With Labor Day now in our rear view window, I thought it would be a good time to send out another post in my series of Leadership. Traditionally we think of CEOs and other senior execs when we think of leadership – I believe that leadership can emanate from anyone in an organization that showcases leading by example. Years ago when I was a Retailer (okay, three decades ago), we had a great Warehouse Manager names Matt Malinowski. He had a tough job, coordinating deliveries of inventory to 30 stores out of a much too small central warehouse. Matt had a crew of relatively low paid individuals and a management team that was developing ads and promotions often at the last minute, necessitating constant changes in the delivery schedule. Matt was the sort to never complain; instead his attitude was one of getting it done, with the people and resources that he had. Matt was always an advocate for his people, knowing who should get praise and who needed a raise. And he always was the first one to help with unloading or loading of a truck – he led by example. Great leadership, exemplified by consistent excellence and leading by example. A good model for all of us to follow, no matter what our title or position.
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The late Bill Campbell, well-known mentor for much of the key executives in Silicon Valley. Bill taught me a valuable lesson, one that more than 30 years later I still treasure … to be nice to all of the admin assistants out there. The story is simple. Back in 1986 we were getting ready for the holiday Season and wanted to order more than a thousand Apple IIc computers. Apple’s terms were net/30 and we were looking to get some extra terms and bring the product in early to have enough for the holidays. I kept calling Bill to try to negotiate a deal – he did not call back. Finally, I let loose on his assistant (no swearing, but definitely some yelling) to get him to call me back. And he did, using profanity like I had never heard it before (he was an ex-football coach after all), all because I had raised my voice to his assistant. And he was 100% right – it was nor her fault. Since then, I have learned that being polite and nice is the best way to get through – and I have Bill Campbell to thank for it. And, oh yeah, after yelling at me for 15 minutes and telling me no way on the extended terms, he gave us an extra 15 days. Like many others, I was mentored by Bill and I appreciate his showing me leadership skills that I use to this day.
Circa 1981 I was in an Apple regional dealer meeting when a dealer asked a question that Steve thought was stupid (this was a common occurrence at dealer meetings), and he started on a rant, saying “I don’t need any of you! We should have our own stores – and not count on dealers that are not 100% committed to Apple!” It was clear that Steve wanted total focus on his products and he was not getting it from the existing dealer channel – this was a theme that I heard over and over through the years at Apple meetings – and they were right! The lesson I learned from Steve was the importance of complete focus, that everything – the store look and feel, the displays and merchandising, the sales team and the advertising – everything should be in alignment, focused on driving the image and sales of the brand. No matter what the product is, one should have a near maniacal belief in the brand and product that one is selling. Focus and vision – that is the leadership example that Steve taught. I was not in complete agreement then or now about this being the only way to sell the brand (having brand exclusive stores) – I am in agreement that the brand needs to be a focus that is clear, much like the Best Buy store within a store current environment.
Time for the first example of Great CE Leadership – that of Dick Schulze and his incredible transformation of Best Buy in the 1980s. Traditional CE Retail at that time was all about advertising “loss leaders” and then using a commissioned sales force to step customers up to something that was profitable for the retailer. Dick focused on where the customer was going (most retailers were keying on how they could make money and were not customer-centric), where consumers would not feel pressured, creating a model where it was a complete non-commissioned sales force (the blue shirts), all there to help the consumer choose what would be best for them. No pressure to sell off the “on ad” items – what a concept! Concept IV was born, with Dick and Brad Anderson turning the industry upside down (goodbye Circuit City – though it took a few years). And they realized that they needed to drive traffic – using media (CDs, movies and software) to do the trick. Dick and Brad recognized that traditional CE was dying – they needed other items to drive traffic and bring new and younger consumers into their stores – a message that most other CE Retailers never managed to convey. That’s leadership – going where the consumer is headed and not trying to live in the past. Leadership Post #2 – 03122018
Many non-work friends ask me why a certain retailer or vendor is failing or how they are going to compete in an Amazon world. I thought that I would take my 40 years in the Consumer Electronics industry and start a series on Leadership (why some companies prosper and others do not make it). My family kids me that I am a little bit like Forrest Gump, having met and worked with almost all of the industry titans of the last 40 years – the early leaders like Sidney Harman (Harman Kardon, JBL) Ray Gates (the leader in bringing Panasonic to the US) and Dr. Bose (Bose) to the leaders of the 1980s – Steve Jobs (Apple), Nolan Bushnell (Atari), Jack Tramiel (Commodore), Dick Schulze (Best Buy) to the leaders of today. We have consulted directly for more than 250 companies in the CE industry, and have worked with more than 1000 in total as partners, clients and friends – and from this, I hope that the stories that I will share will inspire and teach you as they have me. and please feel free to comment and to suggest names as this promises to be an ongoing series of posts on what leadership means in the world today. #1 in a series on leadership – 03112018
Lots of people have asked me what has stayed the same at CES over the last 45 years. The stuff that has changed is in a separate LinkedIn post. What has stayed the same: #1 – It is still about the products, even if the type of product has changed. The early shows saw the launch of video games, VCRs, home computers, projection TVs and much, much more. #2 – CES is and was about vendor parties. Every night a party – the only difference is that at my age I am in bed by the time they start! #3 – CES has always been, then and now, about building relationships between vendors and retailers. #4 – It has always been a show where people work 16 to 18 hours days – breakfast meetings, then work the show floor and offsite meetings and then dinner meetings. The is not a show for the weary (or out of shape). #5 – The highlight is seeing friends that you have not seen for a year … and seeing where they are working now. Our industry has always had lots of mobility – people keep coming back to CES, just with different companies on their badge. See you in Vegas!
Lots of people have asked me what has changed at CES over the last 45 years. The stuff that has stayed the same is in a separate post. What has changed, beyond moving from Chicago to Vegas: #1 – The show has changed from a buying show where retailers wrote Purchase Orders for immediate shipment (with vendors offering lots of Show Deals) to one focused on the products and overall technology, where retailers can see where technology and the industry is going. #2 – CES is now clearly a global event – in the 1970s it was almost strictly for the Americas. #3 – The press is now both global and mass, as opposed to a US CE press with a limited amount of mass media. This has meant much greater exposure for our industry – a very good thing! #4 – The show has became stratified. In the 70s any retailer could go in any both, with or without an appointment, and see the top executives. Today is it appointment driven, and the top execs are in meeting rooms almost the entire time, meeting with retailers and press. #5 – The type of products, as we have shifted from Consumer Electronics to Consumer Technology. The cars in the 70s were only in the car audio booths, showcasing the car audio look and feel, and sound. There were no appliances (except for a few random microwaves). See you in Vegas!
I have been attending CES for the last 45 year (yes, since 1973). And in that time I have seen the launch of VCRs, Digital TV, Video Games, Consumer PCs, streaming devices, IoT products and so much more. The best part of CES to me has always been the exchange of ideas, as I meet with retailers, vendors, distributors and others, and we talk about what we have seen and heard, and what we believe will happen in the next year.
We are telling our clients that the three key trends for the next 12 to 24 months are:
- Amazon, Amazon and Amazon (selling to Amazon, selling on FBA, leveraging reviews, variating, bundles and so much more)
- Home Automation and Control – not just carrying, merchandising and promoting Amazon and Google solutions, but how to leverage the sales of other devices through these platforms and how these products transform how we interact with Consumer Technology and live our lives
- Having your products available to consumers however they want to buy them, wherever they want to buy them from and in whatever configuration they want to buy/consumer them – guiding principle of our consulting practice for the last 30 years.
Happy New Year, and feel free to see me in our meeting rooms at South Hall, MP25370
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