The Navy Leadership Lesson That Built a $450M Company | Blue Water Autonomy, Rylan Hamilton
Rylan Hamilton spent years putting over a million robots into Amazon warehouses. Now, he’s automating the ocean. As the CEO and co-founder of Blue Water Autonomy (BWA), Rylan is taking the "Amazon athlete" mindset back to his roots in the US Navy. With a fres
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Why the best founders never lead from a desk
- 00:00Right out of college, I joined the Navy.
- 00:01So, I was on ships in the Pacific and
- 00:04the Atlantic Ocean. The Navy that I was
- 00:06in 20 years ago, we had the world's most
- 00:08powerful Navy. And there's really no
- 00:10pure competitor. But when I first was on
- 00:12a ship in the Navy, and I was in charge
- 00:14of a division, I actually wasn't a great
- 00:16leader. In the Navy, you don't get to
- 00:18choose the people that are working for
- 00:20you. The Navy basically says, "This is
- 00:22your team, and you've got to make the
- 00:23best out of them." And so what you learn
- 00:25over time is you have to learn what
- 00:26motivates people and you have to
- 00:28understand people and you have to care
- 00:29about people and if you don't understand
- 00:31people then you can't understand what
- 00:33motivates them and then you can't get
- 00:34your mission your job done and then
- 00:36everything kind of unravels from there.
- 00:38What I learned in the Navy about
- 00:39leadership is leading from the front.
- 00:41When I was a junior officer in the Navy
- 00:43there's this sort of concept of deck
- 00:44plate leadership is that you have to be
- 00:46on the deck plates with your sailors and
- 00:48with your team and trying to help them
- 00:50solve the issue that you're not someone
- 00:52who that they report to. You're someone
- 00:53who's part of a team that's helping them
- 00:55solve the problem at hand. And sometimes
- 00:57that meant spending hours in an engine
- 00:59room trying to troubleshoot through
- 01:01[music] an issue. Sometimes we would
- 01:02lose steering at sea. We'd lose power.
- 01:04We'd have flooding. We'd have fires. We
- 01:07had many different issues that we'd
- 01:08[music] have to work through. But when
- 01:10your team saw that you were the person,
- 01:12you're standing in there, you're waiting
- 01:13with them, you're being patient, and you
- 01:15understood the problems that they were
- 01:16facing, and you understood any barriers
- 01:18that you could help remove, you would
- 01:20then get their trust.
The $60M mission to automate the US Navy
- 01:28My name is Ryland Hamilton. I'm the CEO
- 01:30and co-founder of Blue Water Autonomy.
- 01:33Our first customer is the US Navy. We're
- 01:34designing and building autonomous ships.
- 01:37Our focus is on the US Navy and building
- 01:40future warships for the Navy. Right out
- 01:42of college, I joined the Navy. I was on
- 01:44ships in the Pacific and the Atlantic
- 01:45Ocean. We were up in the Northern Gulf
- 01:47and we were looking for mines. In fact,
- 01:49we'd have lookouts on the front of the
- 01:50ship 24/7 looking for any mines that
- 01:53could be floating. There are a lot of
- 01:54really risky missions in the Navy that
- 01:55could be done by autonomous systems.
- 01:57There's no reason that a ship with 400
- 01:59sailors on it should be hunting for
- 02:00mines, including having people with
- 02:02binoculars on the front of that ship.
- 02:04And to date, we've actually launched
- 02:05what we call our autonomous test vessel,
- 02:07which is a 145 ton vessel just outside
- 02:10of Boston where we're already testing
- 02:12our technology. Google Ventures and our
- 02:14existing investors put $50 million into
- 02:16our company which really helps
- 02:17turbocharge what we're doing.
How 9/11 changed my career path forever
- 02:23That is the World Trade Center and we
- 02:25have unconfirmed reports this morning
- 02:27that a plane has crashed into one of the
- 02:30towers of the World Trade Center.
- 02:32When I was in college, 9/11 happened and
- 02:34it definitely was a moment that kind of
- 02:36I think shook everyone and said, "What
- 02:37do you really want to do with your
- 02:38life?" And at that point, the
- 02:40traditional jobs coming out of college
- 02:41were to go into consulting or into
- 02:43investment banking and professional
- 02:45service careers. But I wanted to do
- 02:46something different. And I'm not the
- 02:47type of person who's well suited to be
- 02:49behind a desk from 9 to 5. And I was
- 02:51like, "Oh, well, my family had been in
- 02:53the Navy. My father actually went to the
- 02:54Naval Academy and served on nuclear
- 02:56submarines in the '60s. I had two uncles
- 02:58who also served in the Navy. So, I
- 03:00wonder what a career in the Navy would
- 03:01be like." And I joined the Navy, which
- 03:03was one of the best decisions I've ever
- 03:04made. We were up in the Northern Gulf
- 03:06and we were looking for mines. In fact,
- 03:08we'd have lookouts on the front of the
- 03:09ship 24/7 looking for any mines that
- 03:11could be floating. One of the most
- 03:13memorable experiences I had in the Navy
- 03:15was probably the first time I actually
- 03:16was on a naval ship out sort of in the,
- 03:19you know, open ocean. And I joined an
- 03:21amphibious transport ship. It was
- 03:22actually in the Persian Gulf when I met
- 03:24it. But in order to get to that ship, I
- 03:25had to fly in a helicopter and actually
- 03:27go to sort of an aircraft carrier first.
- 03:30And while I was on that aircraft carrier
- 03:31waiting to get transported to my ship,
- 03:33Iran actually fired some test missiles.
- 03:34Now, the Navy at the time didn't know if
- 03:36those were test missiles until the whole
- 03:38ship went to general [music] quarters,
- 03:39but here I was knew the Navy and because
- 03:42I had actually been traveling in the
- 03:43Middle East, I was still in my civilian
- 03:45clothes. So, I was on a ship, the ship
- 03:47was going to general quarters, and I
- 03:48didn't even know where to go. And so, I
- 03:50was just running up and down staircases,
- 03:51and someone grabbed me and said, "You
Surviving Iranian missiles in civilian clothes
- 03:53look like you don't know what you're
- 03:54doing. Come in here and kind of wait."
- 03:56And so, that was like my first like hour
- 03:58on a naval ship. But, I think that
- 04:00lesson told me it's like, you know, be
- 04:01aware anything can happen at any moment.
- 04:04It's important to have a plan, but then
- 04:06it's also important to understand that
- 04:08plan will never actually materialize
- 04:10exactly as you expected. And one of the
- 04:13things is when you're in the Navy, you
- 04:15don't get to choose. You basically hire
- 04:16the people that are working for you. The
- 04:18Navy basically says this is your team
- 04:20and you've got to make the best out of
- 04:21them. When I first was on a ship in the
- 04:23Navy and I was in charge of a division,
- 04:25I actually wasn't a great leader. And
- 04:27so, what you learn over time is you have
- 04:28to learn what motivates people and you
- 04:30have to understand people and you have
- 04:31to care about people. And if you don't
- 04:33understand people, then you can't
- 04:35understand what motivates them and then
- 04:36you can't get your mission your job
- 04:38done. And then everything kind of
- 04:39unravels from there. And so when I first
- 04:42joined the Navy, I was like, let's do
- 04:43this job because everyone cares about
- 04:44the mission and America. But at the end
- 04:47of the day, actually what people cared
- 04:49about, especially when you're in port,
- 04:50is they're like, [music] "Hey sir, I
- 04:51just want to go home at 3 PM." So if our
- 04:54division can get all of our tasks done
- 04:56and we can go home at 3 PM, that's what
- 04:58matters to me because at home I have a
- 04:59wife, I have kids, I have a lot of other
- 05:01stuff going on. And so when we're back
- 05:03at port, like it really matters for me
- 05:05to have this kind of balance between my
- 05:07work and my life. And I realized that
- 05:09over time. And then I said, "All right,
- 05:10when he showed up to at work, let's
- 05:12focus on getting the mission done and
- 05:14let's get everyone home." And then when
- 05:15you got people home, they were like,
Why sailors just want to go home at 3 PM
- 05:17"Hey, I'm motivated now." And so it's
- 05:19really like when you're in the Navy
- 05:20about understanding people, what
- 05:22motivates them. And that's not something
- 05:23that was innately obvious to me when I
- 05:25first uh joined the Navy. What I learned
- 05:27in the Navy about leadership is leading
- 05:29from the front. When I was a junior
- 05:30officer in the Navy, there's this sort
- 05:32of concept of deck plate leadership is
- 05:34that you have to be on the deck plates
- 05:36with your sailors and with your team and
- 05:38trying to help them solve the issue.
- 05:39That you're not someone who that they
- 05:41report to. you're someone who's part of
- 05:42a team that's helping them solve the
- 05:44problem at hand. And sometimes that
- 05:46meant spending hours in an engine room
- 05:48trying to troubleshoot through an issue.
- 05:50Sometimes we would lose steering [music]
- 05:52at sea, we'd lose power, we'd have
- 05:53flooding, we'd have fires, we had many
- 05:56different issues that we'd have to work
- 05:57through. But when your team saw that you
- 06:00were the person, you're standing in
- 06:01there, you're waiting with them, you're
- 06:02being patient, and you understood
- 06:04[music] the problems that they were
- 06:05facing, and you understood any barriers
- 06:07that you could help remove, you would
- 06:08then get their trust.
Transitioning from mission obsession to customer obsession
- 06:13I had a great experience served for four
- 06:15years and then when I got out I went to
- 06:18graduate school and I transitioned into
- 06:20warehouse automation and I got lucky and
- 06:23I joined a company that was called KA
- 06:24systems. It was back in 2011 when there
- 06:27are a couple thousand robots in the
- 06:29field. And after a couple years, Amazon
- 06:31came in and actually bought KA systems
- 06:33[music] and made KA systems into what we
- 06:35now call Amazon robotics where there now
- 06:37over a million robots all throughout the
- 06:39world in Amazon warehouses. [music] You
- 06:41know, my experience in Amazon robotics
- 06:43where it wasn't deck plate leadership,
- 06:44it was more like concrete floor
- 06:46leadership in a warehouse where you're
- 06:47spending a lot of time with the team in
- 06:49warehouses all throughout the United
- 06:51States and the world. and you're with
- 06:52your team when you're trying to
- 06:53commission these different systems and
- 06:55you were there. You're traveling, you're
- 06:56spending the time in the warehouse, it
- 06:57really showed the team that you cared
- 06:59and the team would kind of respond well
- 07:00to that. So those are definitely things
- 07:01that I've learned over time. And the
- 07:03other piece is in the Navy, we
- 07:04definitely had sort of mission obsession
- 07:06where we knew what the mission was and
- 07:08we had obsessed and just complete it at
- 07:10all costs. When I transitioned to KA
- 07:12systems, it was all about customer
- 07:14obsession. My responsibility at KA in my
- 07:16job was to be a program manager, a sales
The concrete floor leadership of Amazon Robotics
- 07:18team who would basically spend months or
- 07:20years kind of working through a deal and
- 07:22they'd get a customer to sign a contract
- 07:24and the contract would say we are
- 07:25willing to pay this amount if you hit
- 07:27these different sort of objectives or
- 07:29different milestones. And so my job was
- 07:30to hit those milestones and one of them
- 07:32was to get the customer to accept the
- 07:34system. And so there was a ton of
- 07:36crossunctional work that had to happen
- 07:37but part of that was to really [music]
- 07:39just do whatever it would take to kind
- 07:41of get the deal done and to make the
- 07:42customer happy. Sometimes I would mean
- 07:44traveling to warehouses in remote parts
- 07:46of Nevada and actually trying to
- 07:48convince someone to go run a fiber line
- 07:50from the street into the warehouse
- 07:52[music] into the data room. And
- 07:54sometimes that would mean saying, "Hey,
- 07:55I'll pay you a hundred bucks right now
- 07:57in cash. I don't know if that will
- 07:58incent you, but you just do whatever it
- 08:00takes. Just [music] we just have this
- 08:01customer obsession and be like think
- 08:02outside the box about what it would take
- 08:04to actually get the job done." For me,
- 08:06startups have always been a passion
- 08:07project. It's probably not the best way
- 08:09to kind of like a balance [music]
- 08:10between your work and your personal
- 08:12life. I wouldn't recommend startups, but
- 08:14if you want to find something where you
- 08:15show up every day and it's the best job
- 08:17in the world and you love what you're
- 08:19doing, you love your customers, then
- 08:21there's nothing better than getting
- 08:22obsessed over a startup.
Why choosing pain was the best decision of my life
- 08:28I took that experience from being sort
- 08:30of in warehouse automation and actually
- 08:32started a company with some other people
- 08:33from Amazon Robotics, company called Six
- 08:35Rover Systems, and we made collaborative
- 08:37autonomous mobile robots. to basically
- 08:39self-driving vehicles in warehouses and
- 08:42we created a new form of automation and
- 08:44we sold that a couple years later to
- 08:45Amazon's competitor Shopify. When I left
- 08:48Six River Systems, I really take
- 08:50Jensen's advice at Nvidia to heart that
- 08:52he probably wouldn't go back and start
- 08:54another company because it is so hard.
- 08:56But I found myself [music] kind of
- 08:58itching to do something. I like taking a
- 09:00hard problem and solving it. And if it's
- 09:01an easy problem or an easy path, it's
- 09:03just not interesting to me. So I think
- 09:05throughout my career I've probably taken
- 09:07the hard path more often that have taken
- 09:09the easy path. Many [music] other people
- 09:10can take the easy path. But it's the
- 09:12hard problems that where if you solve
- 09:14them or if you solve them with a team
- 09:15the gratification that comes from
- 09:17solving hard problems is amazing.
- 09:18[music]
- 09:19I had a a period of time to just go
- 09:21explore. I was looking into a lot of
- 09:22different verticals. I knew someone who
- 09:24actually worked at Androl which is a
- 09:26really impressive defense tech startup.
- 09:27And I realized at the time that like you
- 09:29can actually start a company and then
- 09:31sell into the defense market. And that
- 09:33wasn't sort of a concept or framework
Facing the 230x China shipbuilding gap
- 09:34that I had 10 or 20 years ago when I was
- 09:37thinking about different sort of startup
- 09:38opportunities. But I started exploring
- 09:40and before I said I want to go start
- 09:41something, I said let me just go learn
- 09:43more about the space. And I really just
- 09:44try to get smart about the opportunity
- 09:46[music] set within sort of defense and
- 09:48within the Navy. And what was amazing is
- 09:51if I started the first idea that I came
- 09:53up with, I would not be here today. But
- 09:55I just had an open mind and just wanted
- 09:58to absorb as much information and get
- 09:59really smart about the opportunity. The
- 10:01Navy that I was in 20 years ago, we had
- 10:03the world's most powerful navy and
- 10:05there's really no pure competitor. But
- 10:07today, as we think across the world,
- 10:09China builds half of the world ships.
- 10:11China [music] possesses a ship building
- 10:13capacity over 230 times that [music] of
- 10:17the United States.
- 10:18When it comes to just building like raw
- 10:20tonnage that we can put in the Pacific,
- 10:22China is like definitely a competitor in
- 10:24that space. [music] So, we need to
- 10:25rethink the problem. I definitely spend
- 10:28a lot of time trying to understand is
- 10:29this market big enough? Is this market
- 10:31big enough that I can spend the next 10
- 10:33plus years building a transformational
- 10:36company in this space? And so every week
- 10:38I would have 10 to 20 different
- 10:40conversations with people. I learned
- 10:41about some of the delays that we have in
- 10:43some of the large ship building
- 10:44programs. I learned about how big of a
- 10:46painoint it is and how [music] we're not
- 10:48going to overnight change our ship
- 10:50building capacity in the United States.
- 10:52And so we need to rethink the problem.
- 10:53We're not going to compete on ship
- 10:55building, but we can compete on tech.
- 10:58The United States is really strong on
- 11:00autonomy and technology. And so we can
Why retrofitting old ships is a technical trap
- 11:02take that strength and then apply it to
- 11:04our today's [music] Navy. We're not
- 11:06retrofitting existing in vessels to make
- 11:08them autonomous. We're literally
- 11:10redesigning a ship from the keel up.
- 11:12Part of that reason is my experience in
- 11:14the Navy was that today's naval ships
- 11:15and commercial ships have engineers that
- 11:18are on the ships that are standing watch
- 11:20every day and they're maintaining and
- 11:22repairing the vessels. [music]
- 11:23So to take that commercial design or
- 11:25that naval design and try to make it
- 11:27unmanned for months at a time just won't
- 11:30work. There too many single points of
- 11:31failures and we've got a lot of good
- 11:33feedback that you can't take a
- 11:35commercial design and do a retrofit for
- 11:37the missions that we're focused on.
- 11:40At any early stage startup, you need to
- 11:42be super focused on one customer with
- 11:44one product. But I don't think it's
- 11:45obvious to a lot of founders kind of
- 11:46when they're starting something.
- 11:47Sometimes they see a cool technology and
- 11:50they try to force fit it or try to
- 11:52create a market. When we're thinking
- 11:53about the opportunities on the
- 11:54commercial market for autonomous ships
- 11:55and then on the defense market, the
- 11:57commercial market is super interesting,
- 11:59but there's still some regulatory sort
- 12:01of hurdles and obstacles that need to be
- 12:03overcome. But when you looked at the
- 12:05defense side and we looked at some of
- 12:06the geopolitical threats that are
- 12:07happening in all the areas of the world,
- 12:09especially around the Pacific, we saw a
- 12:11critical need. We saw a customer with a
- 12:13willingness to pay and we didn't see
- 12:15[music] any of those sort of regulatory
- 12:17obstacles that you have on the
- 12:18commercial side. And we said, we believe
- 12:20in maritime autonomy. We want to
- 12:21accelerate it, but we're going to focus
- 12:23on the defense market. We've seen a
- 12:25[music] ton of support from the Navy.
- 12:27We've even seen Congress allocate over
- 12:29$2 billion to what we're building. And
- 12:31so the lesson learned was focus really
- 12:33matters at an early stage company. Now
- 12:35that doesn't always scale, but I think
- 12:37when you're an early stage company,
- 12:38you're not trying to figure out how to
- 12:40scale. You're trying to figure out how
- 12:40to solve a problem.
Build your team like a Navy
- 12:46The other part about being on ships and
- 12:47in the open ocean is it's a beautiful
- 12:49experience being out in the middle of
- 12:51the open ocean. You don't necessarily
- 12:52have control over everything. You just
- 12:54have a lot of respect for the ocean. If
- 12:56you're in a large storm or something
- 12:58like that, there's only so much you can
- 12:59do. What you can do is you can rely
- 13:01around the people that surround yourself
- 13:03that are on the ship and you're a team.
- 13:05When you show up to a job and it's 9
- 13:06to5, you can go home at the end of the
- 13:08day. Well, when you're on a ship in the
- 13:10middle of the ocean, you don't go home
- 13:11at the end of the day, you're on the
- 13:12ship. And then they also remind you that
- 13:14it's a team effort and that it's not
Designing ships that solve their own problems
- 13:16about you being successful in your job
- 13:18on a ship. It's about the whole ship
- 13:20being successful. [music]
- 13:20And those are some of the thrilling
- 13:22moments about being at a startup. If you
- 13:24have teams that don't trust each other,
- 13:26then the interfaces between the teams
- 13:28aren't necessarily healthy. And what'll
- 13:30happen is that every team will have
- 13:31contingency that's there and then when
- 13:33you don't hit a date, they'll basically
- 13:35create a lot of conflict between the
- 13:36[music] different teams. But if the
- 13:38teams trust each other, then you can
- 13:39kind of remove a lot of that contingency
- 13:41[music] between the different teams. So
- 13:43what's super important to me is
- 13:45integrity. Especially at a startup,
- 13:47there are a lot of things that could go
- 13:49well. There are a lot of things that
- 13:50could go wrong. And one thing I learned
- 13:51in the Navy is that bad news does not
- 13:53get better over time. And I want [music]
- 13:55people to feel comfortable sharing good
- 13:58news and bad news, but it doesn't help
- 14:00to kind of like heard a little bit of
- 14:02bad news internally and not tell other
- 14:04people because it just doesn't help the
- 14:06startup. [music]
- 14:06And so transparency and being truthful
Why bad news never gets better with time
- 14:10is definitely helps a startup make the
- 14:12best decisions at the moment. So when
- 14:14you're a founder and you're thinking
- 14:15about a plan and never does your plan go
- 14:17perfectly. In fact, there are a lot of
- 14:19times when the outcomes aren't what you
- 14:20expected. And that's the beauty about
- 14:22being sort of a founder is basically
- 14:24you're trying to get the best out of
- 14:26everyone because at the end of the day,
- 14:28you'll have so many resources, [music]
- 14:29you have so many people, and your goal
- 14:31is to get the best out of your resources
- 14:33and your people and to produce the best
- 14:35outcome. It might not exactly be the
- 14:37plan, but just embrace that there going
- 14:39to be some downsides, but there are also
- 14:40a lot of upsides and things you moved a
- 14:42lot faster than you ever expected. So
- 14:44today we're in San Francisco and when I
- 14:46think about what I want Blue Water to be
- 14:48by describing it to like my family or
- 14:49friends and what the long-term vision
- 14:51is, I really want to be the Whimo for
- 14:52the open ocean. I think Whimo is this
- 14:54type of technology in this company where
- 14:56we're now coming to the fact that we
- 14:57accept getting into a car without people
- 14:59in it. We don't think about Whimo less
Becoming the Waymo of the open ocean
- 15:01as a vehicle company and more as a
- 15:03company creating these softwaredefined
- 15:05vehicles. And so when I think about what
- 15:07I want Blue Water to be is I want Blue
- 15:08Water to basically create every ship
- 15:10that's out there and for people to think
- 15:11about them as being software defined. A
- 15:13lot of the dole and jobs can be kind of
- 15:15replaced by software. So it can actually
- 15:17maybe become one of the best jobs that's
- 15:18out there where you're basically on a
- 15:20vessel doing different types of you know
- 15:22tasks, chores or missions and it's kind
- 15:24of a beautiful experience just like
- 15:25being in a Whimo car.