Scaling Up Success | Makoto Kern | The AI Competence Gap: Why You Can't Replace Humans Yet

In this episode, Ryan sits down with Makoto Kern, founder of Impact and a three-time Inc 5000 honoree, to discuss the gritty reality of scaling a digital product agency. Makoto challenges the current AI hype, warning executives about the "AI Competence Gap"—the dangerous assumption that AI tools can immediately replace skilled human judgment in coding and design.Beyond technology, Makoto shares a masterclass on leadership and culture. He breaks down why he prioritizes attitude over aptitude when hiring, how to "lead from behind" to empower teams, and the hard truth that no one will ever care about your business as much as you do.In this episode, you will learn:• The AI Competence Gap: Why you cannot simply replace your engineers and designers with AI agents without introducing massive risk.• Scaling Service Operations: How to implement quality checks and processes to maintain standards as you grow from 10 to 50+ employees.• Hiring for Attitude: Why Makoto prefers a "C" player with an "A" attitude over a toxic genius, and how this strategy protects company culture.• Global Talent Strategy: Insights on the shifting landscape of globalization, offshoring, and valuing talent based on output rather than location.• Extreme Ownership: The critical piece of advice Makoto would give his younger self about taking full responsibility for the business's success.About Makoto Kern: Makoto Kern is the Founder of Impact, a product strategy and design agency recognized on the Inc 5000 list for three consecutive years. With over 20 years of experience, Makoto helps organizations launch digital products faster by aligning strategy with scalable execution, moving beyond "pretty wireframes" to solve real business risks.Connect with Makoto & Cynergists Impact: Website: https://solutions.iiimpact.io/LinkedIn: Makoto Kernhttps://www.linkedin.com/in/productuxdesigner?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_appInstagram: makotoiiimpacthttps://www.instagram.com/makotoiiimpact?igsh=MXR3dnpkMnl3bjdyZw==Facebook: Makoto KernCynergists: http://www.cynergists.com#ScalingUpSuccess #MakotoKern #ImpactAgency #AIinBusiness #BusinessScaling #Leadership #ProductStrategy #Inc5000 #Entrepreneurship #HiringTips #RyanVanOrnum #CynergistsChapters 00:00 - The AI Competence Gap (Teaser) 00:51 - Intro: Scaling Up Success 01:27 - Who is Makoto Kern & Impact? 03:00 - Biggest Challenges in Scaling Services 05:43 - The Reality of AI in Business 06:35 - Defining the "AI Competence Gap" 09:00 - Building Culture: Leading from Behind 10:28 - Hiring Strategy: Attitude vs. Aptitude 11:00 - Navigating Globalization & Outsourcing 16:45 - The Time Traveler’s Advice: Extreme Ownership 18:38 - Future of Impact & Closing