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The Founder/CEO’s First Step in a Turnaround with Richard Broo (stage 5) - Ep. 397
Episode 39726th May 2026 • The Start, Scale & Succeed Podcast • Scott Ritzheimer
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In this clarifying episode, Richard Broo, Principal and Founder of True North PMP Consulting, shares how how stage 5 CEOs can diagnose and fix disconnects that derail projects and performance. If you feel overwhelmed by complexity, frustrated by information gaps between levels, or sense your team is not aligned despite your efforts, you won't want to miss it.

You will discover:

- Why breakdowns happen even with smart people and strong intentions

- How to assess the true current state by talking directly to people at every level

- What to do instead of blaming when things go wrong

This episode is ideal for for Founders, Owners, and CEOs in stage 5 of The Founder's Evolution. Not sure which stage you're in? Find out for free in less than 10 minutes at https://www.scalearchitects.com/founders/quiz

Richard Broo has spent more than 40 years helping organizations identify and correct project issues before they become costly failures. He has worked with Fortune 500 companies, mid-market firms, and private-equity-backed businesses across industries, including packaging, automotive, consumer goods, industrial manufacturing, and medical equipment. His expertise includes product management, project management, new product development, commercialization, and operations. He has also led businesses through major turnarounds, including stabilizing a failing medical packaging company and guiding it through bankruptcy to a successful $22.2 million sale.

Want to learn more about Richard Broo's work at True North PMP Consulting? Check out his website at https://truenorthpmpconsulting.com/

Connect with Richard through his LinkedIn at https://www.linkedin.com/in/richardbroo?

Transcripts

Scott Ritzheimer:

Hello, hello, and welcome. Welcome once again

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to the Start Scale and Succeed podcast, the only podcast that

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grows with you through all seven stages of your journey as a

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founder. I'm your host, Scott Retzheimer, and I still remember

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there was this distinct change that I couldn't describe at the

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time I was founder, CEO of a business. We moved from being

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this small entrepreneurial startup to one day kind of woke

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up and found like we're this full blown enterprise, and as

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nice as that sounds, and as much as I probably bragged about it

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quite a bit, if I'm honest, it seemed like on the inside it was

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a heck of a lot harder than I expected, because just about

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every day demanded a new skill or new way of thinking that I

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did not have at the time. Now, as a coach, I recognize this

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same challenge that catches almost every founder by surprise

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when they reach this CEO stage. There's so much to consider,

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there's so much to understand, and there's so much that has to

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get done, and you're so dependent on so many people for

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every step of that process that it can be very, very

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overwhelming. The simplest problems, like realizing you're

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paying $10 for a part that should only cost $1 somehow

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comes with so much complexity that you wonder if you ever, if

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you'll ever get anything done. Well, if that's you, I am

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thrilled to have you here. Because today's guest is Richard

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Broo, who spent more than 40 years helping organizations

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identify and correct project issues before they become costly

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failures. He has worked with Fortune 500 companies,

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mid-market firms, and private equity-backed businesses across

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industries, including packaging, automotive, consumer goods,

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industrial manufacturing, and medical equipment. His expertise

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includes product management, project management, new product

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development, commercialization, and operations. He's also led

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businesses through major turnarounds, including

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stabilizing a failing medical packaging company and guiding it

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through bankruptcy to a successful $22.2 million sale.

Scott Ritzheimer:

He's here with us today. Richard, welcome to the show.

Scott Ritzheimer:

I'm so glad to have you on today. I'm excited about this

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conversation. I want to jump in with a question here. You've

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spent a long time, over 40 years, of walking into rooms

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where projects or companies are bleeding out money, they're out

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of time, and that all happens under the watch of some really

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clever people, some really smart CEOs who've had a ton of success

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in the past. How does that happen? How do we let things get

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so out of control?

Richard Broo:

But first of all, thanks for having me, Scott. And

Richard Broo:

that's a very good question. And from my experience, it gets out

Richard Broo:

of control because the different levels within the organization,

Richard Broo:

either have different expectations about what you're,

Richard Broo:

what they're trying to do, what they're trying to achieve, and

Richard Broo:

they're not communicating with one another on all cylinders, if

Richard Broo:

you will. So I have found that that's one of the critical

Richard Broo:

reasons why some of the brightest and best minds get

Richard Broo:

derailed, because those that they depend on always don't

Richard Broo:

provide all the information or the right information at the

Richard Broo:

right time.

Scott Ritzheimer:

Yeah, yeah, it's this like game of telephone

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times hundreds and 1000s, and and I think the challenge of it

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is for founders who you've kind of been growing up through all

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of these different levels and stages, they've got a pretty

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keen sense on the feel for the organization. They know it needs

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to get done, and I think we actually misinterpret the fact

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that our executives have that same level of intuition. We kind

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of think that they know exactly what's happening at any given

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point in time, when sometimes they're just as in the dark as

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us, where in this game of phone, when we realize that it's

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breaking down? What are some of the first steps to start to

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clarify things?

Richard Broo:

Well, having done several turnarounds and helped

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some of the General Electric divisions become more profitable

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and operationally efficient, you know, the first thing that that

Richard Broo:

I look for is current state. What is what is the current

Richard Broo:

state? What if you're the CEO? I want to know what do you know?

Richard Broo:

What do you think? What do you feel? You know what's your

Richard Broo:

impression about what's going on here. But I don't want to stop

Richard Broo:

there. I want to go down below you. I want to talk to your

Richard Broo:

staff. I want to talk to the people within the organization

Richard Broo:

to see, are they are they seen and thinking the same things

Richard Broo:

that you are, because what I find is there is some degree of

Richard Broo:

disconnect, you know. The boots on the ground are trying to make

Richard Broo:

something happen, right? I mean, that's why I'm a boot on the

Richard Broo:

ground. I'm here to help advance the company, but I may not.. I'm

Richard Broo:

live, I'm actually living on the ground, doing the work where the

Richard Broo:

CEO is up several levels, or some of the management might be,

Richard Broo:

and they may not really understand what's going on down

Richard Broo:

at the boots level, or they may have what they think is an

Richard Broo:

understanding by gathering points of information, but that

Richard Broo:

information, it's not been put together properly, it's not been

Richard Broo:

connected properly, so that you know by the time it gets. Way up

Richard Broo:

to the top, you know that person says, "Well, wait a minute,

Richard Broo:

what's going on here? And you say, "Well, this is what's

Richard Broo:

really going on, and this has not been elevated enough to our

Richard Broo:

levels. So, you first, I first look for is what you told me, as

Richard Broo:

this founder and a CEO, the same as what I'm hearing on the

Richard Broo:

floor, where the people are doing the work. If not, there's

Richard Broo:

a disconnect, and we have to figure out why that disconnect

Richard Broo:

exists.

Scott Ritzheimer:

Yeah, yeah, with that disconnect, oftentimes

Scott Ritzheimer:

it can be really painful, and and there's this feeling that

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we've kind of got to jump in and find someone to blame. We don't

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necessarily say it that way, but we feel it that way, it's like

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we have there's this almost visceral reaction to point

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fingers. Is that helpful? Is it not helpful? What is an

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appropriate response when we find out that there's been a

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disconnect?

Richard Broo:

It's not helpful to blame. I mean, when we, when

Richard Broo:

you boil it all down, we're all people, we're all trying to do

Richard Broo:

what we think is the right thing, and the only way you're

Richard Broo:

going to come through, like what I put Headwind Corporation

Richard Broo:

through before I sold it, or helping turn around GE

Richard Broo:

silicones, is you have to have some degree of empathy and

Richard Broo:

open-mindedness to talk to the people about the situation,

Richard Broo:

gather exactly what they feel that is, look for the

Richard Broo:

connections and the disconnects, and then employ them, employ

Richard Broo:

them to help close these disconnects. But for me to say

Richard Broo:

to you, well, you know, Scott, this is all your division's

Richard Broo:

fault. That's not going to solve anything. I'm going to alienate

Richard Broo:

you, and I'm disrespecting you and the people that work for

Richard Broo:

you. So it's all about getting the people moving in the same

Richard Broo:

direction, understanding the same objectives and goals, and

Richard Broo:

making sure that there's that accountability and ownership

Richard Broo:

that they want to go that way. And the only way you're going to

Richard Broo:

get there is with your people, so don't blame them, engage

Richard Broo:

them.

Scott Ritzheimer:

Yeah, when there's been a big mistake, or

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there's been a pattern of mistakes, and maybe you want to

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handle those two separately. You're more than welcome to, but

Scott Ritzheimer:

how do we separate when it, when it is the person versus when

Scott Ritzheimer:

it's more of a process or systemic challenge?

Richard Broo:

Well, I've been through that at Headwind. There

Richard Broo:

were there were some groups within that company that were

Richard Broo:

not performing as expected, and some of it was the person, but

Richard Broo:

when he's, when you talk about the person and the situation,

Richard Broo:

you first have to ask yourself, as a leader, is that person the

Richard Broo:

right person for that job? Do they, do they really have the

Richard Broo:

skill sets to do that? And, and ahead, when I, I had a

Richard Broo:

manufacturing manager that was thrust in, in the job that

Richard Broo:

didn't have that experience, he did not have the experience of

Richard Broo:

running, you know, three different buildings, all this

Richard Broo:

different equipment, and he was just miscast, so I put someone

Richard Broo:

in there that knew the operation, that knew how to run

Richard Broo:

it, but that didn't mean the person that was miscast was a

Richard Broo:

bad person, he had a great rapport with the customers, so I

Richard Broo:

put him into sales, and he flourished. So, you first look

Richard Broo:

at the people, I ask myself, is this person miscast in the role?

Richard Broo:

Is this person really trying hard? I mean, do they have the

Richard Broo:

heart for what, for the company, what they're trying to do? If I

Richard Broo:

see that, I'm going to try to help that person get to where

Richard Broo:

they need to be, and find someone else to take over where

Richard Broo:

they were that can do the job. Yeah, yeah, and it's all about

Richard Broo:

people understanding the skill sets required. And do you have

Richard Broo:

the right people?

Scott Ritzheimer:

One of the things that makes that

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challenging for founders, especially when they've had team

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members and leaders and executives who've kind of grown

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up in the business with them, is that at one point in time that

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may have been true, they were the right person in the right

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seat, doing the right thing, but those roles aren't static,

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they're growing with the organization. And how do you

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help someone figure out whether or not that's changed? Like, how

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do you stop when they've had so much success in the past and you

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see them as a successful leader? How do we, how do we stop in the

Scott Ritzheimer:

current moment and reassess.

Richard Broo:

Well, my style, what I did at headwind, and when

Richard Broo:

I did a GE is I actually met with the person, I said, you

Richard Broo:

know, you've, you've had success up to this point, you're

Richard Broo:

obviously struggling. Some admitted to the struggle, some

Richard Broo:

had to be, I guess, coached to understand the struggle, but

Richard Broo:

eventually understand they're struggling. Okay, why are you

Richard Broo:

struggling? What is it about what you do on a day-to-day

Richard Broo:

basis for this job that's preventing you to have a

Richard Broo:

continued success that will come out in those conversations? And

Richard Broo:

then the next question I would say, well, if that's the case,

Richard Broo:

Scott, do you really want to continue in this role that

Richard Broo:

you're in and risk more failure, or can we work together to find

Richard Broo:

a spot for you where you can flourish again? Because if you

Richard Broo:

do, I can help you with that. But even though you've grown up

Richard Broo:

in this business, so you and I grew up together, it's not

Richard Broo:

working anymore, and it's all perhaps not your fault. There's

Richard Broo:

circumstances involved. But again, you have value. Where can

Richard Broo:

I use that value now to get you back on track and get the

Richard Broo:

company back on track?

Scott Ritzheimer:

Yeah, yeah, it's such a hard conversation,

Scott Ritzheimer:

but approaching it through that lens, I think, is so powerful,

Scott Ritzheimer:

and I'm regularly surprised at how well that works. I've seen

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folks even offered to have themself demoted to another

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role, demoted, but into a role that's a better fit, and really

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thrive in it. So, from a people standpoint, I love that input

Scott Ritzheimer:

and advice. It's a great conversation to have. The other

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thing that you talked about, and kind of opened the episode with,

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is that the people are saying and seeing different things,

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and, and so one of the challenges, or one of the ways

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I've seen companies try to overcome this, is they just

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share everything with everyone, not literally, but almost, and

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it's just it's emails and emails and meetings and meetings, and

Scott Ritzheimer:

there's a, there's a too much that's just as bad as too

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little. How do you figure out what the right information is,

Scott Ritzheimer:

and the right channels to share it?

Richard Broo:

Well, when it comes down to a personal

Richard Broo:

conversation, to me it's person to person. I'm not going to air

Richard Broo:

laundry that doesn't have to be air, if you will. So, if I have

Richard Broo:

a people issue, I'm going to go to the people involved and have

Richard Broo:

a direct one on one, understand where their head's at,

Richard Broo:

understand, you know where their choking points are, and to talk

Richard Broo:

to them about we can come through this if we want to work

Richard Broo:

together through it, if it's a process-related thing, and we

Richard Broo:

had, we, you know, at GE at Silicones, it was, it was, it

Richard Broo:

was struggling fairly much, and basically we had a product

Richard Broo:

issue, and we were trying to compete against companies like

Richard Broo:

Dow and Varga Chemical, and everybody thinks she's this

Richard Broo:

great company with all these products, but we had products

Richard Broo:

that couldn't compete with them, so I had to go back to the

Richard Broo:

product development people and say this is where we're really

Richard Broo:

strong in this kind of chemistry, not that kind of

Richard Broo:

chemistry, you've been trying to fight that kind of chemistry,

Richard Broo:

where we're losing for the last 10 years on the automotive side,

Richard Broo:

we're already beat, but let's go over here, where we can have a

Richard Broo:

new market or market segment and win again. So, I think you have

Richard Broo:

to, I think you have to find a way to divide it. If it's

Richard Broo:

people, it's one on one, it's figuring out where the choke

Richard Broo:

points are, how to get them back on track, not and use their

Richard Broo:

value if it's, if it's process or product wise, you've got to

Richard Broo:

go back within, within the organization with the facts,

Richard Broo:

obviously, and say we're not winning here, and we're not

Richard Broo:

winning here because of our people, we're not winning here

Richard Broo:

because we don't have products that can compete in the

Richard Broo:

marketplace, but we have strengths over here where the

Richard Broo:

competitors don't, that's what we need to exploit.

Scott Ritzheimer:

Got it, got it. So, good, Richard. There's

Scott Ritzheimer:

this question that I have. I ask all my guests. I'm interested to

Scott Ritzheimer:

ask it of you as well. And the question is this: What is the

Scott Ritzheimer:

biggest secret that you wish wasn't a secret at all? What's

Scott Ritzheimer:

that one thing you wish everybody watching or listening

Scott Ritzheimer:

today knew?

Richard Broo:

I wouldn't call it a secret, I would call it point

Richard Broo:

of concern. There's no issue, there's no problem that you

Richard Broo:

cannot overcome if you just have the gumption, the desire to have

Richard Broo:

the hard conversations with the people that you're trying to

Richard Broo:

nurture to grow your company or to turn your company around. You

Richard Broo:

know, I grew up in GE before it became Welsh's real GE of

Richard Broo:

empowerment, where people were afraid to talk. I'm afraid to

Richard Broo:

talk to Scott, because I'm afraid if Scott takes what I say

Richard Broo:

wrong, politically I could be killing myself. Or I don't

Richard Broo:

really want to admit this to Scott, because if I do, I'm

Richard Broo:

showing a sign of weakness. The big secret is don't be that way.

Richard Broo:

Admit to what you don't know, admit to what you can't do, and

Richard Broo:

ask for the help. That's strength, that's not weakness.

Richard Broo:

But I think a lot of people feel within themselves, I don't want

Richard Broo:

to expose myself to that. It's no big secret, you know. And I

Richard Broo:

think you get more respect and more help and more runway if you

Richard Broo:

do that with with the people you work for and the people you work

Richard Broo:

with.

Scott Ritzheimer:

Absolutely, absolutely, Richard. There are

Scott Ritzheimer:

some folks who are listening and hanging on everywhere. You said

Scott Ritzheimer:

just completely describe the situation they're in, and they'd

Scott Ritzheimer:

love to have help navigating through some of these turbulent

Scott Ritzheimer:

waters. Where can folks find more out about you and the work

Scott Ritzheimer:

that you do. Where can they reach out to connect with you?

Richard Broo:

They can find me on LinkedIn. I'm Richard Broo, B

Richard Broo:

R O O. My company has a website, ww dot true north pmp

Richard Broo:

consulting.com And I'll be more than happy if one of your

Richard Broo:

listeners would like to talk with me. It would be my

Richard Broo:

privilege.

Scott Ritzheimer:

Fantastic, fantastic. Well, Richard, thank

Scott Ritzheimer:

you so much for coming on and sharing the wealth of experience

Scott Ritzheimer:

that you had. I know we've only scratched the surface of the

Scott Ritzheimer:

surface, and for those of you listening, you know that your

Scott Ritzheimer:

time and attention mean the world to us. I hope you got as

Scott Ritzheimer:

much out of this conversation as I know I did, and I. Cannot wait

Scott Ritzheimer:

to see you next time. Take care.

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