GFEP 13 | Sports Specific College Degrees

 

Sport executives often debate the value of sport-specific college degrees. Some argue the focus is too narrow. Others claim an emphasis on industry-related subjects produces better applicants. Dr. Jason Williams, assistant dean of the Simon School of Business at Maryville University, also directs the school’s Rawlings Sport Business Management program. In this wide-ranging interview with Rob Cornilles, Jason weighs in on this debate. He also speaks to the hot topics on college campuses today: academics vs. affecting social change; opportunities for minorities; and, if teaching sales is worth classroom time.

Watch the episode here:

Dr. Jason Williams | The Present-Minded Professor

Dr. Jason Williams, this episode’s Game Face Exec is more like a Game Face educator. A New Jersey native, Jason was a college athlete who first pursued a football and track and field coaching career. Fortunately for thousands of students at Maryville University in St. Louis, Missouri, over the last couple of years, Jason has had an even bigger impact as their academic coach and their business and life coach. Unusually vested in his students’ pursuit of knowledge and their success in achieving a career in the competitive business of sports, please meet one of America’s most present-minded professors.

I want to welcome Dr. Jason Williams from Maryville University with us. Jason is an old friend and someone I’ve been doing a lot of business worth over the last couple of years. We work together in the classroom. We’re teachers together and thanks to Jason’s invitation to me about a decade or so ago, we’ll talk a little bit about how that relationship started. Jason is coming to us from his home, as many people are in this new era of COVID. I can see already a lot of cool things that Jason’s picked up from his career working with sports organizations around the country. Jason is not only a friend, but he’s also someone that I turn to for insights into the best practices and what’s going on outside my world within Game Face. He has great foresight and purview of the sports business. Jason, thanks for joining us. Welcome to Game Face Execs.

Thank you, Rob. I appreciate you inviting me on and I look forward to our conversation.

Jason, you are an educator, and you’ve been an educator for many years. You’re one of the leading programs in the country to educate and prepare students for careers in sports. Before we get into the details of what you do, specifically at Maryville University, I want to talk a little bit about your past, your history, because you’ve had a long road. You’re not that old, but you’ve had a long road into where you are now. Can you take us back to the beginning where your career began and how you’ve been involved in academia all these years?

I’ve been fortunate, Robbie, to have an outstanding career and it’s been because of a lot of good people that have seen some things in me that have allowed me to continue to progress. I started out as a high school teacher. I went to Montclair State University, got my undergraduate degree, and also played football there, and track and field. I was fortunate enough to become a high school teacher after I graduated from Montclair State University. I was there for about three years and wanted to work on the college side of things in athletic administration and also coaching. I landed a position at Illinois Wesleyan University where I was an athletic administrator, assistant football coach, and also head men’s track coach.

As you know, at Division Three schools, you do a lot of different things and it was great for me to be able to do those things at such a young age because I got to learn from a lot of good people in a lot of different areas. During that time, I wound up taking advantage of some NCAA professional development opportunities and met some people who worked at Florida State. They had a position open, so I applied for it and wound up becoming an Assistant Director in the athletic department at FSU working on a variety of different things marketing, community service, and student-athlete development. I enjoyed my time there and learned a lot. I tell people all the time that it was a whole other education working in the athletic department of a BCS school, namely Florida State.

Shortly after that, I wound up taking a position at Endicott College where I worked a little bit more on the academic side, like developing some academic programs for them, as well as working on some things for the late president there, Richard Wylie. While I was in Boston, Boston College had a position open where they needed someone to work the ticketing and marketing for football, basketball, and also men’s and women’s hockey. I did that at night while working in college during the day, which was another great opportunity and I learned a lot from a different culture in BCS college athletics.

Later on, while I was doing that, a mentor, we all have those and are important for all of us to have, contacted me about a position at Maryville University had opened and his name was Dale Lick. He was a three-time university president. He had been the president of Florida State University, Georgia Southern University, and the University of Maine. He shared with me an opportunity that was at Maryville University. At first, I was a little bit reluctant. I didn’t know if I wanted to become a full-time faculty member at that time, but I knew Maryville University wanted to do things the right way. They want to grow. They had an earnest interest in educating young people so that’s what drew me to where I am now at Maryville University.

Before we go into your career at Maryville and what you’ve done there over what has been a couple of years now, what you described is not typical for those people who want to work in the sports business. In that, it sounds like you lived out of your car so to speak. You always had to keep a full tank of gas because you might be going to another job before you know it. You were probably opportunistic. Meaning when an opportunity presented itself, and you thought it would be a good fit for you, you did everything you could to grab that opportunity and run with it.

[bctt tweet=”Gain as much knowledge and experience as you can in different places, doing different things so you can learn to work in different cultures.” username=””]

There are a lot of people though that would not make that sacrifice. They’re so married to a particular market, or they want to stay close to home. Some of this is necessary if you’ve got family obligations or those types of things. You have the freedom to come and go as you please. If you could talk a little bit more about that decision to be mobile and I’d be curious to know, I know you’re married, you’ve got a beautiful family, what role did your spouse play in these decisions?

I’ve had good mentors and one of the things that my mentor has always taught me about is at a young age, you have to look at opportunities wherever they are and look at it for the opportunity, not so much of what part of the country or the world that it’s in. You need to gain experience and gain as much knowledge as you can in different places, doing different things so you can learn to work in different cultures. Even though we’re the United States, we have different cultures in each part of our country. I listened to my mentors very well and that was one of the things that always kept in the back of my head. It was like, “What’s the opportunity? What part of the country is it in?”

My wife has been a trooper. When we got married and when we were both working at Illinois Wesleyan University, one of the things that I shared with her before we got married was, “I’m still young in my career and I may not always live in Bloomington, Illinois. I can’t tell you where we’re going to live moving forward but I can tell you this. Family is important to me and I will always keep that at the forefront even as we make these decisions.” She’s been awesome with that even to this day as I’m looking at opportunities as they come up, but it was a combination of my mentors and also then taking into consideration my spouse that made me make all those different moves.

Can I ask you a little bit about that relationship you and your wife have without getting too personal? Nobody can dictate to a spouse, “This is what we’re going to do,” and expect to have a happy and fruitful marriage. There has to be a mutual understanding and mutual respect for one another. I’ve spent time with your wife and kids and know that there is a deep and loving bond that brings you together. How does that materialize, that type of relationship with a spouse where, in your case, she would be willing to follow your career and in other cases that meant the roles might be reversed? What are some of the tips you can give people to enter into that relationship? Is it something you have to lay down your expectations from day one, that first date, or do you evolve into that understanding?

I definitely think it’s an evolution, but I do think it’s something that you do before if you decide to take the serious route and be married to someone. You’ve got to have that discussion beforehand. If you plan on having children, have that discussion beforehand. That way, it doesn’t become a surprise to anyone if those things start to materialize as relates to moving or whatever. I don’t think it’s something that I have to tell him on the first date but maybe a little bit as you get a little bit more serious but it’s a conversation that you have to have. If there’s mutual respect for each other and an understanding of why that person wants to do that and also understanding who that person is. Working in the sports business industry is not the same as working for any other industry in my opinion. Your spouse has to understand that and want to be involved in that because if that’s what makes you happy and that’s your career, it’s not going to go away.

You know at Game Face, and certainly on Game Face Execs, we talk a lot about sales, the power of influence, and the necessity for persuasion. It sounds like you had to exercise some of that in your marriage. Is that a fair statement?

No question. Moving from Florida to Boston took a lot of persuasion. As you can imagine, waking up Christmas morning and it’s 72 degrees versus waking up Christmas morning and it’s 10 degrees for my wife was not always something that she had envisioned but it did take some persuasion. There’s also give and take in that. There were times when I didn’t want to travel because I’ve been traveling so much for work, but she wanted to visit her family, so you make those sacrifices because marriage and any relationship is about give and take. It took some persuasion, but it also was a lot about, “Here’s what I’m doing. I’ve been doing this then I have to allow these things to happen too that I may not want to do but need to do,” because you have that respect and love for that other person.

I can attest to what you’re saying, Jason, that you live what you say because when I’ve been with you in the St. Louis area when we’ve been working on campus together, you’ve made it clear that it’s time for you to go home and for you to spend time with your kids. Also, when you and I talk on the phone halfway across the country, there are times when you’re not available because you’ve got that devotion to your family. I would let those who are reading know that Jason is not spouting off some platitudes. He lives what he’s saying, and that’s why you have such a successful marriage, and you’re always happy in your work.

You and I are both fortunate that way, we’ve been married for some time to our spouses. Despite the travel and the long hours, and in your case, hopping around the country to pursue your career, we have been blessed to have spouses that are supportive of that, believe in us, trust us and hopefully, that trust has been rewarded as well. You got to Maryville. You were essentially recruited to Maryville but when you got there, the Sports Business Management Program was nonexistent, wasn’t it? Can you tell us how you and Dr. Lombardi, the university president, grew it to become what it is now?

GFEP 13 | Sports Specific College Degrees

Sports Specific College Degrees: Working in the sports business is not the same as working for any other industry. Your spouse has to understand that because if that’s what makes you happy, it’s not going to go away.

 

When I got to Maryville University, they had already started a sports business management program but hadn’t hired anybody full-time to put their full efforts into it so the results weren’t there because this is when somebody that wasn’t taking care of it and growing it. When the University hired me, Dr. Pam Horwitz, who was the dean at the time, hired me along with Dr. Lombardi. There is nothing short of, “We want this program to grow. We feel it, it can grow,” and that’s what we’ve done. We’re fortunate that we’re in St. Louis, Missouri.

There are so many sport business organizations here. I know that the first thing everybody’s going to think of is the St. Louis Cardinals and the St. Louis Blues. At the time, we had the St. Louis Rams. We also have organizations like Momentum, Rawling Sporting Goods, and many other organizations, both minor leagues, and marketing agencies. We also have a Division One Athletic Conference here and the Missouri Valley Conference is downtown. From a practitioner’s perspective going into academia, I knew there would be a lot of opportunities for our students to gain experience because of the city that we were in.

As you and I know, and we’ve said before, there are hundreds of sports business or sports administration programs around the country. Certainly, there’s an exponential number beyond what existed when I first got into the sports business in the early 1990s. They’ve popped up all over the place. When they approached you and said they wanted you to assist them in building this program, one word that I like to use a lot is differentiate. What did they say to you or what did you bring to that interview table to be able to convey to one another that we’re going to make this program different from any other? What was the original inspiration or vision for the program?

The vision of Dr. Horwitz, the dean at the time, and Dr. Lombardi was we needed a differentiator and I had shared with them that it wasn’t going to be a cookie-cutter program. One, I knew that wouldn’t work and two, that’s not who I am. When we had this discussion during interview processes, I had said to them, and I used this quote, “We’re going to do it the right way.” The right way meant that our students were going to leave here with skills that the industry valued.

We were going to work with professionals like yourself and others, to help us build the program so that one, we knew what we were doing was valid, they would have a vested interest in seeing it succeed. Also three, we’re going to make sure our students had a lot of experience so when you look at their resume moving toward the end of their senior year, it may look like someone who already had 2 or 3 years of experience, because of all the things that they had done and the skills that they had developed so that’s how we had. That’s how we define the right way.

Cynics, maybe parents of young people who want to get a degree in sports, would say that you don’t need a Sports Management or Sports Business degree in sports administration. It’s not necessary. It’s too specific. It’s too focused. You need to get something, maybe a broader education and I’m not saying that they’re right or wrong. Frankly, from my perspective, Jason, it depends on which program they’re referring to. Some programs probably aren’t worth the amount of tuition you have to pay to acquire it. I would not say that about Maryville. That’s why you and I are talking and that’s why you and I have a partnership because I feel strongly in what you, the program, and Dr. Lombardi are trying to accomplish. What would you say to those parents, those funders, if you will, and even to the students who suspect that maybe a sports specific degree is unnecessary?

There’s no question that there are people out there who think that way. What I have shared with our prospective parents and current parents as well as one, at our university, our Sports Business Management Program, that’s why it’s called Sports Business Management is in the business school. They get a business core of accounting, finance, general marketing, as well as operations. Lay it on top of that, you will have our sports business management courses that are not built upon tests and writing papers. They’re built upon exponential learning that we do projects for organizations.

When you add those things together and put on top of that the amount of experience our students have with the internships that they acquire because of the skills that they have, the events that they have the opportunity to work, because of the relationships that we’ve built with the industry. Those things make our students what I call employable, which also make them successful out into the industry. They hit the ground running because they know what to expect on that first day of the job and they have the skills to do the job that they were hired for. Those organizations don’t have to retrain our students once they leave our program.

[bctt tweet=”The Cardinals embody the culture and the values of the St. Louis community. That is why the people love them.” username=””]

You and I are both wearing shirts that have the Rawlings Sporting Goods logo. I’d like you to describe the relationship you have with that company. One thing I’m sure most people outside of St. Louis are not aware of is that not only is Rawlings based in St. Louis, but they are next door to your campus. In fact, you share parking lots practically. Your students can within moments go from the classroom and they could walk across the parking lot and be in the headquarters of Rawlings. How did that relationship develop?

Pam Horwitz, who I mentioned before when I first got the job when Rawlings moved to the Maryville Centre Drive where they are housed, where you said, their worldwide headquarters is right there, they talked and said, “How can we partner?” They didn’t know what to do at that time so when I got to Maryville, my dean introduced me to the Senior Vice President at the time, Art Chou now the President of Rapsodo. He and I started to talk about what our relationship might look like. Art’s been a great partner of our program since that time, but it didn’t start out as the Rawlings Sport Business Management Program when I got there a couple of years ago, it was like, “Let’s do some things together.” I’ve always been involved in partnerships as it relates to any professional career that I’ve been and so I always try to continuously create added value for Rawlings.

When we had an opportunity to be the official interim provider for Texas versus The Nation Bowl, which was a collegiate football of all-stars, I brought Rawlings to the table with us. I said, “They’re doing things in football helmets and football equipment. You guys should take a look at what we can do together.” That relationship fostered and we continuously did those things. It’s like, “Jason, we need a couple of students to do some grassroots marketing for us at this event. Can you give us some of your best and brightest?” That’s how it started but it got to the point where they had research needs and we could fulfill those needs as related to their products and consumer insights. We started to do research for them in a variety of different areas. Soon after that, I sat down with Art Chou one day at lunch and said, “What do you think about you guys naming our program?” He said, “Jason, that would be a great idea.”

We talked with the President at that time, Robert Parish. He thought it would be a good idea as well so soon after that, we were then the Rawlings Sport Business Management Program. That relationship has been intact for almost a few years now and we have built a relationship where our organizations are working side by side in a variety of different areas, specifically, our sports business management program, but they also provide uniforms for our softball and baseball team. Their logo is outside on our baseball field. We’ve continually done a lot of things together. It’s been an outstanding partnership that has continued to grow. Now we do a variety of research projects for them. We’re working on a new one with some of their corporate sponsorship partnerships evaluating that for them. That’s how it all got started and every year it’s gotten larger and larger.

As far as student placement within Rawlings upon graduation, you have some good success stories there too, don’t you?

We do. We have a few students there that are working at some of the higher levels because they’ve been at Rawlings for a number of years now. We also have a lot of our students who have been hired at entry-level positions in a variety of different areas, marketing, digital media, social media, or product development. It’s been fruitful for our students as well. Plus, our students have the opportunity every semester to intern with Rawlings. We have three internships with Rawlings, the fall and spring semester. For each semester, there are three. Plus, we help Rawlings with the grassroots marketing that goes on around the country in the summertime.

You’ve talked about not only this relationship with Rawlings, which is at the center of the program, but you also have reached out to other professionals. You don’t only rely on the academics to teach the business of sport, you go out and find practitioners. I happen to be one of those that you have reached out to over the years. I was a little skeptical at first because I had been contacted by many programs in the past, some of which turned out to be nice, maybe one-off experiences but you were talking about something much broader and deeper than that. It’s something much more long-lasting, which thankfully, has lasted a couple of years now where I get to come into the classroom every fall and assist you in teaching, the business of sports selling. You and I co-teach that class. I love teaching your students and the way you prepare them is tremendous.

Jason, while the Rawlings relationship is certainly the keystone of the program, it’s been evident that you’ve spent a lot of time and effort building relationships with practitioners throughout the industry. I must say it’s a little bit unlike many sports business programs that I’ve seen around the country. In that, though you are a practitioner in your roots, you are also an academic. You are Dr. Jason Williams, and for many people, for the world of academia, there’s a perception that they may not be as quick to reach out to those who are in the industry, but you’ve done it. You’ve done it freely and rapidly. To me, it suggests a level of confidence that you have. You’re not afraid to bring outside voices into your classrooms, and perhaps to give a new or different perspective. What is it about the way you’re wired that you want to build those kinds of partnerships that you’ve talked about and you don’t try to hoard all the information to yourself and create your own little fiefdom on campus?

Rob, it’s one of those things where when these young people graduate every May, I’m not the one who are hiring them. I’m not the one who hires them. The industry is the one who is hiring them. In my opinion, for me, not to include the industry wouldn’t make any sense for our students, it would make any sense for them at all because the industry is the one who is hiring our students. It also allows me to continually sharpen my skills on what is pertinent. Also, what is important to the industry so I can figure out a way to put that in the educational model for our students to have the skills that the industry values. It’s a variety of different reasons why we include the industry, but the most important reason is they are the ones that are hiring our students. I have to take my cues from them as relates to the skills that they see valuable so our students have those skills and they get hired into these positions.

GFEP 13 | Sports Specific College Degrees

Sports Specific College Degrees: The program’s objective is to get young people to the careers that they want to be in. That means the faculty has to make themselves humble as educators.

 

I want to say for those who may not be paying close attention to what you said, for you, it all comes down to what happens after campus life. They’ve got to get a job. That’s ostensibly why they get this degree. They can work in their chosen industry. I want to attest from observation and from our countless conversations over the years that is always your number one priority. What are we going to do to prepare our students more than others to land in the industry?

Your placement rate is fantastic. I want to applaud that students first attitude that you have. It’s not about building up your name or about becoming a prolific author. You’re on campus to try to help students get into the career choice that they’re looking for, get them meaningful work and employment, which is going to improve their lives. I want to thank you for that. I wanted to give you a shout-out for that because it’s never been lost on me and it’s always evident in all of our interactions.

Thank you, Rob. I appreciate that and that’s our goal. To me, it’s like nothing else that we do in any other organization. We have goals and objectives that need to be met. For our program and for Maryville University, those goals and objectives are getting young people into the careers that they want to be in. That means that we have to make ourselves humble as educators. We know some things, yes but we don’t know all things and no one does. The more we can include the industry and professionals, the better off our young people are going to be.

One of those relationships beyond Rawlings there in St. Louis is a brand you mentioned, the St. Louis Cardinals. I’ve got a jersey of theirs because they are a great and long-standing client of Game Face. They have been a great long-standing partner of the Rawlings Sports Business Management Program at Maryville University. What do you think about their brand, Jason? You’re in the community and I’m not but I’m pretty familiar with it. I’ve been working with the Cardinals for nearly twenty years. From an academic standpoint and from someone who does a lot of research who observes the industry, what is it about the Cardinals brand? Why are they so beloved in that community? It seems they can almost never do wrong. What’s your observation?

It’s one of those things where the St. Louis Cardinals in this community have continuously proven themselves to be community leaders. Yes, they are a business. You and I both know that and everybody probably reading knows that, but they see themselves as a community leader in leading in the community to do right for the community in which they live and work. That’s why the brand of the St. Louis Cardinals is so strong.

The other reason why that brand is so strong is that the culture of the St. Louis community is the culture of the St. Louis Cardinals and vice versa. Those who work for the organization embody the culture and the philosophy of the community, which is family, hard work, and putting others first even in tough times. That is the reason why the St. Louis Cardinals brand is so strong and people in this area love baseball but it’s not baseball. It’s the Cardinals. If the Cardinals were a badminton team, a badminton team that’s strong, the St. Louis area would love the Cardinals badminton team. It’s because they embody the culture and the values of the community as it relates to working in the community, being good to one another working hard and the community supports that type of culture. The Cardinals embody that.

I know it’s cliché and it may be so cliché that it’s totally lost its luster and its meaning but when I think of good Midwest values, I think of the St. Louis Cardinals. That’s why it’s such a pleasure for me to work with them and I know that you would say the same. More specifically, you and I, when we teach our class, we are engaged in helping those students learn the sales skills that are necessary for sports and we do it through a sales campaign that’s partnered with the St. Louis Cardinals. We have this triangular relationship. We have Maryville, the Cardinals, and Game Face. Those three parties are trying to assist those students to learn proper sales methodology that will be applied in the sports business when they go into that business, whether they’re in a dedicated sales job or not. Why do you include sales in your curriculum? Why is it so important that your graduates have an understanding of that skillset?

One, it goes back to a couple of things. When talking with the industry, as we continue to build our program and shape our curriculum, where are the jobs in the industry. Most entry-level positions are in some aspect of sales. That’s number one. That’s where the jobs are. Number two and when I say sales, there’s corporate sponsorship, promotions, marketing, event management, and ticket sales. The other aspect of that is business doesn’t work unless sales are made and we all are in the business of sales to a certain extent because there’s no need to account for any money if there are no sales made. There’s no need for an accountant. There’s no need for any operations if no sales are made.

[bctt tweet=”Don’t worry about what you aren’t getting. Worry about what you are getting. Opportunities sometimes do not look like opportunities.” username=””]

That’s the general perspective of business because if there are no sales, there’s no business but there’s also an aspect for us of that’s where the jobs are. That’s what we need to be training our students in. Even if they don’t want to go into a direct line of sales, everything they do is going to revolve around sales. They’re going to have to sell their boss on an idea. At some point in time, they’re going to have to sell a product. They’re going to have to influence their co-workers to go in a certain direction to achieve a certain goal. To a certain extent, that’s sales as well. We feel that because of the training that we receive from you, with Game Face, our students also become better communicators and that’s always a skill that everyone needs to continue to work on.

I appreciate that. Beyond your curriculum and relationships that you’ve built with the professional ranks, the other thing that I admire about Maryville is your vision and aggressiveness when it comes to online learning. I want to ask you a little bit about that because the traditional degree is basically four and done. You’re in there for four years or whatever, you get your degree and you move on. The world is changing. Coming to campus, as we now know, is problematic. It’s challenging for many people, either for health or perhaps financial concerns. Along the way, Maryville University has become a real player in this idea of online education and that complements the on-campus education. Could you share with the readers how that has happened at Maryville and where you’re at this point in time?

Our president Mark Lombardi has been a visionary since probably the day he was born. He’s always looking forward. When I got here, he was already thinking about an extensive online program. His vision of educating young people or people in general, wherever they are and meeting them wherever they are, is something that has been in the fiber of Maryville University since day one. The other thing as it relates to specifically the online learning route is that online learning is the way we were going and the situation as related to COVID-19 has accelerated that for us as a country. As a university, we’ve been doing this for almost a few years now because of the vision of Dr. Lombardi in understanding that we had to continuously grow our market. We couldn’t rely on the St. Louis area to be the market for our university and that allowed us to grow it. As it relates to COVID-19, and also online learning, this was something that had to be done.

COVID-19 has accelerated that for us as a country but a university, operationally, we were already there from a standpoint of having the operations to support online learning, with all of our students having iPads, and also with all of our faculty and staff having iPads. We were already ready to teach online. We had been doing it for some time. Also having faculty who were trained to teach online, while still providing an excellent exponential or learning educational experience. That’s one of the reasons why Maryville University has been successful in that area. It’s part of the vision, it’s also part of having operations to support that vision, but also having a work staff of faculty and staff who were capable of delivering an online experience of learning education at a high-level quality.

Can you describe a little bit more about what that looks like on campus as far as that staff and those facilities that you referenced? When I first saw it, it blew my mind. I did not expect what I saw.

When you walk into our online educational development area on our campus, it looks almost like a television studio. You’ve been there. We’ve got blue rooms and technology that will allow for lots of graphics. It’s almost like if you were at CBS. We’ve got a great team of people who are educational designers that work with our faculty and say, “Yes, these are the goals, objectives, and the experiences you want your students to have. Let’s work with you to develop what that looks like from an online perspective.” It’s a combination of having the facility with outstanding and talented people, but also having faculty who are ready to teach and develop courses in that way. We were fortunate from that perspective. We’ve got all. We’ve got the perfect mix, so to speak.

I don’t know how many employees are housed in that facility that you described, but it’s close to 40 last time I was there all told, so it’s a remarkable operation. Because of the necessities of dealing with COVID-19, I’m sure those numbers are growing since I was there. It’s impressive. Within the Sports Business Management Program, how many online courses are you anticipating by the end of 2020?

We will have our full development of all those courses, hopefully done by the end of 2020, as far as the general sports business management classes. As you know Rob, there are two tracks. There’s the Game Face Sales Track, and there’s the Data Analytics Track so all those courses should be done by the spring of 2022. There will be a nine courses layout for each of those tracks within the Sports Business Management Program.

You saw through the fog before anyone ever knew there was a fog, you prepared for it, and you’re going to be rewarded for it. More importantly, your students are, not only students on campus. We’re talking about students all over the country and internationally who are going to fit in because of that vision. It’s quite commendable. Speaking of on-campus, there’s a lot of discussion in our society today about the role of campus life in effecting change being perhaps a place where students can feel and see that they are effecting positive change.

GFEP 13 | Sports Specific College Degrees

Sports Specific College Degrees: Continuously listen to your students and allow them to have the freedom to express themselves as young adults. Universities sometimes forget to do that.

 

I want to ask you, as a professor, as a leader of a department within a business school, how do you balance that need to remain true to your traditional institutional priorities of making sure people get an education that’s meaningful, practical, going to lead to good employment and they’re going to be contributors to society from a commercial standpoint? Also give the students what they’re apparently looking for, which is a platform to affect positive social change, how do you balance that?

You bring up a good point, Rob, because there is a balance. You’ve still got to stay true to the mission of the organization from an educational standpoint, but the key is, and this is something Maryville has done since I’ve been here, is you have to continuously listen to your students. Sometimes universities forget to listen to their students and allow them to have the freedom to express themselves while developing as young adults. We forget that sometimes. These are 18 to 22-year-olds. When you look at them from a traditional perspective, they’re continuously developing. Part of that development is allowing them to learn, make mistakes, and have them learn from their mistakes.

Sometimes institutions get away from that because they’re so worried about protecting something that they forget the reason why and partly why the educational institutions were developed in the first place. Also, they forget about why students decide to come to universities in the first place. It’s because they need to develop not only from a standpoint of being a practitioner in some industry, but they also need to develop into a bit more mature young men and women. As long as universities continue to listen to their students and allow them to make those mistakes and grow, they’ll have that platform. The challenge comes when we don’t listen to them anymore and don’t allow them to make mistakes that they can come back from.

Speaking of the word balance, do you think that there is a balance between listening and guiding, as a member of a faculty? For example, and I’m not saying that college kids are children, but if I allowed my children and your children, as you’re raising them now if you allow them to make mistakes that could be detrimental? As a parent, you feel a need and an obligation to step in and perhaps say, “That’s a choice I don’t think you should make. I don’t think you should run out in the street now. I know it looks enticing and maybe your friends want to do it but I don’t think it’s for your own good.” You do have to have a balance between giving them that freedom of expression and learning from their mistakes, but also protecting them. I don’t know what the answer is, but you’re in the epicenter of it now.

We are and from my perspective, we always have it because as you can imagine being a university of over 12,000 students, both online and on-ground, we have students coming from all over the world to study with us. That allows for an amount of growth and mistakes to be made by all these different cultures coming and learning together. You’re correct, Rob, where you don’t want them to use your term, running the street but you also need to be able to share with them and have them understand maybe why running in the street isn’t the best idea. If you do go down that road, there may be some consequences. Those are the things that we like to work with our students on and share with them while also truly allowing them to make some mistakes, but they’re calculated mistakes.

Jason, in our industry of sports, and not everyone will be reading this isn’t necessarily interested in a sports career or making that career change, but we are in an industry that’s always front and center. We always had that spotlight on us and it’s something that we asked for, that’s why we broadcast our games but in this industry of sport, people want to know about opportunities. Is there an opportunity for me to make a career? I decided a long time ago for me that I was never going to be 6’4” and 240.

I know that surprises you, but I did have that realization several years ago. I didn’t anticipate working in sports when I was in college, but eventually, I had that opportunity. To your comments, I decided to take advantage of it and do all I could to make something of it but you’re a minority. You’re a black man in America who has led a successful career. You’ve worked for it. You’ve had opportunities that have been presented to you, pounced on them, and made the most of them. What do you say to people who feel perhaps that they’re not going to be presented those opportunities or it’s not in the cards for them?

I’ve been fortunate to have some good mentors. I believe that I’ve been able to acquire those mentors because they saw hard work, dedication, a willingness to learn, listen, and to go above and beyond. My father and my mother taught me those things at a young age, whether it was working around the house, cleaning up, and taking pride in what you did, but then also having the opportunity to do those things and make some mistakes along the way. What sometimes happens with other young people is they don’t want to put their nose to the ground and work hard.

Don’t worry about what you aren’t getting and worry about what you are getting because they don’t think about the opportunity sometimes as an opportunity. They think of it as, “This is all I get to do?” Don’t think about it from that perspective. If you think about it as, “This is what I get to do,” and also think about it as if you do it well, you will get to do more things and take the more responsibility that you get as a badge of honor rather than a badge of burden. I’ve been fortunate to look at it from that perspective and that thought process has served me well and I try to instill those same things in the young people that I have the opportunity to affect some positive change on at Maryville University.

[bctt tweet=”Find something that you truly enjoy, become good at it and that will be your career.” username=””]

At the risk of thinking or suggesting that I can add anything to what you’re saying, you do remind me of some advice I’ve tried to give young people over the years, especially when it comes to the sports business but in any industry. That is if you focus on what you were doing at the time, that you’d been asked to excel at, whether you are working in the mailroom, pulling the tarp, or you’re working in the promotions department, it doesn’t matter what. Whatever you’re being asked to do, if you will do your best at that and excel at that and exceed expectations, the world will find you.

You cannot hide. I always like to say that success cannot hide. People will tap you on the shoulder when you least expect it and say, “I’ve observed your productivity, value, the worth you bring, your dedication to your job, and I’ve got an opportunity for you.” Instead of always having what I call professional impatience, have the opposite. Be professionally patient, diligent, and do your best. It’s amazing how opportunities open up.

My father taught me something at a young age. Your parents always want to know what you want to do when you grow up or what you want to do. I told my dad that I wanted to be in the same business that he was in. He owned a couple of different businesses in the town we lived in and he said, “No, son. What you want to do is find something that you truly enjoy, become good at it and that will be your career.” That has stuck with me all this time. That and being coupled with putting in those values that I shared, I’ve been fortunate to have a good career.

You’re making great careers for other people too. Once again, I want to express my admiration for what you’ve done, Jason, and what you continue to do. I sure hope Maryville keeps you there for a long time because you’ve created a legacy there. I’m proud to be a part of it and I hope that I can continue to make a small contribution to the great things that you, Dr. Lombardi, and all of your colleagues are putting out at Maryville University.

I appreciate that, Rob. We’re fortunate to be able to work with you. We thank you for that. We are fortunate to have many others work with our program as well and that’s what has made the program be successful. Also, that coupled with the vision of Mark Lombardi, our President, it has been outstanding.

Thanks for spending some time with us and sharing some wisdom with us and also your own story. It’s inspiring. I’ll see you, Jason. Hold tight.

We’ll see you in the fall of 2020 as always. We look forward to that time and again. We appreciate the time and the opportunity to speak with you, Rob. It’s been a pleasure.

Thank you, Jason.

Thank you, Rob.

Important Links:

About Dr. Jason Williams

GFEP 13 | Sports Specific College DegreesAs a practicing professional and industry educator, my work is heavily focused in building innovative partnerships and sport business sponsorship.

I am an experienced, collaborative, energetic leader who excels in data-driven decision making.

GFEP 12 | Instagram Influencer

 

The instantaneous nature of Instagram has helped make it one of the world’s biggest platforms. But this week’s guest has figured out that instant doesn’t mean random. Instagram influencer Zach Benson has devised an imaginative and impressive way to use Instagram to build a shared network of 220 million followers. Enter Assistagram, a marketing agency that leverages the power of that massive following to drive brand awareness, leads, and sales.  Far from flashy and certainly not privileged, this week’s Game Face Exec is humble, scrappy, and a respectful caretaker of his clients’ brands. From being a global breakdance instructor with students in 40 countries to becoming a worldwide marketing influencer, Zach Benson sure does know all the moves. Listen in as he spills it all on the show with Rob Cornilles.

Watch the episode here:

Zach Benson | The Incredible Instagram Influencer

Maybe you’re not on Instagram. Facebook, yes, LinkedIn, sure. Instagram is for a demographic that doesn’t fit your profile or you think it’s a time sink that you can’t afford to get caught up in. I get it, but that doesn’t negate the stunning rise of our Game Face Exec, Zach Benson. A small-town Iowa boy who was bullied in school, Zach took an unconventional route of becoming a professional dancer competing on national TV and then parlayed that to instructing breakdancing in 40 countries. Most impressively, he further went on to become a worldwide Instagram expert, who’s built a network of more than 220 million followers. You’ve got to read his story.

I am grateful that Zach Benson is with us. Zach, it’s been a long time that I’ve wanted to talk with you on this show. You and I have become friends and more aware of what each other does. My readers are going to be fascinated with your story and with your accomplishments, your achievements. Let’s start with that. I’d like you to help us understand what Assistagram is and then we’ll talk a little bit about the story behind it.

Think of Assistagram like your own personal virtual assistant that’s hyper-focused on your Instagram account, doing hundreds of thousands of manual actions every day. It’s a whole lot of human power. We don’t use any bots or any software to grow people’s accounts. It’s the real human being interacting and doing all the things that you need to grow your account, creating content for your account, optimized hashtags, engagement groups, posting for you seven days a week. It’s having someone handle it 24/7. That’s what Assistagram does. We specialize in Instagram campaigns reaching millions. We help people build a brand around Instagram and then monetize it.

It’s an amazing service. I don’t want to give it away. I want you to share the number. How many followers does Zach Benson have on Instagram?

If you look me up on Instagram, you’re going to find @ZachVacay and that has 70,000 followers. Collectively, I own over 40 accounts. I have a six million travel network. With Assistagram, all of our influencers and celebrities signed with us, we have a network of 220 million on Instagram. It’s big. I have accounts in the travel space, fitness, beauty, health, motivation, entrepreneurship. Pretty much, we’re doing it all.

All over the world.

[bctt tweet=”The biggest risk of all is not taking one.” username=””]

Normally, I’m in another country, another culture every single week. I’m in good old Iowa where I was raised and grew up and went to high school and college here. It’s nice to be home. It’s good to spend time with family. I’m at my parents’ house on their sun deck.

Zach is taking his last rest before he hits the road again. I know you’re heading overseas. You’re heading back to the US. You’ve got a couple of events going on in the Midwest and on the West Coast. You’re heading to Asia, to Korea, and you’ll be there for some time. We’re fortunate that this is your last chance to interview with a podcast such as ours. We’re grateful that you took the time to do this, Zach. I want to go back and ask you a little bit about Assistagram. With all the social media platforms out there, why did you select Instagram as being the one that you were going to focus on and explode for your own business?

I got into this in 2014. The same guy who got me into dancing called me up, and he was like, “Zach, you’ve got to get in on this. There’s a massive opportunity here. Me and my brother are making a ton of money growing all these people’s Instagram accounts.” I bought into a 400,000-follower account. What we did with the account was we promoted and advertised on that account and promoted other people’s pages and rinse and repeated the process. Back at that time, we were growing thousands of followers per day, almost 8,000 followers per day. It was crazy.

The reason why I picked Instagram is because I saw it growing fast. It started in 2012 and I saw that every single year it was growing by 100 million users. Now it’s over two billion active users. With all the stuff that’s happening with TikTok and TikTok maybe getting banned and shut down, everyone is going back to Instagram. It’s where all is happening. I saw some different things that Facebook was doing. Of course, Facebook owns Instagram. I was like, “If I don’t get on it, then I’m going to be left behind.” I might as well take a first-mover advantage, take it seriously and go all in. It worked out pretty well.

I know you’ve invested a lot of time building your business. You’ve also invested a lot of money, which is an important point. For those who want to go big, you have to spend big. You have to spend money to make money. Was that ever difficult to put your trust into a social media platform, mentors, or consultants who were pushing you to make these huge investments and these huge commitments? I know you’re that guy who says, “I’m going to announce to the world what I’m going to do. I may not always win. I may not always succeed, but I’m going to tell everyone what I’m going to do and I go in all the way.” That’s Zach Benson as I know you. Talk a little bit about the mentality that’s required to be that person.

In 2008, I did an internship with my college president at the time, Dr. David Grow. This guy was amazing. He went to the National Academy. He was General in the Army, CFO of Texas Instruments, and a White House fellow too. He became my president and I was like, “I want to learn from you. I want to learn leadership and how to speak on stages and be a great speaker like you.” He took me under his wing. What I learned from him was the biggest risk of all is not taking one and that hit home with me. I’ve always been a go-getter. I see something I want to do, I take action, initiative, and I go for it.

GFEP 12 | Instagram Influencer

Instagram Influencer: Instead of thinking about what you can get and take, think about what you can give to those people that you’re interacting with.

 

I’m not one to think about things a lot. I take that leap of faith and see what happens and I try to make the most of it. That’s my mentality with everything in life. If I see a person I want to connect with, I do my homework, research them, buy their products, and then connect with them. Some people say no and sometimes it doesn’t work out, but I’m always thinking, “What if?” I always see everyone as a potential friend. I always am thinking about what I can do within my power and my network to help others and to give freely. That’s how I’ve been able to build my network fast.

To answer your question about investing in myself and investing in masterminds and training and mentors, it was scary. I remember paying my first $5,000 to attend events and then I figured out how to 5x it. Every time that I do it, it’s a little bit scary because I’m worried. I’m like, “What if I don’t meet anybody? What if I don’t get any business?” I realized that I was operating out of the wrong mindset. I was operating out of a transactional mindset like, “If I pay this, then I want to get this.” That’s what everybody expects and wants. Instead of thinking about what you can get and take, think about what you can give to those people that you’re interacting with. I switched that. I paid $100,000 for a mastermind and that was scary. That was 2019. I have 2x-ed it. We’ve only had one event because of COVID. It’s worth it because mentors shave time off your learning curve. Instead of doing that, you go faster.

I’ve always referred to that in that same way to mentors or trainers. They accelerate your learning. I’ve often said that you can go through the School of Hard Knocks and figure it out on your own or you can find the right mentor, the right trainer, the right coach. That person can accelerate your mistakes and accelerate that learning curve. Why go through the School of Hard Knocks when you don’t have to? There are many capable people out there, such as yourself, a common friend that we have. In fact, the person who introduced us, Trevor Crane, has been a terrific resource to me and to you as well. He’s the kind of guy that you’re describing as someone who gives. There’s a cost to it, but he always makes sure that we get our money’s worth.

I always operate from a beginner’s mindset. I’m always questioning to learn and to understand people and to understand things and life better. Also, I’m a firm believer that you can learn something from anybody. It doesn’t matter if somebody is a billionaire or multi-millionaire or they’re homeless on the street, even handicapped. You can always learn something from somebody. Everybody is important as a human being. You have to express a genuine interest in others, ask questions, listen, and learn.

I like that part about listening. Don’t ask to ask but listen. I was listening to something you were saying, Zach. You slipped in there that you were a dancer. That’s not what we would have expected to learn on a podcast about someone who’s got tens of millions of followers. Tell us the backstory on you being a professional dancer.

Before all this marketing stuff, Rob, I was a breakdancer. I danced and taught all over the world. To take it a step back even more, I was born in South Korea and adopted by my parents in the States, and then I grew up in Iowa. Growing up for me was hard because I had a speech impediment. I never talked. I never participated in class. I had a 1.6 GPA in school. Life was bad. I had no friends, no confidence until I found dance. Dance changed my life. It became something I was passionate about. It became my fire. That same dude who got me on Instagram got me into dancing and he gifted me this breakdance DVD, How to Break Dance by Mike Garcia. He was like, “You’re the Asian sensation. You need to live up to your Asian-ness. You’re the only Asian kid in our school who can’t dance.” I watched it, fell in love with it and I practiced.

[bctt tweet=”You can learn something from anybody. You have to express a genuine interest in others, ask questions, listen, and learn.” username=””]

I kept practicing, working hard and started a crew, and eventually made it on TV. I was on this TV show called So You Think You Can Dance. You can barely see me because they only show the crazy drama and crazy people and the good ones. I never won the show, Rob, but I advanced to the fourth-round finalists in the LA audition and that was enough to help me teach dance in over 50 countries. Towards the end of my career, I was making towards $1,000 an hour teaching dance workshops around the world. A lot of people were like, “How did you do that?” I figured if I can choose three different age groups, three classes, two hours each, $50 per student, ten students minimum, give $5 per student to the studio owner, then I can do that. Normally there are 20, 30 kids per class and age group. I did that every single week. I started in Iowa, Midwest, and all around the world and I did that for several years. It was fun. Teaching is my passion.

Teach us a little bit about the following subject, Zach, and that subject is influencing. As you know, at Game Face Execs show, we like to focus on the power of persuasion and the role of influence and inspiration plays in our lives, both as recipients and as givers of persuasion and influence. We hear a lot and we’ve been hearing it for years about influencers. I was wondering if you could describe for us what an influencer is in your mind. How do we know if we are an influencer? How do we know if we’re interacting with one?

What is influence? People like John Maxwell says it’s like leadership. Each one of us has value and worth as a human being and value and worth to offer others. Each one of us has a little bit of influence over our peers, friends, and family. To me, influence is impacting people in a positive way so that they come to you and they ask you for advice. They ask you for help. They ask you for your take on life and take on a situation like, “What would you do, Zach, if you’re in my situation? If you were me, what should I do?” That’s influence. It starts out small like that. As you grow your audience and you start to dominate a platform, it grows a lot bigger. You’re sharing your message on Facebook, Instagram Lives, through Instagram Stories and you’re impacting thousands to millions of people.

With that, many people are learning how to monetize their influence. I would ask you, what is your purpose of having tens of millions of followers who are obviously influenced by your message, by your story, by that which you teach? What’s the ultimate end game for that? Is it to build up a bank account? I’d ask what you think it is for you and then what you’re also seeing out there, other examples of people who have used their influence for a particular purpose.

Why I do what I do is because it goes back to my dancing days when I was traveling the world. I met other dancers, other amazing artists all over the world like in Morocco, India, and all over Europe. These people were way better than me. Skill level and talent-wise, they’re a whole other dimension, whole other level. I was like, “What’s the difference?” I’m able to monetize because I know about branding, PR, scaling, building, and growing businesses. These people are better than me. Why can’t they monetize?

The reason why I wanted to get into Instagram and grow this 220 million-network is that I wanted to help others do more of what they love every single day. When they’re doing that, when they have that one hour a day or two hours a day, four hours a day for some, they’re doing that and it’s what makes them happy. We can make the world a happier place by helping those people. That’s what I do with my influence. I like to see others succeed and reach their goals and their dreams and help support them. When you do have more influence and power, you can use that for good to open up doors for people or to help them along their way towards their dreams.

GFEP 12 | Instagram Influencer

Instagram Influencer: Influence is impacting people in a positive way so that they come to you and ask you for advice.

 

I can get on LinkedIn, Instagram, or Facebook and I can see people who look like everyday folks. If you will, they look fairly young. When our parents and grandparents were in business, were going up the corporate ladder, you couldn’t have influence unless you had some gray hair or some wrinkles. It seems different today. Young people, if I can use that term, people in their 20s, 30s are grabbing influence and spreading it throughout the world as you have done. Should we feel that they have taken shortcuts that they haven’t deserved that moniker of influence? Have they simply learned how to use tools or resources that technology has provided? They’ve exposed good and value that they have that in previous times we never would have recognized.

When I think about that, a couple of things comes to mind. Everybody wants to go viral but going viral is hard. When some do, it can reach millions and millions of people and they might have that one moment and know how to leverage it to their advantage, open up more doors, get more publicity, PR, more buzz and more business. Some people don’t. Some people know how to crack the code and they’re growth hackers. They’ve done hard work to figure out what types of content has viral potential, what types of content they need to create to potentially go viral and reach millions of people and other growth hacks to crack the code and the systems to grow their audiences in the millions.

There are people who take the fast track. It’s not necessarily a bad thing. It can be a smart thing too. We live in a fast-paced, smart world and things happen instantly. Some have marketing minds and they know how to sell themselves. They know how to be on stage and close to people. Some people have it and some people don’t. That stuff can also be learned. You can also pay others to do it for you to take the fast track path. When I first started, people were like, “You’re everywhere. How did you get everywhere?” I don’t feel like I’m that high level. There are many other people bigger than me.

They see me on all the stages with Tony Robbins, Russell Brunson, Sylvester Stallone, all these people. They’re like, “How did you do it?” I hustled. I worked hard for years before I made $1,000 an hour. I was barely getting by. I was struggling. I was about to quit. I did quit several times. I even almost shut down Assistagram a couple of times. How I got all of my press and my PR and built my brand, I didn’t take a fast track. I hustled. I found other ways to get my foot in the door. I used one article and one news interview and got some more. That’s how I got my first Forbes article. It was all through connections and relationships and it wasn’t paid for.

It sounds like the old adage, “It takes ten years to become an overnight success.” You’re a living testament of that. It took a lot of work. Back in the day when I was young, Zach, it seems like a lot of people wanted to go to Hollywood and become movie stars or television stars. You’d look at some of the people who made it and you would think, “How did they make it? What was that little something that they had?” Sometimes it was luck. As a casting director or a director or a producer, they had that something that was hard to identify, hard to even explain. To me, in today’s world of social media, those who are going viral, sometimes it’s good luck. Right place, right time, right video, right message, perfect timing because the world needs to hear it or see it at that moment. Most of the time, it’s strategic. It’s well planned. It’s thoughtful. That’s what you’re describing for us.

Let me break it down, Rob, of how I did it. I was a breakdancer and I wanted to get on TV. I saw this weather lady do a weekly workout and she traveled to different gyms and yoga studios and tried all these different types of workouts. I saw on one of her episodes that she did a pole dance class, a pole studio. I knew the lady who owned that because I did workshops at her studio. I was like, “Can we do something special? I’m going to do a free class and give you all of the profit. I’ll give my time for free. I’ll make you money.” I want to do something fun for that weather lady. She was like, “Sure. Why not?” I made it happen and that’s how I got on WHO TV. I was a local Iowa celebrity. I used that same video link when I reached out to other studios and news stations.

[bctt tweet=”When you have influence, you can use it for good to open up doors for others and help them along their way towards their dreams.” username=””]

When I went to Kansas City and taught a workshop there, I reached out to FOX 4 Studio. It was huge. I was like, “I did this with this weather lady. Why don’t I do the same thing with you? We can do a fun little thing and I’ll teach you how to breakdance on live TV.” She thought it was sweet. She was big into fitness. I kept on using it. For my Forbes article, I did a Facebook Live in 2016. There was one like on that video and there were 100 views, but then the replay happened. One person who was watching, she had a big PR agency and she was like, “Zach, I want to travel the world for free like you. I want to buy an Instagram account from you and teach me how to travel for free.” I gave her a fair deal. I was like, “Here you go.” She felt loved and respected from that.

I went and over-delivered and she’s like, “You’ve got to meet my friend, Jules Schroeder. She’s got this podcast called Unconventional Life. You would be a good fit.” At that time, every person that was on Unconventional Life Podcast got a free Forbes article because she was a Forbes contributor. She wrote Millennials, Here’s How To Use Your Instagram Account To Travel The World For Free. It was on Forbes and it went viral, and that’s when I got major clients. It was the right timing, outreaching to people and not being afraid of being rejected, relationships, charging fair prices for my services and not overcharging. Making people feel loved and respected with a fair price and luck.

People say that luck is more likely to come the harder you work. There’s so much I want to ask you about what you related to us. First of all, you keep referring to the fact that you have to have a regard and love for other people. Where does that come from in your life? You were born in South Korea. You were adopted by an American family. Where does that feeling of love come from? I don’t mean to get too personal with you or to presuppose anything with you. I would imagine that some adoptees feel the opposite of love when they learn about their past. Maybe they were abandoned or someone didn’t love them. I’m not saying that’s ever the case for any one particular person. It would be natural to feel that way. Where did you get this spirit of love and wanting to do good by other people?

I owe it all to my family and God. I was blessed. I’m grateful for my family here in Iowa. They supported me through it all, even my darkest and hardest times where I was pretty much failing out of school. I was always getting in trouble, getting bad grades, getting in fights. They thought I was going to be a juvenile delinquent, end up in jail my whole life. I struggled in school. They helped me with everything. My dad was spending every single night with me after school, helping me with my math homework because he’s in accounting and stuff and a math whiz. My mom was always helping with English and homework and stuff.

My grades started to get better when I started to take it more seriously. I started to realize how they went through life without complaining. They were caring to everybody, not only me but also people on the streets and random people and all their friends. I learned all of that from my parents. My faith as well, I did this program called Mission Year in 2009. I lived on $2 a day for food a year by choice because I wanted to learn how to live on less so others could have more. This guy named Shane Claiborne wrote this book called Irresistible Revolution. It was about how he and Mother Teresa worked together and helped people in Kolkata. They served the dying and the sick.

I got him to come and speak to my college and then I was like, “I want to live like you. I want to give back. I want to serve.” He’s like, “You can.” He touched me on the shoulder and he was like, “You’ve got to connect with my friend. He’s got this urban ministry program called Mission Year. I highly recommend that you do it.” Right after college, I graduated and then I told my parents this and they’re like, “We spent all this money and you’re going to go live on $2 a day for food? You’re not going to get paid. You have to raise $12,000 to do it. That’s crazy.” I was like, “Yep. That’s what I’m going to do.” It was life-changing. It taught me a lot about others. It taught me to see people as people and treat everyone as an important human being.

GFEP 12 | Instagram Influencer

Instagram Influencer: You should be on top of mind for everyone. You want everyone to endorse you and sing your praises.

 

I haven’t met your parents yet. Hopefully, someday I will. They sound like unbelievable people, sweet people who obviously had a great influence on you. As you describe yourself to us, Zach, your background, and some of the things you went through when you were younger that you had to overcome, a few years later, you created a personal brand that’s unmistakable. People who know you, people who follow you, they understand who Zach Benson is. How would you define personal branding? I know that’s a big part of what you teach. It’s a big part of the service that you provide your clients. What is personal branding and why is it important?

I had a chance to meet Gary Vee in 2016. He’s a big influencer in the marketing world. He got almost ten million followers. We spoke on this influencer marketing panel together in Hong Kong. He’s like, “If you want to have a successful business, you’ve got to be everywhere. You’ve got to work hard. You’ve got to grind. You’ve got to travel. You’ve got to speak. You should be top of mind for everyone.” When they think of Instagram marketing agencies, they should think of Zach Benson. When they think, “Who can help me create a big personal brand and help me monetize it?” they should think Zach Benson. You want everyone to endorse you and sing your praises. I worked hard on that and double down on that. I took his advice. That’s it.

Is there a difference between personal branding and corporate branding? When you work with your clients, are you working with individuals primarily? Do you also assist brands themselves?

Assistergram, that’s our new company. I think of it like this, your name is your most important asset. I read that in a book one day. I forgot who said that. You are the business. You are the commodity. You live and breathe it every single day. I think that they go hand in hand. If I had to choose one, I choose to focus on you. That’ll spread and the word will get out. I don’t know if I answered your question well.

You are answering it. Let me go a little bit further with it. Let’s say that I’m a corporate brand and we feel our brand needs some improvement or some polish. Are you suggesting that it starts with the individuals within that organization that they need to develop a positive image reputation or does it start from the top down? I can see the advantages of either. One of my concerns, starting with the bottom up, is that someone within my company may develop a great personal brand but then they leave and they take it with them. I’m left with my old, raggedy brand on the corporate side and I have to start all over. If you’re talking to a corporate entity, a decision-maker who wants to hire you and Assistagram for your services, what are some of the initial steps that you would encourage them to take?

It could go both ways. The founder and the CEO, we get them on more TV, podcasts, and WordPress and get more of their story, their vision and missions out there. Let’s say we work with Ritz-Carlton. They’re big, but they have many properties all over the world. We’ve worked with a lot of them. We’ve worked most of them in Asia, Hong Kong, and Thailand. What we’re helping them with is their content for that particular resort go viral to drive more tourist visits. Great content leads to more growth and exposure and potential customers. That’s what we’re focusing on. It’s the content, the storytelling, the messaging, the videography, all of that, and then using our influencer network to get in front of everybody that they’re targeting. That’s what we’re doing for Ritz-Carlton.

[bctt tweet=”As an influencer, your name is your most important asset. You are the business.” username=””]

It’s about taking that brand and finding the sweet spot as to what their story is. What is their message? What’s their differentiator? Making sure that’s communicated through content that we might find on Instagram to make sure that cuts through the clutter of all that there is out there to look at. Am I interpreting it correctly?

Yeah. We want to get their message, values, principles, services, and experience out to the world. The best way to do it is through social media. What does everybody do as soon as we wake up every day? We no longer wake up to an alarm clock. We wake up to our phones and we begin scrolling and consuming content. If you don’t have any epic content that’s going viral and reaching millions and millions of people, then you’re going to go out of business. It’s how it works. Instead of being a consumer yourself, think about how you can be a creator. Pump out content and be everywhere. That’s the goal. That’s what you’ve got to do to stand out.

Does the content have to be perfect?

Not at all. That’s the thing I learned with breakdancing. I was never the best dancer. Some people are good freestylers. They listen to music and they react. Some people are good at following choreography. You know this. In sports, some people have amazing hand-eye coordination. They can follow patterns. Other people got to work a little bit harder and they’re more freestylers. This is like everything in life, freestyler or a combination of both or the other. When you’re freestyling, you’re listening to the music and simply reacting and moving. How I feel in my music is different than how you feel the music. Every person is different and it’s not necessarily a bad thing. It’s a good thing to simply feel it and groove and put it out there.

A lot of people get stuck because they’re afraid of what others will say. They’re afraid of looking bad, getting made fun of, and looking silly. You’ve got to get over that. That’s what I’ve learned through my dance career. I’m not the most eloquent speaker and best grammar and stuff. I have an expert writer that sometimes writes some of my stuff, but it’s my personal stories and experiences and some of my statuses. There are some statuses that I feel it, I post it, I write about it and that still goes pretty viral. It’s being vulnerable, authentic, genuine, showing people the times when you lost a big deal and the times when you screwed up and made a big mistake. Stuff that you look back on and you’re embarrassed, but you share that with people on social media and you tie it back into business, it’s something that people can take away. People will resonate with that.

I’m thinking about the type of client that Assistagram takes on. You answered the next question I was leaning towards and that is, what is a good client for you? Also, what’s a client that probably won’t work with you well, meaning it won’t work out? Let me see if I can answer it and then you correct me. A good client for Assistagram and Zach Benson is one that’s willing to take some chances, one that’s willing to be raw, authentic, spontaneous, and also vulnerable.

GFEP 12 | Instagram Influencer

Instagram Influencer: Influencer marketing is a $15 billion industry and is rapidly growing. If you’re not taking it seriously, you’re going to get left behind.

 

A bad client would be one who’s always preparing to get ready. They’re always waiting for that perfect moment, that perfect word choice, that perfect message and they’re not taking advantage of the opportunities that are there every single day. Every single moment of every single day, people are doing what you said, they’re scrolling. They were on Instagram ten minutes ago and they get back on it right now. They want to know what’s happened in the last ten minutes. Am I describing your ideal client and then the client maybe that you probably would pass on?

Yeah. The thing is that we also are perfectionists. We like making things look good and people look good. We prep you before you go on an interview or a TV show. Our design team is insane. We want to make sure that your content looks the best from a design perspective because that’s important to me as an artist. You’re right, Rob. We like to work with people who trust us and trust the process because we’re the experts and we know what we’re doing. At the same time, we’re open to advice and changes and willing to let the best idea win between us all. That’s how we work. People who like to move fast and puts stuff out there. You summed it up pretty nice.

Give us an idea. What is social media and Instagram, particularly what does it look like globally? For those of us who don’t have a lot of exposure to it, tell us how it is evolving. Frankly, tell us how it’s changing the world.

It’s 2020. This has been a crazy year. Social media-wise, the biggest thing was Instagram rolled out Instagram Stories. It pretty much shut down Snapchat. TikTok is about to get shut down by the president and it’s crazy. Everybody is shifting again to Instagram. Overall, influencer marketing is a $15 billion industry and is rapidly growing. More and more brands, companies, and people are getting onto social media, investing lots of money to get their products and services seen and known and heard all over social media. If you’re not taking it seriously and investing in growth and investing in content and trying to make that go viral, you’re going to get left behind. Social media is how we communicate. It’s how we do everything.

Before someone might hire Zach Benson and Assistagram, I know you’ve got a book coming out. It’s called Reach. I was wondering if you could share with our readers a little bit about what we will gain from obtaining the book Reach? How soon can we get our hands on it?

We’re taking our time with this. This is going to be out in 2021. Reach, it’s how to connect with anyone, how to build your influence and create a lifestyle business. The main takeaway is it’s about connection and how to find creative ways to stay in touch with people, how to get the top 1% in your industries singing your praises, endorsing you, and helping you create that lifestyle business. It’s teaching you how to work from anywhere and have fun while doing it. The biggest takeaway is that life is all about people. It’s teaching you ways to create deep relationships with others that can open up doors. It only takes one person and that one person could lead to multi-millions and millions of dollars.

[bctt tweet=”Life is all about people. It’s all about connections.” username=””]

I was talking about this with David Woodward who’s the Chief Business Development Officer of ClickFunnels, Russell Brunson’s company. He interviewed me on his podcast. He was like, “All it takes is that one relationship, that one connection. That could be 5, 10, 15, 20, 100x your business right there.” What we’re talking about in the book, Reach, is how to reach up, reach out, serve, give back, and also reach within and learn how to make people and companies that you work with better.

It’s a great message, Zach. I’m an admirer of yours and also grateful for the work that we are doing together and we’ll do together in the future. I can’t wait to get a copy of Reach when it’s available. I appreciate the fact that you’re taking your time on it. Good things do take time. I appreciate also your time with us amidst your busy schedule. We’ll make sure that our readers know how to reach you. Are there any questions, Zach, that I didn’t ask you that I should have asked you in this time together before we say goodbye?

Honestly, Rob, this was one of the best interviews ever. I mean that because you did your research and homework on me. I was also surprised by some of the questions that you asked me, they’re good and thought out questions. I enjoyed this interview. Thank you for your time and for giving me this opportunity. I would love to connect with all of you. I’m happy to connect and I would love to hear your story. Feel free to reach out to me on Facebook and Instagram, @ZachVacay. Our website is Assistagram.com if you need help with any of this stuff. More than that, I love to connect. Don’t be afraid to reach out. Thanks again, Rob. This was awesome.

Thank you, Zach. Take care and safe travels.

Thanks, Rob.

Important Links :

About Zach Benson

GFEP 12 | Instagram InfluencerI’ve lived on $2/day for food, searched and reunited with my birth mother, volunteered for refugees, and traveled the whole world. My experiences have taught me to see equal value in all human beings, and to celebrate each moment as if it’s the last.

GFEP 11 | The Brand Man

 

Can a retail company in 40 states close more than 200 mega-stores during the height of the COVID-19 pandemic, then watch their stock skyrocket to a record high that same quarter? Yes, the Brand Man can. Can a chairman/CEO of a sleepy firm seeking to go public successfully inspire an all-star cast of directors to join his board? Yes, the Brand Man can. Can a retail company in a competitive category sell value without going cheap? Yes, the Brand Man can. Lee Bird, Chairman and CEO of Dallas-based At Home, is this week’s game face exec.

Watch the episode here:

Lee Bird | The Brand Man

How loyal are your customers? What will they do? What obstacles will they get around to get to your product? Until you build a cult-like following, it’s not a following. It’s a fad. Lee Bird, Chairman and CEO of the home decor giant, At Home, is building a cult-like following among his loyal customers in ways that any brand, nonprofit or for-profit, could learn from. Let’s hear from the Brand Man himself, Lee Bird.

Lee Bird is the Chairman and CEO of At Home based in Plano, Texas. Let’s start out right away, Lee, with some phenomenal news about At Home. In the second quarter of 2020, which we all know, that was the height of the pandemic your company had an unbelievable performance, a 770% rise in your stock. It was a record-setting quarter for the company, which to me is the opposite of what anyone would expect when everyone is staying home and they’re not shopping. They’re not going out to retail stores. What happened?

We did two things. We played defense and offense at the same time. As Q1 settled in and COVID went across our country, we knew we were going to have to close our stores. We had to prepare ourselves for store closures, but also pivot and go on the offense and accelerate our plans on eCommerce so that people felt more comfortable shopping from home. Buying for curbside pickup and having product delivered, both of those services specifically weren’t available to our customers before this. We did both. When stores reopened, they opened with a flurry.

It was extraordinary and we had the best company performance ever for us financially. When you have 50% revenue growth, 42% same-store sales growth, and that’s in a quarter where some of the stores were still closed. On a store-by-store basis, that’s a 62% increase in same-store sales. Over $200 million improvements in liquidity during that time and reducing our leverage ratios down 4 turns over 5 times, 1.5 times debt to EBITDA that we got ourselves in a beautiful position thankfully. It’s because our customers wanted to come to our store and felt like we had great value.

As you’re describing that, I’m wondering how much of it is due to the strategic shifts and pivots that you made in real-time? How much of it is due to the pent-up appetite of the consumer to get out of their home to get into an At Home store?

Certainly, we’re blessed to be in a great category. People are all at home and we’re all working from home. We normally would be in our own offices at this point and we’re not. People are spending more time at home. The category is growing like we were growing. We have a nice tailwind for us. We did a lot of things and we had a tough year in 2019, honestly. It was a time where we had some step back and same short sales performance for the first time in six years. We took a hard look at ourselves.

“What do we need to do to fix our performance and what’s on us to go fix?” We did those things last fall and early this spring. When we reopened, we already had our pricing sharper than ever. We had a go-to-market approach called EDLP plus, which is campaign management to highlight our low prices. That was reinforced with people being at home and could see our campaigns in our emails. We enhanced our loyalty program, for example.

We improved our product assortment and did what we needed to do to make sure we had a great assortment. When people are ready to engage in the category, we were the person that they would engage with. We had a 100% increase in our online views on our website. We had a 50% increase in our email open rates. That allowed us to be more relevant than ever. We did our part to enable our customer who is now engaging in the category more than ever to consider our store than any other place.

One could say in the nick of time, you’ve made these fantastic improvements. You’ve been in your position as CEO of the company, chairman of the board. You mentioned the improvements that were made in the fall of 2019. What was happening up until that time when you took on a company that some would have said was a little sleepy at that time. Now, seeing these record sales, record revenues, you’re $1.5 billion in sales, what was happening in that ramp up? Can you share with us a little bit under the covers what we would have seen?

It was a private equity-backed company and just been acquired. It was a business that I was interested in acquiring myself with another private equity firm that we couldn’t get the deal done. I loved the business. It was called Garden Ridge based in Houston, Texas, at the time. It’s a little over $300 million in revenue. I was blessed with the opportunity to become the CEO. They invited me to come in to deliver a growth plan. Create the plan, deliver it, build an executive team, scale the company, take it nationally, and take it public as the liquidity event. Now, it’s the objective of the private equity firm and those are my objectives as well, so we did that.

[bctt tweet=”The power of bricks and clicks is the way to go forward.” username=””]

I would say what we focused on is making sure you had the right product value assortment right from the beginning. We had to make some assortment corrections. We also had a brand that didn’t resonate well with customers. The company had a history where in fact, it had been bankrupt and had not been a great place to work. When I did the research, it was clear that while it was a great business, it wasn’t going to scale with that background and that history. We had to leave that history behind, at least the name. Go to a new name and get a fresh start within the world of eCommerce. You have all that history.

Yelp reviews for customer experiences that weren’t great. You have Glassdoor that tells you your employee experience wasn’t great. You have the internet that says the company has been bankrupt. You have to shed all that. We had the strategic requirement to change the name of the company. I also moved the headquarters to Dallas because that’s where our top retail talent lived. I didn’t live there either but I moved my family there so that we could scale the business. We needed a team of people. We needed 400 people at the headquarters building to scale this thing.

We did that. I put a great executive team together. First and foremost, it starts with a team and with the right people in place. They hired great people. We moved the headquarters and revised the business and the product assortment. What essentially it is democratized home decor. It’s low price home decor in all styles, so it’s a one-stop-shop. It’s a big box concept, the size of a Walmart or Target, those big 100,000-square-foot stores, but it’s only home decor. It’s only our product, private label, private brand, which allows us to sell it at prices below everybody else’s sales price.

That’s what we did. We made those adjustments. We’ve changed the name. We then went loud and proud of it from the marketing standpoint. Same-store sales started taking off. We had five straight years of same-store sales growth. We were growing units and opening up units. We had a 20% unit growth for five straight years as well. We took the company from $350 million to over $1.4 billion in 2019 in just 6.5 to 7 years. It’s highly profitable. It’s been a great opportunity to do something that I never thought was possible before to create a national brand.

We took it public in 2016 on the New York Stock Exchange, which was a unique opportunity for our team to experience that. What it allowed us to do most importantly was give everybody in the company an opportunity to be an owner in the company. I wanted everybody to have the same blessing of ownership that I enjoyed and our private equity owners enjoyed. Going public allows you to share the shares with everybody. We did that and that’s the situation we find ourselves in where we have essentially every store manager and owner in the company get shares of stock every year and our employees get shares as well. We all win together, which is the most important thing.

There are 219 or so stores around the country in 40 states. You went from primarily a local business to what you described. You’re doing it in a time when it seems like a lot of people are told or taught that retail is becoming passé. Retail is your grandfather’s or your grandmother’s model. That’s not true. You’re proving that it’s not true. If you’re standing in front of a college business class, what are you telling them? What do you teach them about the power of retail? How can one be successful? Especially in a pandemic, when many retail stores, smaller ones, mind you, but nevertheless, many of them seem to be going out of business. It seems like you’re doing the opposite. What are we missing?

A personal connection with the consumer is what you need. I would tell you a face-to-face in-person connection allows for that to be even more intimate and personal. Having a physical presence so that customers can see, touch, and feel. Certainly in our category where we’re talking about decor, items around primary furniture pieces, think about rugs, lamps, wall art, tabletop decor, and patio furniture, you want to see it. You want to make sure it matches the paint chip that you have or the throw pillow that you want everything to go after.

You have to realize also that everybody pre-shops on the internet, so they decide where they’re going to shop. Do they want to buy online? Yes, you could do that. What we’ve done is we’ve become a full omnichannel retailer in 2020. It allows people to pre-shop online. They could buy it, picked up in the store, delivered it to your home, or curbside pickup. Also, by having physical stores, when you don’t end up with what you wanted or you brought two because you wanted to see which color works best at home and you want to return it. Having a physical store is easier than packing it up, re-sending it back, and having all the returns. Having that relationship back with the store again and again.

What we did differently than most people do too, is all of our eCommerce and all of our business is centered after the store. We have one place of inventory. Every store is a warehouse. That’s where we fulfill all of our sales. That team owns that relationship in the community regardless of how it’s sold. If it’s bought online, picked up in the store, curbside pickup, delivered, returned, it’s back to that store in that store director who runs the business. We feel like the power of bricks and clicks is the way to go forward. What we also did is we related doctors to that, but we made sure we rolled out eCommerce profitably. Every single one of our eCommerce transactions makes money.

I know there are a lot of eCommerce businesses out there that are hot and cool but they don’t make money. I’ve learned over time in my 30-plus years in businesses, if you don’t make money and throw off free cashflow, you’re not sustainable over time. Consumers want sustainable companies, and sustainability is delivered by profitability. We do both, but at the same time, offering lower prices than even eCommerce guys do, enabled by a low-cost structure and some other things we’ve done. That’s how we’ve done it. We feel like physical stores enable that to have that intimate relationship. That’s why we’re continuing to open more stores in the future.

Do you see any vulnerabilities in retail in the future? Have you already identified those? Are you taking mitigating steps to counter those?

GFEP 11 | The Brand Man

The Brand Man: Consumers want sustainable companies and sustainability is delivered by profitability.

 

It’s interesting in retail, in the consumer business, those that are on the luxury side and those that are on the value side do well. If you’re stuck in the middle, your customer value proposition is not going to last and it’s going to be challenged by the people below who can take those styles, democratize it at lower prices, and make it easier for people to buy at lower prices. What you have to do is either define yourself above and have this great luxury brand with beautiful quality and beautiful stores. The prices are high, but it’s a smaller group of people that can access that, or you have to be able to have a broad reach with lower prices and great value on the other end.

What we’ve done is we’ve gone there. We’ve said, “We’re working to democratize home decor.” We have the largest assortment, the lowest prices, and we allow that to be seen by our customers and our competitors online. I would say that people that do that are going to win. The people that are stuck in the middle and don’t have a great customer value proposition, in the end, will struggle. I’ve been responsible for brands along the way.

I was chairman for the Coke company, which is based in New York and sold all across the world. We sold it to oligarchs and monarchs, who are our best customers, then you’ve got the value business like Old Navy where I was a chief financial officer and head of store operations as well and now, At Home. Those value players are the ones that are sustaining their business because, in the end, people are careful with their money. During economic cycles, you need to be able to be accessible in terms of price points.

You’ve talked a lot about value. That message is coming through clearly. Talk a little bit for us about the quality of the product because as you mentioned, you have 50,000 SKUs, 50,000 products. I’m sure you’re growing that. How do you identify those channels and manufacturers? You mentioned that they’re branded At Home. If you would describe that a little bit more for us and the decision-making that goes into what ends up in your stores.

I use the word value because that’s what customers are looking for, the best value. It may not be the lowest price because sometimes the lowest price has poor quality, and then that comes off cheap. You want to be a great value. That’s been our journey. I would tell you that is a journey as a value player, as a low price leader, so we are the lowest price. We’re going to be the lowest price you’ll find out there below other people’s sales price, but it can’t be cheap. We’ve spent our time focusing on making sure that we have the lowest price but continue to reinvest our profitability into better quality. We look for better factories and design partners that can help us design products affordably with great value.

Because we’re At Home brand, we don’t pay the brand premium of another person who designed it. We take the middleman out, which allows us to have that lower price. It’s a journey and a continuous effort on our part to improve the quality. Customers’ expectations for quality always go up. It doesn’t go down, and they expect prices to always go down. When you always have your price, compression is a challenge and expectation quality. That’s why I always say it’s a journey. You have to keep working on item-by-item and you continue to refresh your items to make sure that you can get to that right balance and still deliver what the customer is looking for.

Lee, if the pandemic had not occurred and people hadn’t moved to an at-home environment where we’re doing more work from our homes. We’re starting to get used to it and many people are now preferring it. Some companies are mandating it. In fact, some companies are even saying it’s permanent, that they’re not going to require their people to come into an office space. If that had not happened, would we have seen these types of improvements, this rapid growth at At Home? Probably not to the extent we saw it, but it sounds like you were prepared for this. It sounds like this shift that you had a lot of time, a lot of effort, years have gone into this. What does the rest of 2020 look like for your business? What are you anticipating for 2021?

We did prepare. 2019 was the first year we had negative same-store sales in six years. We had twenty straight quarters with the same-store sales growth plus a 20% increase in unit growth and strong profitability every year. 2019 was a step back year. It’s still profitable but sales from the same-store sales basis weren’t positive and slightly negative. We went back as an executive team and retooled our business. We had issues like weather, which affects your spring business like patio and garden. There were lots of wet weather last spring, which hurt our spring business. We had tariffs due to the trade war we’re having with China, the US trade war.

Our product costs were increasing by 25% to 30% in cost in certain categories like furniture, accent furniture, and wall art. We eventually had to raise prices, which meant that our customers weren’t getting what they expected from the price-value relationship, so then sales were challenged there. Even though our prices were lower than our competitors, they still were above artificial price barriers. We had to go back and look at that. Honestly, in our fourth quarter, our Christmas assortment was a shortened Christmas selling season. The time between Thanksgiving and Christmas was the shortest time in a number of years.

That squeezes our selling period for Christmas decor and Christmas trees, and we sell a large assortment of that. Our assortment was good, but then all of a sudden, we went on sale much earlier. We then had to go on sale earlier, so it was a tough quarter. All of those events turned into a not perfect year for us, so we retooled and we worked on things. We needed to get back on mojo and start winning again. We did that and we started seeing progress in February. We changed our go-to-market approach to an everyday low price, but we went to a campaign approach. We highlight a particular category for three weeks, show that category pricing, and have that as a campaign called EDLP plus.

[bctt tweet=”Hire people smarter than you are and you’ll get smarter.” username=””]

Those campaigns are starting to drive same-store sales growth for us again for the first time in five quarters, and then COVID hit. I would tell you, we started getting momentum before COVID. What you would have seen now if that had continued, you’d still see the same short sales growth in Q1. You would have seen it in Q2. Would it have been to these extremes? Stores were closed for a long time. There was pent-up demand. There was a stimulus check too that happened for our economy and for people that were struggling. That brought people back faster. What it has done is allowed people to spend more time at home and focus on this category.

We think it’s going to be a multi-year benefit to our category like when 9/11 happened. People didn’t travel as much. They stayed at home. It felt less comfortable traveling for obvious reasons, and that was a multi-year benefit for this category. We’ll see the same thing here. There’s no vaccine inside, unfortunately, so people are going to be careful for some time, which means there will be home for some time. I can’t say that I’m working any harder than any other people in retail because they’re all working super hard. It’s that some categories are more important to our consumers than others. Thankfully, we’re one of those categories.

Your executive team and you are doing a phenomenal job, but your hard work is paying off. That shows in the numbers. There’s another side of your business, so that’s interesting to me. Those who are reading will also find this to be a fascinating study. When you took over in late 2012, you were charged with moving the company to become public. That requires the formation of a board and all of the necessary hoops to jump through to become a public business. I also had the experience, not to the extent you’re going to explain to us I hope, of working with a company and going public.

It was about the same time that you were working through this at At Home. Eventually, despite our efforts, we decided against it in the end, so we pulled out. We couldn’t get the valuation that we were hoping for. You’ve been successful in getting the valuation but the board is what I find interesting. If anyone looks, they’ll see on the At Home board a diverse collection of professionals, people who have vast experience. People who’ve served as president, CEOs, chief revenue officers, and so forth for Norwegian Cruise Line, Caribou Coffee, Loews, PetSmart, the list goes on. How did you go about forming that board? If I understand correctly, you started from a blank piece of paper, which is a rare opportunity that a CEO has. Walk us through that experience.

When I joined, there were the private equity owners and they had appointed one person to the board. We had to fill the whole board. What I did is I sat down with our private equity owners and we mapped out a plan. There was a study that I had read, a book called Blueprint to a Billion by David Thomson, an ex-McKinsey partner who had studied all the companies that had gone public over the course of the past 35 years in the US or more. He only found less than 400 companies that had gone from going public and made it to $1 billion and they were all industries. He found seven common characteristics to those companies that had made it to $1 billion. This is essentially a blueprint to $1 billion. It was his premise.

One of them was a high-powered board. I knew that in the back of my mind and I knew we had to have that. When we looked at what our board needed to be, we knew we were a high growth retailer and we wanted to be a high growth retailer. The only way you achieve that is you have people around you who help you get there, who’s been there and done that. We wanted folks that had been at high performing retailers that it scaled it and that it scaled their business from smaller to larger. Take, for example, Larry Stone, who’s our lead director. He started at Lowe’s as a store employee. There were only maybe five stores there, and eventually became the president, chief merchandising officer, and chief operating officer for Lowe’s for a number of years. He sits on the Dick’s Sporting Goods board as well.

There is an example of some people who have scaled it. Phil Francis is another person who was Chairman and CEO of PetSmart. He started when they had less than 200 stores. When he retired as chairman and CEO, and he was the CEO the whole time during this time, it went from 200 to 1,200 stores. He knew what scale meant and what it took to build infrastructure to grow. We needed to go public, so we needed to have somebody who ran the audit committee. Wendy Beck is who we selected and she had taken Norwegian Cruise Line public as the CFO. She had been the CFO of Domino’s Pizza before that as a public company after their IPO. We needed somebody who had been through that IPO process.

I’ll give you an example. Those three were our first three board members that we hired and we look for people like that at that caliber. For example, John Butcher, one of the board members who came to us from Caribou Coffee where he’s the CEO, also runs the bagel businesses that that private equity company owns, which is known as Einstein Bros. Bagels. He has those businesses under his watch as well. Before that, he was a senior merchant at Target. He had been in big box retail, had been involved in our category, and had been a big leader at a great retailer like that. Now, he was the CEO of a great brand. He’s somebody who had a cult following.

We think about our brand, we want to be a cult-like brand. That’s an example of another skillset. We wanted a merchant but had been in a cult-like brand. We wanted somebody who’s been in marketing and had been in multiple brands. Elisabeth Charles had been the Chief Marketing Officer at Athleta, Petco, Victoria’s Secret, and brands like that. An example like that is Paula Bennett, who’s also on our board, has been the CEO of J. Jill for over a decade. She took it from a small brand to a great brand that we all know. I give you those examples. Joanne, who’s also on our board, is the acting CEO of Tapestry, who’s the Owner of Coach and Kate Spade. She was the CFO there.

We have skillsets like that, a high power group of people, and a diverse board. We have four women on our board. Our customers are women, so we should have our board reflect the face of our customers. We need them to be high performing because we want high performing. They’re my boss, and I need a boss who’s going to push me to push our business to reach its full potential. Thankfully, folks like that were interested and willing to be a part of the At Home family.

You said fortunately, they were willing, but at Game Face Execs, we’d like to talk about how the power of persuasion and influence plays a part in everything we do in business and in our personal lives. Lee, don’t undersell yourself here. You had to be a persuasive individual.

GFEP 11 | The Brand Man

The Brand Man: Customers’ expectations for quality always go up and they expect prices to always go down.

 

I corded each of them individually. Joanne, who was at the time the Chief Operating Officer of Abercrombie & Fitch, was a busy person and had a busy job. I said, “I’ll fly to Columbus. I’ll go to your office. I’ll meet with you. Please give me the opportunity to talk about At Home and the At Home board.” She did that. Paula Bennett was at an investor conference two years before she joined our board. I said, “Can you meet with me?” She gave me fifteen minutes in the hallway.

I’m courting them because we’re a small-time and they were big time, but I wanted them to know what’s possible and the fun part about building a great company. Also, if they had that entrepreneurial spirit at all, which they all do, to help build something great. I said, “Why don’t you build the next great American retail company with me?” I was grateful they said yes and I’m grateful that they’re my boss and my partner and we’re better for it.

I won’t ask you who but I’m sure others said no to you. Not everyone’s going to say yes. That would give a phenomenal close rate, as we say. You were successful in getting the attention of some high power individuals with terrific experience, who already had done what you wanted to do for the most part at At Home. At the same time, you also seem to have the confidence to be able to hire people who might know a little bit more than you in some areas.

That’s how it should be. Hire people smarter than you and you’ll get smarter.

It’s worked out for you and you’ve been successful. Let’s talk about young entrepreneurs and startups who are looking to take this great idea that they hatched in the basement of their garage. They think, “No, I don’t want to involve other people who might take advantage of me, who are smarter than me, and might snooker me out of too much share of my business.” You don’t have that attitude. You’ve been in private equity and you know how it works. What are some lessons these young entrepreneurs and startups ought to be learning from your example?

You want to have the best team out there. I grew up in New England and they always had this philosophy to draft the best available athlete. You want the best one. Even if that position is already filled, you deal with that problem. You want the best available athlete. Get the best people you can around you and it will make you better. You’ll learn a lot from those folks and they’ll push you to be better. I’m not uncomfortable with that. I’m comfortable enough in myself to say I’m not going to be smart in certain areas and in other areas, I may be stronger, but either way, shore up the whole team.

There’s a book out there called the Team of Rivals, which is about Abraham Lincoln when he became president. He picked for his cabinet three of the people that ran against him as president and some of them were in different parties. He formed this cabinet of people that had more success winning elections, more success in politics, and more international experience than he did. Now he’s considered one of the greatest presidents we’ve ever had. He’s certainly one of the most courageous people we have in our history in this country.

Courage is required to have a willingness to hire people smarter than yourself. I would tell you, you’re better for it. It makes you a little uncomfortable sometimes because they are smarter than you. Aren’t you supposed to be their boss? If the whole enterprise wins, you win because you learn and when you stop learning, life is over. I love being around people that I can learn from. I would tell you, I’m impressed with my team, individually, to a person. I would take our team against any other retail company in the world regardless of the size and say, “I’ve got the best in those slots and I learn from them every day.”

I would like to echo what you’re saying to something I haven’t shared with my own clients at Game Face, but that is a fact and reality. Back in the early 2000s, I was starting to see some growth that was getting away from me. As you’ve seen before in other businesses, you can grow too fast and you can scale too quickly. Everyone wants to scale, but then sometimes, it gets away from you. That was happening to me in the early 2000s. I met two people who were smarter than me, who showed an interest in my business.

[bctt tweet=”The day you stop learning is the day you stop living.” username=””]

At first, I was not only intimidated by them, but I didn’t trust them because I thought, “They have some underhanded motive, and eventually, they’re going to fool me into taking my business.” You talked about courage. The other word that I would throw out there, and this is something that one of our previous guests, Steven MR Covey, is an expert in talking about, and that’s trust. I had to develop a sense of trust in those people, not dumb trust. You’ve got to be wise, do your due diligence, and do your research on people.

When I finally began to trust those two individuals, they did fantastic things for my business and helped me see my blind spots. You’ve learned that lesson previously in your career. If I may also, let’s go to the other side of your business. We’ve talked about the senior leadership and the board. You also mentioned the managers of your 200-plus stores and the people that work with them. What do you learn from them, Lee? How are they different from other retail workers that I might encounter when I walk into some of your competitor’s places?

I always say the most important job in our company is the store director position. Each and every one of them run a big enterprise. Each business does about $7 million in sales, which they only do with 30 people. The store is the size of a Costco or Walmart of 100,000 square feet. On average, they may walk 7 or 8 miles a day in their shift because the store is so big to get across it and so on. Teams are moving freight from the backroom to the front of the store. It’s a self-help model. They run a playbook from us. It says, “Here’s how we want the store to be merchandised. Here’s the product we want to have highlighted in these certain parts of the store. Here are the policies and procedures that we have for you to run effectively.”

Knowing that we’re trying to help them run it the most efficient way possible. What we found is our team members are incredibly devoted and hardworking. It is a physical job because you’re moving a lot of product, and you’re an owner-operator. We give them shares of stocks that they do in part of the company, but they’re operating it every day and they’re the ones seeing our customers every day. I don’t see a customer. I don’t serve a customer. I’m overhead. I’m store support. They’re the ones who see the customer every day. They’re the ones who hear every day what the customer was looking for and what they’re expecting from the store. They’re the ones who have to deliver that customer experience.

Is the store neat, clean, and organized? Always. Are they getting the support that they need from our employees? Can you fill out the roster every day if they have enough people to show up? This is an hourly workforce. Most of them have just a high school degree. I say just, meaning they don’t have as many opportunities so they’re going to go to where maybe they can get $1 an hour or more. How do you convince people to stay with you when they could get paid more somewhere else and they could do an easier job? I’m grateful for our store directors. They are wonderful people that are loyal. Their commitment level to our company is extraordinary that they exhibit every day. My job is to serve them. How can I help them and make it easier for them?

Your store directors have to be persuasive as well in order to get those associates to agree to that job at whatever wage you may be offering. Can you share with us a little bit more about the characteristics of an effective store director when it comes to the skill of persuasion and the skill of selling? Is that something that you require when you hire them that they have to have a sales background or at least a proclivity to it?

Our stores are self-help, so it’s a self-help labor model. Think about Costco. It’s a store that people are most familiar with. We’re like that. We’re a warehouse store. We put it on the shelf. There’s no commission salesforce. It’s self-help shopping enabled. The customer goes around without getting a lot of help. If they need something off the shelf and brought up to the register or taken out for the car, we’ll help them there. What we do is we make sure the store is neat, clean, and organized, and then we run the register. I say that’s it, but there’s a lot to that.

You still have trailer loads worth of product coming in 3 to 4 times a week, and then you still have all these what I call pesky customers sometimes that isn’t always happy. You have to put a great face on every day and support them. We have two teams in our store, a customer service team and an ops team. We hire people for those teams. It’s around personality types. If you’re a type of personality who gets a lot of energy by hanging out with people and helping people, then you’re going to be on the customer service team. You’ll be in charge of servicing and conditioning an area and you’ll be in charge of running the register and engaging with customers.

If you like getting stuff done and making stuff move, you’re going to be on the ops team. You’ll be unloading the truck, getting the product to the floor, unloading and packing, and getting it all set. Two separate teams, two separate managers underneath the store director that run those teams. The store director looks for what do you like out of life? What type of work do you like to do? We put people on teams that way. They’re the ones that help pick people that are go-getters and have that entrepreneurial spirit. What we do is we make sure that people are rewarded. Everybody in our company is eligible for a bonus based on their store team performance or our company performance, and those metrics are known.

At the store director level, for example, that bonus is uncapped if we want them to feel like an owner-operator. If you have a 5% increase in your sales plan, you have a $20,000 bonus. If you did a 10% increase, then that’s double, so your bonus is doubled. If you did a 15% increase, you get a triple, and that bonus is uncapped. We’ve had people who’ve made over $100,000 in their bonus and they make $75,000 to $80,000 for a store director. Their bonus is much larger because they had an amazing year and our company had an amazing year because of them. They own stock. We give them stock every year and they earn stock every year, but then they get this bonus.

We show every store employee in the back of the store. There’s a chart that Larry Stone, our lead director, instituted at Lowe’s. It says, “Here’s how much a store associate makes part-time per hour and for the year, and here’s your bonus.” Let’s say you make $10 an hour, 2,000 hours a year. It’s $20,000 a year, you get a $1,000 bonus. That’s what our team members are eligible for, but your assistant manager makes $40,000 and she gets a $10,000 bonus. Your store director makes $70,000 and gets a $20,000 bonus. Your district manager, the person that shows up once a week or so, makes $110,000 and their bonus is $30,000 or something.

GFEP 11 | The Brand Man

The Brand Man: The most important job in the company is the store director position. Each and every one of them runs a big enterprise.

 

We have that chart in the back of the store that says, “You as an hourly person could someday make $100,000 a year if you want to with our company.” Almost all of our store director, district manager, and regional manager positions have been filled internally because we can show people who maybe only have a high school degree. I say only because they weren’t given those opportunities or those weren’t accessible to them. They can provide beautifully for their family. As you can tell, I have a lot of passion for our team. They do amazing work and I want them to win. I want them to take care of their families and realize all the dreams they ever had because of what they do for our company.

You’re sharing a culmination of a rich career that you’ve had, Lee. All of that experience that you’ve had over the years at different brands and different roles is culminating what you’re describing. It’s a wonderful story. I want to go back though, in time a little bit about your career. I appreciate everything you shared with us about At Home. For example, you’ve had three prominent roles in the retail business. You were the President of Nike Affiliates, Chief Operating Officer of Gap, and Chief Financial Officer of Old Navy.

Any one of those positions is nirvana for a lot of people. They’re going to retire with that position. Why would they want to do anything else? Such great brands with such customer affinity. As you have looked back through the years at those types of opportunities, did you move on because of fit? Did you move on because you had achieved the goals that you had set for yourself? Did you move on because it was a better opportunity for you? Was it all of that? Was it none of that? Help us understand the career path that has taken you to all these different and diverse experiences.

I’ve been blessed. It’s been a great career. I’ve had the opportunity to work with some great brands and amazing people. A lot of the time in those places, I was able to know the founder of that great brand. That was neat to be able to see what they had envisioned to be a part of helping that to be realized. Each career decision has its own set of decision-making criteria. First and foremost, it still comes down to what’s best for my family? I’ve been married to my wife, Linda, for more than 34 years. She’s been the greatest thing that ever happened to me in my life. She’s a wonderful partner. She’s the greatest business consultant in my life and advisor in every decision like you, Rob, in what’s right for our family and our children.

Sometimes, we stay where we are because 1 or 2 of my kids wanted to finish high school in that town. We made a decision to do that. This is a good time for them to move because it’s a good chapter in their life. Each career decision still involved the family decision that came down to a family council where they would vote and everybody got the same boat. Hopefully, my persuasion would help them want to go where I thought the career was going to be benefiting. I also had to provide for a large family. I have eight children. They get expensive, especially when they’re in college. An upwardly mobile career allows us to be able to provide better for our families.

I like learning. Part of my moves is because I had learned while I could. I couldn’t learn anymore where I was, so I wanted to learn more, so then I needed to go somewhere else to learn more. Maybe learn a different industry. When I went from Gap and Old Navy, which was apparel, which was new to me before then, that was an amazing experience. I worked with great people and great brands, to then go to Nike. I got to be the President of the Nike Affiliates, so all of those groups and businesses. I was in charge of Cole Haan, Converse, Hurley, Bauer Hockey, and Starter. It was a fantastic opportunity, and then to be on the Nike executive team to learn what the Nike brand did to be what they are now.

It was such an opportunity to learn and soak it in like a sponge as they say. Part of it is learning because I can’t stand still and stop learning. Part of it is to not stop in my own development. Some places said, “We can ever see you as a president. We can see you as the chief operating officer but you’re not a merchant, so you can’t be a president with us.” I thought I could be. If that company didn’t see that because they decided to put some artificial barriers on my potential and I thought I had more potential.

I didn’t listen to the voices, what people said, “You’re only a finance guy. You can never be those things.” I thought, “No, I can be those things. I’m going to go after that.” I had to move on to go after what I thought was my full potential. We’re supposed to realize our full potential in this life. My career has been blessed and I’ve learned so much. I’ve worked with great people and I’ve been taught by great mentors who have helped me have those experiences. People took a bet on me and I appreciate that too.

I have to tell you a story that you reminded me of. It’s not about you, but it is about one of the brands that you’ve worked for. It’s not a secret story, but it’s one that I haven’t thought of for a long time. When Game Face was based in the Portland area, I would pay a lot of visits to Nike if you were there at the time, leaving those various brands you shared with us. You were in the inner circle. You were one of the top eight executives at Nike, meeting with Phil Knight, Charlie Denson, and other people that were running the company at the time. I had a chance to get to know Phil Knight in a different way.

One time, Phil and I with one other individual were chatting at Nike near Phil’s office. The other individual threw out some crazy notion that maybe there was a position for me at Nike. At the time, I’m running my own business, Game Face. This guy was conjecturing, “Maybe Rob could serve in this way or in this way.” Phil looked at me and pulled the sunglasses down, as only you know. He looks at me and says, “You’re not the Nike type.” The conversation stopped there. It’s interesting we were friends. I certainly respect Phil Knight for everything he’s done for Nike, for the sports industry, and commerce. I hope there’s a little bit of mutual respect for me.

[bctt tweet=”We are supposed to realize our full potential in this life.” username=””]

Even though you’re friends, that doesn’t necessarily make you the right fit for a company or for a brand. I’m sure you’ve had a lot of people who’ve come to you because you’ve been in private equity as well where you get to identify people that should serve within a particular enterprise or company that would be a good fit for management. I’m sure people have come to you and they said, “Lee, how about me? Can’t I be a candidate?” You probably have had to say, “It’s not a right fit.” What does that mean in your mind? Is it okay to say to someone, “It’s not a good fit?” Is that a DISC? Is that perhaps a message that there’s something better for them?

It’s not a DISC. It’s a reality and in both parts. You could decide this company isn’t a good fit for me for the culture. When I interviewed people for a role, I’ve always said, “We’re both figuring this out.” In my first interview with a candidate whether it’s for the board or my member, the executive team, I spend two hours with them. We get to know each other first and foremost because I want to see, do I like this person? Do I want to spend all this time with them? I have this policy at our company. We have a no jerk ratio policy, so we don’t hire jerks. A jerk doesn’t mean somebody I can’t work with. It means I have a certain style.

I would tell you, I’m not a screamer or swearer, so I’m not going to want that around our business. It doesn’t help bring the best out of people but either way, some people do that. That’s up to them but that may not work for us. I would tell you, you’ve got to figure out the culture of the place. Whether you’re looking for the role or you’re creating that culture, you want to make sure you sustain that from the culture standpoint in your own company, or that you fit that as a candidate. It’s not a ding. It’s a reality. Culture is as much a part of the business as the performances, and the culture delivers the performance.

At Nike, for example, that culture is strong. It’s about winning. It’s about being on the offense always. One of their maxims says, “If you’re not competitive and you’re not willing to go at it and try to help the brand and the business be successful, you’re going to be left behind.” That’s who they are. That’s not bad and that’s not good. It just is. They’re extraordinary and they had a strong culture. Gap had a strong culture. When I started at Gap, I remember walking into a room and people would look me down and up. Was I fashionable enough to be there? I come from technology and I’m wearing not-so-cool clothes.

I want everyone to know you are fashionable.

I’m better than I was back when they started at Old Navy. I would tell you, I learned. I had to make sure I had fashion denim on and embedded in a great jacket or blazer. My belt had to match my shoes and my watch band and all these things. That’s part of the culture because they’re a fashion business. You have to get a culture. It has to be right for you and you have to make sure they’re right for your company. It’s not bad, it just is. Don’t ever give up on that and don’t settle for that either because it will come back to burn you later anyway.

You are a great advisor. You’ve given us great advice in this episode. I also know that you’re an advisor for organizations outside of At Home as you’ve gathered a board of directors. You served on the board of directors. I’d like to focus a little bit on the industry of sport because you served on the board of Larry H. Miller Group, which is the owner of the Utah Jazz. You served on Tom’s Ownership Advisory Group, the owner of the club.

You also have an ownership interest in a double-A franchise in town where you spent some of your formative years. I’d like you to share with our audience a little bit about those collective experiences serving as an advisor in the sports industry. What you do with the Dallas Stars, which is where you live and work in that community, that’s particularly of interest to me and it would be to our audience as well.

I’m grateful to be a part of that team. I would tell you what Tom and Jim Lites set up. Tom, the owner, and Jim, the CEO at the time, and now Brad is the CEO. They envisioned early on when Tom bought the team that since Tom lived out of town, the idea was they wanted to see one of the enterprises to be commercially successful. Not just have a great team and win a lot of big games and hopefully, win a Stanley Cup, but also make it commercially successful because Tom’s a successful business person. Since he wasn’t in town, he wasn’t going to be there to help nurture those business relationships that are necessary for the team to be commercially successful.

You need sponsorship and you need people who are going to be supporting the arena and filling the seats. You need to have community involvement to have the entire community want to be a part of the Stars movement as well. They formed this Ownership Advisory Group that I joined right after I moved to Dallas and I was grateful for it. Our job at the Ownership Advisory Group is to help the Dallas Stars on the business side be commercially successful, help them make money, and help them think through how do you get more sponsors involved in the Dallas Stars? How do you get more people to come to games? What does that take? What network do we have that can help them and introduce them to those people, to then have those people be a part of the Dallas Stars family in the business?

That’s what I do. I help them, serve them, and I get all the benefits of being an owner. They’re kind enough to let us be a part of the ownership group in the sense that we get the owner’s box and we can travel with the team, tickets to games, access to all sorts of team experiences and so on. That’s great for my family who is new to Dallas. That allows me to connect more with the team. I can then help the team be commercially successful, which then allows the team to stay in town because it’s important for a town to have a team.

GFEP 11 | The Brand Man

The Brand Man: Culture is as much a part of the business as performance. In fact, it is the culture that delivers the performance.

 

That’s why I’m a part of the Montgomery Biscuits ownership group too because I grew up in Montgomery 1st through 8th grade. I want that town to have a sense of community. We have a team downtown at the Riverfront at this beautiful stadium that the city built. It brings the community together and it brings families together and creates memories for families. Sports create those family memories that nothing else does. If you can make it commercially successful, then those teams stay in town and create more memories for the family.

You’ve been able to open up the At Home stores. I’m sure you’re using great mitigation efforts to be cautious and abide by certain guidelines as to how we should respond to the pandemic. We haven’t been able to do that in the sports industry yet. For those who are reading who come from that industry, you would agree with me when I say that our communities need that. They need to have that release to get back into a sporting environment because of all the reasons you said. It’s not just for entertainment and relaxation, but it’s also because it’s a great way and place to do business. I’m sure at Dallas Stars games, you’ve done business. Hopefully, from your lips, we’ll be able to get back to sports soon. To set the record straight here, Lee, are you any relation to Larry Bird?

No, I’m not. After eighth grade, I went back to Boston. I’m a Boston Celtics fan. I’m a fan of him, but no relation or whatsoever. If you saw me play basketball, that wouldn’t have been in question.

The jersey doesn’t say, “My little bro, Larry.”

No, I had to buy it on my own.

Lee, this has been an enlightening conversation. Thanks for letting us come into your store and giving us a tour of what is making At Home successful. We wish you, your company, and your associates continued success. I would encourage all of our readers to get into your store, get online, and see the quality products that you have and the value that you provide. For those who are interested, where would we find you? What’s your ticker on the Stock Exchange?

HOME.

How appropriate. Thanks for letting us join you in your home, Lee, in At Home. Have a great rest of 2020 and a terrific 2021.

Thanks, Rob. Thanks for this opportunity. Take care.

Thanks for being a part of this episode of Game Face Execs. If you found any of it useful or helpful, please rate or like and subscribe to our YouTube channel. I always appreciate you referring this to others as well. I’ll see you next episode. Until then, persuade, influence, inspire.

Important Links:

Game Face Execs podcast episode 10

 

With all the talk lately about tearing down and rebuilding institutions, government, policing, education, and media, what about capitalism? Cotopaxi Founder and CEO Davis Smith has become a successful and influential entrepreneur because he built what he calls a “benefit corporation” his way. With a unique upbringing, Davis is now training others around the globe to take the best form of wealth-building ever known and implement it even better. This week’s game face exec wants us to think differently about capitalism. Davis Smith has inspired many. Does he persuade you?

Watch the episode here:

Davis Smith | Capitalism, Cotopaxi-Style

If you happen to pass Davis Smith, the Founder and CEO of Cotopaxi from the streets of Ecuador, the Philippines or more likely outside his headquarters in Salt Lake City, you’ll probably find him wearing a t-shirt with two words on the front, “Do good.” It happens to be his company slogan. What does it mean? How does his rapidly growing company from with a major global impact turn two words from a slogan into a mission to the way of doing business? Here is this episode’s Game Face exec Davis Smith, the man on a mission to turn Cotopaxi’s culture into the new capitalism.

I want to welcome Davis Smith to the show. It’s great to see you and thanks for joining us on this show. I can’t wait to talk about Cotopaxi, your career and your rise in the industry but first of all, I appreciate you being with us.

Thanks, Rob. I’m looking forward to this.

For our readers, Davis and I met not too long ago and it was thanks to his brother. Trenton and I were sitting on an airplane together. This is when most people were taking airplane rides and we were heading to Detroit and we were a bit delayed getting into Detroit. We missed our connecting flight and were both going to the same place as it turns out. Trenton and I shared a rental car and for two hours, we were driving what seemed like the middle of the night in a rainstorm and had a great conversation.

He said, “Have you met my brother Davis?” I said, “No, I haven’t. I know of your brother Davis.” He said, “I’ve got to introduce you.” He did. When I got back to Salt Lake City where Davis and his business are located, we got together. I had a great visit and ever since then, we’ve stayed in touch. Davis, your name and what you and your company are doing is becoming recognized not only throughout this country but throughout the world for the good that you do. You went to school without the intent of becoming an entrepreneur. You quickly discovered that entrepreneurship maybe was the ticket to get you where you wanted to go. Why do you love entrepreneurship, one who never thought he’d get into it?

I know a lot of entrepreneurs that they grew up selling cookies for the time they were four years old on the streets. They were entrepreneurial from day one. When I look back on my own childhood, there are elements that I see. It’s like, “That thing that I did, that was entrepreneurial,” but I never thought about entrepreneurship. When I was in college even, it wasn’t something that I talked about. I never remember telling someone I’m going to start my own business. It wasn’t until the end of my time at school that a mentor pushed me in this direction. I found that it satisfied all these passions that I had inside of me.

One of my favorite quotes is by a man Dieter Uchtdorf where he says, “The desire to create is one of the deepest yearnings of the human soul.” I’ve found that to be true. Every person has this desire to create. For some, it might be music, art or cooking. For me, it’s creating business. It’s having this idea and a big vision for what you want to accomplish and how you can impact the world through that idea and then going and executing on it. It’s been a fun discovery. I feel lucky that I discovered it as early in my career as I did.

You mentioned that mentor that pushed you into entrepreneurship. You’ve told me that you wanted to work for him and he stiff-armed you and said, “No Davis, you don’t want to work for me. You want to work for yourself.” A lot of readers are people who are working for someone else. For some, that’s what they are inclined and built to do, to support and help someone else achieve their vision. Give us some advice if you’re working for an entrepreneur. Those of us in sales, what can we learn from our entrepreneur boss that might make us better?

[bctt tweet=”“The desire to create is one of the deepest yearnings of the human soul.” – Dieter Uchtdorf” via=”no”]

There’s a great TED Talk that I watched a number of years ago that talked about leadership. The guy that gave the talk showed a little video clip of a guy on the steep hill at a concert or something. Everyone’s sitting on the blankets, watching and listening. This one guy gets up and he’s dancing crazy, flailing his arms around and doing these weird moves. Soon, a second person goes up and stands next to him and starts doing the same thing. Before you know it, the entire side of this hill is covered with people dancing like this guy, crazy and forgetting what anyone might think of them and what they might look like.

What this guy talks about is that the real leader here was the second person. It wasn’t the first person. The first person had the vision and was not afraid to start doing it but there was no movement. The movement began when the second person joined. If you’re a salesperson and you can find that guy or that girl that’s dancing on the hill that you’re like, “I believe in that.” You can be the one that starts the movement and an entrepreneur is worthless by themselves. They need a team around them and that’s your job as a salesperson. Every company needs great salespeople and every CEO and entrepreneur. One of the skills that they need more than anything is to sell, to be able to persuade people, to influence people in the things that they’re passionate about, and to sell that vision for something bigger that people can join and be a part of.

Your philosophies, as people get to know you better, they discover that they were embedded in you as a young child. As an adult, you’ve been able to tap and discover those tendencies, the way you look at the world, and then you’ve been able to essentially blossom and ensure that those philosophies and ideas turn into good. I want to go back to your childhood though if I could. We’re not going to Oprah Winfrey here and make a cry or anything. A lot of people don’t know that you were raised abroad. You were raised in South America. You have a large family. You’re one of eight children and then you lived abroad as well, even as an adult. You’ve had unique experiences that most of the readers haven’t had. We may have lived abroad or traveled to some extent. If there’s one thing that living and traveling abroad has taught you one experience, you’ve had one observation that you’ve made that you wish others could acquire, what would that be?

It’s something that I’ve thought a lot about during my life. When I moved to Latin America, I was four years old. My earliest memories are living in the developing world. The first place that my family lived was in the Dominican Republic, which was a poor country and continues to be, especially in the early ‘80s. I remember seeing children that were my age 3, 4 years old standing on the sides of the street completely naked. Even at that age, I started to understand that my life was different and I didn’t understand why, but quickly I started to learn that I was privileged. I was lucky in where I’d been born. I had done nothing to deserve this life that I had.

My family was not wealthy by any means. A large family making ends meet every month and being frugal. I never had the cool brands and stuff as a kid, but I had that I knew other kids where I lived would never have and simply because of where I was born. They were as smart as me. They were hardworking. They had dreams and ambitions too. Growing up in Latin America is the greatest gift that I received from my parents, was developing a deep sense of empathy for other people and understanding that I had a responsibility and duty to use my life to be of use to others. That was a passion that I’ve had from the time I can remember. It is what has driven me to use my life to build what I’m doing now with Cotopaxi.

Some people know that I’ve spent some time in Japan. I have lived in Japan a couple of times in my life. I love that country. I’ve said to Allison, my wife, a couple of times, it would be cool to retire in Japan. There’s a romance about that country that I’ve always been attracted to. When you retire, if you could pick one spot in the world, what would that be? Where would it be?

This a tricky one because I spent a lot of my adult life living abroad as well. It’s something that’s part of me. I’d say increasingly I’m looking at Salt Lake. I moved here from Brazil a few years ago to start Cotopaxi. I’ve got some family here in the area and I have loved it. There’s something special about being close to family. There’s a part of me that says I’d be in Salt Lake City where I have friends and family because that’s fun to have that close, but then there’s another part of me, the spirit of adventure. It’s like, “I want to spend some time in it in a new culture.” That would be tough for me. There are a few places in Europe, like Italy that I’d love. I don’t know Italian, but I speak Spanish and Portuguese, which are similar enough when I go to Italy. I may understand 10% or 20% of what’s being said, but without a whole lot of effort, I could probably learn the language. That’s probably a place that I’d be interested at least for the short-term.

Let’s go back to Cotopaxi because it’s your brainchild and you’re the founder of this well-established company. The first thing that someone will notice about Cotopaxi when they look into it and certainly on your website and in other forums is that you have this slogan, it’s simple, called Do Good. Can you describe what that means and how you came up with that particular slogan? What’s behind it?

GFEP 10 | New Capitalism

New Capitalism: No matter what language you speak and what part of the world you come from, helping someone else always feels good and touches us.

 

When I was in Brazil, I was building my last business and that was my second venture. I had been put on this path of entrepreneurship by this mentor. He had been a successful entrepreneur, had become a philanthropist and was making such a big difference in the world. I was inspired by him. He was encouraging me to find my own path and to learn the lessons that I learned as an entrepreneur. That if I had some successes in entrepreneur, I’d have the resources and influence to be able to make a difference. When I was in Brazil, I was thinking a lot about that. I was back in the developing world. Every single day as I drove to work or drove home, I’d be reminded of my childhood and what it was like to live in these places and see many people with so little.

I decided that it was time for me to do something more meaningful. I wanted to do something that could make a difference in the world. There were a number of factors in my life that pushed me in that direction and where the timing aligned, but I knew I wanted to do something that could make an influence. I thought about maybe I should start a nonprofit. I wasn’t sure what I should do but then this idea came to me, “What if I built a business, a brand that its purpose would inspire and move people to do good with us, where I could have a much bigger impact than just me and myself doing something?”

It would be a movement of tens of thousands, hundreds of thousands or maybe even millions of people around this idea of doing good and the business itself could sustainably do good. When you have a nonprofit, you’re begging people for money all the time and support to help you have the impact you want to have. With a business, I had to create a great product and a great brand, and those products and brand would then sustainably fund global poverty alleviation. This thing that I wanted to tackle and I wanted to be a part of solving. I knew when I started this business, I needed to do it a little different. I identified the outdoor industry as a space that I thought would work.

There is a large total addressable market. It was a space that I was passionate about. I felt like people that had experienced the outdoors or adventure and travel had connected with something bigger than themselves and that they would identify with this mission that we had. I wanted to embed this mission into everything that we did. I knew that another backpack company, the world didn’t need another backpack or jacket company. There are many of them. We needed to represent something different. I started looking at ways to embed that social mission into every aspect of the business, the brand, and the culture. One of our slogans is Do Good. I have a shirt that says, “Do Good.” It’s one of our better-selling products. When you wear that shirt, people stop you in the street and say, “I like that shirt.” It’s something that resonates with people. It’s a simple message.

Why do you think it resonates with people? What is it about the simplicity of that message that seems to be universal?

What makes us unique as humans and different from every other animal on this planet, is the empathy that we feel for others, the desire that we have to help others, and to do good. I remember as a kid, I was a Cub Scout and I got this magazine called Boy’s Life. My favorite part of this magazine was every month, there would be a little story about a scout that would be the hero. They would save a sibling that was in an accident or that would find a stranger and was able to help them. As a scout, that was always my secret dream of like, “I want to be there to help somebody when they’re in need.”

It’s something that resonates with all of us. We all want to be the person that can help that old lady across the street or that can pay it forward in the grocery store line when someone like that single mom that can’t pay for the groceries. We all aspire for that. We share those stories and they touch us and move us. That’s what’s common. No matter what language you speak and what part of the world you come from, helping someone else always feels good and touches us.

In your life, have you ever been a victim of the old adage, “No good deed goes unpunished,” where you try to do good but you got burned or it was misinterpreted or misunderstood? We’ve all experienced that if we’ve tried to do good at one time or another in our lives, this has happened to us. Maybe there’s an incident you can share with us or maybe there isn’t, but what causes you to keep doing good anyway?

[bctt tweet=”“Do good.” #Cotopaxi” via=”no”]

When I had the idea, I wanted to name the business. I wanted the name to mean something. I didn’t want to just create a word or made-up word and I chose the name Cotopaxi. It’s the name of a volcano in Ecuador, where I lived as a kid and as a teenager. The school I went to was called Academia Cotopaxi named after this volcano. I used to go backpack in there with my dad. It was the first place I saw llamas in the wild. It was a magical place for me. This beautiful snowcap volcano, right on the equator, but permanently snow-capped. The elevation is high and a beautiful place. For me, it symbolized a lot of the things in my childhood, these experiences that I had, my love for the outdoors, and living in Ecuador. There’s this connection that my parents were good at helping us go out and serve.

I had some experiences that moved me and that had stuck with me throughout my life and so I chose this name. It didn’t happen in the first couple of years of the business but it’s happened a few times since where I’ve had someone reach out that was Ecuadorian. For the most part, predominantly anyone from Ecuador sees the name, immediately was like, “I love it.” Especially when I learned about the mission and everything. Every once in a while, I’ve had this three times so far and I’m sure there will be more where an Ecuadorian, maybe an Ecuadorian American that’s grown up here will say, “I was excited about this and I was expecting to see the founder was Ecuadorian.” I saw it was a white guy.

It feels like you stole part of our country. You stole this name. At first, it felt hurtful because it felt like that’s part of who I am. I know I look this way, but I grew up there like that’s who I am. I’ve spent a lot of my adult life there. That’s home to me. Ecuador is a part of me and the whole reason I’m doing this is to give back and we have all this impact that we’re doing in Ecuador but there were critical and a couple of them vocal online about it. At first, it was hurtful but I tried to do a better job of listening and trying to understand their perspective and where they’re coming from.

I’ve learned some things not processed. There are some things that we’ve done better. We started investing more in that part of the world where we were originally doing some more of our social impact work in Africa and India. We’ve shifted our focus towards this region of the world which is great by me. It’s where I grew up. It’s a place I’m passionate about. In listening to them, it felt like that would be a better way to do this, where it’s like, “If I’m using this new team, I should be supporting the people in this country and that region more.” There were some painful moments in listening and learning.

You have established a baseline of corporate social responsibility. In Salt Lake City and the Utah community, you are well-known for the work that you do. If anyone follows you on social media, you’re not talking about the company’s successes, you’re talking about the company’s impact that you’re having in various parts of the world and on people. You’re a student in corporate social responsibility and social impact. You studied it at university. Can you tell me where did this all begin? I mean the movement to CSR, Corporate Social Responsibility because I don’t think it was around much or it wasn’t talked about much when I started Game Face in 1995, but it’s everywhere now. If a company is not involved in it, you’re at a competitive disadvantage. Where do you think it originated? Why did it bubble up and prominent now?

CSR is interesting. It’s relatively new. It first started being talked about in the 1960s, but it wasn’t until the ‘80s and ‘90s where it started to get a little bit more traction and then in the last few years, it’s become something that everyone is thinking about. The interesting thing is that in 1820, 94% of the world’s population was living in extreme poverty. That’s under $1.90 a day in nowadays terms. The whole of human history was like this. Most of humanity has lived in extreme poverty dealing with hunger and not having shelter or other challenges for thousands of years. It wasn’t until where that all started changing. When I was born in 1978, that number had dropped from 94%. In 1820 to 40%. When I graduated from high school, it was 20%.

In 2019, it was 8.5% or 9% of the world lived in extreme poverty. We are eradicating extreme poverty and we can do this in our lifetimes. It’s remarkable but what we’re learning is that cannot happen through government and nonprofits alone. We need businesses to think differently about the way they operate. In the time of my grandparents, there were children working in factories seven days a week. That no longer happens. At the same time, our businesses now in an effort to maximize shareholder value and profit have destroyed our planet. If you travel much, you’ll see rivers and especially in Southeast Asia, Latin America, or wherever you go in the world that they’re filled with garbage that we pollute on horrible plastics all over the ocean.

We see that people are exploited in different parts of the world in order to maximize profits. We’re all starting to realize we each have a responsibility and a role to play in making this world better. Originally, corporate social responsibility was more geared around, “We have all these profits and maybe we should try to get back a little bit.” Maybe some of it was around risk management. It was like, “We need to protect your brand.” Maybe we’re doing some things that people might criticize us for. If we do some good, it might offset some of that. There are some risk management decisions there. Some of it is around philanthropy. Increasingly, businesses are starting to see this as a strategic advantage.

GFEP 10 | New Capitalism

New Capitalism: Eradicating poverty cannot happen through government and nonprofits alone. We need businesses to think differently about the way they operate.

 

This is where the shift is happening. What Cotopaxi is doing, I wouldn’t even categorize it as corporate social responsibility. We’re a benefit corporation which is a new type of entity. It’s a for-profit business, but where you make legal commitments to use your business to do good in the world. For us, what I’m most proud of is not how big we are, how many employees we have or how much money we’ve raised. It’s all about the impact that we’re having. That’s this movement that we’re starting to see. What we know is that especially with these younger generations, when they see a brand that shares their values, they want to support them.

If you build a brand that has these aligned values with the community then it’s amazing the impact it can have on the business. You’re not making a decision between, “Do I have to trade off doing good?” versus, “Making money or being profitable.” I don’t know should we use our profits in this way. For us, it’s a no-brainer. That’s why we exist. That’s why everyone wants to support our brand. This is our passion. We’re going to continue to do good and in return, our community is going to come to support us.

Without disparaging past generations, it sounds like if you want to be a part of Cotopaxi as a board member or as a shareholder, you can’t just look at ROI. To be a benefit organization, it flips everything as far as how you look at the bottom line. How are you balancing the two and still running an effective, productive and profitable business?

First of all, when we started the business, I had to find the right investors. If I found the wrong investor, that was focused on profit that they weren’t willing to make some longer-term investments in a brand that was built around this mission, it wouldn’t have gone so well. When I went and pitched this idea in Silicon Valley to investors, the first thing I led with was the story was the impact, the mission. Some people was clear from the beginning, they didn’t care about that. I knew that those were not the right investors for me. That was a big part of it like rallying the right financial backers. It was also getting the right team. People joined our team because of the purpose. I know a lot of them left big companies Nike, New Balance, Patagonia, and other great brands. They made more money. Some living in a big city and moved to Salt Lake but they came because they believed in the purpose.

When we all were aligned around why we needed to do this, it made the decisions a lot easier around, “Where do we invest our money?” We hired a chief impact officer in the business before we hired a chief marketing officer. We didn’t even have a marketing team but we invested in an impact officer that would help set our impact strategy, that could help us figure out how to talk about our mission, and how to have the most impact with every dollar that we were giving. Those were tough decisions. The board even question like, “Are you sure you want to hire this person before a marketer?” It was core to who we were. It made sense and ended up being a good decision.

If I looked at your business from a historical lens, just traditional business, I might say, “Wait a minute.” It seems to me, perhaps you were devoting too much employee resources and employee time into social causes and not enough into growing the business. It’s like your Do Good is turning into being a Do Gooder. If I came to you with that type of statement or argument, I think you’d shoot it down quickly, wouldn’t you?

I would. One of the greatest benefits that I’ve seen from having this mission and from being a benefit corporation, which I never expected was the fact that we’ve been able to attract and retain talent in a way that we never would have otherwise. We’ll oftentimes have 500 or 600 applicants for a job opening. These are not Millennials. A lot of them are young Gen Z and Millennials that are saying, “I will come to sweep the floor. I want to be part of what you’re doing.” We have people that are at the tail end of their career saying, “I’ve made enough in my life. I want to finish my career doing something I’m proud of. I want to do something that matters to me where I can make a difference.”

This spans across every generation, this desire to be part of something bigger. The same with our customers, they gravitate and evangelize our brand because of what we stand for and the good that we do. They support us. They buy our products because of that. When they wear Cotopaxi backpack, fanny pack or one of our jackets, it symbolizes what they stand for. They can express that outwardly. We’ve never had a problem where we’ve had our employees doing out volunteering too much time in the community. We have something we call 10% in the wild time where you can spend 10% of your workweek in the wild, and it might be on a powder day going skiing or on a hike with your kids on a Friday afternoon.

[bctt tweet=” We can still believe in the principles of capitalism, but we need to think a little bit differently around our purpose.” via=”no”]

We also allow people to use that time to volunteer in the community. I spent a lot of time working with the International Rescue Committee, the IRC that works with refugees. We allocate some time that a lot of people do that during the workweek, but we’ve never not once had an issue where we’ve had to come to an employee and say, “You’re spending too much time doing good and not enough time doing your job.” People want to do a good job but we give a space to do both. They tend to find ways to balance it well.

We, as a human race, have a tendency to want to do good and to help other people. There are always exceptions and you’ve seen them in your business and I have seen them in mine where people might take advantage of your overly generous policies as a company. For the most part, people are conscientious. They recognize that the business has to continue to be successful, otherwise they don’t have a job where they can perform good and do good in the community and around the globe. If I can go back to something you said about the world and the environment, you gave a TED Talk one time where you said, “Nothing has damaged the planet more than capitalism.” You’re a capitalist if I understand the term. What did you mean by that?

I love doing survival trips. A couple of times a year, I’ll go to some remote island or jungle and I’ll bring no food and I’ll survive for a week. I’ll eat spearfish and coconuts. A few years ago, I did one of these and I was on this remote beach in the middle of nowhere, I didn’t see a soul, I saw no boats and no airplanes. This part of the world was like, “I was alone.”

Did you see Tom Hanks by chance?

I saw Wilson floating around the oceans. One thing that shocked me was this beach was covered in plastics. For 100 miles, there were flip-flops, toothbrushes, dog toys, bottle caps, and plastic containers everywhere. Not a few, but thousands of them over a few hundred feet. If you stood in one place, you could reach down and pick up pieces of plastic everywhere. It’s devastating. This has all happened during my lifetime in many years. A hundred years ago, we weren’t manufacturing plastics like this. When I lived in Brazil before moving here, this river that I had crossed every single day to go to work, it’s a slow-moving black sludge. I saw some pictures of it in the late 1800s or early 1900s. It was a beautiful tropical-looking river.

It is sad to see what we have done to our planet. Capitalism has lifted billions of people out of poverty. It’s amazing what it has done to help people while also leaving our planet in a place that’s almost unrecoverable. We need to think differently about what capitalism means and we can still believe in the principles of capitalism. We can look at some supply and demand, making profits, opening up markets, specializing the things that each country can specialize and things that they’re good at and have global trade. I believe in all these principles and these concepts, but we have to think a little bit differently around our purpose.

Do we need to maximize every single dollar to try to make ourselves as rich as possible? Can we use our businesses to enrich the lives of people that work for us, our communities and to help lift people that are left behind? Capitalism is going to change in major ways over the rest of our lifetimes. I know it because I see these young people and they are driven by this. They care about it deeply and I hope that they can look at us and say, “This is a great example of someone that’s doing something different,” and they’re going to see some mistakes that we make. My hope is that they can look at us and they can do something even better and more impactful. That’s my hope is that we can build something that can inspire this next generation to look at capitalism a little bit differently.

It’s interesting to me that you have a mission to assist communities and nations especially those that have historically lived in poverty, but we’re down to under 10% worldwide now. You are a Salt Lake City, Utah-based company based in the US. We are a predominantly capitalistic country. We could put aside politics and ideology, but anyone would admit that capitalism has driven this country to the success that we enjoy now, and we’ve enjoyed for centuries. You mentioned that capitalism has lifted people out of poverty. How do I balance that capitalism has done all of these bad things to the planet and yet we reside in the most capitalistic country on earth in order to produce the good that we can export to poverty-stricken countries?

GFEP 10 | New Capitalism

New Capitalism: One of the greatest benefits of being a benefit corporation is the ability to attract and retain talent in an unprecedented way.

 

We can look at a different situation but similar question. Some of the deep questions we’re asking ourselves as a country is around race. We can look at our past and say, “This is broken.” Something is wrong with what we’ve done. We can take the whole thing and to say, “This whole thing is not worth keeping. Let’s burn it all down. Nothing is worth salvaging,” or we can look back and say, “This country was founded on a perfect idea. It was implemented imperfectly by imperfect people.” The reality is that is going to happen.

We can instead look and say, “This is a perfect idea. We have made progress, but we have a long way to go. How can we make this more perfect? What can I do in my life and in my community to help make this perfect idea more perfect?” I’d say the same with capitalism. We can either burn it all down and say, “It hasn’t been perfect.” We can look at it and say, “There have been some great things that have come from this, there’s also been some real damage, and there are some things that we did wrong that have been hurtful to our planet that have left people behind. What can we do differently moving forward?” That’s the approach I always take.

In the countries where you’re doing work, where you’re making contributions, you have an opportunity to teach them from the ground level what capitalism should mean. You can train them up in better practices of capitalism, learning from the mistakes that we have made perhaps in our country. How does that look when you go and work in these other countries and you’re helping entrepreneurs? How do you begin to teach them the better way of utilizing capitalism to get what they want without destroying something in their wake?

A couple of examples. One would be through our supply chain, we manufacture all of our backpacks in the Philippines. This is an amazing factory. If anyone’s ever been to the Philippines, you’ll love it. It’s where the kindest people in the world. My wife is half Filipina, she was born and raised in Seattle, but I’ve got a special connection to the Filipino people. I love going to this factory. It’s a place where the average sowers have been there for 11.5 years. They get paid well. They listen to ‘80s music all day long, which is my favorite. They have a volleyball and basketball club. They’re an active community or team. One of the problems that we saw there was a massive amount of waste.

All the other brands that use this factory, the brands that we all know of in the outdoor industry, that if you think of any outdoor brands, they are using this factory as well. There are tons of waste, the cutting and sewing of fabrics. We went to the sewers and we said, “We want to do something different. We want to try something and experiment, which is we want to use all these remnant materials or excess material, but we also see a problem that you guys are the talent, artisans, and craftsmen behind this product, but you never get to choose what you sew. You never get to be creative in what you’re building and creating. We gave them the power to use the remnant material and to design the bags themselves. We have certain profiles that they follow, but they could choose any color and material they want with only one rule, to make every bag one of a kind or unique, no bag can be alike.

It’s been a fun project. These teams are seeing, “There’s a company that cares about all this waste, instead of it going to a landfill or being burned, we can find ways to use this.” Showing throughout your entire supply chain that you can do things differently and better. That can inspire thousands of people throughout your supply chains and the way that they think. A lot of these people might spend their whole life in the factory, but a lot of factory owners or leaders in factories spent time on the ground floor. They might think differently about this moving forward.

I’ve shared this story hundreds of times and I’m not going to go into the whole story, but there’s an example that I’ve learned that can answer your question. When I was in my early twenties, I was in college and I did an internship in Peru. I met a shoe shiny boy named Edgar. I find him every single day. It was the highlight of my day every day finding this little kid and I’d bring him food. On my last night in Cusco, in the city of Peru, I found him sleeping on the street, close to midnight. Someone had stolen his shoe shining kit. He was too afraid to go home. He helped support his family and he wasn’t in school.

This boy has been in my mind every single day since 2001 when I met him. He was an inspiration to me. When I left Cusco, I made a commitment that I was going to use my life to help kids like Edgar. A few years ago after starting Cotopaxi, I went back to Peru and I’d never been back, but I wanted to go back and try to find this boy who would now be a man. I didn’t know his last name. I only had one picture of him and one little short video clip of him running next to the bus waving goodbye to me as I left Cusco. Through a series of small miracles, I found him and it was unbelievable. It was one of those beautiful moments of my life.

[bctt tweet=”The day that we can say we’ve eradicated extreme poverty will be a special day.” via=”no”]

We spent an entire day together. He wanted to show me his home that he built himself. As we went up the hills of Cusco to go to this little house, we took a little bus and then walked up the side of this mountain to get to his home. He told me his life story that he’d been orphaned when he was thirteen. His mom died when he was eleven giving birth to his younger brother, his dad died of alcohol abuse a couple of years later. He raised his younger siblings. We got to this house and it was a house made of mud. It had a hole in the ground for the toilet. There was a part of me that was discouraged to see how he was living, but there’s another part of me that was proud to see what he built himself.

He was proud of it. We talked about what his dreams were and he didn’t have a chance to start school until he was a teenager. He didn’t have a deep education, but he’d always dreamed of being a tour guide. We found a three-year program where he graduates in 2020 but it’s been put on hold because of COVID, where he’s going to be an official tour guide. He reached out to me on Facebook, we’re in touch frequently, and he said, “Davis, I am in trouble. I am in a desperate situation. I don’t know what to do. My school has been shut down. I can’t become an official tour guide.” He sells paintings in the street to make money and there were no tourists.

There’s no one to buy anything. Peru is in lockdown. He has no safety net. He has no bank account with a bunch of money in it that will hold them over for a few months. He has no way to feed his family, his younger siblings that he’s still raising, and his own child that he has. That night I was conflicted about what to do. I didn’t want to be in a situation where I was sending him money anytime he needed it, but I needed to find a way that he could lift himself, but I wasn’t sure how to even do that. That night I went to bed, I was worried about it, and I could hardly sleep. At 5:00 in the morning, I had this idea, which was I woke up and it was clear as day and I knew what he needed to do. Through my social network, I started selling an Edgar walking tour of Cusco, a 30-minute virtual walking tour for $10. We ended up selling $10,000 worth of walking tours for Edgar.

When I was talking to him, I’ve been helping coach him around on how to create a business, how to use this money wisely, and some of these other things. He was telling me that his hope is to build a business where he can help other people in his community. He was talking about how he wanted to do his business. I hadn’t even talked to him about Cotopaxi. He’s following me on social media. I have never sat and said, “Let me tell you about Cotopaxi.” I was shocked he even knew about it, and he said, “I want to build a business like Cotopaxi that’s helping other people.” I’ve never heard that in Latin America. That’s a new concept. All my years living in Latin America, I never saw a business that had a deep social impact or that had a social mission, but this young man, as he’s thinking about building a business, he’s thinking about how he can build a business in a better way through responsible capitalism.

That’s a marvelous story. I appreciate you sharing that. One of the things that I’ve learned, it reinforces what you taught us about Edgar is that when we have this notion to do good in a foreign country, we take our goods there and we ship clothing or other commodities, it feels good to do that. We’re fulfilling an immediate need within the population. The thing that I’ve learned is that at the same time, we could be undermining local entrepreneurs and businesses that are trying to survive because we’re infiltrating their market.

I’m not saying it’s a bad thing for members of a wealthy population or country such as the United States, Canada, etc., to ship commodities elsewhere. We have to have a more 360 view of what impact that is having. I’m sure you’ve run up against that, but you told and shared with us an example of how you didn’t go say to Edgar, “Get out of the way. I know exactly what you need,” instead you taught him to fish and he’s learned from your example. Am I crazy about what I’ve suggested?

You’re right. There are many unintended consequences of the decisions that we make. A lot of times with good intentions, one great example is Toms Shoes. Blake, the Founder of Toms and an investor of ours. He’s a friend and he’s someone I admire a lot. He’d be the first to tell you that when he first started, he didn’t realize that they were creating a problem. They were donating a shoe for every shoe they sold. They were going to these markets and they were disrupting local shoe markets. The local salesmen or shoe repair people lost work because they were getting everyone in the market, getting free shoes. They had to adapt to change their giving strategy. With Cotopaxi, we learned from that example.

We don’t have a buy one, give one model. We don’t give a backpack away for every backpack we sell. We instead focus on three core pillars that we believe are inextricably linked to poverty alleviation, which is education, healthcare, and livelihood training. With a focus on those three things, we allow people to lift themselves out of poverty where they have the tools and resources to be able to do that. There are lots of lessons and learning. I’m sure we’re probably making some mistakes. We hope to learn from those quickly and allow others to learn from us so they can do it even better than us in the future.

GFEP 10 | New Capitalism

New Capitalism: It’s amazing what capitalism has done to help people while also leaving our planet in a place that’s almost unrecoverable. We need to think differently about what capitalism means.

 

As we wrap up this interview, let’s do a little rapid-fire as some people call it. We’ll do some word association. I’m going to say a word and I’d like you to tell us a company or an organization that you think embodies this word. You can’t use Cotopaxi. The first word is innovation, which company comes to mind?

Apple. What I love about Apple is that they realize what consumers wanted when consumers didn’t even realize they want it like digital music. They weren’t the first ones to invent digital music that existed, but they created this iPod, iPhone and the touchscreen. It’s like, “I had a Blackberry. I didn’t feel like I even needed the touchscreen. I bought this keyboard that works great and now I can’t imagine going back to my old Blackberry.” I love the way that they had foresight encouraged to develop a product that they believed solved the problem that most of us didn’t even realize we had.

Next word, image.

Patagonia. Yvon Chouinard, the Founder, knew what that business was going to stand for from the beginning. No one was thinking about protecting the environment back when he was thinking about this and they stayed true to that. The image when you see the Patagonia logo, you know exactly what they stand for, their values. They’ve done an amazing job of protecting this imaging and creating a vision for what they stand for over decades. They’ve never deviated from that.

Let’s do one more, employee engagement.

Warby Parker, an eyewear company. I’m wearing Warby Parker. They were started by some classmates of mine in business school. I love the way that David and Neil, the co-CEOs lead that business and the way that they listened to their team. They have north of 100 retail stores around the country. I love the way they engage with their team. I’ve seen it internally and externally, even on their social media, you’ll see that they’re taking feedback from a lot of people are coming and saying, “I work in one of your retail stores. This is what I’m seeing.” They’re engaging on a public forum with their team around ways that they can improve. It’s clear that these teams feel safe. They feel safe communicating the good, bad, and ugly of things that can be done and improved. If you visit a store it’s unlike any experience I’ve had in a retail environment, their team is passionate about what they do, the service levels are next level. That only happens when you have a team that feels engaged and connected to.

I know that it’s clear and evident both through this conversation and everything that you’re involved in that Cotopaxi is like a child of yours, you’re wedded to it. It is you and you are it. The last question for you, is there anything that you would have accomplished or achieved in Cotopaxi that would finally convince you like, “It’s time to move on. It’s time to do something else?” What’s the ultimate goal that you would like to see achieved where you can say, “My work is done here?”

I don’t know that will ever happen. The day that we can say we’ve eradicated extreme poverty which I believe will happen in my lifetime, will be a special day. If there was ever a time where it’s like, “My job is done, that maybe it,” but even then there were still be enormous amounts of suffering. Even when you eradicate extreme poverty, there’s still poverty. There are still people living on less than $3 or $4 a day that is going to need help. This is a work that will never end. It’s hard for me to imagine anything that I’d be more passionate about than this. In my first few businesses, I was always anxious for the next project, thing, learning and big idea. I don’t feel that. Those feelings have gone away from me. This is my life’s passion. I hope I can dedicate my whole life to it.

Thank you, Davis. I think your coworkers are lucky to have you, and I know, you’d say you’re lucky to have them. The people who benefit from your product and your large S are lucky to have you. Since you moved to Salt Lake City from Brazil, they’re certainly lucky to have you and the world of entrepreneurship and philanthropy. I want to thank you for everything you’re doing and everything you will do, for leading out and for being a real game-changer in your space. Your space is growing rapidly. I appreciate you joining us on the show.

Thank you for having me.

Important Links:

About David Smith

GFEP 10 | New CapitalismHumanitarian. Adventurer. Entrepreneur. Husband. Father. Believer.

Angel investor: Warby Parker, Allbirds, SpaceX, Breeze Airways, Divvy, Oscar Insurance, Bombas, Route, Rumble Boxing, Dagne Dover, Buffy, Rhone Apparel, Lovevery, Central Logic (acquired), Printi.com.br (acquired), Juxta Labs (acquired), First Opinion, BrainStorm, Felix Grey, Abundant Robotics, Sunski, Floyd Design, Misen, Recyclops, Aloha, Backbone PLM, Taft, Rags, Walrus Health, Anson Calder, The Sill, and Fourpost. Limited Partner in Campfire Capital and Forerunner Ventures.

GFEP 9 | Zions Bank

 

A banker’s life: dull, unimaginative, inflexible. Right? Not so if you’ve met Scott Anderson, President and CEO of 147-year old Zions Bank, the 44th largest in America, with assets over $70B. This episode digs into how financial services are removing the stigma of being barriers to commercial progress and proving they’re the primary mover of it. Together with host, Rob Cornilles, Scott explores how banking, the source of some of this century’s broadest innovations, practices agility out of necessity. Scott also explains how his industry can more effectively tell its story so that they can continue to make the world go round.

Watch the episode here:

Scott Anderson | Out Of The Banker’s Box

If you were controlling over $70 billion in assets during one of the roughest economic stretches our country has ever gone through, what would you do with the money? Welcome to the world of banking. How do these institutions and those that lead them make the call as to which business gets financed, which homeowner gets a loan and who doesn’t? No one knows better than Scott Anderson, long-time President and CEO of Zions Bank, one of the most influential banks in the United States.

I want to thank Scott Anderson, the President and CEO of Zions Bank for taking the time to join us. This is an exciting opportunity for us to talk to someone in the financial world. As we’ve started and launched this show, Scott is the first person from the financial markets who is being interviewed for Game Face Exec. He’s our guinea pig, but he’s also our pioneer. Thank you, Scott, for joining us.

Thank you. I’m happy to be here.

It’s kind of you, one who leads a top 40 bank in this country, to take the time to address some key questions that I have, and I’m sure that our readers are interested in. This is a precarious time that we find ourselves in when you and I are talking, we’re wrapping up 2020. I’ve got to ask you from a financial-economic standpoint when 2020 began, if you were to have written in your journal what you forecast 2020 to look like, if we could have peek back into your journal entry, what would we have read?

You would have read that we thought 2020 was going to be a record year. The economy in the areas that we operate in was among the strongest in the country. People were optimistic. Job growth was high. Unemployment was low. People felt good about the future, and they were investing and spending. Whenever you have that combination, it’s always good for banks because we can step in and help them achieve their goals. We were projecting growth in loans, deposits, fee income and across the board in all of our products and services. That came to a screeching halt in March 2020.

Now that we’re looking into the year, it seems like these are two different worlds that we’re living in. Can you put on your prognosticator cap for us and tell us what is Zions Bank saying behind closed doors about the second half of 2020, even into 2021? What are we looking for?

It’s interesting as you ask that question and as you think about the response. Before you project in the second half of 2020 and into 2021, you have to look at the second quarter of 2020. That holds the key to what will happen. As we came into the second quarter, it was one of the most difficult times we have ever seen as a nation. We have the pandemic, then here in Utah, we had earthquakes. We have the government shutdown. We had the death of George Floyd and all of that social unrest that came up from there. The question is, how will that impact going forward? The interesting thing that happened in 2020, in this crisis which I call the COVID-19 recession, as opposed to the great recession several years ago in 2008, 2009, 2010, is that back then it was a banking crisis.

[bctt tweet=”While we honor the healthcare workers as unsung heroes saving lives, we should also honor bankers who have saved the economy and businesses.” via=”no”]

If you recall, the banks had invested in a lot of residential real estate, the government had loosened the underwriting criteria, so Freddie and Fannie had purchased a lot of real estate. People were buying real estate with nothing down as an investment, and they were hoping that as the market continued to move up, they could sell at a profit before they had to pay off their loan or start making their own payments. When the market collapse, banks were in a difficult situation. If you recall, the government came in with about $700 billion package to help banks through that. The banks had to pay it back and the government took warrants as well as giving the money. In this time, the government stepped in and this is not a banking crisis.

Banking is strong. Banks are well-capitalized. The credit culture is sterling. It was a business crisis. It was a health crisis. The government stepped in in a different way. They provided huge amounts of money to individuals, states, counties, and most importantly to businesses. If you add everything together, it’s about a $5 trillion package, $2.5 trillion under the CARES Act. During that period of time, we put banks which were the conduit of getting this money out to businesses. We put on a huge number of loans. My organization did over 43,000 of these loans for about $7 billion, which was the ninth-largest lender in what they call the Paycheck Protection Plan in the country.

Banks were working around the clock, 18, 20, 22 hours a night to try and process these and get them through. The result is there is a lot of money in the hands of businesses, and with the stimulus checks that went to the individuals, there’s a lot of money in the hands of the individuals. With the extra stimulus that was paid on unemployment, even if you are unemployed, you’re making more money than when they were employed. We’re in this interesting phenomenon. Most of this Paycheck Protection Plan money will be forgiven, or at least the hope is that it will be forgiven. It’s a huge help to help businesses get back on track, to bring their people back and continuing to pay their employees. The question is, how will that move forward? If the economy can start up with this extra engine, then I think we will see a recovery. It won’t be V-shaped or U-shaped, but it will be a Nike shape.

That will be good. The question though is going to be, if the economy doesn’t come back, if people are not brought back on payroll, as we enter into the fourth quarter of 2020, when a lot of these benefits end and the unemployment $600 premium ends, what will happen? Will people have the money to continue making their payments on their cars and make their rent payments on their apartments? Will businesses be able to continue doing business if they’re not open up fully? That’s the question mark. The biggest question mark is, especially here in Utah as we are seeing the spikes in COVID-19 cases, will there be a second shut down? If there is, we are in real trouble as an economy.

If we don’t have a second shut down, if we learn to live with the virus, if we find a treatment for the virus and a vaccine that will I get us over it, then we’ll see the economy grow because the fundamentals are there, especially in our market. Job growth is good. Unemployment is still relatively good compared to the nation as a whole, and we have a diverse economy which helps. I think also for our particular market, you will see a lot of individuals who can work remotely. They’re being encouraged to work remotely. They are going to be moving from Seattle, San Francisco, Los Angeles and Atlanta, and they are going to be coming to Salt Lake City and Boise. They’re going to be enjoying our environment and lifestyle here, and yet they’ll have an East Coast or West Coast salary.

Scott, historically, especially in times like this, the banking industry enjoys a reputation of being helpful, supportive, sometimes our last backstop as a small business as I am, for example. In another cases, it seems like big banks in particular are viewed as the boogeyman. They are viewed as no one’s helper. They are portrayed as greedy. How do you respond to those two labels? What do you do to ensure that your reputation is where you want it to be in times like this?

Our industry hasn’t done a good job in explaining the critical role that plays in the economy. Often times we become a scapegoat. The economy’s not doing well because of banks. The consumer is hurting because of the high-interest rates. We don’t lend fairly. We discriminate in how we make our loans. First, you have to come and say, “What do banks do?” You have to appreciate the important job that banks do. It became clear during this COVID recession. When the economy shut down, banks were one of the few industries that were essential. They had to be open. We had to adapt to a new environment.

GFEP 9 | Zions Bank

Zions Bank: The banking industry has not done a good job in explaining the critical role that it plays in the economy.

 

As we try to put these paycheck protection loans together or the PPP loans, some banks said, “We’re not going to do it.” Others said, “We’re only going to do so much.” There was a great dissatisfaction among about 30% of clients of the banking industry that said, “Where’s the long-term relationship benefit of dealing with the bank?” You’ll see a lot of change and switching of banks as we move forward. Other banks, and I like to think that my institution is one of them, went out to help. While we honor the healthcare workers as unsung heroes saving lives, we should also honor bankers who have saved the economy and businesses, and help the business move forward and become sustainable again.

During this period, they were working 18 to 20 hours a night for weeks to try and get the work done, and get the money immediately in the hand of businesses. It’s a difficult situation. This is where you need to use your influence and figure out how to call in chips. This is where you have to figure out how do you create value in the community and get credit for it at the same time that you’re creating value for your customers. Banking hasn’t done a good job of explaining that crucial role that we play so people don’t understand it. While they may say, “I don’t have great faith, I’m upset at the banking industry, or they’re not fair.” If you ask them about their local banker, they always have high regards for them. That shows that banking is a personal business. It’s built on trust and establishing strong ties with your banker, the banker with the client, the banker with the community. On a local level, the banking reputation is good and strong. On a national level, banks don’t rate high on the reputation scale.

Is there a skillset or an attribute that people getting into the banking industry should work to develop so that communication of the value and the good that is found in banking and the services of banking could be better communicated? Not to mention those people who are already in it for decades such as yourself.

We have to do a better job. I don’t think it’s just who comes into banking, but it’s how we advertise what we do. I can’t talk about who my clients are and the deals that I do, but we have to talk more about and exert greater influence among thought leaders and people in the capital on Capitol Hill, here in Utah and in Congress on what we do. We are there helping small businesses where they’re helping consumers. We’re not only going after large corporations, we are there to provide value to everyone on the economic ladder, try and help them improve and grow.

When we spoke about the financial crisis of 2008, 2009, there were certain things that your bank had to do to respond to that. You had to participate in certain moves. You had to do things that were not anticipated in order to help yourself get through that and also all of your many customers. You’re doing the same thing several years later in this new unexpected crisis. Are there some common traits or common values or strategies that you’re tapping back into to help you and your leadership team, and not to mention your local branches, to get through this? What is that thread or that theme that we would have heard several years that’s coming back?

There are several lessons that were learned and they are still applicable. The first is that you have to be good at what you’re doing. You have to make good sound loans. You have to have sound concentration limits and underwriting policies. You have to be out in the market. Beyond that, you have to communicate well. Communicate to your employees, customers and to political leaders. You have to be agile. One thing that’s coming out of this COVID-19 recession is the importance of being able to turn on a dime and come up with new things. What this has done is moved some things that banks have been thinking about for years and it’s happening.

[bctt tweet=”Bankers are salespeople and there’s nothing wrong with that. What’s important is they’re not out there to sell the wrong product.” via=”no”]

Working remotely has been a discussion for several years. Many would say, “It can’t be done. We can’t trust the cloud. We can’t track what people are doing.” Overnight, we had 75% of our employees working remotely and it worked. The unsung heroes were our technology people, but it worked. People are able to do it. We can now sign documents online, and some of the concerns that we had, we’ve been able to work around. Being agile and turning on a dime is a lesson learned back then and is important. The other is that we have to look to the future. We have to think what the future is going to be. We can’t lose the advantages or the lessons that we’ve learned and hoping that we will go back to the old way of doing it.

We have to look to the future and say, we are going to come out of this, but it’s going to be a new and better operating environment. It’s going to be more digital than it ever has been, more conversations through Zoom and less in-person meetings. How do you develop the relationship through a computer screen? What else do you do? The combination of having good technology, all of the digital channels that work, and having a feeling of the traditional long-term relationship, and matching that with an in-person banker that you can meet with, talk to and call, that’s the winning solution going forward.

As you talk about that, an image came into my mind, Jimmy Stewart, in It’s a Wonderful Life. He was a banker who looked after the community and tried to do the right thing even when it was difficult. We’d all love to have a relationship like that with our banker, whether it’s for a home loan or a business loan. Talk a bit more though about the innovation that’s coming. We’re not asking you to disclose any trade secrets that Zions is may be developing, but the necessity. You talked about being agile and nimble. When it comes to technology, I think of all the bricks and mortar branches. If I’m not mistaken, you have branches in two states, but you have offices in ten states. I don’t know what all those offices represent in those various states, primarily in the West. How is this changing the traditional banking environment of, “I pull up to the bank, I walk in and I sit down with my banker, or I go up to the teller?” How is that going to be different several years from now?

You’ll have some people say branches are going to go away, and they’re going to be replaced by an online banking platform. What I see is that what people want is a combination of both. You have FinTech companies out there where you can do all of your banking online, and you never talk to anyone. There’s no office that you can go into. When those companies first came out, their goal was to destroy and put banks out of business. They realize they can’t do that. They’re trying to partner with banks with their technology. What I think is that the role of the branch will change. You may not go onto the branch as often to do a teller transaction, cash a check or make a deposit.

You are going to go in there to see your banker to get advice on a mortgage, an investment or a commercial loan. You may then work at home on the online application. You may call them. You may go back and forth. The platform that you need as a bank is that it’s online and someone can do all of the application online at home. They can start it at the bank and then finish it at home. They can start it at home and finish it at the bank. Tied to that technology is some of their giving advice and to answer questions. That’s a winning combination that if you had a FinTech company without a bank that you wouldn’t do. Branches will be around, but they won’t be the killer transaction branches. There will be offices where you go into to meet with experts in lending, investment, cash management, and treasury services, where you can come in and get advice on products and services that will help your company grow, help you manage your capital better and increase your cashflow.

When you talk about those people that I would come in and meet with, I call them salespeople. They’re in the business of influencing and providing me an education. They’re helping me see things that I might not otherwise see on my own. My research may not have exposed certain laws or regulations, or even some traps that may rest between me and where I’m trying to go. That consultative relationship is critical between me and my banker. I’m wondering, could you give us some insight when an applicant is coming into Zions Bank, whether they’re looking for a new business loan, or they want to remodel their home, can you describe some common attributes that successful applicant brings so that they can get what they’re looking for from your bank?

GFEP 9 | Zions Bank

Zions Bank: A good bank customer shares information with their banker even before they have to, especially if there’s a problem developing. That is also the same trait that a great banker has.

 

I would first go back to your original comment. The bankers are salespeople, and there’s nothing wrong with that. What’s important is they’re not out there to sell the wrong product, and they’re not being commissioned to sell a certain product. Bankers are there and they’re salespeople in the sense that they are to sit down and explain options and to say, “Here’s this,” and do exert their influence to try and guide you to what they think is best suited for your needs. Banks and certainly with our bankers, they don’t want to sell you any product that you don’t need or that won’t help you. They want to sell you products that will help you grow, manage your capital better, manage yourselves better, and manage your cashflow better.

If they’re able to do that, you’re going to come back to them because you’ll appreciate their advice. You’ll appreciate the services and products that they gave, and that you’ll see that those products and services, that advice and counsel, created value for you. When a customer comes in, if they come in with the idea that I’m going to be sitting down with someone who can help me. If they’re asking for the right questions, and if they come in prepared to share information, then that’s a winning situation. The best quality for a bank customer to have is that they’re open, transparent, and they share information with their banker even before they have to, especially if there’s a problem developing. Likewise, those are the same traits that a great banker has. They’re open, transparent, honest, and they share the right information for the benefit of the client. Our goal is the same, the client wants to grow and be successful. We want to give them the right products to help them grow and to help them be successful and then everyone wins.

I’m curious though, how much of the transaction comes down to numbers? It’s not so much personality. It’s not a relationship. Do you qualify or don’t you based on the math and the regulations that we’re operating under as a bank? That’s the cynicism that sometimes seeps into the customer’s mind when they have to walk into a bank. I’m not saying this about Zions Bank. I’m going to generalize though. I don’t want to feel walking into a bank is the same as walking onto a stereotypical car lot. Where it’s either I qualify or I don’t, and it all comes down to the numbers. Am I naive to think that it could be something more than that?

It should be something more than that, but you have to weigh two things. One is government regulations, especially the idea of fair lending where we don’t treat different people differently. You have that on the one hand. The other hand is that the customer, especially the on certain transactions, wants speed. If you want that mortgage, you want that done fast. If you’re a real estate broker, you want your customer to get that mortgage fast so you can close the deal. If you’re trying to get a credit card, you want it instantaneous. To do that, you have to have artificial intelligence and online capabilities where you can process these deals. If you combine all of that together, fair lending, not discriminating, the numbers become more important as we try and treat everyone the same. Beyond that, characters still mean a lot.

The numbers may say, “I should lend to you,” but I know that your character is such that I don’t want to, so you don’t. The character, project, and the impact it will have on the community means a lot. Is it a community development investment? Is it a community development loan? All of that comes into play. The smaller the deal, the more artificial intelligence and machine learning is involved in getting it done fast so that the customer gets what they want, and they get it at the right rate. The larger the deal, the more complex the deal. That’s when you have more interaction and a lot of other elements come into play besides the numbers.

Scott, you said you can’t disclose clients and we respect that. I am curious though, if there was a particular project that came across your desk in your banking career that at face value you may have looked at it and thought, “There’s no way we’re going to get a deal done here, but I want to do a deal. I want to find a way to make this work.” Is there one particular example that you think about that you could share with us? Are there qualities of those types of deals that may have looked difficult at the front end, but through whatever creativity or ingenuity that you, your bank and your customer exercise, you are able to get across the finish line?

[bctt tweet=”Banking has to be creative going forward to continue existing.” via=”no”]

I’ll give you an example. It wasn’t a deal that I did or that Zions Bank did. It wasn’t a deal that happened recently, but it’s a terrific example, especially in this environment. Before I came to Zions, I was with Bank of America. One of my clients in San Francisco was The Golden Gate Bridge Authority. The Golden Gate Bridge was built during The Great Recession. A group of citizens got together and said, “We need a work project to get our people back to work. We need to connect the San Francisco Peninsula across the Bay so that we can go up and improve commerce.” People said it can’t be done. The currents in the Bay are too strong you can never build a bridge there. The winds are too strong. It’s suicidal.

Back then, there were no government handouts or funding for a project like that. The founder of Bank of America, A. P. Giannini, said, “We are going to do it because if it works, it’ll transform our entire community. It will pull us out of the great recession. It’ll put people back to work and increase our commerce. It will expand our markets, and it will make a difference in the lives of everyone else. If it doesn’t work, it’s going to bankrupt all of us.” He decided to do it, and he issued the bonds. He bought the bonds that finance the construction of The Golden Gate Bridge. The bridge was built and it’s an icon. It did everything that they had hoped it would do.

As I thought of going and staying into banking, I keep thinking of that example, because the role of the banker should be like A. P. Giannini back in the 1930s. They should have a broad vision. They should be a community developer. They should look at what’s best for the community and find creative ways to meet those needs. That was done not by numbers, it was done evaluating the risks carefully but making a decision that did have risk and could have failed but it didn’t.

I’m encouraged to hear a prominent banker like you speak that way and talk about weighing the risk, but also weighing reward, not just for your own entity and for your own personal gain, but also for the good of the community, to find community however you will. That’s encouraging. Let’s tell a lawyer joke between you and me. Most people say lawyers have no appetite for risk. They have not a creative bone in their body. They want to protect their client from any potential harm. I’ve experienced that in my life working with and even having lawyers as clients. When I find a creative lawyer who has that entrepreneurial thinking, that blood running through their veins, for me, it’s refreshing. That’s the way I am. I tend to be more of a risk-taker and to hear that from a banker as experienced as you, that’s so encouraging.

One of the stereotypes of bankers that is wrong is that we are conservative and we’re not innovative. Banking is innovative and a good banker is creative. We call it trying to be conservatively entrepreneurial. We want to be nimble, innovative, and bring creative solutions to the table to help the clients. If you look, we do. In the past, if you go back several years, if you wanted to make a deposit, you had to come into the bank and give the checks to the bank. The bank then would process those checks and would send the check back to whoever wrote it, and then you would file those checks in shoe boxes because you had to maintain a record.

We developed the technology at Zions where you could do all of that automatically. You could process electronically. You don’t have to give the check back to the original writer of the check. We had to get the laws changed and President Clinton signed the Check 21 Act that allowed that to happen. Every time you go into a grocery store, and if you give them a check and they run it through their machine and hand it back to you, that is the technology that was developed by a bank. You look at bank card, no one thinks of the charge card as being innovative now, but back in its day, it changed how banking was done. The whole idea that you could charge on a card and pay it back over time was unheard of. That was developed by Bank of America. That became the Visa card. You look at online mortgages and online accounts. You look at the information that you can give back to the customer on how they’re spending, where they’re writing their checks. If this is a check that they wrote, or if it’s a fraud coming in. All of those things are innovations that came from banks. Banking has to be creative going forward to exist.

GFEP 9 | Zions Bank

Zions Bank: Banking is innovative and a good banker is creative. Bankers call it being “conservatively entrepreneurial.”

 

Speaking of creativity, for those who aren’t familiar with Zions Bank throughout the country, Zions is extremely involved in sports marketing. You have a prominent role not only with BYU Athletics, with the Utah Jazz, and I’m sure there are other teams and athletic departments. You see sports marketing as a way to drive Zions’ business. Can you share with us, especially those who are reading who are in the sports business who may be calling on people like you wanting to develop that partnership, what are some of the imperatives that you have to see in order for you to make an investment in a sports property?

We have made a huge investment in a number of sports franchises where we buy tickets. We’re a sponsor. We’re a supporter. We provide banking services. We do it because it’s a way to reach our people. If you go to a Jazz game and you have 20,000 people sitting there, or you go to a BYU football game and you have a stadium full of people, they see that you’re there. They associate you with their team. That develops an affinity that we can come back and take advantage of. We also support the sports of the University of Utah.

Utah and BYU are competitors, but it doesn’t matter to the customer. Some customers are thrilled that we’re up there at the University of Utah, and they sell snicker at the Y. The Y customers are thrilled that we’re down there, but it makes sense. We’re doing something that brings great activity to the community. At the same time, it gives us great exposure to the people who are there physically, but also through the radio and TV. It allows us to support major businesses in our local community. These sports businesses are major businesses in our community.

What could those sports businesses do to cause you to disengage from them to say, “We’re not renewing that partnership, it’s been a good ride, but we’re moving on.” What are some things that they need to be watching out for so that they never hear those words out of your mouth?

One is cost. We can go out and sell high, and then beyond that there’s not a financial value to it. It’s always good to have a wide range of sponsorships that you can find the right place for your organization in there so you can always be part of it. Knowing that, others may come in ahead of you which is okay. It’s not an exclusive relationship, and have the sports franchise recognize that. That you can do your part, but you may not be able to do more than that. To have a wide variety of options, each with certain benefits and each with different costs.

Part of your reasoning for partnering with sports is because you’ve talked about community, and that Zions Bank wants to be viewed as an integral part of any community. As we wrap up here, I want to talk a little bit about corporate social responsibility. There’s been so much discussion about the social responsibility of individuals and companies. How do we ensure that CSR is not just a token effort by a company? When you have opportunities brought to you and they’re laid out on your desk, how do you judge whether or not a particular opportunity to do something within the community has value, real meaning, and real purpose versus something that looks like a field good PR move?

We do look at that and we try and evaluate that. The challenge is that there are probably more projects that have real value than you can do or that any company can do. We try to be as broad as we can in our approach. Some are large sponsorships, some are smaller sponsorships. As we look at it, we say, “What impact will this have on the business that we’re sponsoring? Is it a good business? Is it a business that we will be proud of to have our name associated with it?” There are some businesses that we wouldn’t sponsor because we would not want to be associated with that. That’s the first criteria. The second criteria is, how is it viewed in the community? Will this help the community by providing good entertainment, a good product and service or doing any number of good things? If there’s a good impact, if it’s a company that we want to do business with, if it helps the economy grow and expand, then we are there and try to do as much as we can.

Scott, this has been enlightening. I appreciate the insights you’ve given me. I’m sure those who are reading have gained a lot from this. To be able to pick the brain of someone who’s been in the banking industry for several years. For those who are getting into the financial sector, let’s imagine that I have one of my sons who’s going into the financial sector. This slowdown in the economy has a little bit affected that, but he’s got plans. He’ll be moving to New York City soon to take a job with a financial institution there. What can you say to encourage someone like that? Is this the right time to get into banking? Should he go in with a lot of hope that things are going to work out? Should he be may be looking at another career?

I’m glad that he’s looking at it because banking is a noble profession. You do a lot to create value for your customers, your community, your shareholders, and your employees. People should be proud to go into banking. They should recognize that it’s a great opportunity to be involved with people helping them in some of their most important situations. At the same time, you’re helping them in some of their most difficult situations, and you’re trying to create value. You go into it and you get a lot of positive and negative feedback, but you’re doing good. The second piece of advice I’d give them is that it’s a creative industry. They need to come in and say, “It’s creative.”

We may have rules, we may have guidelines, but the great banker is one who can look at them and look at the project and say, “I understand the risk but this is the right thing to do. This is how we can do it to benefit our client, our community and the economy.” You always have to find balance. Banking is an industry where it can suck all of your time out. There are always deadlines, a client that’s pushing to get it done, and it’s easy to spend your nights and your weekends working for your clients. To be a great banker, you also have to find that balance where you are putting aside the books and rejuvenating yourself and coming back with more vigor. Especially in New York, in that environment back there, they should take time for themselves.

Good advice coming from someone who’s worked internationally. You worked in Tokyo early in your career. You’ve worked in San Francisco. You were schooled on the East coast at universities that come from major markets. I’m going to pass that advice on to him. I’m sure he will be grateful for it. Scott, this has been insightful. Thank you for spending the time and giving us a peek into your world, and how you and bankers think because we can all take something from what you have said, and make our own banking relationships much more successful moving forward.

I enjoyed it. Thank you. Thanks for what you do to help keep us on target, sharp and knowing how we can use our influence better.

Important Links:

 

Being the senior vice president of fan services and entertainment at the renowned Boston Red Sox has its perks. But the owner of that title, Sarah McKenna, explains how none of it matters if you lose sight of what your role means. Fan Services: everything is for the fans who are here to be served. Entertainment: fans have to be pleased night after night, good team or bad, rain or shine, happy times (player retirements and military family reunions) or bad times (the 2013 Boston bombings or national unrest). Meet Sarah McKenna – the game face exec who loves her fans as much as they love her team – as she graces the show with Rob Cornilles.

Watch the episode here:

Sarah McKenna | Red Sox Romantic

If you’ve ever been to Boston’s Fenway Park, you’ve seen baseball players swinging for the fences. What you also probably experience but didn’t realize was the Red Sox’s Sarah McKenna, Senior Vice President of Fan Services Entertainment swinging for the senses. Read on my conversation with Sarah about how she’s built the reputation using sights, sounds, smells, touch and taste to influence the second sale.

I’m here with Sarah McKenna, the Senior Vice President of the Boston Red Sox. I hate to use this term, but an old friend in the sports business. First of all, Sarah, you are from Springfield, Mass originally, correct?

Yes, I am from Springfield, Massachusetts. Out here, we call it the 413. That’s our area code.

You end up for almost twenty years working the Boston Red Sox. Being a Massachusetts girl, you have got to have the dream job to be able to work in your hometown for your beloved team. Few people in sports ever get that. Do you have the perfect world now?

Yes, except we’re doing this via Zoom. It would be good to be at work and be with my teammates and seeing large crowds, hearing people and smelling Fenway franks and doing all that stuff. I don’t even think I’d mind now if someone spilled a beer on me.

All your friends from back growing up days, your family, they look at you and go, “Did you luck out or what?” It wasn’t luck. We’ll talk about what got you there, but I hope you’re pinching yourself a lot.

I’m thankful and the team is fantastic. Our ownership is fantastic, but to go to work at that ballpark every day, it’s just gorgeous and perfect. It is imperfectly perfect. It’s once in a lifetime.

I’ve been very blessed in my career to be able to visit a lot of stadiums and arenas around the world. One of the cool experiences that most fans never get to have is walking into an empty stadium or arena. It could be early in the morning, the morning after a big game or the date of a big game. You get to do that every day at Fenway Park and you get to see the Green Monster. Does that still give you a rush?

I prefer it when it’s empty. I love it when it’s full, but there is something uniquely special about it. It’s unique to baseball too. You use the word stadium and arena when you’re thinking about all the different ballparks. I have many ballparks that I love. You love Petco Park, Seattle ballpark, Camden Yards and I’ve been there is a lot of ballparks when it’s empty for batting practice before the gates open or when you get there earlier before someone else. I have been at Fenway Park also when you’re completely alone, light towers off and we have what we refer to as the sweeper lights. They’re the stadium lights at the back of the grandstands, but they’re far back because their overhang is not big and we have those field box seats. The way those lights illuminate into the grandstands and are pushed down onto the field and you see whether it’s a sickle sign or the Prudential Center or the Hancock building. You can see that skyline, it’s cool. Whether it’s at 5:00 in the morning because you’re getting ready for opening day or it’s at 1:00 in the morning because you stayed late and you have to get work done after everybody left.

It’s romantic, isn’t it? 

Yes. Incredibly. It’s special.

[bctt tweet=”Sports has an obligation now to be a healing agent. It is a unique responsibility and opportunity.” via=”no”]

It’s the field of dreams every day, go to work like that. That’s a perk of working in sports and any entertainment business, whether it’s a stage, a theater, or a concert hall, to be able to walk in there when no one else is there is a unique experience. It’s like a temple for sports. What’s also cool about your job and we’ll talk about your job. You get to provide unique experiences to people that they have probably looked forward to all their lives or they get to give that experience to their kids or their grandkids. You’re the catalyst. You’re the provider of that experience.

I am in on the secret before the secret is unveiled, shall we say.

Does that ever get old? 

No, but do at times miss the element of surprise. I remember one time it was the 4th of July and we were doing something and one of my friends which happened to be in particularly close seats on the third-base side. I was walking in from the left-field after there was a great flyover after the anthem, but we were doing a military reunion before they were a big deal. It was the early 2000s. For some reason, I was able to get a woman from South Boston from the Navy off her carrier, things that I shouldn’t have had the right to do. From the Persian Gulf and then via Bahrain to come to a surprise for her family. She got in late at night, her family thought that they were doing an early version of a FaceTime, what we’re doing now. The guy says to me and it was in his total Boston accent and he’s like, “That was sick.” I’m like, “Wait for it.” He’s like, “What? No, that was it.” I was like, “No, it’s not it.” He shoots me a text message later and he’s like, “That was awesome.” I love being able to do that, but I also love seeing how other people do it when I look at my peers in other sports and other teams. It’s cool to see what they do.

You can’t put a price on being able to bring people those experiences and memories. It’s better sometimes than a paycheck. I know that sounds idealistic, but it is because those memories will go on forever and you’re the person that produced that memory for them or you provided it. That’s one of the great perks of working in sports. You do it well. You do it for a story to the franchise at a ballpark that is you could argue it’s the mecca of baseball. 

It’s a real place within the city too. We’ve been here in this region it’s a unique period of time because when you think about Boston, it’s hard not to think about its particular place in history. You think about things like the revolution or whatever, but people aren’t going anymore to certain places and gathering as a group. For a lot of years, it was ballparks, stadiums, and arenas. When we think back to the bombings in 2013 and other times in history, we have been a place where people can come together and whether it’s heal, cheer, express joy, whatever it is, it’s been cool to be part of that.

You’re going to be a part of that. I’ve shared with my clients something they already know, but I like to remind them as an outsider to their organization that they are about to be a part of the healing of a community. It’s almost like a cathartic experience when after the pent up energy of COVID-19 and the fact that we were staying in our homes, with some unrest going on in our country, cities being used for demonstrations, protests, and sometimes worse than that. Sports has such an obligation and a responsibility now to be a healing agent. How you do that?

I view it as a unique responsibility and opportunity. I had one viewpoint of this saying, “When baseball comes back, what are we going to do?” We’re going to have to acknowledge the lives lost. We’ve learned a lot about this and the types of impacts that it’s had on different communities versus other communities. We’ve learned about how it has impacted certain age groups rather than other age groups. There are all these things that you learn from what you’re seeing in the news, what you’re reading, and what you’re hearing from your friends and your family.

In addition to that, there’s this other layer of social justice, equality, inclusion, and all things that, in some ways, connect closely to what we were learning from the pandemic. The way certain communities have been impacted and the way that individuals have access to healthcare or rights, whatever it is, there are these unique synergies. I hate to use the word synergies because it doesn’t feel right. It doesn’t feel almost human. It feels like a business-speak and this is a human thing. When I approach these things, I never approach them from the who, what, when, where, how.

I approach it from the five senses. What did you hear? What did you see? It’s going to be hard to give our fans what did you smell and did you get to touch anything? I have a lot of great coworkers that I’ve worked with for a long time. We use the phrase sometimes, and I have one guy that I work with, and he’ll always say to me, “Sarah, I haven’t cried yet.” That’s an important thing that when you bring to whatever it is you’re doing, it’s that in order to get through it, you have to feel all the emotions before you can begin. When I think about what we did after the bombings and how we approached that particular day on our return to baseball because it wouldn’t be right to return to baseball and have this joyous thing without recognizing what has happened.

It would be deaf, wrong, all the words that make you seem ignorant. Baseball is uniquely positioned for these things. It’s also a real challenge because football plays once a week, baseball plays a couple of times a month at home, hockey will play a couple of times a month. Baseball, you can be in the middle of a ten-game homestand, and you can go through, think about what our last ten days have been like. What the ten days before that were like? Imagine if we were having baseball games and all the things that we would have had to do as far as recognition, awareness, healing, and providing all of those resources before you even get to the baseball game. It’s the daily element of it that uniquely positions us to be connected to society in a different way if you choose to go at it proactively. It also is a large responsibility and it requires you to be incredibly nimble, in my opinion.

GFEP 8 | Red Sox Romantic

Red Sox Romantic: Ballpark to ballpark, the team has a lot of freedoms to define its brand and say who they are, so long as that fits within the expectations of the league.

 

May I use the word stewardship too? 

Yes.

You have a stewardship to a brand, to a community, to a fan that pays good money to come into your games, to those that you work with, the players, your coworkers, etc. I’m thinking about other industries, businesses that don’t have to have all of these considerations that you outlined. They can come to work. For the most part, the outside world doesn’t see how they need to deal with the changing conditions. They need to be nimble for their business, but it’s not out there for the public to see. Everything you do is magnified. When I come to Fenway Park for my first game, amidst all of this stuff, I expect you guys to put on a perfect show for me. I expect to entertain me to heal me, to make me laugh and cry. I expect to be well-fed. I don’t want any problems as far as customer service. I want to get the parking that I want. I want transportation in and out. What an obligation you have.

On top of that, you’re a big baseball fan because you’re a Red Sox fan and you know your baseball and you’re super smart about it. There better not be one digit wrong in your stats either. There are all the things, but that’s cool. It’s good to wake up every day and have someone hold you accountable. It’s incredibly motivating. The stewardship, it’s interesting because there are many places that have the burden of trying out a lot of new tricks, and lots of times I find myself saying, “That’s not what Fenway is.” That works fantastic in Tampa and Kansas City. That works well in Las Vegas.

I agree with you. It’s 100% cool and it’s awesome. We are Fenway and it’s a little like preserving a national park. When you go to Yosemite Valley, you want your children to see what you saw in Yosemite Valley. When you take them to the geysers in Prismatic Spring, and Yellowstone, you don’t want that ruined. You want that to be exactly as it was, that connection and that thread of the generations. That’s what Fenway is. That’s what people expect and want. That doesn’t mean that we can’t change for the better in a lot of ways and we always will strive towards that. The phrase, “The ballpark is the star” when they’re referring to Fenway. There’s that phrase, “It’s the economy, stupid.” It’s the baseball, stupid. Don’t mess with that. No one came to see me or hear from me. They came to gather as a group collectively in a unified way, enjoy this open space, the fresh air, all under the city lights while cheering for the same team.

You’re bringing up such an interesting point that I have been thinking about it, scratching my head over and you’re putting your finger on it. Let’s talk about Major League Baseball. I’ve been wondering a lot about the edicts that come from a league office and I’m not here to bash on league offices. Whether it’s responding to a pandemic or social injustices, when the league office says, “This is the way we’re going to do it. Every one of our franchises needs to do it that same way.” I understand that if that’s McDonald’s saying that this is the way you’re going to make hamburgers.

You talked about the personality of your community and the historic nature of your ballpark, which is different than the personality in Tampa. It’s different than the personality in San Diego or in Kansas City. How do you reconcile that? You’re a good citizen of Major League Baseball. You’re a leader in the business of Major League Baseball, but you also have to be respectful and mindful of your own local community and pulse. How do you play good citizen at a league level, but also be responsive and responsible to your local fan-base?

The league allows a lot of freedom in that way. The reason I say that is because when we think of guidelines, I often think of it in terms of access as part of an agreement or a security regulation or something like that. Ballpark to ballpark, we have a lot of freedoms to define our brand and say who we are, so long as that fits within the expectations, I would say of baseball amongst all the owners and the commissioner. We have the ability to have our own identity. They’re not saying you have to do this, or you have to do that, but they make suggestions a lot of times to all of us. We’re like, “That probably wouldn’t play here.” There’s not this huge animosity. It’s, “You’re different.”

When you take that into a million different avenues when you think about what we’re going through now, should we be fortunate to play? We’re going to get guidelines. The guidelines that work when you’re in a ballpark that’s four times the size of ours and has actual real service elevators. Fenway doesn’t have service elevators. It’s something as simple as that, people are like, “That’s in the lower concourse,” and we’re like, “We only have one concourse.” We don’t have that separate one where you can do the things you need to do. There’s going to have to be, and there will be, a lot of not freedom, but the ability to tailor things to how it works within your own ballpark.

A lot of places are blessed with space, even the new Yankee Stadium. Their visitor’s clubhouses, it has to be four times the size of our ballpark. There’s space and it’s not something that we have in our area. When we look at what we’re about to tackle here and you think about it from a distance, can it be done? Absolutely. It can be done. Does it take a lot of creativity? Yes, it takes a lot of creativity.

Speaking of the clubhouse. I have been inside the Red Sox clubhouse there at Fenway and it would surprise a lot of people. Maybe since I was last there, some improvements have been made. I’m sure that’s the case, but the last time I was there, it was shocking. You would think that the Boston Red Sox players would get the best. I guess they understand that when you come to play at Fenway Park, there are some trade-offs. 

[bctt tweet=”We are all in the business of sales.” via=”no”]

If you’re coming to play at Fenway Park, you’re not coming for the clubhouse. It’s for the locker setup. It has gotten a lot better and it doubled in size but not what you would define as the clubhouse, which is the room where all their lockers are. That is still roughly the same size. Some things have been moved around a little bit to free up some space and additional coaches’ offices to alleviate coaches being in there. We are bringing in twenty temporary lockers during September call ups or whatever the number is. Keep in mind that’s there, you’re walking down to go to the dugout is the same stair that was walked down in the ’30s.

There used to be one tunnel when the clubhouses were a little bit closer and I believe the story is there was a fight between the two teams in the tunnel. That’s when they separated tunnels for all of baseball. I can’t say it was the same one as it was in 1912, but I don’t think it was that far off. It’s interesting, but if you’re coming to play for us, of course, do you want to make sure it’s comfortable and all those things? I don’t think it’s your number one priority. You prefer that you’re most likely to play to a sell-out crowd. Keep in mind, David Ortiz at every single game he ever played in front of Fenway Park was a sell-out or almost every game.

Let’s talk about those sellouts. There’s a reputation that Northeast area teams have for having some of the hardest to please fans, whether you mentioned the Yankees, maybe the Red Sox. I would say the fans in Philadelphia can be hard at times. How is that impacting the daily decisions and choices you’re making? Certainly, there’s a love affair between the fan-base and the brand, but there are also such high expectations between that fan-base and the brand. You’re the one granted they want to see winning teams on the field, but when the team is not winning, we’re not winning to their satisfaction. You’re the backstop. You’re providing that overall experience at the ballpark. How does that play into your thinking and was it working in a market like that?

I’m super lucky because we’ve won four World Series since I’ve gotten here. Fortunately, I haven’t had to think about that for too many years, but you do have that year where you look at it, it’s September and you’re like, “It’s not happening,” or even earlier sometimes. That’s when you start going back to, for lack of a better phrase, your bag of tricks. The experiences of whether or not it’s the on-field photo days and the kids run the bases and those things that are tried and true things that you come back to when you think about it. I think you are the first person that opened my eyes to these things when I took a course with you back in Portland. Thinking about what is that added value that you can provide and trying to do those things. What I’ve learned through the years is that it’s harder to do those things. It’s easier to do them at the start of the season, but it’s not a good vibe when a team is out of it in the clubhouse. Guys are great and they’re willing to do things or whatever, but you feel worse asking like, “You’re not winning. I don’t want to ask you to do something.” That’s where that one comes.

Children learn about mom and dad.

This is not the moment that we should be asking this, but I got to do it, anyway. I’ve told someone I’m like, “I’m sure the worst thing in the world is asking you to do this during this time.”

You have to use some of your sales skills, Sarah.

I sell it constantly. Here’s the thing, Rob. I sell nothing. We had an interesting conversation once I remember being in a senior staff meeting and everybody had to go around and talk about their sales goals and their recent sales, something to that theme or whatever. I was like, “I only spend money. I don’t sell anything,” but I do. I acknowledge, I do. We use the phrase, we used it when we were with the Padres, we’re all salespeople. When you think about marketing, I always feel when young people say like, “I want to be in marketing.” I’m like, “No, you don’t want to be in advertising.” If you understand what marketing is, that’s like an exhausting look at numbers, dialing into zip codes, and the tendencies of buyers. What you’re thinking of in the romantic phrase of marketing is you’re thinking of more experiential and creativity. There are few people that say, “I want to figure out when moms are buying whether it’s Tuesdays or Wednesdays so that I can send them that targeted message.”

I have a son who you know, Sarah. My oldest son works for Facebook. He works in the ads department of Facebook. He’s not interested in trends. He’s interested in behaviors. That’s what he studies and that’s what he tries to predict. In the analytics that you referenced, he tries to predict behaviors. Why would someone want to buy through this Facebook Ad? How can we approve it so that we are capitalizing on the anticipated behaviors of people? You have to admit you are a salesperson.

I should have followed it up with what I learned early that was not the type of sales I wanted to do. Shortly after I left Portland, I briefly worked for American golf in San Diego. I was selling tournaments before I worked for the Padres. It was a couple of months and I was like, “I don’t want to sell anything like this ever again,” but I will say, I love the opportunity to sell you an emotion. I love the opportunity to sell you a feeling and sell is not the right word, but it’s to give it and to give it to you once so that you understand that if you come back here, you might be likely to get it again.

GFEP 8 | Red Sox Romantic

Red Sox Romantic: If you’re coming to play at Fenway Park, you’re not coming for the clubhouse. It’s for the locker setup.

 

I’m not in the business of the initial sale, but I am in the business of the repeat customer, which is just as important as a sale. The 2nd, 3rd sale, the, “I want to upgrade. I had such a good time, I want to make it a ten-game package now,” that is my job. The people in the men and women that work in all a ton of different ways that I’ve worked with over the years that are picking up that phone and making that first call of getting someone to the ballpark, whether it’s been in Portland or San Diego, or even in Boston. We do make calls. Contrary to popular opinion, the phone is not constantly ringing off the hook, but we do our outbound sales and I respect that because that’s a hard job to make that first impression in that manner.

I am able to do it with a myriad of senses. I can show you something on the video board. I can make sure that hot dog is delivered nice and toasty, warm, or make sure that all season long as you’re coming in the gate, maybe that sausage vendor is right there and you’re smelling those things. The sound was good. You may have heard your favorite song in a timely way. That opportunity to sell that repeat customer, it’s all part of it. I’m not in the business and I’m classified under the operation side, but as a whole, from our chief operating officer, it is a clear mandate. We are in repeat customer business. That is what we are in. It’s safety, security, repeat customers.

You’re in the renewal business. As you well-articulated, customer service is a sales function. It’s on the back end. Taking the baton from the front end salesperson and saying, “I’ll take it from here. I will ensure the repeat business.” The sales staffs work, they integrate with well service staff, or sometimes we call them client success teams. The fact that they’re working together in concert to produce the original sale and then to ensure the repeat sale, it’s integrated, those two functions.

I love it when say the group salesperson. I’ve had the opportunity to work with a lot of great people over the years. When you think about it and they’re saying like, “I’ve got this group coming in.” In 2019 they bought 1,000 tickets, but this year they bought 3,000 and I want to do a little something more for them. What can we do? Let’s step it up a notch. This is my idea. This is their expectation. If you tell me that in advance like, “I’m in,” and I have staff that’s all in. “Let’s do this.” You want to have a much more orchestrated conversation about making sure this happens and that happens. That’s awesome and we’re still doing that.

We mowed a pattern into our field for recognizing nurses. Nurses are one of our biggest group sales. As our group salespeople reaching out to us saying like, “We’re coming up on a month of a whole bunch of appreciations, EMS workers, nurse’s workers.” There are one of our best groups. All our groups are great, but specific they’re like, “They’re going through so much that there’s this there’s that, what can we do for them?” Our groundskeeper says, “What about a pattern? Fly the drone, the news copters will pick it up and tip them off.” That is a clear collaboration during a pandemic from a group sales leader to a groundskeeper. It was fantastic.

It’s a great illustration of how a team works together to get the sale and get the repeat sale.

The nurses feel loved. There’s no loss there.

There’s also baseball. You mentioned Portland and I wanted to bring that up because for the audience, that’s where new and I first met. You graduated from Providence College with a Healthcare degree, correct? 

Yes. Healthcare Policy and Management. It’s helping me now, for the record, having taken a few epidemiology classes, essentially.

I’m a West Coast guy originally. You’re an East Coast girl. I got to ask you, how did you get from Providence to the Portland Rocky Single-A short-season baseball team and affiliate of the Colorado Rockies? If I’m not mistaken, you were an intern there, weren’t you Sarah, at first?

[bctt tweet=”The repeat customer business is the business of selling emotions. It is as important as making the initial sale itself.” via=”no”]

Yes. After college, it’s the thing back here, you go to New York, you go to Boston, that’s what you do and I wasn’t feeling it. I had a couple of friends and we weren’t feeling it. We said, “Why don’t we hop in a car and go West?” My dad had told me, “I will give you enough money to get there and I’ll give you enough money to get back, but however long you stay, best of luck.” I had a few odd jobs over the years and I ended up calling Jack Cain and asking him for an interview. He’s like, “Yes, come on in.” Jack is a great guy.

He was the owner of the Portland Rockies.

I came in, I met with him and he said, “It’s middle of the season.” It was. I graduated. We all know how long, short-season Single-A baseball is. It’s not very long. For me, we did in the middle, I’m pretty late to the party. He said, “My jobs are all filled now.” They were, in his defense. He’s like, “You seem like a nice kid. I’ll give you a job selling programs.” I said, “I don’t think programs are going to pay my rent now. I’m going to have to pass, but thank you.” I wrote him a thank you note and kept in touch a little bit, but it was the course of 2 to 3 weeks. A couple of days before, I had ridden out there in one of my friend’s car, so I didn’t have a car.

We were living in Lake Oswego at a friend’s house, which is not that close to Portland if you don’t have a car. Some guy that had a shop in the town of Lake Oswego saw me at a grocery store trying to strap groceries to my bike at one point. He’s like, “What are you doing? Do you want to come? I need some help in my warehouse. I’ll give you a job and if you get a new job, you just have to finish out the rest of the week. If you need to go on interviews, you can have half a day off to go on interviews but it looks like you need a few bucks and you might need some help.”

This stranger out of the kindness of his heart. I rode my bike over and every day I worked in his warehouse, making sure the shelves were stocked for his construction company. I ended up being there for a couple of weeks. One day, I get a call. It was Katie Reader if you remember and she told me that Jack wanted me to come to a game. He asked me to come to a game and I sat with him. We know Jack, he’s a huge personality. He was like, “Are you digging ditches and working in a warehouse?” I said, “Yes.” He’s like, “I can’t stop thinking if you’ll do that for that person. What will you do here?”

I was like, “I don’t know, do you want to figure it out?” He was like, “Yes.” He gave me a job. He made a job for me. I’m eternally grateful to him for that. You did a little bit of everything. You pulled the tarp because it was Portland. I did the slingshot, played the music sometimes, I sold billboards, sold groups, answered the phone and it was great. I learned a ton. Everybody should spend at some point in their life and if they are in sports, have the opportunity to spend it working in my own baseball. When I’m done working in baseball, I would like my final years to be in my early baseball because it’s a lot of fun. It’s great you get to do everything.

I got a couple of things I want to say. First of all, when you worked for the Rockies, I was consulting with Jack and his wife, Mary, when they first moved to the franchise from Bend, Oregon, and Central, Oregon to Portland. I would come in regularly because GameFace was a new company. We were trying to get up on our feet as well and we needed a good client or two, a bunch of success stories. The Rockies became that. I always have in my mind, this vision of you when I’d walk into their office, which was in the bowels of the stadium and you’d be the first person I would see.

You would be sitting there at that first desk and to everyone reading this, I got to say, Sarah, no matter what she was asked to do, did it with a smile. I’ll always remember that, Sarah. You always had that great attitude. As I see all those people that went through the Rockies organization at which later became a triple-A franchise, renamed. There’s quite a legacy that Jack started. I don’t think anyone could argue that you have gone the farthest in your sports career.

There have been some people.

I can’t think of them. You deserve a tremendous amount of respect and accolades for how you took that minuscule opportunity. You worked hard, you had a great attitude. You were a team player and look where you are now, working for one of the most storied brands in all those sports and in a senior position. It’s wonderful. I’m proud of you.

GFEP 8 | Red Sox Romantic

Red Sox Romantic: If there’s a real problem, you call the other team because we’re interconnected in many different ways.

 

Thank you. It’s interesting because you never know what it’s going to be because my whole connection to San Diego when I ended up working for the Padres is because I was answering the phones. It was my job to answer the phones in Portland. It was a connection made through because I helped someone. That was it. A gentleman from the commissioner’s office of Major League Baseball, his daughter had gone to live in Portland. He’s calling from New York and there was some issue. I think she needed a doctor of some sort. He said, “Who is your team doctor?”

He wanted to know because that’s what you do in baseball. My daughter’s off to college in California and she’s doing sports and they’re like, “She’ll need a doctor.” I’m like, “No. This team will take care of her.” I’m going to call that team. I’m not going to lie. If there’s a real problem, you call the other team because we’re interconnected in many different ways. It’s the greatest part about working in sports is access to things like that. He asked me to tell him something. I figured it out for his daughter and then he called up again maybe a month later.

He said, “We’re coming to Portland because we’re going to visit our daughter. What is your team hotel?” He’s like, “Something happened and we needed to get there quicker.” His assistant had gone on vacation. He’s like, “Can you help me book my flight?” I was like, “Yes, of course. I don’t even know you, but I’ll help you book a flight.” We did this and whatever. I remember calling him up because I couldn’t get him on the phone. In those days, it was a little harder with the credit card payments and everything.

I had put his flights on my credit card. I called him up and I said, “It’s great that you’re coming to visit but when you come here, can you drop off a check? I put all your flights on my card.” He’s like, “I can’t believe that. I’m embarrassed. I didn’t think about that.” I was like, “No, it’s fine.” When I left Portland because whenever this gentleman needed something, he would call and he would ask me. It turns out he was high up at the commissioner’s office. I learned that over the years and I said, “I’ve met someone and he’s taking a job in San Diego and I’m going to go with him. We’re engaged and this is what’s going to happen.”

He said, “I have then to call the San Diego Padres for you.” He called the San Diego Padres. I get a phone call and I’m supposed to call this person once I finally arrive in San Diego. I call this gentleman. He sets a meeting up with me for Larry Lucchino because of this person that set up this interview. Larry Lucchino says, “I don’t have anything now, but you can have an internship.” I said, “Thank you but my internship days are over.” What I meant was I don’t think I want to work in baseball anymore.

All I do is dress up as a mascot, pull the tarp, and answer phones. I don’t want to pull the tarp anymore. Not realizing that in Major League Baseball, you don’t pull the tarp. Sure enough, I send a thank you note. I go out of my own and I go to work for a golf company. I’m not loving it. I get a call from the same guy that set up the meeting before with Larry. He says, “Larry would like you to come in for another meeting.” I said, “Okay.” He said, “I noticed you had worked on Capitol Hill as one of your internships. I liked that you turned me down. We have a three-month job working on the campaign to build the ballpark in San Diego and in doing our stuff here at the ballpark at Qualcomm and integrating the politics with the baseball, do you think you can do that?” I said, “Yes, I can do that.” I’ve never applied for another job since because of that and a lot of thank you notes too.

The little things that you’re talking about, quite frankly, I’ve seen a lot of people who aspire to work in sports who refuse to do those little things because they’re too busy or because they think that’s old school like, “I don’t need to do that. I don’t need to write personal notes anymore. I’ll send them an email maybe or I’ll send them a LinkedIn message,” and that’s good enough. Those little touches, they stand out in this world. You stood out and you continue to stand out. I got to also point out when Larry Lucchino, who is the President of the San Diego Padres, the CEO, when he hired you, you were a manager of a government relations job if I’m not mistaken.

We have a campaign. I was a campaign worker to start. At the end of the campaign and there were twenty people. They kept two of us from the campaign and I was one of them.

When he was eventually hired by the Red Sox to take the same position there, you followed right behind him, didn’t you?

Right behind him. Now, with a one-year-old in tow at that point and a husband. We got engaged in San Diego, but yes. We’re all back in Boston. My husband’s from Boston too, which is nice. I met him in a bar in Portland and he was wearing a Red Sox hat.

The other thing that’s interesting about this course that you were on, this journey that you’re on professionally is that one might think you got a degree in Healthcare Management. You went out to Portland. You didn’t know anybody in Portland, except the friends you went with. Everything seems disjointed. People may think, “Don’t I have to get a Sports Management degree or a Sports Administration degree? Don’t I have to follow that tried and true course to get a Sarah job someday?” You’re a living proof that more than the degree, what would you say it takes?

[bctt tweet=”The people that you choose to be around in your life are going to be the ones that have the greatest impact on your career.” via=”no”]

It’s sports so you got to outwork your competition on some level. That’s what you do, you have to be flexible and you have to be open-minded. You got to take your lumps when you get them and you got to get back up. You can’t take things too personally. You have to know your course. In some of those things of what I did, I do think there are a lot of ways in which Jack and Larry are similar. I would say that they know their value well. One of the things is when I told both of them like, “That’s not going to work for me.” I turned both of them down to start, but they were both being kind.

Deep down, they’re kind people, but I do think there was part of them that appreciated, “She knows her worth but is not being obnoxious about it.” When I called her back and said, “This is what I need you to do.” Let’s curtail that to me so that I can make it work for me. You need me to do a job, I’m going to get my foot in that door. I’m going to take that job and then once I’ve earned your trust, respect, admiration, whatever the word is, then let’s define what it gets to be. That’s what I was able to do at both places.

When I left the Padres and then came to the Red Sox, everybody went to spring training. I myself and Janet Marie Smith, the architect, came to Boston and it was my job to get ready for opening day. She was doing all the infrastructure work for the ballpark and the construction. She has an amazing career and she’ll be in the Hall of Fame someday and should be in the Hall of Fame someday, such a smart person. I remember saying, there’s a sale, there’s this weird transition and someone was like, “What do we need? What’s your title?” I was like, “I don’t even know what my pay is going to be yet. I don’t even know if I’ve agreed to this, but I’m here because I’m part of the team because opening day is less than 30 days away now, and a lot has to get done. I need a laptop and a cell phone. By the way, could I have some healthcare? Can we get me on that quick?”

That’s where the healthcare major comes in. You figure it out. What my career has evolved to be rather than what I could have designed it to be is so much better. I would’ve pigeon-holed myself if I knew too much. I would have limited myself if I knew too much. I haven’t been afraid, for lack of a better phrase, to pick up the scraps and when I’m in a room and it’s like, “Who wants to take this on?” I’m always like, “I’ll do it.”

Sarah, in all of that, though, with all those successes, small or big successes, has there been a project, an assignment, or responsibility that between us scared the heck out of you like you’re wondering, “I don’t know if I can do this. I don’t know if this is going to blow up and I’m going to be the scapegoat or I’m going to look bad?” 

A lot of them and more so mostly at Fenway. It’s because as you get further along in your career, and you’ve earned that where people say, “We trust that you’ll handle this,” because there’s not a ton of oversight. I’m not living in a work environment where I’m running every single detail by someone, but yet you’re responsible for a public forward-facing position in being the look, feel of the ballpark. What’s happening at certain times? How will David Ortiz’s retirement be? What does Derek Jeter’s final game ever look like? I will never understand that for the record why the Yankees didn’t call us and ask us to flip flop a series.

That was 2014. I was like, “I went through the bombings and now I have to do Darren Jeter’s final game?” That’s a lot of responsibility, especially when you don’t even know Derek Jeter. Those are the things that get you. The question is, am I good enough? Am I right? Am I this? That’s where it becomes collaborative and you can bounce it off people. I go back to my professional friends and they say, “Sarah, I haven’t cried yet. That isn’t this and that is that.” This is why it’s not a chart and it’s not a path and leave yourself enough leeway so that if you have a great idea at the eleventh hour, you should still do that. You should work later at night. You should commit to staying later and doing that because then it makes it the best that it can be. Everybody says that was awesome. We don’t have to worry about you and we trust you to do these things. You then get more projects and then you get more worried about it. “I hope everybody likes this. I hope this doesn’t flop.”

The other thing that we talked about is that in the sports and entertainment world, you’re always on. The spotlight is always on your work. No offense to those who may work in other industries, but what they do in their cubicle or what they do in their conference room is maybe only known by a few select people, customers, workers. What you do, good, bad or ugly, it’s magnified. 

I don’t envy them. I have it easier because in a lot of ways, I don’t want to say that you have a knee jerk reaction or anything like that, but we are not given the gift of time to overthink a lot of things. We’re also not only given the gift of time to dwell on it long. There’s this ability to be like, “That happened. Moving on. Didn’t make that person happy.” At the same time, you know if you got it right. It was largely because you didn’t have time to run metrics on it or do this or do that. You had a conversation with a couple of people and you went with your gut and you’re guided by what is right and what is wrong. If you can live a life like that, that’s a gift. You don’t get caught up in the burdens of the gray areas. We don’t have time for that.

Can I ask you a question about women in sports? 

Sure. I am one.

GFEP 8 | Red Sox Romantic

Red Sox Romantic: Not every single thing you say ever in your life is going to come out 100% as you intended. Work in a place with enough conversation.

 

A senior vice president of a Major League team. There are certainly a lot of successful women in sports. You’ve mentioned that already. I have to ask you though in a historically male-dominated industry, have you found that to be a difficult obstacle, offense too high, or is it something that for you has not been an issue or an obstacle?

I don’t want to say it’s been an issue or an obstacle, but it can be part of my navigation. It’s a consideration, but I don’t think it’s necessarily been an obstacle. In one of my pregnancies, I had a hospitalized bedrest that started in September and ended in January. You miss a lot and people, they naturally so and rightfully so wonder, “Is she okay? What’s it going to be like?” Do things like that slow down your career path? If you were in the right place, no, and I don’t think it has for me, but I do think when you’re running neck and neck races with people, when you’re young, that can be a thing.

What I also say is that the people that you choose to be around in your life and the support system that you choose to have are going to be the ones that have the greatest impact. The moment that my daughter was born, I worked at a place where I was like, “I have been in a hospital for months. I need to get out of my house. I don’t want maternity leave, but I don’t want to leave her either.” They’re like, “Bring her.” For the first few months, I was going to work a couple of days a week and my daughter was sitting with me in my office. They all do is sleep at that age anyway. What’s the big deal?

On top of that, when you start saying to yourself like, “I’m working in this and we talk about the ten days straight and I’m going to be gone ten nights in a row in this.” The kids have to have bath time, be fed, making sure the homework’s done, and then good night stories. The partner you choose in your life plays an enormous role in that. I’m fortunate because my husband believes in me so much and encourages me. When we came back here, we came for my career and I’m sure if we had something great, he would say, “Let’s do that.” He has a successful company of his own, which I’m in full support of.

There are windows in your life where you do have to put some things on pause as a woman in a different way I think, than men. However, I would not be looking back. I would not change any bit of that because being a parent, being a part of a family is such a great thing. I also acknowledge that’s not for everybody. I had my daughter at 26, 27. When you’re that age, you’re thinking about the things you’re missing sometimes because you haven’t been around the block enough times to know that this isn’t the be-all-end-all of the world and you’re working in an industry that’s a lifestyle.

Those are the things that I would say. I don’t think I’ve been held back because I’m a woman, but I do think the road, because of those pauses, does naturally take a little bit longer. What I do feel though is an immense obligation to speak up for others. I can be a little outspoken and in my East Coast way be blunt. I will remind people when there aren’t enough women in the room or there isn’t enough diversity in the room, or there isn’t something else that we should be doing. What I feel like is I have a good bunch of counterparts.

There was a joke being made and someone was talking about someone being fragile or whatever, and it was in regards to a woman. It was during the pandemic and she has asthma. It’s like, “Are you going to be able to come back because you have asthma?” I worked with a male counterpart. That’s like, “You have to stop saying that she’s not fragile. She’s anything but fragile.” I was proud of that counterpart for speaking in that way, or when someone says, “That’s a great idea,” and the male counterpart says, “Don’t be shocked.” Stop acting like you’re shocked. It’s those little things that remind you that you’re in the right place and you’re part of a great team. Those are the things I look for in the environment. I don’t think I would be at a place that didn’t provide that environment.

We’re learning maybe anew in 2020 that words matter. A few comments that you referenced, the person who gave those comments may not have had an ill will?

None whatsoever.

Would you agree that all of us need to learn how to balance the intent of our words? On the receiving end, we need to learn how to balance that person may not have any ill will. The person who talked about someone’s fragility, they’re trying to be sensitive to a colleague. To think can also be misinterpreted as maybe putting down a colleague like that colleague’s not tough enough.

Work in a place with enough conversation or be the type of person that is willing to engage in enough conversation, because you’re smart enough to know that not every single thing you say ever in your life is going to come out 100% as you intended. Imagine if we had a pitcher that’s through every single pitch exactly where he intended to go. That may be only Pedro Martinez and it’s hard.

[bctt tweet=”Why would you speed up the most fun years of your life? It’s not a race. No one wins. ” via=”no”]

In the world of what they do, and yet they still throw balls. 

That’s what it is. Everyone wants to throw strikes and hit the home run or whatever it is, but you don’t make contact 100% of the time. Knowing that and knowing you’re going to mess up, whether as a human or as a company, but as you said, the intent, relationship, and conversation are there. That’s the meat of it of what gets you through the times and makes you believable for me.

Sarah, I appreciate your insights on that. As we begin to close, I want to ask you hypothetically. Let’s imagine that you’re teaching a course on how to break into sports. You’re writing the syllabus now. What are the three must-have lectures that you’re going to put into that syllabus? Three topics, three things you say, “I’ve got to convey to these students before they can pass this course.” If you can’t think of three, one’s great.

It would be the senses. There would be a weird conversation and syllabus about the senses and diving a little bit into energy and what you feel when you’re in a space and when you’re in a building or things like that. It goes to those basic human elements. On top of that, there’s a lot about it. There’s a lot of what we do that is building excitement, building tension, or recognizing tension. It goes into everything. It’s a combination, I would say, of the senses and energy and talking about that.

I would also have there be a requirement on listening and diving into what it means to truly listen. Whether that’s to listen to the individual, group, and community. Ramped in listening, I would bring in awareness and pop culture. What is happening in the times and getting out of your bubble? I always tell during the offseason, you can have that slow time where your team is not all that motivated, but they’re still coming into work. I’m like, “Guys, this is the time for the internet. If you want to screw around on the internet, this is the time.”

The internet is awesome and you can stumble onto things and you can find many things. When you’re wasting time, don’t waste that time. Sometimes getting out of your own, having that space to breathe, and doing that is listening. Reading is listening. It’s not always what am I hearing someone say. My third one would be the thought of a thing of kindness. What does that mean? What does that look like in a lot of different ways? How does that together go with bravery and other things and boldness? That’s what I would do.

You got to teach that course, Sarah. Those are a lot of soft skills. I’m going to let the readers settle on what you said because there is so much there that we typically don’t think about and don’t consider. A lot of that is wrapped up in sports, but there’s a lot of wisdom in what you said. I want to thank you for that. Here’s my last question. You have a couple of kids, your daughter’s in college now. Sarah, someday you may be a grandmother.

I might be. It’s not a race. That’s what I also tell the young people, Rob. In the Northeast, we’re blessed with this wealth of college students, whether they’re part-time employees, interns, or getting into the game in there. I hear these people and they’re like, “I want to finish college in three years, so I can do this and I want to do that.” I’m like, “It’s not a race.” You don’t get to heaven and someone’s like, “You won. You did it better than everybody else.” That’s not my version of how it works. Why would you speed up the most fun ever years of your life? It’s not a race. No one wins.

In that same vein, I like to encourage people to exercise professional patience. You don’t have to be the SVP of the Red Sox by the time you’re 30. There were a few Epsteins.

I also didn’t exercise a ton of professional patients. At some point, I moved beyond that.

A lot of it was people recognized that you were focused on the task at hand and then they accelerated you.

GFEP 8 | Red Sox Romantic

Red Sox Romantic: To figure out a way to live your life and impact society through the prism of baseball and sports is such a unique opportunity.

 

There’s nothing better than a to-do list. The greatest feeling in the world, checking things off the to-do list.

I’ll come back to you someday of being a grandma. If your granddaughter or your grandson asks you, and perhaps now you’re retired, “What was the greatest thing about working for the Red Sox,” whether it was a memory, an outcome, or a feeling? You’re taking them to a game and they’re asking you, as they’re sitting there with you eating that hot dog, what would you tell them from your perspective now so far?

There’s the internal and the external. I think more of what it’s given to me. I have felt unbelievably supported where I work when times have been bad, which is such a phenomenal thing, I think, to say about where you work. Back when you have a health scare or something with a kid and when you feel support during those times, you don’t forget that. When I went on bed rest in San Diego from September to January, I was working for Larry at that time and it was like nothing ever happened.

It was like, “You need to do what you need to do and you need to come back healthy.” When it was like, “I don’t know what I’m going to pay you. I don’t know what your job is going to be, but I need you to in Boston.” It was like, “How fast do I get there because you need me and when I needed you, you were there.” I would say that, and then one would be the opportunity to play a role whether it’s joy or experience for someone else. That’s incredibly cool.

I have been so fortunate and I don’t take this for granted to be at the Red Sox in a unique time. The last time the Red Sox had it this good, it was like 1908 but on top of that, there’s been so much else that goes on. To figure out a way to live your life and impact society through the prism of baseball and sports is such a unique opportunity. What’s been great and what I truly appreciate is more of what it’s given me and that goes forward. I have gotten to do cool things for fans, good things for family and friends. It’s all good and it’s all been through the principle of baseball.

I said it once and I’ll say it again, Sarah. I’m proud of you. You’ve done a tremendous thing in your career and what’s cool is you’re still young enough to do a lot more. Thank you for joining us on the show. 

Thank you for having me.

We’re going to watch you continue to be successful and enjoy things at Fenway. Hopefully, it goes back to the ballpark soon.

I hope so.

Thanks, Sarah. 

Thanks. Bye.

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GFEP 7 | Gold Rush

 

He may have created and starred in the hit Discovery Channel series, Gold Rush, one of the top-rated shows on cable television the last 10 years, but there was no rush to gold for Todd Hoffman. From humble and unconventional beginnings, you’ll see how this week’s game face exec had just enough vision, mixed with a dramatic dose of craziness, to prove he knew more about what the world wanted to watch than high-salaried Los Angeles TV executives ever could imagine. A native of small town Oregon, nobody would have placed their bets on Todd making it on Hollywood. Boy, were they wrong! Join Rob Cornilles and learn about the man behind the beard, where he derives his inspiration and drive, and why he truly does have a “mine of his own.”

Watch the episode here:

Todd Hoffman | Nobody’s Fools Gold

Everything Todd Hoffman touches turns to gold. It appears that way at least from his hit Discovery Channel series, Gold Rush. Many years ago, tucked away in the small town of Sandy, Oregon, Todd envisioned a concept that allowed him to dig out of the financial and professional hole he found himself. In spite of a Hollywood expert telling him that he couldn’t do it, he became one of the biggest reality TV stars and producers of the last decade. You’re about to get a behind the scenes look into the reality that is reality star Todd Hoffman, my friend, who went from Sandy to gold.

I’m here with Todd Hoffman. He’s one of the most recognizable faces on cable television for many years because he is a self-made celebrity. When I say self-made, this is a man who put it all together from the beginning. Now, he has a fan base that gets bigger and bigger every year. He has proven to be not only a great visionary and an innovator, but an entrepreneur that people are always seeking advice from and wanting him to get involved in their ventures because he’s proven that he knows how to do it. Todd Hoffman, welcome to the show.

Thanks for having me. I appreciate it.

You’re in your home in Oregon. That’s where you and I met was back in Oregon because we’re both born and raised Oregonians, not too far from each other. We met later in life as professionals. I want to let the audience know that you and I have been friends for many years.

Is part of your sales tools to make people feel good because you’re doing it?

You want to be the salesperson that people love.

I see all the sports stuff behind you. This is a challenging time for the sports industry. I know you’re still being successful with your company because I’ve been following you, but for a lot of us guys that like sports, it’s confusing. We don’t know what’s common. It’s scary times.

I don’t think there’s anything like this in the history of sports. We’ve had wars, 9/11, and other civil unrest in cities. We had two that blows to the gut in 2020, the pandemic which is creating all kinds of uncertainty, and in some parts of the country, we have demonstrations that are right downtown where a lot of these sports venues are located, which make it difficult to promote family entertainment.

Thankfully, those two don’t ever touch because I’ve heard that if you’re protesting that the virus won’t spread. That’s what I’m hearing. It doesn’t spread if you are protesting and it only spreads on your Memorial Day.

Readers, if you ever want to have a long conversation with Todd, he’s got some opinions on politics. They’re always fun conversations with you, Todd. You are from Sandy, Oregon. You put Sandy on the map. If anyone’s ever been to Mount Hood, Oregon to go skiing, they have to go right through Sandy.

[bctt tweet=”The harder you work, the luckier you get.” username=””]

With that little tourist trap, that slows you down and then you have to stop and buy either Joes Donuts or the Shell Station burrito. There are all kinds of little tourist traps on your way through. We slow you down, try to get some of your money on your way through. That’s what we do.

There’s always a great Dairy Queen too. What is Jane’s place called?

You’re talking of Calamity Jane’s but I don’t think it’s in business anymore. They went a little downhill on the burgers. Their milkshakes are great.

Let’s talk about the thing that most people are interested in when we talk about Todd Hoffman and your background and that is the making of Gold Rush. It’s 9th or 10th season in 2020?

It’s ten. I retired 2 or 3 seasons ago. I did about eight seasons with it. I still get paid for the show because I’m the creator of the show. The biggest show in the history of one of the biggest media companies in the world was created by me in Sandy, Oregon. Having said that, it’s not that I’m this great television mind. This was the first show I’ve ever got on the air, but it shows that the everyday person has the opportunity now to reach out and do certain things like that. I attribute a lot of that to some of the choices that I made, but also to my faith and the idea that I believe was brought to me by God.

A lot of people don’t believe in God and it’s weird to say these things. I’m not that corner street preacher, but that is the truth. Regardless of how much billions of dollars and discoveries made on my idea, at the end of the day, it was not created by them. It was not created in New York or LA, in a small town of a chubby kid with a dream, which is cool because it does give people hope that they too can do certain things, even in Hollywood and even anywhere you can do it. If you make the right decisions and put in the right principles and then also, you’ve got to have a little bit of supernatural help or be extremely lucky. I’ve found that the harder you work, the luckier you get.

Let’s talk a little bit about the origination when you talk about you got some divine help along the way. First of all, weren’t you in, I won’t say a bad place, but around 2008, when the economy went south, you had lost a lot of the business that you were involved in then, which was in the aviation industry. You were forced to start thinking about the next steps.

I was thinking about the next steps. I still live at this airport. I was able to hold onto this airport because of Gold Rush. Things weren’t going good. People were losing hope. All the money was locked up, everything was down, big time recession. I went out, took the last bit of money I had and put the show together. I did not go through Los Angeles, which is the hub for reality TV because you got Orange County Choppers, Monster Garage and Deadliest Catch. Certain shows that were all created and controlled by a few people down in LA, the gatekeepers like in sales. Sometimes you get these people that have a monopoly on certain things.

I went around the horn. I went and brought in a production company out of London. It’s a little tiny company that is now sold for hundreds of millions of dollars on the back of the Gold Rush. They were able to help me formulate and I was able to quickly come up to speed and learn how the game goes. We came through the Discovery Channel from Europe. We were able to bypass that LA syndicate and come in from a different angle. When I do sales with any kind of company, I always look for, “Is there a crack in the side window that I could sneak through?” You used to work with some of these big mining companies. I don’t even know if you know it, but I’m setting you up because I’m going to piggyback. I need some knowledge that you have because of this new mining product that I have. I need a little bit of help. We’ll talk about it later, but that’s the thing is always look for the opportunity on how you can go about it a different way so that you’re in the niche.

I’ve always made money in the niche. If you’re in the stream with all the other salmon and you’re new and this little tiny salmon, there’s a good chance you’re not going to make it up that waterfall or grabbed by a bear. You’ve got to find a different angle and a different approach and that’s what I did. I’ve always been able to do that. That’s why I was a decent point guard in college is that I think I’m always looking for that other way to score or whatever that’s outside the norm.

GFEP 7 | Gold Rush

Gold Rush: If you’re in the stream with all the other salmon and you’re new, there’s a good chance you’re not going to make it up that waterfall. You’ve got to find a different angle and a different approach.

 

I know you’re the same way and that’s why you’ve written your book. I know that that’s what a lot of your principles are about is to give those people that advantage to try to get around the mainstream. That’s how I got Gold Rush started. I went through England to a little company and Discovery Channel and sold the show. It was written in an unorthodox way, in a niche way and we went around the monopoly and through the side door into Hollywood.

You’re a disruptor.

I’m a disruptor since the day that my teacher said, “Todd, you’re disrupting the class.” I was like, “You’re right.” When everything is going smooth and I’m trying to figure out a way, it’s like, “How do I break up this monopoly a little bit?” I guess I am a disruptor. I know all these people have all this lingo nowadays, “I’m a disruptor.” It’s like, “No, you’re not. You look like the other guy that said he was a disruptor.” There are guys like me, “We are disruptors. We’re lucky that we’re not in jail. That’s how disruptive we are.”

Can we get some more detail on how you approach that production company? You didn’t have a track record of being in showbusiness or producing shows. You would think that most people, if they got a call from someone like you, whose name they’ve never heard from a town in a state they’ve never been to, they would tell you, “Get lost. Don’t waste our time. We’re struggling enough as it is. We don’t need to voluntarily bomb on our next project.” You had to have said and done something, a tactic that you used. If you could share any of those details with us, that’d be interesting.

Number one, I presented them with an opportunity that they’ve never heard of. Number two, they believed in me that I was going to accomplish that goal and that I have enough money to do that, barely. I was too stupid to know that I didn’t. You can look back through this. They go on these things and talk about how great they were putting the show together. I had to force them to come and do this teaser. The teaser is about $10,000 to $15,000 investment. You have a bible of the show that you write out and then you have a teaser. That is your calling card to all the networks. They look at this teaser, its timing. We got a recession, gold’s taken off.

You’ve got this guy that’s going to throw caution to the wind and go mining. It’s got to be relevant to what’s going on and you’ve got to be convincing that you are going to do exactly what you said you were going to do. When I forced them to fly all the way over here because I told them and I have an email chain that says, “If you don’t show up next week, I’m picking a different production company.” I threatened them. They showed up and they watched me drop an I-beam right across my dad’s Mercedes. They knew right then and there, “This guy is not playing.”

I didn’t lose it. They’re like, “What are we doing here? Are we going to do a documentary or a reality show?” I said, “I’m going to drop that I-beam right across Jack’s Mercedes-Benz and you tell me what you think we’re going to do.” They’re getting their cameras ready. We shot a teaser and put it together. The teaser was phenomenal. That’s our calling card. Everything was right. Timings and teasers are right. Several networks want to buy it. We picked Discovery Channel for one simple fact. They’re a big company and they have more money and away, we went.

In the first year, we lost money. In the second year, I lost money. In the third year, we’re coming out of the hole. In the fourth year, then the machine’s going. You have to be dedicated and willing to go that to the 100th mile and get it right. Stay late. Do all the things that a small business does. Sacrifice and you’re the 1 in 10,000 TV shows that makes it. The odds are not in your favor on TV. I can do it again, but that’s only because I know what I’m doing. It’s hard.

The first reality TV that went big, I’m thinking about Survivor, Mark Burnett. I know you’ve had some dealings with him in your career. Is reality TV like professional wrestling?

Some of it is bad. In the mining thing, is everything real? It’s not 100%. The cameras aren’t always on and the sound is not always working. You’ve got to connect the dots. Is it all fake? It’s not all fake either. To glue a television show together with a story and to follow the storylines and things like that, you do have to connect the dots. I never said it’s 100% real. It’s not. When I watch what’s going on now in all these other shows and stuff, it’s like I can tell if these guys are almost reading their lines. It’s bad.

[bctt tweet=”You’re not a disruptor if you look like the other guy who says he’s a disruptor. ” username=””]

I’m going to try to relaunch in the summer. I’ve had two networks looking at it. I’ve never been able to close the deal because I’m not willing to go back on regular terms. When you are a man of faith or you have something to say and you don’t care about being famous. You believe that you’re going to die and go to heaven and stand before God. You can’t just go on TV and do what the networks would love to see you do because morally, you can’t do that.

If I come back on TV, it’s going to be on my terms and they don’t want to give you your terms. They don’t want to give you control over the edit because maybe you feel like you need to say something in there like, “I’m sorry. Maybe I need to pray right now. I feel broken. I want to pray to God.” The world doesn’t want to go into those types of areas. I’m not going to go back on TV unless it’s on my terms. It’s hard to do business on your terms. I know you’ve experienced that. You tell me how do you do as a man that has faith if it gets hard to do business out there. Reality TV is no different. It’s a lot worse.

You said at the outset here that you felt that there was a little bit of divine intervention to get you where you are, whether it’s inspiration or revelation or an impression that you had. If it’s not too personal, can you help us understand what that looks like, feel like and sound like when you feel like, “I’m being directed to take this particular route right now?”

I don’t know, to be honest with you. I’ve always wanted to know. I’m an Evangelical Christian. In this world, there are all kinds of denominations. There are people that are super Pentecostal and they come to me all the time and say, “God told me this about you.” I always take that with a grain of salt because if God was telling some guy about me, why didn’t he tell me directly? I do have several things that people have come up and said prophetic words. I take it all with a grain of salt because I’ve been walking with God since I was young. I’m no super Christian. When people put themselves on a pedestal, you’ve got to understand one thing. For all who have sinned and fall short of the glory of God, nobody is better than anybody else. We’re all children of the Lord.

I came out of a real tough time with my marriage. I prayed and asked the Lord for guidance. When I got the idea of the Gold Rush, I knew that it had something to do with the Lord. I can’t put my finger on how or why? At that time, I knew. I think God talks to all of us, but I think he talks to all of us differently. In the Bible, it’s happened a lot of times. Sometimes in dreams and sometimes He had an animal talk to somebody. God works with each of us differently. At that particular time, I knew that I was going to create this show. I knew that it was going to be successful.

I went to my pastor. It was heavy on me and I said, “I’m going to tell you something that sounds crazy. I’m starting a TV show and it’s going to be huge. I don’t know if I’m prepared to deal with this.” He looked at me like, “You are insane. It’s never going to happen.” Everybody’s journey is going to be different. The one constant is that I follow the bible. God is the same yesterday, today, and tomorrow. He is my hope. It’s not gold. You’re going to die and stand before God. All the things that we’ve sold, the things that you and I love to do, we love to sell.

Your passion is selling, Rob. Your business is built around it, but you and I are going to die and stand before God and we’re not going to be able to take any of this with us. For me, it was in how I did my TV. That’s where I felt in a lot of ways in Gold Rush, I did very well-represented in the faith. In a lot of ways I didn’t. I looked back or the edit got it twisted and they twisted things. They make me say things I didn’t say and inferred things. That’s what frustrated me about the business is they want the lowest common denominator. The viewer wants this bloody payoff.

They want to see me berate somebody, leave them bleeding in the ditch and move on to the next victim. That’s what you see in Gold Rush from some of the characters. For me, I can’t do that. I can’t have faith and leave a guy. One hundred seventy million people worldwide would watch me and they love us to tell a guy he’s a loser. He asked to leave the show, go back into his real-world and his character is damage. In reality TV, that’s what it’s based on. It’s based on watching somebody puke and get some sick thing out of it. There’s this other element. They’re encouraged by reality TV. I see a guy trying hard. I see a guy trying to make it and fail. How does he deal with this failure?

These are the things that I want to portray. There’s a reason why I’m not on TV for the last many years. It’s not because I haven’t been trying to get my show back on. It’s that I’m not allowed to put my show back on the way I want to put my show back on. I’m not going to compromise. I’m debt-free. I have the money. I don’t care. I’m being a good husband and a good father the best I can. I’m living life. I’m doing good. If the Lord gives me another opportunity to bring Hoffman Gold back on the air, it will be because the world needs to see it or the world needs to see something that I’m going to bring.

I’m crazy enough to do it. I’ll live in a trailer for six months and kick butt and dig raw gold out of the ground. It doesn’t matter. I’ll do whatever it takes. If there’s a message that I feel like God wants me to bring to the world through that medium because there’s no other medium in the world that you can reach. I used to reach 170 million people. There’s nothing else out there that could go, “I was in 120 languages. My fat butt was in Japanese and Chinese.” There’s no other medium that can reach that many people. It is special, but it can be used for evil too. There are a lot of shows out there that are not good for you to watch.

GFEP 7 | Gold Rush

Gold Rush: If the Lord gives another opportunity to bring Hoffman Gold back on the air, it will be because the world needs to see something it’s going to bring.

 

I remember I was able to watch you on set. You and I made an attempt at a project together. Through those experiences that I had with you, a couple of things that are worth noting for your fans and that is that first of all, you would often tell me that if there’s no conflict, then there’s no show. If there’s no conflict, then the producers aren’t interested. It seemed like every episode had to have a conflict and maybe end on a cliffhanger. I’d like to bring that idea into the world of business. Where there is conflict, there’s no business, no partnership, no relationship and no sale.

It’s a different dynamic between entertaining people and developing a real relationship with them where there’s a transaction made where both sides are happy. Hearing you talk reminds me about that lesson you taught me about reality TV. The other thing is that it was hard work. Though you were in show business and are in show business, it’s not glamorous. I remember being with you a week or so before you’d have to go back out on the mine site for the next season. You would go out months before we started seeing the episodes on television. To see you leave, I could see it in your face that, “This is hard to go out there in the middle of nowhere, leave my family for the most part, live in a trailer. I may not make much money doing it this year. I’m taking a big risk.” It’s not just Todd gets to have a green room and people are feeding you grapes in between takes.

It’s hard too because you have to worry about the bills, being a husband and a father. You have to run the show and the mine. You have personnel issues. Everybody is fighting and then you’ve got to get the goods. It’s either high or low, but if it’s in the middle of it’s okay, they turn the channel. You’re either head to the top or to the bottom and you’ll see a zigzag through the episode. You wonder how that works. There’s an equation for that. When you’re going in for sales, you better have your game face on.

There’s an equation that you have built with your company that results more than not into a successful sale. Getting that game down and solving an issue for a company, at the end of the road, it’s the X and O’s. Does that save them money? Does that help them sell more seats? What is it that’s going to help them? Are you adding value or not? With the Discovery Channel, I went through one president after another, but what I was always known for is always give them the goods. I’ll stay longer, shoot longer. Whatever it is, I delivered you a good episode. It’s 165 episodes is what I did. I learned a lot about TV, episodic structure, how it all goes together and everything.

To be able to look under the hood on something like that, to be able to look at the reality TV contracts, to go in and fight them for your pay is fun. It’s all good, fun and very interesting business to me. People come to me all the time. They pay me money to sit. I give them three hours. They pay me thousands of dollars. They sit there and I explain to them how reality TV works. They’re taking notes the whole time because I’m ADD and I’m going through it. “This is how it goes. This is what’s going to run into here. This is out of consciousness. This is how they’ll try to get you. Watch out for that. This is your team. This is how many people can be on camera. This is how you do a scene. This is how you do that.”

At the end of three hours, I’m tired. I want to take a nap. They get three hours and, “Get on there. I don’t care. Go back and get on your plane and get out of here.” It’s a lot. I paid in blood, sweat and tears to learn that. Like your book and all the things that you’re bringing to these people, you didn’t just sit there and think it up. You lived it by doing things right. Even you, Rob, with all your fancy hair and everything, you did some things wrong and you learned how do you sell, what is it and what drives it. That’s what’s cool with you and me is that we’re both salesmen.

We’re selling different things. We all endeavor. We all have different styles too. My style, I’ve lost a couple of deals with these TV guys because the first thing you think, I come in. One company has horrible TV shows and I said, “You’re not reaching middle America. Your shows do not reach middle America. What I bring to you is I am middle America. I am your fan base. I am that guy. Who better to bring you the entertainment than a guy from that world?” That offended them because they felt like they grew up in LA and they know TV for a guy that lives in the deep South, that they know what that guy wants to watch.

They bring one goofball show after another. They wonder why they don’t have ratings. I said, “Do you want ratings? Go with me. I’ll bring your ratings because I know what people want.” That’s what’s happening now. We’re in a recession. We have a pandemic. We have civil unrest. If you don’t agree with their method. Everybody’s getting called a racist. My old roommate, black guys got called a racist. My brother-in-law is a teacher, a Democrat, he got called racist. He calls me and like, “I get called racist.” I said, “You’re the least racist person I’ve ever met.” He goes, “I don’t know what’s going on out here.”

It’s a lot of anarchy. It’s scary. I don’t mind a good protest. Everybody’s for a peaceful protest. That’s American. I’d fight to protect that right. When it gets to the point where you’re going to take over public buildings that you don’t own, you’re going to destroy property and people’s dreams, little businesses and things like that, you better have the police there to protect those people. When you walk the police out and turnover our city to people, that is where I have to decide, “What are we going to do about that?” I don’t know. Do we get people together and start a vigilante squad? I don’t know. Let’s hope not. What do you do? Businesses are hurting out here, Rob. It is getting crushed out here in Portland.

Your upbringing has a huge role in the way you look at the world, at your faith and your family. Your dad has played a prominent role in the show. Talk to us a little bit about growing up in the Hoffman home. Did you always have a great relationship with your dad?

[bctt tweet=”When you’re going in for sales, you better have your game face on.” username=””]

My dad came from that era where they don’t talk a lot about it. I remember a lot of times when my dad did things, he tried little businesses and things, and he was a real estate guy. He wasn’t designed to sell real estate. The only guy in my family designed for real estate was my great grandfather, Ralph. My grandfather was a horrible realtor. My dad was a horrible realtor. For some reason, they had a real estate company. They weren’t geared for what their skillset was. That’s huge when you’re trying to put a business together and everything. Growing up with my dad, we were poor. We didn’t have a lot of money. We dug sewers. We had a little excavation company and a little dump truck. We weren’t rich. We were poor.

We didn’t have these big long talks with each other and all this stuff. It was more of an understanding. He was always faithful to my mom and brought us to church. I drowned as a child. It probably explains a lot, but they pulled me out of the pool and my dad recommitted his life to God when I started breathing again. It was a turning point in our life, for his life and he followed God. He was a faithful man. My parents had been married for many years. It hasn’t been perfect. It didn’t matter if red or yellow or black or white. He always helps somebody.

We weren’t raised like some of these guys from a racist family. We are not like that. We love God. We knew we all needed grace and faith. It was a good faith upbringing. My parents took me out of public school. I went into a private school, a little Christian school. There are times we couldn’t pay our tuition and things like that, but I knew that if I could make it to a certain point, I was going to be a business guy and bring in the money. The most money my family ever made was when we started doing business.

Did you always want to be an entrepreneur or did you want to be a television star? Which came first?

I like the medium of TV. I don’t like being on TVs. I’m not a celebrity. I’m a D lister. I don’t like that part of it, but I do like being able to represent some of the cool things about being a Patriot, about being a man of faith and loving your wife. That is cool being able to represent it. It is cool in a business entrepreneurial sense because I can go in to access people and business is easier. That has been fun. Let’s be honest, people say that being rich isn’t everything, but having money is a lot better than being poor. I don’t care what these try to tell you. That’s not good. Being poor sucks.

You get out there and you try to slay the dragon just like you’re doing and I’m doing to try to provide for our families. I think there’s a deeper root. I know you feel it too is to help others. I know you’re a professor. Being able to help other people and bring them up, give them the tools to be successful is fun. There’s something cool about it. It feels like you’re living out your faith when you do that. People will come to me and they’ll go, “I need an opportunity. I don’t get any opportunities.” I say this, “If the opportunities that were given to you are equal to the opportunities that you have created for other people, how many opportunities would you be worth?”

They look because they think about themselves and their problems and they’ve never opened the door for one other individual. They sit around worrying about how much money they’re going to make, but they’ve never reached out to help anybody. They’ve never tried to get another guy a job. They never called their friend to get them work. I do it all day long. People come to my house all day. The guy came to my house and I teach him how to shoot his gun. We also talked about politics. He wanted to know if I should invest in this movie that he’s got going. I sent him out to my shooting range. He’s scared of what’s going on.

I helped them with safety. I told them how to protect his house. I also helped them with the movie. That happens to me all day long. People come to me all day long because they know I’m here to help them. Because of that, I know God sees my heart. Opportunities come across my desk all day long, but I’m also busy helping other people. There’s got to be a godly principle and something about that in the Bible. I can’t pull the verse right now, but I guarantee you that my opportunities are in direct correlation with the opportunities that I give other people and the number of people I help. I don’t know for sure, but that’s how it works with me. I would suggest because if there is a God and He is seeing your heart, who does He want to help?

Does he want to help the guy that’s out there trying to help other people? I think He would. That’s a philosophy in investing and entrepreneurship. It’s an investment in sales. I would help that company whether they buy my equipment or not. If you are sold out to help that guy, maybe there’s a competitor’s equipment in that particular situation that works better and you look the guy in the eye and say, “Buying our stuff isn’t the best. In your situation, you need these guys.”

That principle you’re talking about, I believe the same is true that when you help another person, you are, by extension helping your maker. He recognizes that because if we do believe we’re all in this together and that we all come from the same place, it would stand a reason. When we’re helping each other, we’re helping our brothers and our sisters. There’s a common father that we share and He likes to see that. He takes care of those who take care of others. That’s a good principle to live by and you become less insulated. I have people in my own life that are struggling now with whatever it could be. It’s a real struggle to get outside of yourself because you think that’s counterintuitive, “Why would I spend time helping other people when I’m struggling myself right now?” I think that principle still holds true. The more you seek to lift up other people, the more you find that divine help lifting you up.

GFEP 7 | Gold Rush

Gold Rush: If the opportunities that were given to you are equal to the opportunities that you have created for other people, how many opportunities would you be worth?

 

It’s hard to be depressed when you’re in service for others. That’s the first thing people are coming up, “I’m getting depressed.” “Here’s what I want you to do. I want you to volunteer somewhere.” They’re like, “What do you mean volunteer? I want to sit around being depressed.” “You should volunteer. It’s hard to be depressed when you’re volunteering and helping other people.” They can get outside themselves.

As you see their challenges, sometimes yours don’t look so big by comparison.

He can then start seeing some of the ways that you can be thankful.

You’ve used your influence, your treasure to help a lot of people, especially those who are recovering from some type of addiction. Can you share a little bit of that with our audience?

I had a group of guys that I’ve been friends with and they’re all in the recovery space. They’re counselors and they’re all in recovery. They came to me and said, “We want to start our own treatment center.” I’m like, “How do we do this?” They said, “You’ve got to do this. You’ve got to hire this.” I said, “I will throw in with you guys.” I put up the money and we started a treatment center. Immediately, we got sued. We’ve been through 1 or 2 lawsuits. It’s been super hard. The first billing company we had went sideways on us and we had to get a new billing company. We had to put more money. It was difficult.

A dad comes up to me and said, “I need to talk to you.” He looks at me in the eye and said, “You saved my daughter’s life. She was on heroin. She came into the clinic. You spent time with her. You loved her and you saved her life. I want to tell you, thank you. There’s no other way I can repay. I want to tell you, thank you that you saved my daughter’s life.” I put it all into perspective because I have a 12, 18 and 21-year-old. I look at this as helping people, but it’s also a business in saving lives. It’s like, “I can’t not make this successful regardless of what happens or how many times this happens.”

That’s when we said, “Come hell or high water, Sober Living Oregon Recovery Center will stay open no matter what. We have the best doctors and best counselors.” We are the second-largest treatment center in all of the state now. We’re saving people’s lives. I have 53 patients now fighting for their life. We house 160 people of 40 women and 120 men. After they’re out of treatment, we get them jobs. It’s unbelievable. All my partners are rough and tumble. They’ve all been in jail, but we have a superstar team. Our doctors and counselors are the best.

It’s like, “I’m not even in recovery. I don’t drink. I don’t do anything except for overeating.” It’s an honorable business. It’s tough. There’s a lot of shady stuff and hurts. You’re dealing with darkness and people that are dirty. People and their problems are dirty and it’s hard. It takes a toll on you when it’s hard. It scars you. Sometimes doing the good work, the frontline guys are the guys that are the toughest and they’re the guys with the most scars. They’re not the prettiest guys.

I could take my staff. We would go into a church and somebody said the F word. I’m like, “We’re dirty. We’re hard core, but we save lives. We’re frontline guys. We’re doing it.” I was able to get involved in that. If I do my new show, I’m going to have people from recovery on the team up in Alaska with us digging. That’s part of it. I’m super thankful that they asked me to do it. We’re not the best treatment center in the world. We’re still learning. Now, we’re doing well. Our billing comes right out of your neck of the woods. All of our billings are done there in Salt Lake and I’ve been cool.

That’s commendable. More power to you and those people work with you on that. You talked about some of the people that you may attend the church together and they’re a little rough. You’ve always had a persona of looking a little rough. Part of that could be the character that you play on television. I don’t mean to say it’s not Todd Hoffman, but in business, we’ve often been told that, “You have to look the part,” whether to get the job or to get the sale. Can you talk a little bit about that? How has that worked for you in your career? You’ve made a conscious choice that you yourself are a physical brand. When you see Todd Hoffman, he’s recognizable. You and I have eaten together many times in public places where people have immediately recognized you. You’re hard to hide. Is that a conscious choice that you’ve made?

Once you get on TV, you’ve got to stick with what you look like as best you can. I’m overweight. I’m bald. Luckily, I’m good looking enough to pull it off. The thing is like, everybody, when you think of a sales guy, you’re tall. You got to have these certain things and I don’t just believe that. A lot of people are forgettable. There are guys who got to me and I don’t ever remember even meeting that guy. They’re having a big old conversation, “We hung out for two days, I guess.” I’m like, “That guy is forgettable.”

[bctt tweet=”People say that being rich isn’t everything, but having money is a lot better than being poor.” username=””]

In reality TV and in sales, they either love or hate me, but you don’t want them to ever say, “That guy was okay.” I’ll give you a sales beat with that and I won’t say who. It was a big rental company that starts with United. I went to this meeting. I was there with my buddy and he was selling them equipment. They buy millions of dollars. All this guy at this round company is doing is he’s making fun of my buddy. I’m there with him. They’re making fun of this guy. He doesn’t want to say anything back because they buy millions of dollars’ worth of stuff and they’re inappropriate.

I’m watching him and whispered, “Tell that guy where to stick it.” He’s like, “They’re our biggest customer.” I go, “Why are you taking this from him?” You never want to be in that position. I would rather go ahead and say, “Tell that guy where to stick it,” and at least that he respects you. When you go to negotiate on the next deal, you might have a little bit of leverage with the guy, but you never want to be in that position. I feel like it’s better to not be forgettable. Come in and be fun and like, “I know I’m here to sell this, but what’s going on with this, that and the other? Am I right?”

I’m like, “Let’s go back to the presentation. I wanted to tell you guys that thing. I just had to get that off my chest.” Everybody’s like, “That kid is a good guy. I like that guy.” It’s better to be not forgettable. If you’re coming in and you’re thinking that you’re stuffed. If you think that there’s not another company that’s got the exact same stuff as you or is coming up behind you and he’ll do business with you. Do you want to know why he’ll do business with you? It’s because he likes doing business with you. I put a pump company in Gold Rush and the owner came running over one day and he had a $1.2 million purchase order.

The guy said he was going to go with Gorman Rupp the big boys or he’s going to go with X, Y, Z pump company which is the little guy that I put in the show. He said, “I’m going to go with you because I like Gold Rush and I love the show. It’s my favorite show. I should probably order from Gorman Rupp but I’m not going to order for Gorman Rupp. It’s because you’re in my favorite show. I like you guys.” They like doing business with you. If you’re going out there, you make it an event. Make it so that you’re not forgettable because they get lots of people at them all day. They’re looking at their numbers. COVID has kicked them. They’re looking in there and like, “We’ve got to cut back here.”

When it comes down to you, “What’s that company with that guy? I don’t remember that guy. Let’s cut it down.” They don’t cut Bob at this company because he’s the funniest guy at the party. He’s the guy that shows up and always gives us the best service. When it comes down to two things on the line item, I’m going to cut the guy that he doesn’t like to hang out with. I’m sorry. It has to do with relationships. In my opinion, it’s not always that way, but if I’m about ready to build another building and I’m getting bids from a couple of different guys. There’s this one guy and I know he’s going to be more money, but I’ll probably go with him because I get to hang out with them for three weeks.

He’s going to be at my house building this big building. I get a flat out, go out there and we get to shoot the bull together. I’ll go with that guy because I want to see him successful too and get the sale. I’m sure I like being with that guy. We had the best time and it’s not always dollars and cents. It’s relationships. I’ve seen that over and over with the guys they like doing business with. Do you believe that, Rob? Is that part of your book?

Shameless plug right here, How to Become the Salesperson People Love. It’s throughout the book. You’re going to have to read the whole thing.

I don’t read books. I write books.

Put some earplugs in and I’ll send you the audio version.

I’m ADD. I’m not normal. What would you say is the most important thing that you think maybe I could pick up from your book?

GFEP 7 | Gold Rush

Gold Rush: Whether in reality TV or in sales, people will either love or hate you, but you don’t want them to ever say, “That guy was okay.”

 

We have a lot of methods and techniques, but the most important thing we talked about is the principles of selling. Here’s a take-home principle for you, Todd. You know this because you work in the mining business. You’re always buying equipment. You and I have been a part of those kinds of transactions together. More than the actual product, people want to buy the results the product brings. You don’t care what brand of excavator or what kind of bucket you have at the end of that excavator, what you care about is the results it produces for you. Is it going to be more efficient on your machine? Is it going to save you money? Is it safer to operate? Do the parts last longer, so you don’t have as much downtime? Those are the things that matter to you.

Which brand, which color, where it’s made, whether it’s Topeka or Malaysia, you don’t care. All you care about are the results you’re going to get from it. As salespeople, that’s what we always have to keep in mind. Don’t spend all your time talking about your product features, your SKUs and all those kinds of things, because in the end, that’s not as important. What matters is the results your product brings. The good thing is that if you talk about results, you will get fewer objections because nobody objects to results, but they can object to the product all day.

I was correlating now with what I’m doing now. I might read your book instead of saying, “I’m going to read your book.” I’ve got a lot of issues.

You’ve given us a great time and wisdom but you’re a risk-taker. You know as a fellow entrepreneur how much I admire you for that. To do some of the crazy things that you’ve done and turn them into success, you’re one of those guys who’s not going to take his great ideas to the grave with him. Because when you have a great idea and even if it’s not great, you go, you execute and try. There’s less than 1% of the population like you. That’s why I admire you. That’s why you’re my friend and I’m grateful that you joined us on this show.

Thank you, Rob. Thanks for having me. I’m looking forward to your book. I appreciate it. I always love talking to you about business, sales and everything else.

Thank you. We’ll talk soon.

Important Links:

GFEP 6 | Women In Sales

 

Who do you trust more to sell you something – a man or a woman? Women are usually preferred. Then why has the sales industry been historically run and populated by men? In 2018 Lanette Richardson asked the same question and, without trying to create a battle of the sexes, launched Utah Women in Sales – now a growing national force. In this episode, she joins forces with Rob Cornilles to explore the unique and valuable attributes women innately – and through tireless tenacity – bring to any sales culture and experience. What have they learned from men, and what must men learn from women to make teams more complementary and complete? Listen in for more.

Watch the episode here:

Lanette Richardson | Women In Sales

I often like to ask audiences what they think of two specific words, salesman and salesperson. For a salesman, the reactions are universally negative, sleazy and slimy. For a salesperson, the reactions are more mixed. Some good and some not good. Why is that? Why would I use the word salesman? It’s almost always, “Back off,” but when I use the word salesperson, which could mean either sex. I get more temperate reactions. You’re about to find out in this episode, as I interviewed the Founder and President of Utah Women in Sales, here is Lanette Richardson.

I want to welcome you Lanette Richardson to the show. It is been a long time coming. I’ve wanted to have you on the show for some time because of the role that you play in sales and in the business community, especially in the State of Utah where Game Face resides. Welcome, we’re glad to have you here.

Thank you. It’s fun to be here and I’m excited to join you.

We’re going to talk about quite a few things related to sales and women in sales. Tell us, where in your career path the idea that then was hatched to begin Utah Women in Sales? It wasn’t that long ago, but perhaps the idea was festering for a number of months or years before that.

It’s always been a passion of mine to help and to get more women onto teams, to get more women into sales, to help break that barrier down on what women think sales are, and to show them how they can be successful in sales. They don’t have to be a typical stereotype of what people think a sales rep has to be. We started this years ago. We have a lot of friends that are women in different places. One of my friends, her name is Lori Richardson, no relation. She lives in Boston. She runs a women’s sales group up there and she called me. She said, “I’m coming down to Adobe Way to speak. Are you coming to my event?” I was like, “I had no idea there was an event there. I didn’t even know.”

She said, “It’s for women and sales. Women all over Utah that are in sales.” I was like, “I don’t even know how I didn’t know this, but I’m going to be there.” I got a couple of my coworkers at Lucid and I said, “Let’s go there. There are some great speakers. We should do this,” so we did. We went over there. There weren’t many people there and I thought, “Maybe it wasn’t advertised well because I certainly didn’t know about it, but it was great.” The content was great. It was engaging and the speakers were wonderful. We stayed afterward and we talked with a couple of speakers. We said, “There’s got to be a bigger need for women around here than this.”

I wonder what would happen if women knew that there was an event like this happening. We thought, “Why don’t we try this out? Why don’t we put together a group and work on what to call it and what we would be doing for women?” We decided, “Let’s have an event. It was a few months after that, we reached out as much as we could on social media and people that we knew. We invited as many women as we could. We had our first kickoff event and we surprisingly had about 350 women show up. That’s when we knew there is a huge need.

It was one of the most fun evenings I’d ever had in meeting all of these women and finding out that all of the companies that they’re at. I was one of the speakers there and talked a lot about some of the struggles as a woman in sales. The women were coming up and like, “Me too. This is crazy. I thought I was not doing it right because they don’t do it like all the rest of the sales team.” It was interesting to hear all of the comments and feedback. It’s gone from there. That was our first event and we’ve grown for years.

Can you describe for us how the organization works, how one participates, how frequently you have events, forums or calls? If I was a member, what would it look like for me?

[bctt tweet=”As a woman, you are perfect for sales. You’re negotiating with your teenagers. That’s harder than negotiating with the CEO half the time.” username=””]

Before COVID, it was a lot different. We had a lot of live events where we would go to different companies. Companies would sponsor us and it was a good way for women to get to know the companies, see the offices, and to get to know some of the people that work there and the companies. Since COVID happened, we’ve had to change and do everything more virtually, which has been a good thing because it’s been able to open us up to a bigger audience. We still want to get back to meeting in person and that will happen. I’m certain that it will happen soon, but not soon enough. Now, we’re starting to do webinars and we have started a podcast series. We’re going to start doing some skill-based training.

We’re doing a lot of personal development. We’re doing a lot of encouraging plus skill-based training. We’re also opening up to get moving type of thing because it’s hard with COVID to get out there and do things, but we want to extend this after COVID to where we’re doing Mindful Mondays and where we’re doing some yoga or some meditation. We hope to be able to get out and do some bike, not a race but ride for right as women for donations and for a good cause. Maybe 5Ks or golf tournaments or different things that we could do as a group of women, maybe even pickleball tournaments to be able to get together and be active.

There are a lot of different things and ways that women can join, participate and connect, everything from personal development to skills. That’s what it looks like now and it’s all virtual. Hopefully, not for long. I want to learn how to play pickleball. I’m hoping that that’s something we can do, but we do have an annual summit, which is our big activity. We may be virtual in 2020. We’ll have to see how things are still going later in the fall, but that’s a great all-day event for women to get together. We have a lot of breakout sessions, a lot of speakers, a lot of great training there.

A couple of observations from how you’re describing this. First, it seems like it’s a holistic approach to being a woman in business. Certainly, with sales as that common denominator, but any woman in business could participate in your activities. Also, someone’s level or position within a company is immaterial. They could be an entry-level or be a sales leader.

We have a mentorship program as well and we encourage the sales leaders to mix and mingle with those that are new. We have a lot of college students that come, women who were looking to return to the workforce and don’t know how they’re going to get a good career and how they can maybe take care of their kids. Some of them find themselves single. Having mentorship, the more senior women and of all levels together and mixing and mingling, it’s a good support network. That way, everybody’s in sales. If you think about it, some of us hold a quota and that’s why we’re in sales, but we’re all negotiating. We’re all dealing with difficult situations and people that are pushing back. A lot of these skills go beyond sales. It’s great for all women and men. We have a lot of men that attend our events too.

That’s what I was going to mention is that as you talked about your annual summit, I was able to attend either the 1st or the 2nd year. I may have been the second year, but I was surprised pleasantly. Yet, I’ll also be a little curious as to why many men were in attendance. I misinterpreted it when I signed up. I thought I might be an outlier confined to the back row and don’t say anything. This is for women. I learned it was quite the opposite. It was inclusive. Can you describe for us a little bit more about the mentality behind that, about incorporating men into your events? You have men who are doing speaking engagements with you, training, etc. Why isn’t it women only?

We’re certainly not about men are awful and women are great. It’s not that type of mentality. Our whole purpose is to enhance women, to let them know what they can do, where they win, and how they can win better. We also want to bridge the gap of how men and women can work together, how they can support each other, how we can build diversified sales teams and understand that there’s more than one way to sell. There’s more than one way to reach out to a client to close the deal. By having men included in our groups, we learn from each other. It helps the men to understand a little bit more about where women can be successful, what our true skills are and it helps women to understand that there are a lot of men out there that do care.

A lot of men out there that want to learn and bridge the gap as well. We find probably 20% of our attendees are men. We encourage that to be more. We had a webinar and it was on building ERG or Employee Resource Groups. We had a couple of men on there and they were messaging me. They were like, “I think I’m the only guy.” I was like, “You’re not the only guy. We want you here. In fact, we’d love to have you speak up and say something.” When we got to the end, we opened it up for comments. Some of the best back and forth comments came when the men spoke out. The women were in an open, supportive environment and great conversations and eyeopening for both sides. That’s how we win is together.

GFEP 6 | Women In Sales

Women In Sales: You can either work hard to get a 5% raise every year or you can go into sales and get paid for what you do and have that control.

 

I’ve got to commend you for building that culture early in the organization, that welcomeness and that sense of inclusiveness, even in your early days, I felt it. Nobody knew me. Our company Game Face relocated to the Utah community. We were getting to know people, but you did a fabulous job building that organization and I admire that. Frankly, I appreciate that. I want to ask you a little bit more about some of the differences and some of the commonalities between men and women in sales. Before that, I’m curious, what does the future of Utah Women in Sales look like? If we had a crystal ball and we’re looking in 20, 25, what might we see them?

We found that our group is helpful here in Utah. We have a lot of women outside of Utah that are looking for this type of support. We have a lot of companies that sponsor us that have women in Utah, but also women all over the country, some all over the world. Many of them have asked, “Can our women outside of Utah be included?” It’s hard in an in-person event and in these virtual events we’ve been able to include a lot more women. We’ve realized that Utah Women in Sales is going to be more of an actual type of organization where we’ll see groups. We’ve got groups in Colorado, California, New York, Boston, and Georgia that we’re working together with so that we can be one unified group and have women in sales groups. We’re all doing the same thing, but we’re also localized so that we can support more on a local level.

Another thing that we’re doing is helping women realize that they can be in sales. We’re working with some of the women that are in shelters. Some of the women that have maybe been in protective sheltering or women that are trying to get their life back and find out how they can take care of their kids and become independent. We’re already starting to work with those women and getting training, helping them build a resume, helping them understand interview skills, helping them understand what a sales skill looks like, and re-relating like, “You’re negotiating with your teenagers. That’s harder than negotiating with the CEO half the time. You’re good. You’ve got these skills.” We are getting those women into jobs because you have a lot of women that find themselves single that can’t support their kids.

We had one woman that came up to us in our last summit. She said, “When I first came here, I didn’t know what I was going to do. I found myself single and I have four kids. I was working a minimum wage job. I was like, ‘I didn’t even know how I was going to take care of my kids.’ You guys encouraged me to get into sales. I made $150,000 this year while taking care of my kids.” It was amazing to see the change and what she recognized she was capable of. Those are the things that you’ll see us being more of a national with a localized feel and also be supportive of women that are in the business. Women that are even maybe sales engineers, women that are marketing, and women that are related to sales being involved in and being a little bit more inclusive into bigger groups. Hopefully, we have a lot more men that join us and we work through building a better community for everyone.

Lanette, that story that you related to the woman who went from minimum wage to $150,000 in one year because of sales and her obvious skillset, I’m sure she had a lot of natural ability, probably peppered with some great skills training. That is such a story about how sales can lift you out of either poverty or out of what you might consider a dead-end job. I don’t know any other function within a company that can do it as fast as a sales position if you know how to be good at it. It is something all of us should be proud of who are in this industry.

It’s true. You can work hard to get a 5% raise every year or you can go into sales. You can get paid for what you do and have that control. It’s a great career for anybody.

“Paid for what you do, paid for what you’re worth.” You were talking about your mentors. I had probably 3 or 4 mentors. I know the people that you work with at Lucid who you report to have been supportive of your efforts in Women in Sales. Here’s a dichotomy. I want you to talk about and help us understand this a little bit from your perspective. Probably in your past, some of those mentors were male. Probably some of the people at Lucid that supports your efforts and bless your efforts in Women in Sales are men.

They’ve been supportive, helpful and encouraging. They see your worth and value and they want to make sure more people have access to it. At the same time, we have perhaps a system that’s redundant, but we have a system that perhaps feels like it suppresses women from achieving their full potential and giving all that they can to business and other ventures. How should we interpret that dichotomy? You have some male mentors who’ve been impactful, but you’ve got a system that’s largely run by males that seems to be suppressive. How do you weigh that in your mind?

That’s the question of the day, how do you deal with that? It is hard because it still feels this way. For example, if you’re in a meeting with a client and you’ve got 3 or 4 men and a woman, the men are entitled to be there and the woman has to earn the respect and the right to be there. She doesn’t earn that right until she speaks to prove her ability, where the men are naturally assumed to be the ones that are in charge. They’re running it. I’ve been in a lot of meetings where I am leading the meeting and I have my team there, which could be customer support, sales engineers and people don’t even realize this. It’s an unconscious bias.

[bctt tweet=”Listening isn’t always silence. Listening is understanding.” username=””]

We hear that a lot these days, but men naturally go to the man thinking and assuming that they’re the ones that are in charge. It’s just the way it is. We find that even in leadership. A lot of times, because we have many men that are leading, there’s a little bit of, “Do I dare trust a woman?” If she stands up, she’s classified as either too much or not enough. There’s just not this, “We are entitled to be there as much as a man.” There’s a lot of proving yourself as a woman to get to that point where it becomes difficult. It’s hard because then men are also judging you on how does this woman fit into what is success and success for years has been measured off of what men do.

This is what makes it a successful executive and it’s these skills and these talents. Unfortunately, women have different skills and talents that don’t always measure up to that. I think there’s a lot of reason there why women don’t get selected for these leadership positions. If you did a blind interview, you looked at the skills and you didn’t know if it was a man or a woman, the tendency is a lot higher for women to be selected. There are some unconscious biases that we all have to realize that we have and work to get over.

I think it’s getting better, but I still think that a woman wants to be there because she’s qualified, not because she’s a woman. She wants to be picked because she is the right fit, but it is a little hard when you don’t have women in leadership making those choices. It’s an uphill battle, but it’s getting better. It will continue to get better, but the more men are becoming aware of it, the more men are supportive. A lot of my mentors have been men and when they become aware of the situation, it’s surprising to them as well. It’s timing. I think continuing to work together and try to bridge that gap. Hopefully, we can get more women into leadership soon.

Lanette, I appreciate that your tone and your temperament is not accusatory. It’s not a human stink. You’re keeping us down, but rather you understand that there may be a huge blind spot that men have when it comes to women in a business setting. When I was a young salesperson, I went to a large privately held company that was started by a man and wife team. By the time I visited them, the company was nearly 50 years old. They were the patriarch and the matriarch of this private company. They had about 1,500 employees. They were a worldwide brand in their particular space. I was able to make a sales call to both of them. I was able to bypass the president and the CEO of the company and go to them because they were basically co-chairs of the board, etc.

As a young salesperson, I’d heard all these stories about how the man had invented this product in his garage back in the 1960s. It took off and that’s what launched their business. Naturally, I thought he must be the final say in this business. As I’m sitting in their office together, the three of us, I’m primarily pointing all of my comments and my glances his way. I then finally went to ask, “Let’s do business.” As soon as my presentation was completed, they’re sitting next to each other. He didn’t say a word. He just pointed to his wife and looked at me like, “You don’t get it. You don’t understand. She is one you need to be talking to.” What I later learned is that when it comes to business affairs and business decisions, it was all her. She was the sales and marketing brains behind this beam of the company within their space. He was on the technical side. He was on the operation side.

What I bring to the table is more on the sales and marketing, the service that we provide. I feel stupid, but I was corrected in a very nice way. She, like you, was gentle with me. She could have beat me up, but she didn’t do that. She helped me understand that in their business, it’s different than what the preconception I came in with. I learned a lesson that day. Hopefully, I continue to remind myself of that because you make a great point. It’s because you walked into a room, if you’re the outsider and there are 3 or 4 members of a team from the same organization and one of them is female, to assume that she’s not the decision-maker is a deadly mistake. You’ve got to chastise me any further or did I beat myself up?

I think about where she would have been and that probably has happened to her multiple times every day. It’s great that she was gracious about that. We have to understand that it’s the way things are, but we don’t have to continue to have them be that way. When you have moments like that and you realize, “We all go through those moments at some point in our career.” When you can do, embrace, learn, and grow from that and then realize, “I have to think of this a little different.” That’s a huge moment. I’m glad you went through that. Congratulations and you did well.

I told my audience what a doofus I was, but I also appreciate another attribute that you and she both shared is humility. In order to accept my flaws and not beat me up over them, you have to have a sense of humility and compassion and you use the word gracious. Those are great descriptors of successful women in business. At least the ones that I like to do business with and I’d say the same thing about men. Speaking of that, why are women good in sales?

GFEP 6 | Women In Sales

Women In Sales: Men are successful in sales. They’ve been doing it for years. But women have a higher percentage of closing and they close faster.

 

Over the years, I’ve thought and we’ve talked about it a lot. There are a couple of attributes that make women good and natural for a sales position. A lot of men have the same talents and everything. I’m not saying that men and women have different talents, but there are some that women have maybe a little bit more innately that make them different, but yet still feel successful. One of them is the ability to listen. That’s a key factor. One of the things that we do in sales is to go through discovery. It isn’t just to get from point A to B and find out a couple of things. Discovery is to listen and understand your customer.

If you’re listening so that you can get to the next comment that you’re going to make or you’re listening because you’re like, “I’m waiting for you to stop talking so I can talk,” you’re not listening to anything they’re saying. Sometimes, you’ll hear 1 or 2 things and you think that that’s the answer. It’s like, “I’ve got my answer. I know what it is.” You’ve scratched the surface. Listening to understand where someone’s coming from is when you get into the deeper part of the real need. That’s how you find where you can be helpful for a company and an individual. It is intrinsic. Listening is deep listening. It’s listening to understand. Everybody’s got this trust bubble around them and sales reps come in all the time, they bounce right off that trust bubble, but when you show someone that you care and your intent is sincere and you do want to help them, you get inside that trust level. That all comes from active listening. That’s one thing.

I want to challenge you a little bit on that. Not because I think you’re wrong, but because I’m trying to better understand. When I observe a group of women in a social setting, I know that’s different than doing business, it seems to me like sometimes they’re constantly talking over each other. They might say, “We’re finishing each other’s sentences because we understand each other. That’s our way of expressing, understanding, and empathy.” Usually, on the opposite side, when I’m looking at a group of men in a social setting, I don’t see that interruption as much.

Yet, in a business setting, almost the opposite happens and that women, to your point, are good listeners when you’re sitting across the desk of the conference table from them. Whereas men may be quiet while the other person is talking, but men are already coming up with their solution. They already know, “I am going to pitch this to you. You go keep dogging for the next minutes and I know what I’m going to say to you when you’re done.” Would you agree with me though, that sometimes in a social setting women are overlapping each other? It seems like they are listening, but it is not taking place.

Yes and I’m glad you brought that up because listening isn’t always silence. Listening is understanding. Sometimes, when women do that and they’re chattering like that, it’s because that’s when you’re connecting and you then hear them talking and finishing each other sentences, but that is validating. That is like, “I get it.” The other women are like, “She gets it.” When I say listening, it is not always with the ears, it’s with the heart. It is with understanding. Sometimes that is talking because you’re listening. “When I’m talking, that doesn’t mean I’m not listening. It means I am intrigued and I want to learn more, tell me more.”

That’s helpful. What other traits or attributes to women have that make them good in sales?

Another one I always say is emotional intelligence. That’s something that I’ve had in my back pocket for years. It’s finally got a name to it, which is emotional intelligence. When you’re talking with someone, a lot of times it’s been called woman’s intuition, a mother’s instinct. I read a study one time where it said it was between 7% to 10% of verbal communication. When a message that someone is giving to you, if someone’s telling you something, 7% to 10% of those messages are verbal and the other percentage is in actions, the way they’re looking, their body language and their pauses and intonations in their voice. An easy way to see what I’m saying there is let’s say I have two kids.

They can tell me the same exact sentence like, “I want to go over to my friends. I wanted to do this and this and this, whatever it is.” They can say the exact same words and one will be like, “That sounds great.” The other one is like, “What’s going on here? Tell me more about this.” Yet, they said the exact same words, but because you’re watching the actual part of the language and the emotions and what’s happening, there’s more behind the story. Emotional intelligence is to be able to pick up on those cues to be able to know, “Am I boring to this person? Is this person rattling off something to get to the end of this conversation so we can be done? Is this person not wanting to dig into it because they think I’m going to get this one answer and then be gone and they’re not sure that I’m sincere enough to want to help them?”

You can tell when you have that emotional intelligence. Men have this too, but women strongly lean on this in their interactions and connecting with people. It’s being able to understand what’s behind the words and the messaging. It helps you to know more about where you can be helpful in what you can do and we need to be aware. Sometimes, if a customer goes quiet and silent, if you’ve been talking with them, you may know what’s going on because you’re like, “This is not going the right direction.” Sometimes if you’re not paying attention to that, you’re like, “I don’t get it. He’s not answering my calls.” I think that’s a big thing that women bring to the table that makes them successful.

[bctt tweet=”When customers get it, they buy it. Sales can be as simple as that.” username=””]

Does that mean that we need a meeting with a woman in a sales situation that I should be concerned that she’s reading right through me?

You should be concerned about that anytime. I think that men have it too. There’s been a lot of great sales coaches and trainers that talk about that. It’s a viable thing. Women have it a little bit, maybe more naturally because men are focused on different things than women are focused on. Women are a little bit more emotional and more in touch with those emotions, which a lot of times have been perceived as a weakness and it’s not. That is probably one of our strongest powers is our emotion. Men have sometimes a little hard time being in touch with those emotions if they have them and when they can open up and become more in touch with that part of them, they have that same ability. That’s different. We are more emotional than men are and we express that a little bit more open. It’s a little more natural for us. I hate to say that for one way or the other, but it’s the way it is.

Beyond what you’ve shared with us, is there anything else in your observation through your career that you think men definitely should learn from women when they are in the sales or any executive position? Is there something that if we would get this one thing, we, as men, could be more successful and more influential?

The biggest thing that I coach men on whenever I get the opportunity to work with them, specifically in sales, is to understand more, to be more in touch with your customer. There’s so much training in this. Find out what the problem is, three levels of why. Dig down where’s their pain. Those are a lot of words unless there’s feeling behind that and an actual sincere desire to do that. If you’re doing it because you want to find these keywords, you’re not connecting with your customer. You’ll get the job done. Men are successful in sales. They’ve been doing it for years, but women close higher. They have a higher percentage of closing and they close faster. There are many times where we’ll get to the end of a quarter and there’s a deal that’s not coming through and a man will reach out. It’s a little different where most of the time, I have one of the high C-level people’s cell phone and I’ll text them because we’ve built that connection out of sincerity.

I want to know where your pain is because I want to help, not so that I can go back and say, “Here’s my solution to that. Here’s what I do.” You have this canned message and everybody has to see through what everybody else is trying to say. When you have that sincere connection with people and they feel it, and that trust is built, you can go a long way. That’s one of the main factors that could help men if you’re going to try and be a little bit more like a woman.

This question may sound like I’m being too strategic. By the way, we should pause and admit that we all tend to overgeneralize like, “Men are this way. Women are that way.” I’m not saying you’re guilty of this. I’m saying generally speaking, especially when we have these conversations, it’s easy to categorize. We hope that our audience knows that that’s not your intent. That’s not my intent, but with the little time that we have here, we can’t dissect every single individual that we’ve ever talked to, worked with or sold to. We’re speaking in some generalities, but one of those generalities that I’m curious about is if I have on my team, where in the sales process, is she going to be my ringer? I’ve got a team of six. I’ve got sales, service, client success, a developer, more on the technical side and the list of team members go on. If you have to assign each of them one task, speaking in generalities, “This is where you should assign them?”

If you were going to assign a woman and you were only going to give her one task, I believe that would be building that strong relationship with customers. That’s the best strength. When you have that strong relationship, closing and maintaining a customer is easier. All the other steps are easier once you have that. Men and women are both equally good at this. You need men and women in all stages, but that’s probably one where if I had a multimillion-dollar deal and I had to pick four people and it could only do one thing, I’d probably put the woman in a relationship.

It’s an unfair question, but you gave a fair answer.

GFEP 6 | Women In Sales

Women In Sales: Women don’t tend to be as vocal or speak out. That’s something they can learn from men.

 

It’s hard. I agree with you on the biases and stuff. I don’t want to come across like, “Men do this and women do this.” I’ve been trying to speak in generalities because I don’t believe that at all. I believe we’re all equally good. We do some things differently and they’re both right. There’s nothing wrong or right. It’s different.

I want to talk about the difference between a transactional sale and an enterprise sale. I’m using those terms for my sake. A transactional is maybe an inside salesperson. They receive inbound inquiries and they’re expected after 10 to 15 minutes to get the order. Literally, it’s a fifteen-minute sales cycle on enterprise sales or SaaS you sold throughout your career. It could be an 8, 12, 15, or 16-month period, maybe longer. What are some of the characteristics that generally speaking, you’re finding that women have that make them effective in each of those two types of sales, the transactional and the longer-term enterprise sale?

In the transactional sale, women are going to lean on their teaching ability to take a complicated process. Make it simple and understandable because you don’t have a lot of time. You can’t spend months on this, but someone needs to get this fast. Women have a strong ability to take a complicated process, simplify it and make it understandable. That’s where women can win in transactional type sales. When customers get it, they buy it. It’s simple. In the long process of sales, women cannot only build the relationship but also expand that relationship out to many people in the organization. When you’re working on an enterprise deal, there are a lot of people involved in that, not just the one person you’re talking to across different divisions, in the company, people that are above and below this person you’re working with.

You have multiple people that you’re going to be needing to pull in and build a relationship with, build that trust with, and help them to understand. Your teaching and talents go well there but paint the picture upfront early so that we all know where we’re not doing this 8 to 12-month process so that we can hang out, be buddies at the end, and we’re going to close a deal. That’s going to help you and to guide them and continually keep on top of that, keep that forefront in their minds, and bring everybody in together. You have a group of people. This is a team. There’s a whole bunch of you from your side. There are a few of us from our side. We’re doing this as a team and we’re going to make this happen. They rally the troops type of thing and clear vision. Those are some of the things that women do well at the enterprise level.

Let’s turn the tables a little bit. What should women learn from men about selling?

Everything we learn about sales starts from men because they’ve been doing it successfully and the majority of the sales reps are men. We’ve learned a lot from men. I think what women can learn from men more is maybe not even so much in sales, but in the office. When you’re working with your sales team, we’ll be in groups where there are few of us and men are never afraid to speak out, say their mind, and throw their opinion out. They don’t care. If you say that’s a dumb idea, women feel like, “I have already seen as not enough. I’m weaker. If I say something stupid, then they’re going to think I’m bad.”

Women don’t tend to be as vocal or speak out. We can learn that from men. We need to speak up. We need to let our voices be heard and our opinions matter. We need to be part of that conversation, be part of the team, and be more vocal. That’s something that we can learn from and a lot, especially in the workplace. I hate to say this, but because I don’t know how to explain it in a short period of time, maybe understanding our emotions a little bit more. Our emotions aren’t weaknesses. Our emotions are our strengths, but there are times when you get frustrated and angry. Sometimes, even to the point of almost raged in the office and men will handle that with maybe some aggression or some yelling, and that’s not always something to do, but women then end up getting emotional. I’ve cried in the office and I’ll admit it.

I get mad at myself afterward. It’s like, “Why can’t I control that?” There’s a happy medium where we all learned to handle our emotions a little bit better in the office. Maybe you realize taking a lesson from men that it’s not a personal attack. Maybe sometimes, it always feels that way a little bit. That’s probably letting things roll off your back a little bit more. This is generalized, but what brings me to that point where I cry? It is because that’s the worst thing I do in the office and it’s rare. I’ve never cried with a difficult negotiation with the customer ever, but it’s more because I have an emotional connection with my coworkers and my bosses. I’m passionate about my job. When something comes at me that’s wrong, offensive, or not fair, it pushes that emotion and the emotional trigger for a man and a woman are different. How can I address that in an earlier stage so that I don’t get to that point? How do men let that roll off their back? That is something that would be nice to learn. I think we could learn that from them a little bit.

That is such a fascinating topic that probably requires a whole new interview over that. However, if women believe by showing emotion, they’re showing weakness, that’s not the way I view it as a man. I don’t see it as a weakness. In fact, sometimes, if I’m a “typical man,” I might think that the woman is showing emotion. At home, when a woman shows emotion, the man might think, “This conversation is over. She wins. I’m going to walk away.” When a man sees that in the office, he might think the same thing. This is the last chip that she’s playing to win this argument. I’m supposed to throw my hands up in the air and say that she’s right, but I don’t think that’s what the woman’s intent is. It’s not to win an argument. As you have said, she’s vested in the relationship. She may be frustrated that she doesn’t know how to communicate what she’s thinking or because she feels the other person is not listening.

[bctt tweet=”Being around people who are different from you is what makes you grow. That’s how you become stronger.” username=””]

All these other things could be happening, but I would not mind it if a woman is emotional. I think it would be also appropriate and helpful if she explained to me, “I’m not getting emotional because I’m trying to win through tears. I’m simply getting emotional because it’s the way I made. I know that my emotion and my strong feelings about this issue are no greater than yours. It’s that this is how it comes out. In you, it might come out by yelling or pounding your fist on the desk. With me, it happens to come out through my eyeballs.” It’s just an honest expression. If I heard that, I would not think that she’s trying to manipulate me. I would understand that we’re made differently. Am I understanding this?

You’re right because when a woman gets to that point, she is heavily invested that it’s not time to quit. It’s time to maybe realize it, “We need to take this down or not so we can finish talking about this.” It’s not becoming such a hot emotional topic and it becomes more of a, “Let’s bring this back down, but we need to continue talking through this because there’s nothing worse than just walking away.” Now she’s like, “He doesn’t even think of me as a reasonable person. I’m this idiot that cried in the office.” If you ask women what’s the worst thing to do in the office, you probably hear that more than anything is crying in the office.

That’s the thing that we hate the most, but if a man picked something up and threw it across a wall, you would know how emotionally invested he is in this and how we need to bring this down, but we need to continue to talk to. I’m not saying that women are doing that, but it’s a real strong reaction, an emotional reaction because we’re so invested in what we’re talking about at the moment. We do need to continue that conversation. Maybe take a drink and calm it back down, but then continue the conversation. Maybe that’s something that we’ll work through. I don’t know what the answer is on that one, but we can certainly learn a little bit more about resolving things inside the office that way.

It feels to me, it’s about communicating. It’s about helping the other person understand what the genesis of that emotion is. As a man to do the same thing, he throws a temper tantrum if he starts eating, smashing things. We’ve all had that stereotype of a man boss, who you don’t want to go into his office and have him shut the door. Once you start to hear him yelling, you’re in trouble and we’re all going to have a bad day that day. That’s his way of expressing emotions, but not the right way of doing it. If both men and women could be more communicative about what’s behind the emotion. I would say to you, take it for what it’s worth. I’m one guy, but I do not see crying in the office as a weakness. I see it as a strength because of that connection that that person has to our common goal.

They feel passionate about it and they’re serious about it. She may need to remind her boss of that point. Let me ask you out a related question. We may have some women, young women in particular, who are troubled by the environment in their office now or they have a boss, a manager that they don’t feel they’re connecting with. Let’s say the chances are that boss is a man. What is the best way for a young female professional to approach an older male manager when you have that dynamic going on?

That is a hard one. I’ve had many of those situations myself and it is a difficult one to know how to do, but the best thing to do is to say, “I would like to have some time to talk. If you could get me on your schedule, let’s go somewhere where we can talk privately. You don’t want to have it on the floor. You don’t want to have it in front of a bunch of people.” Whether he’s open to it or not, you need to tell him, “When you do this, or when you say this, it makes me feel this way. It takes away from my ability to do what I do best. It stops me from performing at 100%. I would like to talk about how we could work through this because you want me to be at my best and I want to be at my best. This type of interaction between us shuts me down. I want you to know that I do want to succeed. Can we talk about ways that we could work through some of this?”

It’s hard, especially if you’re junior and the man is senior, but I honestly believe that the majority of men would realize like, “I didn’t realize it. You’re right.” The guys that they talk to, oftentimes, aren’t as emotional. Even though they are still hurt and they’re still beat down, maybe it’s not as obvious. They’ll go home and have that time where they’re like, “I’m the worst. I’m terrible. I can’t believe it,” but a woman is going to feel that a little bit more at the moment. Having that conversation not only benefits the women on the team, but also the men because that type of personality is doing it to everyone. Making them aware and maybe working together to get through this is great.

If you’re dealing with someone that is not accepting this, sometimes in those situations, you need to go to an advocate inside the company. There’s got to be someone else that is maybe in management or oftentimes, I hate to run to HR because I don’t want to always be thinking all the first thing you do is run to HR. You try to work things out. You try to understand where you can support each other and work together. There are those times when you’ll get a boss that’s not receptive to that at all. At that point in time, you do have to find another advocate within the company. People quit their bosses most of the time, not their jobs. It’s important for bosses to remember that we need to work together and support the different personality types, different lifestyles, different people, emotions, thoughts, feelings and recognize that we want to be supportive, not destructive.

Lanette, that’s great and wise advice. Is it any different in your advice if the scenario was a female junior executive with a female senior executive that they’re not connecting with? Is it the same advice that you would give in that scenario?

GFEP 6 | Women In Sales

Women In Sales: It’s important for bosses to remember that we need to work together and recognize that we want to be supportive, not destructive.

 

It is the same advice. It isn’t a man or a woman being in that position. If the man or the woman on the receiving end of that, but it’s a personality type in there and a management style. Whether it’s a man or a woman, you still have that same conversation. It makes you stronger and better, especially as a woman to take the lead in the speakers. This is where you step up and you become a leader. It’s scary and it’s hard, but these are the steps that you take that make you grow and make it better for everybody else.

Women don’t think about stuff sometimes so as men. It’s not all the women managers are great and all the men are terrible. You have great managers that are both men and women. There are times when you have conflict and then you also need to maybe ask what else you could do to help improve, what are your recommendations, but you have to be open to those things and address it. Don’t let it go on, fester and get worse because what’s going to happen is you’re going to quit or you’re going to get fired. If you address it early, it’s better for everybody.

What I’m hearing in this conversation is the idea that has been proven that for a team to be successful, you need to have diverse opinions, skills, backgrounds, and personalities. It’s true in sports. In basketball, we have the starting five. Each of them has a distinct role. In a sales team, it’s the same way. If you have a bunch of clones of the boss, you’re probably going to miss a large part of your market because not everyone is going to relate to the boss and his or her style. Populating your team with that diversity of thought, background, temperament and skillset, sounds like the way to go. I’m pleading with those who are in positions of responsibility, who make these hiring decisions.

When we talk about diversity, it’s not to be a politically correct term and to say that we can check our corporate social responsibility box, but it’s because it makes us better. It makes us a more well-rounded team. Hearing you speak, I hope that more people see that we need to get women in sales because it’s good for them. It’s good for their families. It’s good for our customers and clients. It’s good for our own organization. I’m going to give you the final word on that. Do you have any last thoughts or advice you would give us?

I believe in what you’re saying. Don’t try to get a diverse team because they’re diverse. Open up and realize that there’s a lot of skill and talent that doesn’t do cookie-cutter as you do. There are a lot of different ways to be successful. There’s not just one right and one wrong. There are some proven solid facts that do resonate consistently. There are some true sales skills and talents that have to be there. There are many different things and many ways of doing things and you’re not going to get that unless you open up and realize that having different people with different thoughts, ideas and backgrounds brings more. It makes all of us grow when we learn from each other.

I don’t want to keep talking with someone that thinks exactly the way I do, that gets boring. I want to learn from people that have different thoughts and then bouncing them around together is how we learn and we pick up, “I like what she said. I like what he thought. Maybe I’ll put these together and this becomes some of my best power.” You only learn that by being around people that are different from you and that’s how we grow. That’s how we become stronger. How we become the best company and the best team is when we are open to that. I’m going to say it over and over again, don’t hire a woman just to hire a woman. We don’t want that. Hire us because we’re the best candidate. That’s why you hire us. You need to look at the women and look for that talent. You need to look outside of people that look like you, think like you, and act like you, whoever you are. There’s more out there and be accepting to all people in all forms of success.

You remind me of this in your last comment about when I received or was hired into my first full-time sales job. Eventually, the boss told me the reason why he hired me is that I was different than everybody else on the team. He thought he was taking a big risk with me and he was. I didn’t know much about this, but because I was bringing something different to the table, it apparently enriched the team and made us better. You’ve opened up my mind a lot with your advice, your counsel and your experience. You have great insights. You’ve also reaffirmed things that I have that I tried to think and live throughout my career. I thank you for that.

We wish you in your role at Lucid Software tremendous success as you continue to build your career, which is as sterling as it is. Also with Women in Sales, the organization that you lead, thank you for having the vision to organize this group. Thank you for being so and congratulations on the influence that you’re having in the local community and nationally. I look forward to associating with you and the organization and all of your members. Thank you, Lanette, for your time.

Thanks for having me. It’s been great and I love having these conversations. Hopefully, anybody that has questions, feel free to reach out to me. I’m always open to meet new people and hear new ideas.

Important Links:

GFEP 5 | Bandon Dunes

 

The patron saint of public golf.” That’s how they describe Mike Keiser, the most prolific and respected golf course developer of the last 20 years. The visionary behind the five courses at Bandon Dunes, Oregon – four of which are listed in the Top 15 public courses in America – with 14 others completed and 10 under development around the world, Mike turns nothingness into gorgeousness. Learn as he explains beating adversity with creativity; outdoor over indoor meetings; testing ideas before rejecting them; the mistake of guessing instead of asking; and the surprising benefit of rivals – all in this wonderfully insightful conversation with Rob Cornilles. As a bonus, we also get some interesting facts and lesson about golf – the real golf.

Watch the episode here:

Mike Keiser | Golf’s Wind Walker

Do you want to know who Donald Trump competed with long before he became president? Meet this episode’s Game Face exec Mike Keiser, the patron saint of public golf. In this episode, you’ll read a rare interview with a man who built and sold one of the top greeting card companies in America then used his wealth to pursue his passion. Lots of people’s passion, developing six of Golfweek magazine’s Top 60 Modern-Day Courses in the US but don’t worry if golf is not your thing. This interview fills anyone’s bag with lessons from an influencer who hasn’t lost his humility and grace. Mike Keiser, golf’s game-changer.

I am thrilled to have my friend which is a label that I’m grateful for. My friend and someone that I’ve looked up to for a long time. I’ve been fortunate enough to have an association with him both publicly and privately. Mike Keiser who’s joined us on Game Face Execs. A name that is well-known throughout the golf world and throughout the sports world for his innovation and creativity. He is truly a transformer and a game-changer. Mike, thanks for joining us.

It’s nice to be with you, Rob.

Mike has been kind enough to join us from his home. We’re grateful for that. Mike, we have had an association for many years now. I’m a little older but you’re still as young as ever. I want to take the audience back to when we first met and talk a little bit about the conditions that brought us together. It was a pleasure to meet you the first time under the conditions that we did. That was back in the State of Oregon where our company, Game Face, was based in the Portland area. I raised my family in the Oregon community. You’re very familiar with the Oregon Coast so we’ll talk about that here. I was serving on a particular board that had a plot of land on the Oregon Coast that was of particular interest to you. Could you tell a little bit about how that story unfolded?

I assume it’s okay to mention that the owner of a big parcel of land was Camp Meriwether which was a Boy Scout summer camp. They had a big section of land right on the ocean that, for various reasons, they never used. They use areas in North, South, and East of it but never this big parcel. Rob and Matt’s idea was if that became a golf course, it would make money to increase the operations and day-to-day outreach of Cub Scouts. They called me to sell me on this site and it was their salesmanship plus visiting the site which is magnificent.

It had about a half a mile of ocean frontage in the Northern Oregon Coast. I immediately saw that their plan was a good plan and spent a lot of time and some money trying to figure out how we would fit eighteen holes which are called a routing on this great site. Sadly, we had a great routing but it included 2 to 3 holes on what turned out to be wetlands. We didn’t have enough space to move it. What went from an exciting fundraising project for the Boy Scouts of America became, not a failure, but we couldn’t make eighteen holes work. It was big enough for fifteen holes but not eighteen holes. My judgment was that fifteen holes wouldn’t do it.

I want to give credit also to Tim Boyle who is the CEO and Chairman of Columbia Sportswear. You were golfing with him at some point in Oregon. Tim has always been a great supporter of Boy Scouts of America, at least in the Northwest. He was the one that thought of introducing you to me. I was the Chairman of that board and Matt Devore was the Chief Scout and CEO of the scouting organization in that area. Tim introduced us and we had a good 1 to 1.5 years run at it, didn’t we, Mike?

It was almost to the point where we’d hired a golf course architect, Bill Coore and Ben Crenshaw. They were excited and everyone is crestfallen to find that unbeknownst to us right in the middle of this beautiful site was a wetland and you can’t move wetlands so that did us in.

As we walked that site, that was a unique experience. I would say to my audience who are a lot of them are fans of yours, Mike Keiser. If they have the opportunity to walk a course with you as I did, they would learn so much not only about the game of golf but about the vision that a talented developer like you brings to the game and how you embellished the game in a good way because of that vision. Your connection to Oregon started in the mid-1990s.

I started even more than that. I began buying properties in the late ’80s. I didn’t open Bandon Dunes, the first of now five golf courses until May 1st, 1999. My real involvement with Oregon and the Oregon Coast started in 1999, but I started buying land for it in the late ‘80s.

You gave me the privilege of walking those five courses at Bandon Dunes with you as we were contemplating a transaction upon the Northern Coast of Oregon as you’ve described. You said, “Let’s go down the Bandon. Let’s walk those courses together and I’ll show you how I put together these types of courses.” That was a once in a lifetime experience to walk Bandon Dunes with Mike Keiser.

[bctt tweet=”You’re better off with a pathway through the wilderness than braving it on your own.” username=””]

I’m glad you had fun, Rob.

I had a ball but I’ve got to tell you, I was tired at the end of the day because you insisted on walking the whole thing.

Remember, it’s a walking sport.

Talk a little bit about that, Mike, because when I pass golf courses in my travels and even in the area where I now live, many people are in carts and some people are enabled to walk but they may have some limitations physically but you always walk courses. Could you tell us a little bit about how that began for you? Is that for you the natural way of golfing?

That is the natural way of golfing. It all starts in Scotland back in the fifteenth century before Columbus discovered America. Scotsman, sheepherders were playing golf in the dunes in the linksland of Northern Scotland. There were no carts and they walked with their shepherd’s crook, hitting stones into small holes and crevasses. That’s how golf started and has continued to this day in Scotland, Ireland and I would include England as well where golf is a walking sport.

America post-World War II discovered the electric and gas-powered golf carts and married that into the game of golf that is played in America. That was a decidedly contrarian choice that American golf made to leave walking only Scotland, Ireland and England going one way, which has preserved its golf as it was meant to be a walking only nature. They introduced golf carts to golf, which in my opinion, has harmed the golf ever since World War II and they began building golf cart courses. A handful of private clubs that have been walking only ever since World War II most caved in to the pressure of the golf cart makers and with the promise of making more money for the pro shops, club-after-club, facility-after-facility went to the electric golf cart. The bane of existence for those who believe that Scotland knows how to play golf.

On those courses that you described, they’re known as links courses. For those who aren’t as familiar with the game of golf, I know that may sound sacrilegious to you that someone would not be as familiar with it as anyone else, but I talk about links courses and what attracts you to that type of course because it is unforgiving and sometimes relentless to golf on such a course as that.

Linksland is what the Scottish shepherds found in Northern Scotland way back when. It was the land that linked the beach which is not arable and is worthless for agriculture. Linksland link the beach with arable pasture land. It was the land between the beach and pasture land. It was poor in quality that nothing agricultural was done on it back in the 15th, 16th, 17th, 18th centuries. It was simply referred to as the common area, the linksland and because no one owned it, the shepherds could roam around it and make a game of it, which they did. The interesting thing about Bandon Dunes is we found what I would call linksland, beautiful dunes with minimal agricultural characteristics. Since no one wanted it, I was able to buy it for a small amount of money and develop the Bandon Dunes Golf Resort on what became 3,000 acres of agriculturally worthless linksland like Scotland.

I remember when we walked the course up on the Northern Coast of Oregon on that land that the Scout’s own, you kept saying to us repeatedly, “There has to be sand here. If there’s no sand, I can’t build the course that I want.” That, along with the natural terrain, made me constantly think about, “This man likes difficult golf.” I’m not a good golfer, Mike. I want it as easy as a course as I can get but there are some life lessons for young people and professionals about tackling the difficult or doing the hard things. You might have some thoughts about that. How the natural terrain of links is like life and business.

It is. I would refute your statement that it’s more difficult. The fact that it’s built on sand dunes doesn’t make it more difficult. What makes it more difficult are the windy days because it’s coastal whether it’s got at Ireland or Oregon. There are days on the coast when the wind whips up. The Scotsman says, “When there’s no wind, there’s no golf,” which is to say the golf is a lot easier when there is no wind. When there is wind, deal with it. In that way, your observation was correct. We walked in on a windy day and you concluded rightly that playing in a 30 mile an hour wind makes golf challenging. Some people rise to the occasion, others cave in and say, “It’s too windy.”

Could I surmise then that good golfers on a windy course not only require skill but they also have to hope for some luck as well?

They need to exercise creativity. An example, if you’re playing a hole into a stiff 30 mile an hour wind, a lot of golfers hit a high ball, high drive or a high three would. The good links players know that if you keep it low to the ground, it will bore through the wind rather than willowy wade blowing off because it’s too high. Using your creativity to come up with ways to deal with a windy golf course is part of the fun challenge of golf and links courses.

GFEP 5 | Bandon Dunes

Bandon Dunes: Using your creativity to come up with ways to deal with a windy golf course is part of the fun challenge of golf and links courses.

 

Hearing you talk about that, Mike, makes me think of what might be a dichotomy about the game especially the game that you enjoy and promote. That is you go back to the traditional side of golf. You bring us back to the way golf was meant to be played and yet to do that requires tremendous innovation. To be a traditionalist doesn’t mean that you’re uncreative. It means that you have to be more creative in nowadays world than perhaps others. Am I on the right track here?

I would put it this way. Before Bandon Dunes proved the popularity of links golf in America, there wasn’t Scottish-Irish golf in the dunes in America. Those few that I would list are all private clubs on the East Coast where the typical golfer can’t get in or can’t get there, or can’t get on the course. Most of America is golf cart courses or tree-lined fairways, definitely not on the ocean and sand dunes as they are in Scotland and Ireland. That’s the product that is different than what is being sold in America up until Bandon Dunes took some courage to present it to the American golfer and they liked it as much as they do in Scotland and Ireland.

I would think that your readers would enjoy hearing that it’s always good to have a model. If you know where you’re going and it’s going to look roughly like this to have a target or a model that you’re seeking. I had a model in the form of the links courses in Scotland. Royal Dornoch up in the Scottish Highlands in particular was my favorite model because it’s extremely remote like Bandon Dunes. Every day, all summer, tour buses full of American golfers rolled in and out, and they went to play golf in this magnificent golf course called Royal Dornoch. That was my model. Figuring if tour buses would come to Northern Scotland, it would go to Southern Oregon.

You talk about a model, Mike. I’ve always thought that you had an unusual vision. Are you suggesting that visions have to come from somewhere or something?

The cardinal rule, but in general, if you can have a model of where you want to go, you will be better served. It’s basically a pathway. You’re better with a pathway through the wilderness than braving it on your own. You give me too much credit. I had a model. I played it numerous times, watched it and it was Royal Dornoch.

When I have a vision or a model of that, which I’m trying to either replicate or create with my twist. Can you describe for us a little bit about how that process works, at least for you? In your successful career, seeing something as one thing but executing on it and making it a reality is completely another ball game. How does one successfully go about it as you’ve done over the years?

If you don’t have a model, you’ll flail away. As I’ve already said, I had a model, Royal Dornoch. To make the business case for that, is I said to anyone who would listen like friends, family or business, “I want to build something like Royal Dornoch in the United States.” I picked the State of Oregon as having fabulous beaches and linksland. I’d like to go there. Even though that’s remote for most people from New York City, Atlanta, etc., I think that like Royal Dornoch, they will come. I made the case which to me was worth trying.

Frankly, Rob, almost no one thought it was a good idea. They all said, “That’s an interesting vision you have, Mike, but there’s no way we’ll finance it. There’s no way we’ll go see it. There’s no way it will work. It is simply too remote.” Forgetting that I made a big point of Royal Dornoch is at least as remote in the Highlands of Scotland as the Southern Coast of Oregon. That didn’t matter. I was presenting a different product.

My model was different than what people were used to because it was different. They said, “We won’t finance nor support it. We think you’re crazy.” If you find yourself in that situation, you need financing to do it on your own whether it’s bank financing, private equity, venture capital or your own money. It comes down to who’s going to take the risk. It’s the “visionary” who may not have this great vision but able to come up with the funding to get it started, at least.

I want to share with the audience something that David McLay-Kidd said and he was your first architect at Bandon Dunes. I know that he worked with you on other courses including Sand Valley in Wisconsin. Let me share with everyone what he said about you. He said, “Mike has an ability to draw out of people much more than they thought they were capable of or more than they were capable of.” I respect the fact that you have to get finance and you have to go sell the bank or the private equity firm, or what have you. Whether it’s the financers or an architect who perhaps has never been to the State of Oregon who doesn’t even know how to find it or your family and friends. How do you go about communicating, Mike? How do you draw out of people either that is dormant in them or they don’t even have now, but through your communication, your expression of vision, they want to follow you?

The only thing I can lay claim to was knowing that American golf architects were by and large illiterate when it came to links golf. Early on, I decided I wouldn’t try to convince Pete Dye, Tom Fazio, or Jack Nicklaus what a links course is. I decided to use someone who knew links courses and there are not many people in the world at that time who knew much about links courses. Up came David Kidd and his brother Jimmy and they said, “We’ve heard you want to build links courses. We don’t think it’s that crazy. We work at Gleneagles Golf Resort in Scotland. We summer every year at Machrihanish. We know what a links course is. We are your man.” I hired them as visionaries to join me because there was no one else who knew enough about golf to do it. It turned out they were brilliant. I don’t think they knew at that time what a good site it was. They certainly didn’t know what a good job they would do with input from me and others as they developed it.

[bctt tweet=”Don’t talk about your accomplishments. Prove yourself by doing them and let others talk about their success.” username=””]

If someone has met you or perhaps watched an interview with you, they wouldn’t know but Mike Keiser is not a bombastic fiery pound-on-the-desk type of leader. If you’ll excuse the description, you’re a gentle giant in our industry. Your demeanor, when I first met you in the years that I’ve known you, has always been one of your greatest qualities. I’m hearing from you that persuasion and influencing of another person or parties is not about being the most vociferous person perhaps in the room or the person who is getting people to submit to your will. There has to be some gentle persuasion along the way. Has that always been your nature or have you learned that’s the best way to operate your business?

I would say it’s always been part of the atmosphere because my three brothers and I picked that up from my dad who was above all else matters. He was a World War II pilot war hero. He went to the Navy Cross. He never bragged about it nor talked about it. We learned from him that you don’t talk about your accomplishments, you prove yourself by doing them and let others talk about their success. You never tout and engage in braggadocio and loudness. You lead the way and let others notice that it’s a good path. I owe all of that to my dad. You’re right to pick that out as a characteristic of great leadership or even good leadership, modesty is a big factor.

It seems so much in short supply now. We’re in a business culture where it seems like we are encouraged to constantly toot our horn whether it’s through social media or other types of media. It’s about, “Look at me, see what I’ve done, see what I’m eating for lunch now. Aren’t I great?” Is that difficult for you to watch? Do you not pay much attention to that type of personality?

I ignore that kind of personality. I try to ignore those people who are bombastic and egotistical. I keep noticing that many successful business people are low-key even when they talk about themselves. I’m thinking of Charles Schwab who grew up at Madison. He’s a great golfer having been a caddie. You can even talk about my vision because he does and talking about Charles Schwab and why it makes sense to work with him. Even when he’s talking about himself, he does so in a modest way. Accomplishments speak louder than egotistical statements. There are a lot of people who follow your correct system that people keep a low profile and that your deeds speak for you.

That is a struggle that I’m going to say nowaday’s generation of business leaders or up-and-coming business leaders have because in this world of social media and everyone knows what everyone else is doing 24/7. It’s almost a voyeuristic world that we live in. The persona that you carry and the style that you’re known for is refreshing. I don’t want to say it’s old school. I wish it would become more prevalent now.

It is old school. I don’t know where my dad got it but I know he felt that a Rockefeller was much maligned for the wrong reasons. He was very church-going. My dad used Rockefeller as an example of dutiful tithing and that was part of the old school that we saved 10% of what you made and you gave at least 10% away to those who were needing which is part and parcel to that old-fashioned lead by example, not by your mouth.

You and I have spent a lot of time together when you have talked about your father. We met because of our mutual affiliation with the Boy Scouts of America. Your father was a big scouter if I’m not mistaken.

You’re right to recollect. He was an Eagle Scout and was dismayed when his sons, led by me as the oldest son, did not follow him. We began Boy Scouts but we didn’t have the gumption to go ahead and get our Eagle Scout Badge. I was one of many disappointments.

I’m like you, Mike. I joined scouting as a youth. I did not finish it but I do have three sons and I’m proud to say that all three of them became Eagle Scouts.

They must’ve had a good dad.

They have a good mom. That’s the key.

It’s good going. Three for three is good.

GFEP 5 | Bandon Dunes

Bandon Dunes: Accomplishments speak louder than egotistical statements.

 

Mike, about your youth. You were a caddie when you were young. Being a golf caddie taught you a lot of important lessons that you have since passed on to younger generations. We’d love to know more about how being a golf caddie shaped your character? Why do you feel it’s important that young people perhaps look into that? How have you created avenues for them to take advantage of those opportunities?

Rob, caddying is all about making money while carrying a bag. My fruitful years were 10 to 14. At ages 10 through 14, all young people have no idea about their abilities. I quickly learned that in caddying, you’re selling yourself. The proposition is this. I’m assigned to someone like Rob for eighteen holes but the only way I can get Rob to reuse me the next time he plays golf is to do a good job. Kids, both sales guys and not sales guys have to learn that or they’re the ones who no one ever chooses to be a caddie. The basic, “Here I am. I’m ten. I’m with this adult who I’ve never met for four hours. How do I get that adult to say, ‘Are you available on Thursday because I’d like you to caddie for me again?’” That was the sales proposition for all these young people at East Aurora Country Club and every other club throughout the world. We caddie at an early age. It’s about selling yourself.

Thus your disdain for golf carts because it’s difficult to use a caddie when you’ve got a cart instead, isn’t it?

It is.

I think about the time spent between a young boy or young girl and that golfer and the minimal but impactful mentoring that can take place during that time. I’m sure you have seen golfers who lend good advice to caddies. It’s almost free advice. The caddie is getting paid to take that advice and to have that one-on-one is a remarkable experience.

My worst experience caddying was my best learning experience. When I was twelve, the Champion of East Aurora Country Club, Bud Dow, decided he would use me. He had heard good things from other people and said, “Mike, I’ve never used you before. You can caddie for me.” We took eight holes to get used to each other and on hole number nine, for the first time, he said, “Mike, you’ve been watching me, what should I hit?” He was 150 yards from the ninth green after his good drive. I had no idea. I knew that I should have an idea because I’d been with him for eight holes but I had no real good idea what Bud Dow should hit from 150 yards. I said, “4 or 5-iron.”

I said that because that’s what I would have hit. He looked at me and said, “Give me the eight.” He hit an 8-iron 8 feet away and never used me as a caddie again. His advice after he hit his eight-iron to the green and it works in all situations to this day was, “If you don’t know, don’t guess.” I’ve asked that of employees throughout my business career. One of the great signs of a good employee in a future good manager is when you don’t know, ask. Don’t guess. Bud Dow taught me that with one 8-iron.

That’s a great story. There are many applications in all aspects of life.

That’s the tendency for most people. They say, “I guess it’s a 4-iron because that’s what I would do.” “I’m not you. I’m Bud Dow. I’m the champion. I hit it a lot farther and you should have known that. If you didn’t know that, you should have turned it back to me and said, I don’t know.”

My grandfather who lived to be almost 102 years old said to me that the three most powerful words in business sometimes are simply, “I don’t know.”

It’s Cardinal Rule number one. It’s your willingness to say, I don’t know.

[bctt tweet=”A past success finances the next vision.” username=””]

That position of being a caddie had a great impact on your life. You’ve created opportunities for more young people to have that experience. Can you share with the audience a little bit about how you’ve made that a reality for so many kids?

It’s as simple as having five golf courses in Bandon and other courses elsewhere. We don’t have carts. We are walking only because most of our golfers are eager not to carry their own bag but to employ someone. We have tens of thousands per year rounds that need caddies. At Bandon Dunes, we have 350 caddies. Many of whom are kids and many of whom win scholarships to go to college. It’s called the Chick Evans Scholarship Foundation. There are 1,200 kids in college with a full ride.

Mike, we talked about Bandon. I want to get into a little bit of the granularity of how that project became a reality because as I say, I’m a native Oregonian. As one who grew up in the northern part of the state and the Portland area, Coos Bay which is the largest semi-big city, close to Bandon Dunes growing up, and nobody went to Coos Bay. You only went there if you were raised there. It was not a destination spot. Granted in the late ‘80s and ’90s, I was no longer a child but I can understand people’s puzzlement and dismay when they heard from you that you wanted to go to that part of Oregon and build a world-famous golf resort. There had to be pushback even locally as well because you were a disruptor. You had some opposition as you and I experienced in Northern Oregon when we try to drive that project on that scouting property. Can you share with us a little bit more about the opposition that you faced and what it took to overcome it?

There are two types of opposition, the harder to overcome where the environmentalist is saying this is precious even though no one even knows it’s there, “This is too precious to build a golf course, you can’t.” There’s the environmental push back which was significant. It took years for my partner at that time and master architect, Howard McKee, to reason and horse trade with the environmental group. The other source of negativity with all the locals who shook their head and said, “If you want to do a foolish thing, Mike, go out there and spend $15 million building a golf course because no one ever comes here to Bandon much less to play golf. It’s windy. Who would come?”

I remember with that group, I’d already passed that bridge with the model of Royal Dornoch. None of them had ever heard of Royal Dornoch. The best I could get from them is you’re wrong. There are enough examples in Scotland and Ireland that people will drive ten hours from San Francisco or five hours from Portland to play a links golf course. They shook their heads and said in their body language, “You have to be an idiot if you think that’s true.” The environmentalists were a harder opposition group but I’d say the casual naysayers who were all over the board in terms of friends, financiers, bankers, etc., were uniform in their skepticism that that made any sense whatsoever. In a way, they were bigger critics from the environmental groups.

Mike, every salesperson faces opposition, objections as we call it. You can either walk away and say, “This is too hard. The objections are too great, too high. That hurdle is too high to get over,” or you can patiently work through it and you did the latter. Was your appetite and desire to build this course because you knew it was a moneymaker or because it would be the preeminent course in the United States? Some might argue broader than that. What was it that continued to drive you forward to work with these individuals and how did you work with them?

Rob, this is not your perfect answer but it is true. I went forward because I had the money in hand which I could lose without going bankrupt to build the resort. I’d been dependent on other financial sources. I assume that I have no money. I couldn’t have got a bank to lend even 80% of the project because I’m sure I could have raised from reluctant friends the downstroke. I have a number of banker friend and they said, “There’s no way we would have lent you a dime on your project no matter what your equity stake was. It was too dumb.” The only reason I went forward is I had the money from the sale of our greeting card company three years earlier. If it hadn’t been for that, it never would’ve gotten built. In that case, the lesson would be a past success, finances the next vision, which had no certainty about succeeding.

I will say to our audience, Mike Keiser is a saint in Southern Oregon because what you have done for that community, not just the economic impact, which is perhaps they’re measurable, but also you’ve given people opportunities there. You’ve given them jobs, you’ve sustained families, and you’ve put it on the map. There is no question about it. People come from all over the world. How many hours from the Portland International Airport?

Four and a half to five hours depending on how fast you drive.

Mike, if you’ll allow me, I want to share a brief story with the audience. I think you’ll remember this. When you and I walked that course or the five courses of Bandon Dunes which was a once in a lifetime experience to be able to do that with you and to hear your description of why you did the things that you did there. The obstacles, not only the community obstacles but also the geographic obstacles and the terrains, etc. At the end of the day, I was exhausted, you were fine. Finally, we were picked up by someone in a van from the resort. It was one of your new employees. Along with Matt Devore, the three of us were wearing baseball caps and sunglasses most of the day because it was a blistery Oregon day.

As this young man picked us up in the van and began to take us back to the resort, I struck up a conversation with him and I said, “How long have you worked here at Bandon Dunes?” He said, “I started two weeks ago.” I said, “I bet you’re feeling lucky to get a job like this.” He says, “You wouldn’t believe how fortunate I feel. This is a great place to work. It’s such an honor to be able to drive Mr. Keiser back to the resort. In fact, everyone is jealous of me back at the resort that I get to drive Mr. Keiser and also you.” I thought, “What’s he talking about? Why would he be talking that it’s a pleasure to drive me?” He says, “It’s a pleasure to drive you as well, Mr. Wahlberg.” I was somewhat into the skies that day. He thought that you had better, more impressive guests with you.

Mark Wahlberg is a good golfer. I played with him.

GFEP 5 | Bandon Dunes

Bandon Dunes: Not all ideas are great, but the only way we can sample them is first to hear them. Second is to look for opportunities to test as many of them as we can.

 

You’ve played with him. Why would they think that I would be him?

I don’t know.

I want to ask you about the fact that you have a family business. You have brought your sons into your work. They are accomplished developers and designers themselves. I’ve met your sons and like you, they’ve inherited that DNA of gentlemaness and dignity. A lot of people have been in family-run businesses, contemplating bringing their sons or daughters into a business, or joining mom or dad in the business. Many times that fails. That doesn’t work out. Why did you make that decision? How did you allow that to happen? Why is it working well for you and the Keiser family?

My elder son is Michael. My younger son is Chris. They both are avid golfers. They both had been to Bandon Dunes before they were employee age. When Michael was in college, he expressed some interest in going to Bandon and working in the summer. I said, “We can do that, Mike, but I need you to know this. If you go there, you’re going to get the job that is least desirable, the one at the bottom. You’re going to raise your hand and say, ‘I want that job that no one else wants to do.’ You’re going to arrive always early. It’s not to be on time, you need to be at least fifteen minutes early. I want you to continue to always be open to tasks that no one else wants to do.”

He started at the bottom out there and stayed there for the first two years. He raised his hand and did a number of customer-oriented things that enriched his experience and helped the guests. In observing other families, they so often start their kids at the executive level with no experience managing people or doing things on their own. I would say, my son, Michael, with many other examples, paved the way because he was willing to do the jobs that no one wanted to do.

Over time, he learned the skills necessary to take on executive responsibilities. He’s a name of his own. What was the first course that he designed? Wasn’t that in Wisconsin? David Kidd was involved in the second course.

He did the second. Ben Crenshaw did the first course and Michael worked with both of them in developing those sites into some good golf courses. Michael did that because he had experience with Bandon Dunes. I forget which courses he participated in on the ground but he had ground-level experience going into being in-charge role at Sand Valley, Wisconsin.

You talked about Bill Coore and Ben Crenshaw who have been your partners for many years. I don’t want to limit it to five individuals, I know there are many more. If I was to be a fly on the wall to watch you all interact and communicate with one another in any business operation, what would I learn about sales watching all of you “nontraditional” salespeople when you’re trying to get a project started or get a project to completion? How is there influencing and persuasion going on in those internal meetings?

Letting them know based on your own responses that all ideas are welcome. All ideas are not great but the only way we can sample them is first to hear them. Second is to look for opportunities to test as many of them as we can. In golf course development, it’s fairly easy. In all of our meetings, we’re outside specifically targeting one aspect of one hole where 1 of the 6 of us would say, “What if that were a little higher?” Ben Crenshaw would say, “It should be lower.”

In many cases, Rob, we could watch the bulldozer come and make the bump bigger, smaller or wider. It’s a good microcosm because whenever possible, you test ideas instead of saying, “I don’t like it.” Much better to say, “That’s interesting. It has merit. Let’s at least test it to see.” In the golf course, as long as you’re okay with spending a lot of time on site, testing is easy. You can do it in the sand. Another good attribute about sand is it’s easily moved. Unlike heavy dirt and worst is rock. Moving sand is easy.

Mike, you talked about going out on-site and having those conversations and even those small debates onsite, it reminds me of an old Japanese term called Kaizen. Kaizen is when a group of workers who might have totally different perspectives and experiences will meet onsite to look at a project or a problem that they’re experiencing on their assembly line. They will recognize that we need to see the problem rather than sit in a boardroom and talk about the problem.

[bctt tweet=”If you want to train yourself as a leader, raise your hand to that job that no one else wants to do.” username=””]

That sounds wise. I’m thinking of the fisheries people in Port Orford, south of Bandon. They have been complaining for years about overfishing and they’ve had meetings where various people will say, “The fish lacks.” No one ever got to a concluding business plan until one day, Jim Seely, who worked for me said, “Instead of our meeting inside, why don’t we go out to where it used to be great fishing and we’ll all see what fish we catch.” He got 5 or 6 fishermen to get in their boats and go out to this rocky outcropping and see if they could catch any fish. They didn’t catch a single fish which galvanized them into communal action to limit fishing from then on. The fish are now back and an environmental group called Rare does the same thing around the world. They go into fished-out fisheries and convince the locals like taking them onsite and showing them that no one is catching fish.

Taking that long walk with you, as I’ve mentioned, reminds me that that’s a good way for me to manage systems and organizations and how to lead people. Even getting the exercise and being out in the fresh air is a great way to communicate. I have a great friend in the Portland community who’s a leader of industry in Portland. One time, we had a meeting and unbeknownst to me, when I showed up at this office, he had his tennis shoes on.

He said, “Let’s go take a walk.” We walked around downtown Portland. That’s how we talked about the issues that were important to us at that time. That’s another reason why golf is such a great way to do business. Mike, I know your golf courses are like your kids but I’m going to ask you one of those questions that I’d be curious if there’s an answer to. If you could take a guest to one of your courses so they could see the definitive Mike Keiser course, which one would it be?

It would be Cabot Cliffs. For years, I didn’t have a favorite but Cabot Cliffs in Nova Scotia is my favorite now because it was a series of parcels that had to be bought by somebody. My partner, Ben Cowan-Dewar is a Canadian who was able to buy enough parcels for us to have beautiful good land, flat land and cliffs. It’s a great combination of holes that Bill Coore and Ben Crenshaw fashioned with a lot of great work by Ben Cowan-Dewar in buying what ended up being twenty parcels to put together one exquisite golf course.

Mike, I’d like to wrap up our conversation with a couple of more questions. This last one might be sensitive on the surface but it’s not. That is, I want to talk about rivals for a moment. When you and I met, you had a particularly well-known rival in the golf developing world. He has more courses than you but yours always outranked his. Yours are always ranked higher. I’m speaking about someone who’s no longer in that space anymore. I hope he’s not. He should be doing other things and that’s President Donald Trump. We won’t talk necessarily about the politics of Donald Trump because whatever side people are on, that’s neither here nor there for this conversation. I want to get your view about rivals and how we should view them in business, sports or even in politics. Do rivals make us better or do they aggravate us?

The best word is they should make you better. In the case of Trump, he has a larger number of golf courses that he owns. He defines golf as a luxury. Everything he does in his courses is luxury-oriented. He built waterfalls. He’s definitely not walking. He has a special cart so it wouldn’t surprise me that they have Rolls-Royce grills. He sees golf as a luxury thing that you aspire to that one day, you’ll be well enough of Mr. Businessman to play golf. He’s welcome to that view but it’s the opposite of my view which is more Scottish and Irish where the common man is the 90% of the golf playing in Scotland, Ireland and Bandon Dunes. The fact that it’s walking only would be the opposite of luxury. That’s one rival point of view. Fortunate for me, he’s not the only rival and he’s in a different space. He’s in the luxury space than I am.

I think of my friendly competitors, Pebble Beach, who I admire and Pinehurst is my two major competitors. An example of how we help each other as healthy competitors, I visited Pinehurst number two after Bill Coore and Ben Crenshaw who I raved for getting the job. He redid Pinehurst number two which is their gem. It’s one of the top ten in the world and we wanted to see it. We did, we were shown around by the general manager and we were impressed by what Bill and Ben had done in renovating the course.

The general manager, Don Padgett said, “If you like what they’ve done with the eighteen-hole course, you should see what they’ve done with the putting green. We’d built this fabulous putting green by Bill and Ben. I want to tell you, you should have one of Ben in doing. It’s the most popular thing we have here. People come from 4:00 PM until 10:00 PM and play our par three. The name of which alludes to me.” Here’s a friendly competitor showing me the new thing that works. We, of course, went right back to Bandon and built a putting green. It’s been as Don Padgett said a huge success. Two kinds of competitors, one that belittles you and the other that wants you to succeed for the greater good.

That’s a wonderful story. Speaking of Mr. Trump, I know he likes polls and you like rankings because your golf courses are always at the top of the rankings around the world. In sales and business, numbers matter. Numbers don’t lie as they say so they have to be important to successful people. How does that relate to those of us trying to get to the top of our field? Should we be concerned with our ranking within an office or an industry? How should that drive us?

It’s competitive feedback with the sole goal of getting better. If you are numbers or ranking-oriented, it should be not to be able to boast it on number one or I’m moving up to number 3 or 4. It’s to learn what things worked for others as well as yourself and watch them move you up or down depending on your sales success. When you think of what you’re selling as a finite thing, that’s the wrong way to think about it. What we’re selling is a constantly evolving set of circumstances, architectures, buildings, or whatever it is. We’re always looking to improve it. That’s the value of ranking. If you keep getting better, the rankings will show as well as your revenue.

Mike, one of the culminating facts that come to your courses whenever you get to host a world class event. I have to ask you, as we wrap up, are Bandon Dunes still slated to host the US Amateur Championship in August 2021?

Yes. It’s a week-long event and the USDA decided that they would have the US Open Men’s and Women’s and the US Amateur. Those four tournaments versus thirteen which they initially thought they’d do. We will be hosting the US Amateur Men’s Division in early August 2021. I’m excited to be hosting what has always been a major.

GFEP 5 | Bandon Dunes

Bandon Dunes: There are two kinds of competitors: one that belittles you and the other that wants you to succeed for the greater good.

 

The COVID-19 has hurt a lot of businesses. I know that it has hurt yours in some respects, at least your courses have not been as full. My last question is how did you deal with that disruption? What’s been your attitude throughout?

My first thought was let’s make sure that we keep employees employed even though we were shut for six weeks. I’m proud of the fact that we employed 50% of our employees and we furloughed the other 50%. In the case of a furlough, you’re still an employee, you’re just paid by the unemployment compensation. Unfortunately for us, the closure was only six weeks. We’ve come back strong. It won’t be quite as good as 2019 but close. A big reason for that is all of our employees came back. I would say in about all cases joyfully much like your example of the young man who was driving the bus.

Mike, I don’t know if you’re a businessman first who loves golf or if you’re a golfer who loves to be successful in business. I don’t know how to describe you. Which one is it?

I’d say I’m an avid golfer. Once an avid golfer, always an avid golfer and most of them aren’t in business. I’m in that big group, certainly. I’ll go anywhere to play golf like Tasmania, New Zealand and St. Louis which is where we’re building one. There are great sites still all over the world, Rob.

Mike, I sure appreciate the time you spent with me and our audience. I appreciate as always your wisdom and to share with us the insights as to what has made you successful and influential in this industry and to provide all of us various venue all over the world where we can do business, live these principles with clients, prospects, employees, co-workers and etc. Thank you for making that happen. I want to thank you for your friendship. It means a great deal to me.

It’s always fun, Rob. It’s good to hear from you. We will see each other again.

Yes, we will. Thank you, Mike Keiser.

Thanks, Rob.

Thanks for being a part of this episode of Game Face Execs. If you found any of it useful or helpful, please rate or like, and subscribe to our YouTube channel. I always appreciate you referring us to others as well. Until then persuade, influence, inspire.

Important Links:

GFEP 4 | Tough Leadership

 

Tough times require tough companies – and tougher leaders. That’s why it’s no surprise that 60-year old Columbia Sportswear continues to blaze ahead of apparel companies worldwide. Join us as the company’s chairman and CEO, Tim Boyle, reflects on how one family transformed a hat business into today’s outdoor apparel behemoth boasting sales of $3B+. What made the difference – great products or clever advertising? Where did the company get its distinctly irreverent style? And what did Tim’s mom, the iconic Gert Boyle, really think about her marketing-driven persona of “one tough mother”? Listen to Tim’s conversation with Rob Cornilles and find out.

Watch the episode here:

Tim Boyle | One Tough Difference-Maker

I’m sure like you as a kid, I wanted to hide under the blanket the first time I ever watched the suspenseful Wizard of Oz. I knew everything would be all right for Dorothy and her friends when we finally discovered that controlling the big, bad wizard was a gentle and compassionate man who saw the potential in others and help make their dreams come true. My guest is Tim Boyle, the warm and humble man behind a powerful and sometimes edgy curtain of Columbia Sportswear. As I’ve known for years and you’re about to know, Tim is a humble visionary, a faithful steward, and a discreet but generous philanthropist. Tim Boyle, Columbia Sportswear’s Chairman and CEO is our Game Face Exec.

I want to thank you, Tim Boyle, for joining us. It’s a treat to have you. You’re someone that I’ve admired for a long time. The business community, the academic community, the entertainment and sports community, the outdoor community, everyone has admired the rise of Columbia Sportswear in many years that you’ve been leading it. I look forward to the conversation.

It’s always great for me to talk about the company. That’s fun for me. Thank you.

Before we talk about the company, a lot of people are interested in your personal story. We are both Oregonians. You’ve lived in Oregon your entire life. You were born in Portland, weren’t you, Tim?

I was born on Tucson.

Were you raised in Portland?

My parents were students at the University of Arizona and they lived there for a while. My grandparents lived there. I was born in Tucson and moved to Portland.

I’m going to ask you to complete this story for me. I’m going to set it up. Your grandparents on your mother’s side fled Nazi Germany in 1937 with your mother, of course. They got their way to Portland, Oregon. While they’re here in Portland, they bought a hat company and they renamed it, The Columbia Hat Company. That was after the Columbia River, which anyone who’s been to Portland knows that that goes through Portland, intersects with the Willamette River, and goes out to the Pacific Ocean. While they were leading that company, they turned it over to your father, Neil. Your mother was taking care and raising a family until in 1970 when your father unexpectedly passed away. Meanwhile, you’re at the University of Oregon pursuing a journalism degree. You were one year away from graduation.

It was December so I was halfway through my senior year.

Tragedy hits your family. Your mother has a business and it’s got about 40 or so employees at the time. She’s not accustomed to running a business. She’s been, as I say, paying attention to raising the family. What happens to the Boyle family at that moment?

[bctt tweet=”‘It’s perfect. Now make it better.’ – Gert Boyle” username=””]

The company was a tiny company. In 1970, the year my dad died, the revenue was $1 million. In 1971, when I came home to help my mom and my grandmother who was still alive at that time who run the business, we went to $500,000. By the early ‘70s, we’d lost all the equity in the business. Things were bad. My dad had taken out an SBA loan a month or so prior to his death. We were trying to figure out how to pay the loan back and make payroll, etc. The bank rightly called the note. We didn’t know what we were doing. They said, “You have to sell the business.” We tried but a money-losing little tiny business like the one that we were running at that time is not marketable.

The bank said, “We’ll give you a few more months to figure this out. Otherwise, we’ll have to liquidate.” The banker had loaned some money to some guys starting a shoe business in Beaverton. I can get one of these guys to help me understand how to run a business. We were very fortunate. Somebody joined a pro bono board who was one of the early Nike employees and helped us to focus our time and effort on the right stuff which was building a product that people wanted to buy that had some point of differentiation. That was the turning point. In 2019, we were slightly north of $3 million.

Tim, as to your career path, you got a journalism degree. I presume that was because you wanted to go into journalism.

I was planning to go to law school.

Your mother calls and says, “I need your help, Tim. Come work with me for a little bit.”

She didn’t have to call. I’d worked in the business from a young age. I knew nothing but I thought I knew a lot but I didn’t know that we had to help the family out. That was my calling. That’s what happened.

I want to talk a little bit about your mom as well, Gert Boyle, who has effectually been termed one tough mother for many years. Unfortunately, she passed away in November of 2019 at the age of 95. Those of us who knew her would all say that she was a beloved woman. We don’t know her as a mother. We know that she was one tough mother for business, but as a mom, growing up and later, as you were business partners, what was she like? Can you give us a little bit of background or an insight of Gert Boyle?

She had come from a tough spot as a child. She grew up in Nazi Germany and being Jewish was not a great place to be. She had a lot of concerns about German products. We didn’t have a lot of German products in the house growing up. She wasn’t incredibly religious. I don’t think I’d ever been to a synagogue until I was at my grandfather’s funeral. My dad was an Irish Catholic guy from Beaver Falls, Pennsylvania. We grew up in the Catholic church and my mom was right there with all the other mothers. She was quite vocal if someone would make a comment about Jewish people or Jewish religion or whatever. Other than that, she was June Cleaver and she’s not a great cook.

She obviously developed a survival instinct. I can’t psychoanalyze a legend like Gert Boyle but she always felt like her back was against the wall, needed to prove, and exceed expectations. You mentioned a moment ago that she had an acerbic tongue and very quick-witted. A lot of people don’t know unless they know her, she had a fantastic sense of humor despite those difficulties. Where did that sense of humor come from? Did she inherit it or she developed it?

The German people are not well-known for their sense of humor, but she had a great sense of humor. That might be from my dad who also had a great sense of humor. She never took herself too seriously and was quite willing to make a joke about almost anything. My grandmother, not so much but my grandfather had a good sense of humor. It helped us a lot in the business in terms of differentiating ourselves because the brand Columbia is known for a lot of things but almost singularly for its irreverence in terms of how we approach what some people think is an incredibly serious topic being in the outdoors. You take a particular approach that’s different and it’s been good for us.

GFEP 4 | Tough Leadership

Tough Leadership: The brand Columbia is known for a lot of things, but almost singularly for its irreverence.

 

She had a famous line when she’s talking to employees. She would say, “It’s perfect, now make it better.” That’s an attitude that always permeates Columbia Sportswear.

We try and live by that mantra.

You mentioned this irreverent attitude. That sounds very familiar when you consider Nike, that other company across the freeway from you in Beaverton, Oregon. You grew up at about the same pace, same time, and you shared ideas. I know you’re a very close friend of Phil Knight and all the leaders at Nike. What was it about that era, perhaps even that geography that created that push back attitude that spawned these wonderful businesses?

It’s serendipitous that both companies are here in the Portland area. Who can say anything other than laudatory things about what Phil Knight has done for the area and his business in terms of growing it and making it the juggernaut that it is now? It’s nice to be sometimes discussed in the same sentence with them but they’re a very large company. We tried to emulate in many ways what they do but at the same time, being different and distinctive. The fact that if you’re from Oregon, you’re either a logger or a fisherman and that’s what people do here. There are a lot of people who do those things here but there are other things as well.

Getting a degree in Journalism and having a desire to become a lawyer, what kind of law did you want to practice?

It’s a good thing that I didn’t go into law because I have no idea what being an attorney meant and what it was. I would have ended up being a bad attorney. Growing up, watching Perry Mason, you said, “I guess that’s what an attorney does.” I think I did the right thing.

You have this spirit of innovation and I would even say it must run through your veins because your mom and your father had it. It probably started with your grandparents but you have been at the core of the innovation that has driven Columbia Sportswear since you became involved with it in 1971. You have innovated and created products for the outdoor world. Tim, I know you’re going to deflect this and you’re going to say you put good people around you but you have to have a unique talent to be able to inspire that kind of creativity that comes out of Columbia Sportswear. I have to ask you, what have you discovered about yourself since you’ve been running the company?

I’ve learned to be a capable merchant. We talk about this all the time in the company, nobody needs another brand of apparel or footwear. There’s plenty in the US but if you go to China or around the world, there are thousands of apparel companies. That means if you’re going to exist in this business, you better be different. That’s where we’ve taken the approach to focus on innovation and technologies that can differentiate the products that we can own.

We’ve invested fairly heavily in people and the capabilities of developing our own commodities and products that get turned into ultimately consumer products. That’s been a focus for us and it’s served us well. Our marketing needs to have a different tone than others. It’s about being different. It might be the same in every business. If you silkscreen your message on a t-shirt, you are in the apparel business. The barriers to entry are low.

[bctt tweet=”Never ask your employees to make sacrifices that you are not prepared to make.” username=””]

You talked about being different and you also talk about marketing. You’ve told this story a thousand times, probably a million times, but for those readers who have not know it yet, the story about the whole marketing around your mom, how did that originate?

It’s about a focus on differentiation and our advertising agency. At that time, we were a very tiny company. Revenue of $5 million to $7 million, something in that range. In the early ‘80s, there were a few companies where there’s a woman president of a company. My mom was president at that time. They said, “We need to explore how we might point out to consumers the differences about Columbia.” When we had an ad rejected by The New Yorker magazine, we knew we had something. That’s the way to get noticed on a small budget and it morphed into something was quite effective for the company.

Was your mom a willing participant or did she go into it begrudgingly?

Sometimes we said, “Gert, we make this stuff up. You don’t need to live this tough mother thing way.” She enjoyed it. There were a few times where we may have asked her to do something that she thought was not lady-like but she was ultimately a good sport with it.

Of all the innovations and inventions that have come out of Columbia Sportswear, Tim, it’s like picking a favorite child. I know what that might be but I’d like it from your perspective. Which is the innovation that turned the tables for the company and helped the explosion?

I always remember the interchange jacket that we developed, which took a garment that was in the marketplace in many different forms and allowed us to make it in a way that could be used in multiple different ways. You could buy one jacket, the liner which was insulated and zipped out. That was a very different product. It fit well into our system of marketing that had Gert describing it in many different ways. That was what launched the business on the back of that kind of product. We’ve had others since then. The most famous is the Omni-heat reflective lining which was developed in-house. We sold more than $1 billion worth of products with that lining. We continue to innovate on that reflective system to give us a constant flow of new products coming out using that technology. There are a few, but those two stand out.

When it comes to securing accounts, whether it’s a relationship with a particular organization, association, or event, was there a particular moment that you reflect back on and you say, “That was a difference-maker for our company.” Achieving that win from a sales perspective, if you will. We, at Game Face Execs, like to talk about how everything we do revolves around the sales process. Nothing happens at Columbia until someone sells something like in any other business. Was there a particular sales event where you landed that account and you said, “That was also a turning point for us?”

If I think back about it, my focus has been sales and merchandising. For our company, those two processes are so intertwined that it’s hard to pick out a particular event where we opened an account or we made a sale that made a difference. It was the blending of those selling, talking to customers and having them say, “If you did the following to that garment, I would buy a lot more.” Having the ability to make those changes to accommodate a customer request, those were the times I remember.

Our interchange garment, which was so impactful on the company was designed during a sales call that I made it to a company in Grand Junction, Tennessee which doesn’t exist anymore. It was a catalog operation called Dunes and they sold products for Auckland Bird Hunters. We talked about the garments we were making and they said, “If you took this lining and zipped it around a little bit.” That was a meeting that had a significant impact on the company. It was more about learning and listening than it was about making a big sale.

GFEP 4 | Tough Leadership

Tough Leadership: If you silkscreen your message on a t-shirt, you are in the apparel business. The barriers to entry are low. If you’re going to exist in this business, you better be different.

 

I’m not trying to flatter you but as the expert salesperson that you are, how do you balance listening and learning from the customer but also portraying expertise that the customer trusts? Sometimes, the customer doesn’t want to give you ideas. They want to know what you’re selling, “Tell me what you got.” Other times, they want to be collaborative obviously and they want to provide input. How have you in your career and how does your team balance that we have to be out there and listening to the customer but they also expect us to bring expertise and knowledge to every discussion?

In our business, we always talk about being around for the long-term. It’s not like the real estate business where you’re making a transaction, wiping your hands and leaving. That’s a different kind of selling. For us, we want to be on your sales floor in your store for a long time. If we’re going to do that, we have to be more profitable and turn at a higher rate than the other brands that we’re competing with. If we’re doing that the right way, you may want to buy 500 of something. We say, “We need to be buying 200 and turning it more frequently to give you a higher profit at the end of the season so when I come back to see you next season, you aren’t asking me to take back merchandise or somehow compensate you for your bad decision.”

It’s about as much as possible getting data from our retailers so that we can be a partner in terms of managing the inventory levels. We learned that in the tiny bit of work we did at Walmart. You’re familiar with the surreal brand that we bought in 1993. Their biggest customer when we bought them was Walmart. Now it’s Nordstrom and it’s a much different business. Walmart gave me every bit of information you could ask about how your products were selling so that you were a partner in terms of making them successful. We don’t do any business with Walmart at all, but something we learned early on in working with them was how important the data is and making them selling the right amount of merchandise, not as much as possible.

At Columbia, have you had a big fail that you can tell us about where great lessons were learned from it?

We’ve had more than one. When I think about important failures, it’s when we first launched our interchange garments, it seemed like it was a Midas touch. Everything we touched that we put this garment into, we put this innovation into work. We had multiple jackets. We had hats that you could take the lining out of. We also made a pair of ski pants with a zip outliner. Our retailers started describing that as Rubik’s pant because once you took it apart, there was no way you were going to get it back together. We’ve learned over time that you can extend products only so far.

I want to talk about where Columbia Sportswear is if we could. Of all the people reading this, very few of them can say, “In 2020, they are taking less salary than Tim Boyle is.” What I mean by that is, earlier in 2020, you reduced your salary to $10,000. Can you tell us why would you do that?

It’s not the first time I’ve done it, frankly. We’ve been a public company since 1998 and we’ve grown at an incredible rate and our investors have done quite well with the shares. I’m the largest shareholder and that comes with an obligation to do the right thing for the business. When times have been challenging for the company, I felt it was important that I live by example and made sacrifices that I was comfortable making but I wouldn’t want to ask employees to make sacrifices that I was not prepared to make. I made a significant reduction in my salary, and our key employees also made reductions in their salaries which was more laudable. I felt it’s important to do that so I did so.

Is it true that close to 9,000 employees you have, you make the least amount in 2020 in terms of salary?

I’m definitely in the low cortile, that’s for sure. We have a bunch of employees who are living in Asia but I’m the lowest paid. People have said I’m finally getting my true value.

You’re certainly the lowest at headquarters. Regarding your employees, you, at Columbia do a lot to support your employees, not just the ones at headquarters. How many employees of your 9,000 or so do you have there at the world headquarters in Portland?

[bctt tweet=”Two things are mandatory for employees at Columbia Sportswear: hard work and a sense of humor.” username=””]

Somewhere in the thousand.

You have a lot in Asia and around the world, but you’ve done some very interesting and compassionate things to build up the skillset, financial literacy, and the future of your employees. Whether they even remain with you, the things that they’re learning through you right now are going to benefit them and their families for years and perhaps even generations. I’m thinking about the HERproject, for example. Can you describe a little bit about that program or any others that you’re doing that are meaningful to you?

It’s especially important to talk about this in today’s America because there are a lot of people who don’t find the international nature of the business to be positive. I’m happy to explain why I feel differently. When I was growing up after World War II, inexpensive consumer products were beginning to be available from Asia and they were all made in Japan. As Japan grew and became more financially and economically stable, their rates of pay and their status as employees grew. It became impossible to make products in Japan that were inexpensive. Production of those kinds of commodities moved to Taiwan and Korea, both of which are now so strong economically that it’s impossible to build inexpensive consumer products there. They moved to China.

We have a big business selling product in China. Our folks who run that business says, “We don’t want to sell products that are made in China because they’re too expensive.” We make products in Bangladesh and Vietnam. We moved them to other parts of the world like Southern Africa where those people will also be lifted up by the economic boosts that are going to be floated by international trade. What we find in areas of the world that are quite poor that women oftentimes manufacture more products and they don’t have all the educational opportunities obviously that are present from more developed countries.

We’ve established a process where we partner with the factory and provide education with HERproject on a number of topics including health, family wellness, especially financial acumen so that these women can bring themselves out of poverty. Frankly, they can be great parents and bring their families up from categories of literacy into education and significant sustainable focus on their lives. We enjoy doing it.

When someone in your leadership team brings an idea to you, as far as, “Here’s a new area of corporate social responsibility that I recommend we approach or we enter into,” what’s going to get a yes from you? Is there a sweet spot for you personally where when you hear it, it instantly resonates and you want to move forward?

Under the category of differentiation, we want to make sure that we’re doing things that are different and unique. One other area is a collaboration with a company called Planet Water where we build water purification towers in communities where the children of the workers in our contract factories live where they don’t have the ability to have clean water for hand-washing and consumption of food. We can provide those fairly inexpensively so we can put a lot of them in place. It’s a different area that others may ignore or not think as important and not as impactful. Those are the kinds of things that turn the needle for me.

These are my words now but I see the planet as Columbia’s playground so there’s a dichotomy at face value. We’re getting people way out into the outdoors, as you often say at Columbia and suggests that we need to go and enjoy the planet. The dichotomy that could be there is at the same time we want to preserve the planet. We want to protect the planet and let nature have its own course. Can you give us a little peek behind the curtain as to the discussions that you have within the walls of Columbia Sportswear about that?

That’s an interesting topic because we have many competitors who talk about their focus on the environment which is laudable. Under the category of being different, we think we provide as much or even more support to the environment than our competitors, but we can’t shout about it because it doesn’t resonate as being a point of differentiation. We focus on areas that can be impactful. As an example, we’ve invested heavily in processes and systems to help us load our containers in Asia destined for places around the world much more efficiently. We reduced the amount of containers that were pushing around the world to reduce greenhouse gases but it’s also a contributor to positive earnings for the company. That’s one example of how we might approach being different and making a difference.

A couple of more questions I want to ask and that is, if you were to bring someone into the Columbia family, how would you describe the employees and co-workers that would fit and be successful in your culture of Columbia?

GFEP 4 | Tough Leadership

Tough Leadership: People in companies that make a difference get remembered in people’s psyches.

 

You’d have to have a sense of humor, it’s mandatory, and you’re going to work hard. We don’t have a huge organization here. We have fairly thin management. A group of people who work here make a difference in a lot of different areas. They have responsibilities that are broad and require collaboration. Those things mean working hard, working long hours, and getting along with people. You better have a sense of humor because you’re going to be ribbed about some topic which is going to hopefully not offend you but make you sharper.

You haven’t mentioned any qualities that I could acquire in university or trade school. You’re talking more about personality traits. I assume it’s because you know that you can teach those skills if you find the right personality.

You have to be able to accept criticism. That would be important. You have to have an innate embrace of education. It may be that you didn’t graduate from college, you didn’t attend college, or you learned along the way but you continued to learn. That’s critical because we don’t expect someone who graduates from college or has an MBA to step in and understand how to be a contributor. We do expect people to understand that you’re going to be learning and you have to continue to learn. That’s important.

From what little I know, Tim, my sense is that Columbia Sportswear is going to be around a lot longer than you, me, and a lot of the members of your leadership team. What I’m about to ask is not a prophecy and it’s certainly not a death wish but I’m curious, if you were to write the inscription on the headstone of Columbia Sportswear, what would you wanted to say?

Hopefully, we made a difference. People in companies that make a difference get remembered and those that don’t. It won’t be in inscription stone. It will be remembered in people’s psyches when they think about the outdoors.

You’ve made a difference in the community where I was raised, Portland, Oregon and around the world. In fact, I’m wearing one of your shirts. I happen to wear this particular shirt, Tim, on a very momentous occasion. I took one of my sons. We had a chance to go to Africa. Namibia, specifically. We had a fantastic life-changing experience. We were wearing Columbia Sportswear gear the entire time from head to toe. There’s an object behind me that’s one of the take-homes from that wonderful trip and what beautiful people we experienced there.

I took Columbia with me on that life-changing experience. Tim, I want to thank you again for your time. Thank you for your insights and what you’ve done, not only for Columbia Sportswear but for all the communities in which Columbia exists and does make a difference in the lives and the careers of people, and you better their lives and their careers and their communities. I know you personally. You’re a humble person. You like to deflect credit but I want you to know that you’re a tremendous man, leader. I appreciate it and I admire you greatly.

Thanks for the compliments. We have a great team here and they make me look good which is a challenge. Thanks for your help. I enjoyed chatting about the company and about what we do.

All the best to Columbia for the rest of the year and beyond.

Thanks, Rob. I appreciate it.

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About Timothy P. Boyle

GFEP 4 | Tough LeadershipTim Boyle has served as chief executive officer of Columbia Sportswear Company since 1988 and reassumed the role of President in 2017, which he had previously held until 2015. Tim was appointed Chairman of the Board in 2020. He oversees operations of the active outdoor company from its Portland, Oregon headquarters.

Tim’s career with Columbia Sportswear began in 1971 when, during his senior year at The University of Oregon, his father, who had been running the company since 1964, died suddenly of a heart attack. His mother, Gert Boyle, quickly enlisted Tim’s help in order to continue the aggressive expansion that her husband had initiated and that had expanded the company’s sales that year to $1 million.

An alumnus of Portland, Oregon’s Jesuit High School (1967) and the University of Oregon (1971, B.S. Journalism), Tim serves on the Boards of Directors of Northwest Natural Gas Company and Craft Brew Alliance, Inc.

Tim is Joseph P. Boyle’s father.