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As a pilot in the US Navy, Seth Schuknecht employed the OODA Loop, a decision-making process developed by a military strategist. Standing for Observe, Orient, Decide, and ACT, pilots employ this process whenever they’re in the cockpit. Schuknecht, who was recruited by the US Naval Academy to play basketball and flew the E6 Mercury, may not use all four steps of the OODA Loop as a business leader each time he makes a decision, but he implores his team to act decisively, seek and accept feedback, then act again.
“I learned at the academy and then more as a pilot, the importance of being decisive. Make decisions quickly and then own them, taking extreme ownership. I try to look at what the result of any given decision is and then make another decision,” says Schuknecht, executive vice president, general counsel, and chief compliance officer and corporate secretary at Cavco Industries, a designer and builder of factory-built homes.
Once a pilot acts decisively, the feedback he or she receives following that action is vital. “When you’re a pilot, you get the feedback from the plane. It’s just part of physics. If you push forward, the plane goes down. If you pull back, the plane goes up. If you go too slow, the plane stalls,” says Schuknecht.
“I want my people to know I care about their growth and development, so if and when I have to provide feedback it comes from a perspective that wants the best for them.”
Seth Schuknecht
Operating in a business environment can be like being in a cockpit. One-on-ones and feedback, both positive and negative, are important to Schuknecht as a leader. They called them “hot washes” when he was flying for the navy (discussions reviewing the positives and negatives of a completed mission). Navy pilots relish feedback, Schuknecht says.
Although it may seem counterintuitive, inaction in and of itself is a decision. And Schuknecht has found inaction is often an impediment to getting things done. “One thing I don’t want to foster on my team is simply not doing something, not addressing something,” says Schuknecht. He encourages team members to try to grow thick skins, because feedback is not always positive and not always fun. Team members can hopefully check their egos at the door when it’s time to give and receive feedback since they may hear things that are unpleasant. “The intent of feedback isn’t to make you feel good, but to make you better.” he says.
However, to establish an environment in which feedback can be given and received, Schuknecht tries to build relationships first. “I probably lead my team like I want to be led, and I know the leaders that have gotten the most effort from me are the ones I felt truly cared about me,” he explains. “I want my people to know I care about their growth and development, so if and when I have to provide feedback it comes from a perspective that wants the best for them.” Feedback must go up and down the chain. “I need feedback as both a leader and a subordinate,” says Schuknecht, “which is why 360 reviews can be so helpful. And failure is just part of the process, which helps us breed adaptability. It’s something that was hammered into us at the Naval Academy,” Schuknecht says.
Cavco Industries employs over 7,000 people at 31 plants and 79 retail facilities in the US and Mexico. Schuknecht’s legal team supports this “vast and disparate organization.” To be successful in such a model, his team must earn the respect of Cavco’s business units. “If we don’t earn their respect and don’t show how we can serve and support them in achieving their business goals, if we become the department of ‘no,’ those men and women, who are creative and have a lot of ingenuity, are going be more prone to avoiding us, which increases risk for the organization as a whole,” says Schuknecht.
To earn their respect and prevent end-runs around his legal team, Schuknecht tries to understand the team’s business goals and their challenges. “I’m not here to completely alleviate risk. I don’t think that’s going to help us be effective. I want to help us manage the risks that we create, as well as the risks that are inherent in our business,” says Schuknecht.
Schuknecht has been with Cavco for just under two years. In the twenty years prior to his arrival, Cavco had grown exponentially. Through acquisitions, by 2024 Cavco owned approximately nineteen different brands. “We found we needed to grow together and in the same direction,” says Schuknecht. To accomplish this Cavco had to consolidate those brands under one name. “We ran the legal and tax side of this organizational evolution.” Schuknecht’s team looked at the org chart and reduced the number of legal entities significantly. Cavco’s marketing and sales teams ran the front-facing side and were the drivers of the changes. “It was about a six- to nine-month process, but we believe it has paid huge dividends. I think it’s only going to continue as we unite under our Cavco brand,” says Schuknecht.
“I believe our industry has some incredible growth in front of it. Cavco’s future is going to mirror the future of the entire manufactured housing industry as a whole,” says Schuknecht. The median home price in the US is about $400,000. The manufactured housing industry offers homes in the $50,000 to $300,000 range. According to Schuknecht, the housing market has a shortage of up to five million homes, and Cavco is busy filling that void with affordable homes.
The manufactured housing industry is at an inflection point, and Schuknecht is excited to be part of it. “Not just from an economic perspective, but from helping people get a basic need met in shelter and getting a home that is exceptional, affordable, sustainable, and that lasts,” says Schuknecht.
“Seth’s journey from the Navy to the executive suite at Cavco Industries is a testament to his adaptability and unwavering sense of purpose. He leads with integrity, inspiring those around him to strive for excellence while always keeping the company’s mission at the forefront.”
–Kevin Criddle, Partner, Chair, Phoenix Corporate Group
