Ep 213 – How ADT Is Transforming Into a Tech Company | David Scott, ADT

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ADT's transition to a technology company

For years, ADT relied on others' technology. But several years ago, the company made a bold move—building its own platform and tools and becoming more agile.

Why? Competition.

DIY solutions, sleeker tech, and evolving customer expectations demanded change. But digital transformation isn’t just an IT project—it’s an organizational mindset.

Success meant:

Understanding end-to-end processes
Leveraging data over gut instinct
Hiring talent that thinks in a product-first way

One example? Imagine you're on a flight, and a water leak starts at home. ADT’s new approach doesn’t just notify you—it empowers your neighbor to act. With biometric recognition, they can unlock your door, shut off the water, and prevent disaster.

This shift required more than tech. It meant rethinking customer trust, internal culture, and how ADT defines security.

Dave shared how this product mindset has transformed the company. A few highlights:

  • Transitioning 3,000 technician roles into virtual roles
  • Workforce planning with AI in mind
  • Attracting top technical talent to a company that’s been around since 1874

Workforce planning with AI in mind

AI isn’t just a buzzword—it’s reshaping entire organizations.

When Dave sat down with his team, they asked themselves:

What are the major long-term shifts we need to make?”

A key focus? Workforce planning.

  • AI as an enhancer – Helping employees develop new skills and capabilities
  • AI as a replacement – Phasing out certain roles and preparing for what’s next
  • Future-proofing talent – Creating pathways for employees to evolve

Dave shared an example from his Walmart days: When self-checkout replaced 250,000+ cashiers, the company had to rethink its approach—offering education programs, re-skilling opportunities, and new roles in technology and customer service.

For ADT, the stakes are just as high. With 13,000+ employees, they’re focused on:

Training leaders and teams for AI-driven roles
Designing jobs around human-AI collaboration
Ensuring displaced workers have a future—inside or outside the company

Imagine a world where an autonomous drone puts out a kitchen fire before first responders arrive. That future isn’t far off—but it requires rethinking people, skills, and technology today.

Cutting HR costs without cutting value

HR leaders are under pressure to do more with less. But what if the real goal is to do less with less—without sacrificing impact?

He broke it down into two key strategies:

1️⃣ Eliminate, automate, standardize, simplify.

ADT reduced HR Shared Services call volume by 34% simply by removing redundant approval steps—empowering managers to make decisions earlier in the process.

2️⃣ Focus on business value, not just HR value.

Instead of talking about competency frameworks and career ladders, Dave shifts the conversation to outcomes:

30% faster hiring
50% greater retention at 12 months
Shorter time to profitability

When you bring data-backed business value, people lean in.

Looking ahead to 2025, Dave sees economic challenges continuing—but also opportunities for smarter, leaner operations. The key?

Question everything.

Cutting HR costs

Benefits costs are rising, but ADT is finding creative ways to save money and support employees.

Dave's approach:

  1. Simplify the tech stack. ADT moved to a best-of-suite model, only adding specialized tools when they provide clear ROI. Example: Investing in Symphony Talent to improve recruiting funnel insights.
  2. Think beyond traditional benefits. While medical costs keep rising, there are other ways to put money back in employees’ pockets:

Cell phone savings: A simple program offers employees phone plans for $20–$25/month—a 65% reduction from the usual $70/month. That’s $500+ in yearly savings per employee, with zero cost to the company.

Virtual pet care: With 70% of employees owning pets and annual vet costs averaging $750, ADT introduced low-cost, company-paid virtual vet visits—helping employees cut expenses where it matters.

The goal? Maximize value without unnecessary costs—and ensure employees feel supported in ways that impact their daily lives.

Advice for someone starting in HR today

"In addition to getting payroll and total rewards experience, I believe the culture of an organization isn’t defined by the sign on the wall but by the worst behavior that any leader is willing to tolerate. Address bad behaviors quickly, as they can shape your culture far faster than any company values can."

One thing they'd steal from another company

"I really admire how Costco stands by what they believe in—whether it’s their $1.50 hot dogs, which they’ve maintained for years, or their strong cultural values. I’ve been impressed by how they dig in their heels and hold firm to their principles."

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