For federal government systems integrators like Tyto Athene, 2025 could be the best of times.
The Herndon, Virginia-based IT solutions provider for the U.S. military and other government agencies could benefit greatly from the launch of President Donald Trump’s unofficial Department of Government Efficiency.
DOGE is primed to slash federal spending and modernize “federal technology and software to maximize governmental efficiency and productivity,” according to the presidential order issued this week. However, as Tyto Athene’s CFO Rick Johnson is well aware, government spending priorities can shift quickly.
While Tyto Athene aims to stay agile amid that uncertainty, it is absorbing three companies it bought in 2024. The acquisition integration process is vital to Johnson, as he tries to build a culture of transparency and unify employees with a common mission. He spoke with our Katie Kuehner-Hebert about AI, merger integration priorities and the importance of the employee perspective when combining organizations.
What are some of the market and technology trends you’re keeping an eye on in 2025?
In the federal technology industry, we must track how budget priorities may change for 2025 and see what happens when the continuing resolution funding the federal government’s operations ends on March 14. It plays a role in our proposal work, our existing contracts and the timing of agency award notifications. All of that has an impact on our company’s planned growth and expansion. Regardless of the outcome, we have to remain agile and support our customers and future businesses wherever needed.
AI remains a top agenda item for 2025, especially regarding data mining for new business opportunities. AI can also provide solutions for back-office activities such as invoice and payment processes. As a technology company, we want to implement the latest tech, like AI, to allow our team to work smarter and faster. At the same time, we want employees to remain ingrained in the process, providing the essential human touch and oversight needed, especially if [the application] involves the customer experience.
How important is investing in innovation in pushing Tyto Athene’s financial strategy and business growth forward?
The level of investment in R&D might be a growing technology company’s most critical decision. The executive leaders have to put the organization in a forward-looking position to meet the changing technological needs of government customers. When a company like ours can’t differentiate itself or provide unique capabilities, it doesn’t build the credibility needed to win more significant opportunities or new business.
Tyto Athene acquired multiple companies in 2024. How do you manage the integration process?
My motto is “minimize the friction.” The administrative burden employees feel after an acquisition or big company adjustment needs to be minimal. We want to remove stress from the process and ultimately, over time, make all employees feel at home under one Tyto Athene. Maintaining harmony throughout business shifts deepens employees’ trust in leadership.
We always think about the acquisition integration process from the employee’s perspective; we can’t have any blind spots. Awareness of that perspective is the key to providing consistent messaging through clear communication about (1) the company’s actions and (2) the next steps of the integration process. Even more important is for leaders to follow through with their current and new teammates on the communications and promises we make.
As CFO, how do you help foster a strong company culture supporting financial growth and employee well-being?
In my experience, HR leaders have reported directly to the CFO team, so I’m used to wearing my “HR hat” and my “CFO hat” simultaneously. Being involved in HR has allowed me to understand why people are an organization’s greatest asset. Even in organizations that are technology leaders, the heartbeat and strength of team members are the driving force.
We demonstrate our commitment to our teams and invest in them, using employee feedback to understand their priorities regarding benefits packages, PTO needs and hybrid work approaches. The input gives our CFO team insight into where to invest to efficiently empower the employee base.
Given Tyto Athene’s M&A activity in 2024, we will continue to harmonize employee benefits across the organization, bolstering our efforts at improving the employee experience, ensuring all these moving parts align appropriately and will unite the Tyto Athene team under one mission.
