell to, rather than broadly targeting the entire Department of Defense (DoD). Misidentifying the target can lead to years of wasted effort.

The Genesis of Decode

Mezer's entrepreneurial journey to founding Decode stemmed from several key experiences:

Concerned Taxpayer & COTS Advocate: While working for a large systems integrator in the tech and defense sector, she questioned the high cost of building "terrible software" and advocated for using Commercial Off-the-Shelf (COTS) solutions. This initial insight was a "point of inception."
Acquisition Reform & Roadblocks: After leaving her initial role, she met a retired Air Force Colonel on a plane who was starting a company focused on strategy and acquisition reform. In this role, she experienced firsthand the difficulty of building a company in the government market and observed how government customers were hindered by regulations and their own internal processes. This was the "inception point number two."
Rapid Prototyping & Market Failure: As COO for a rapid prototyping company with contracts to quickly test emerging tech, she witnessed companies fail to make it to market despite having promising technology. She had helped the government buy it and companies try to sell it, seeing the customer's pain of not receiving needed solutions. This led to the realization that "something's got to change."

The Military Spouse Perspective

Mezer shared her experience as a military spouse while building her successful career and company, noting it was likely not the "best timing" as she had just had her second child.

Benefits of Military Partnership:
- Financial Stability: The consistent paycheck from military service provides a degree of financial stability.
- Resilience and Support: Military spouses are inherently resilient, trust their partners, and have each other's backs.
- Community Network: The military community provides a strong support network beyond blood family, offering help with childcare, emotional support, and practical assistance.
Advice for Military Spouses:
- Community Engagement: Get involved in networks specifically designed for veterans and military spouses to start companies or pursue interesting ventures.
- Courage to Explore: Have the courage to step out and explore opportunities.
- Build a "Kitchen Cabinet": Develop a trusted group of advisors to bounce ideas off of.
- Overcoming the Initial Hurdle: Acknowledged that "getting started is the hardest part," especially for military spouses.
Spouse Incubator Idea: The conversation sparked an idea for a "spouse incubator" at military installations to empower spouses with entrepreneurial ideas, recognizing their deep understanding of "home and life realities."
Virtual Work Opportunities: The rise of virtual work has opened up new possibilities for spouses to take on jobs that transcend location, a significant shift from previous eras.

Veterans as Natural Innovators

Mezer strongly believes veterans are "natural innovators" due to their inherent problem-solving abilities.

"Figure It Out" Mentality: Veterans are accustomed to encountering "gnarly problems" and finding solutions, often with limited resources. The analogy of an 18-year-old private first class being able to fly a space shuttle with duct tape illustrates this point.
Reframing Innovation: Innovation isn't solely about creativity; it's about identifying something that "sucks" and finding a way around it.
Contextual Application: Veterans possess a unique "context" from their lived experiences that allows them to understand how technology can be applied to solve real-world problems within the DoD. They can identify how a slight change in functionality could address significant issues.
General Madison's Quote (Intent): The country that wins future conflicts will be the one that figures out "a different way to operate" with technology, not just the one that develops it first.
Motorpool/Arms Room Analogy: To truly understand problems, one must go to the "motorpool" or "arms room" and speak directly with those facing the issues. Soldiers will readily share their "list of grievances" or "pessimist list."
Corporate Parallel: This principle of being close to the problem applies not only to the DoD but also to corporations. Innovating without understanding the problem is ineffective.

The Impact of Artificial Intelligence (AI)

AI presents both "tremendous opportunity and equal risk" for the federal government and Decode's work.

Disruption of Services: The services industry, including Decode's own operations, will be significantly impacted as large language models (LLMs) become capable of answering many questions directly.
Operational Efficiency: Mezer observed firsthand in CENTCOM how soldiers were performing manual data entry (copying from OneNote to Excel, printing, and re-typing) that could be automated by AI. This frees up military personnel to focus on critical tasks.
AI as a Product Manager: The ability to identify a problem and understand how to develop a product to solve it, as described in the context of manual data entry, is akin to the role of a product manager.
DoD's AI Disruption: The DoD is already experiencing disruption from AI, with a stated goal of being at the "bleeding edge of technology" to "win the fight tonight."
Data as AI's Fuel: The DoD's numerous enterprise systems create a "gigantic, gigantic, gigantic data set." AI thrives on data, and unlocking access to this data through policy changes could reveal unforeseen insights.
Strategic Importance of AI: Investments like the CHIPS Act highlight the national imperative to maintain a strategic advantage in AI, encompassing both infrastructure and data capture.
Lessons from Drone Market Collapse: The collapse of the drone market due to reliance on Chinese components serves as a cautionary tale. Policies must enable American companies to develop and produce critical technologies, including AI, with a focus on national security.

Decode's Role and Common Mistakes

Demystifying the DoD: Decode's primary function is to "demystify" the DoD for tech companies and veterans. This involves explaining who to sell to, how to sell, when to partner with primes, how the acquisition system works, hiring considerations, and the security landscape.
Connecting Veterans to Tech: Veterans are seen as "incredible context leaders and product managers" who can help tech companies navigate the DoD market.
Selling Solutions, Not Just Tech: Mezer emphasizes that they are rarely selling "tech" but rather "the solution to a problem."
Common Mistakes by Entrepreneurs/Sellers:
- Premature Spending: Investing heavily in lobbyists, marketing firms, and BD firms before understanding the problem being solved.
- Overstaffing: Hiring too quickly, especially on the sales side.
- Skipping Due Diligence: Failing to "kick the tires" and ensure product-market fit before scaling.
- Underestimating Acquisition Expertise: Not finding individuals with deep knowledge of government acquisition processes.
The "High School" Nature of DoD Contracting: Despite its size, the DoD can be like "high school" in that opportunities are often segmented, and gaining traction can be difficult. Contracts may be limited to specific sections of large organizations.
Misunderstanding Risk: Venture capital firms may misinterpret concentrated contracts within a large entity like the Army as "too risky" without understanding the vastness and distributed nature of its operations.

Female Entrepreneurship in the DoD and Building Trust

Mezer discussed the experience of being a female entrepreneur in the DoD and how she builds trust quickly.

"You Deserve to Be in Every Room": Her primary advice is to believe in one's right to be present, even if self-doubt exists.
Universal Insecurity: Over time, she realized that "no one knows what they're talking about" and everyone is "just making it all up." This realization fosters confidence.
"I Can Tell You Really Give a Damn": When asked why a four-star general was listening to her, his response was that he could tell she "really give a damn" and that her intentions were good.
"They Don't Care How Much You Know Until They Know How Much You Care": This sentiment, echoed by Murphy, highlights the importance of demonstrating genuine care and commitment.
"Shooting Straight": Trust is built by being honest and providing candid feedback, even if it's not beneficial to oneself.
Challenging Bad Ideas: Mezer humorously noted that "half of our work came from early days when I would say, 'With all due respect, sir, that's a really bad idea.'"
General Officer Introductions: Once trust is established and general officers introduce you to their peers, it provides a significant advantage.

Navigating Different Administrations

Mezer observes distinct differences in how administrations approach the DoD.

Linguistic and Cultural Shifts: Each administration has its own "lingo" and approach.
Consistent Focus on Innovation: Despite these differences, "innovation efforts" remain a consistent theme across administrations, with a general consensus that the country "has to do things differently or we're going to fail."
Continuity in AI Initiatives: Specific examples like Secretary McCarthy's AI initiative, the Enterprise Cloud Management Office, and subsequent organizations demonstrate continuity of effort in AI across multiple administrations.
"Give a Crap" Mentality: The underlying driver for supporting warfighters and national security remains consistent, driven by individuals with a "healthy dose of give a crap."

The Defense Entrepreneurs Forum (DEF)

Mission: DEF is a passionate group of individuals (DoD personnel, veterans, active service members) dedicated to bringing an entrepreneurial spirit to the department.
Activities: They focus on learning, connecting, and networking to drive innovation within the DoD.
Support System: It serves as a form of "group therapy" for innovators facing the challenges of institutional resistance.
Arrogant Enough to Think You Can Change, Humble Enough to Do It: Mezer describes the necessary mindset for innovators as being "arrogant enough that you think you can change the department and humble enough to actually do it." This requires a dual personality of confidence and resilience.
Impact of Frustrated Innovators: Many innovators leave the department due to frustration, but they can return to make an "outsized impact" by joining companies.
Veteran Advantage: Veterans possess invaluable knowledge of the DoD's inner workings, including "where the problems are," "the bodies are buried," and "who the GS's to avoid are."

Final Advice for Transitioning Service Members

"Be Comfortable Being Uncomfortable": Embrace the discomfort that comes with new challenges and transitions.
"Trust Yourself": Believe in your capabilities and resilience.
"Take That First Step": The initial action is crucial.
"Trust the Process": A Philadelphia-inspired mantra for navigating the journey.