YouSaid · the spoken record

Hubert Joly

lines on the record: 62
first: 2021-09-24
most recent: 2021-09-24
sittings or episodes: 1
sources: podcast

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“and help each other out. I think to me it's such an important consideration. The quest for perfection can be very dangerous. Be kind to yourself. During the pandemic, we learned so much, right? Remember when we used to fly around very long time ago on planes, right? And we were told by the steward or the stewardess, if the oxygen mass comes down, put it on yourself first before you help others. So as we continue to go through challenging times, taking care of yourself as a leader, you meditate, you reflect, you exercise, you ask for help, is it from your personal board of directors or your best friends? That's the key thing that's going to be the way that we can then help others. So take care of yourself first.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's so much over the years, I think it has to do with profits being an outcome, not the goal. It's about the importance of looking at drivers of performance. It's about my role as a leader is not to be the smartest person in the room, but to create the right environment. Not about being perfect. Nobody's perfect. And I think the quest will, maybe I'll finish with this. The quest for perfection can be very dangerous, can be evil, right? Because if you're trying to be perfect, guess what? You're not going to be successful. You're going to be incredibly demanding and harsh with people around you because you're going to expect them to be perfect. And so you have to relax and be kind with yourself and others around you and be able to open up and share what you're struggling with and understand what they are struggling.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Think the advice is the same as we give the video CEOs is write your retirement speech or even better write your eulogy. And I know my good friend John Dunahoe is now the CEO of Nike, did this when he graduated, and he's always kept it. And I understand he goes back to it every year. And it's hard. I have children between the ages of 26 and 34 early in your adult life. You don't necessarily know everything, but try to write it and see what journey you want to be on and how you want to be remembered. That would be one thought.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Being French in search of last time, it's only 3,000 pages. So if you have a minute or two, I encourage you to get to it. Victor Frankel's man's search for meaning is another favorite. And you mentioned Marshall Goldsmith. What got you here won't get you there. And finally, I have to mention my wife's book called Aligned, Becoming the Leader You're Meant Be. And her name is Hartance Le Gentier. It's one of the best leadership books that I've ever read. But of course, I'm a little bit biased, maybe.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I read three books this summer. The first one is by Rakesh Karana, who's now the president of Harvard College and called from Higher Aims to Hired Hands, which is the history fascinating for me, the history of business education in the US over the last 120 years and how the business school curriculum was shaped and why he believes, and I do believe as well, that we need to evolve it past just learning techniques, but also it's not just about learning something or learning to do something, it's also learning to be, which is, I think, an entire journey. I also read that, you know, CAS by Isabel Wilkerson and a book by my colleague Sedal Neally, Remote Work Revolution, which is, of course, a very timely book. Best book ever read. I have to mention Marcel Prot.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Mentioned Marshall Goldsmith, my first coach and good friend. Later on, I also worked with Eric Kleiner at YSC. When the board, so Marshall was doing my annual, having the board with my annual evaluation, and the board realized that Marshall and I were such good friends. And so we need somebody more objective now. And we got Eric Pliner, who's now the CEO of YSC, work with me, but also his firm worked with every one of our executives and helped us with our executive team effectiveness. And that was quite transformative. I should have spent more time earlier on, not just on building the right team, but enhancing our team effectiveness. And I learned a lot working with Eric in that journey.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Has been a partner at the McKinsey Company. I was on the executive team of the Vendee Universal. By many measures, I had been successful, right? Except, I think the top of that first mountain was very dry, which was not fulfilling. There was no real meaning. So we call that my midlife crisis, right? So instead of going onto an island, I stepped back and I did the spiritual exercises of Ignatius of Loyola. So you could say the founder of the Jesuits, of course. You could say he was one of my mentors. It was really helpful to help me discern my calling in life, which today since then has been to try to make a positive difference on people around me and use the platform I have to make a positive difference in the world, which is what I'm doing now teaching and mentoring and so forth. And then we...”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's so many very Carpentri, a client of mine, had this big influence on me teaching me so much about how to put people first and treating profits as an outcome. He was two great friends. Oh yes, who happened to be monks in a religious congregation. In the early 90s, that was a turning point. They asked me to write a couple of articles with them on the theology and philosophy of work, which is where I got a lot of my roots in terms of work as part of our search for meaning as individuals, as human beings that changed my perspective on work. Another turning point to my early 40s, you could say to Cortha Brooks, I was at the top of my first mountain, right?”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I have so much electronic equipment in our place that I'm doing a lot of streaming. I always listen to music. I'm a movie boss. I have a collection of probably 800 movies on my calibration setup. Our favorite show, I would say, recently has been a good doctor. I think season five is starting at the end of September. We're very excited about this. And then from a podcast standpoint, I like listening to HBR's IDO cast. That's a weekly, great weekly podcast. Whitney Johnson has got a great leadership podcast called Disrupt Yourself. And then I have to mention there's a young teenager. Well, teenager would be young anyway, right? But let's call him a teenager. Logan Lynn has got a finance Z podcast that's focused on the Z generation. Oh my God.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think this generation is the opportunity to end systemic racism, and that's something we, I think business can play a big role in this. So that's, you know, I was determined, and that's what we did”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Believe that you're unable to find great black candidates, we'll say that's okay, we won't have a problem with that. We'll just work with another firm. You know, it's not a problem. And so we recruited three amazing directors, and now I'm no longer on the board, but they've continued in this direction. And I think it makes a huge difference. And of course, Best Buy is headquartered in Minneapolis. Following the murder of George Floyd, it's pretty simple. If the city is on fire, right? If the community is on fire, you just can't open doors. You can't run a business. So in this country, we have this big racial issue that has been going on for centuries.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“The board's, I felt the board's composition was a great place to focus. I was not the only one. When we rebuilt the board starting in 2013, we wanted to have the best skills. We were determined to be diverse. So we had an early focus on gender diversity. And then what I started to focus more on ethnic diversity will be starting in 2016, 2017. I met a great meeting with Melody Hobson of aerial investment, and she's now the chair of Starbucks. Everybody knows Melody Hub. She's amazing. And one thing she told me is that people cannot be who they cannot see. And so starting at the top and having a board that would signal the direction was important. So, you know, what we did, and changing the composition of a board is not that constantly, it's only 10 or 12 or 13 people. How hard can it be? So we told the headhunter, don't bother giving us resumes of non-black directors, right?”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“If the blue shirts don't speak Polish, you know, they're not going to sell much. Or when we had Brazilian tourists in Orlando, if the Bushes didn't speak Portuguese, they were not going to sell much. So having diversity of every dimension, talent, skills, profiles, gender, race, the country's color is changing very rapidly. It's becoming black and brown. We have to represent, it's very simple, we have to represent the diversity of the customers we serve. If we don't, bad things happen. It's very clear. There's a business imperative. There's also a moral imperative when we see the state of the country also from a gender standpoint. As you said, Craig Landaughters, I want them to have the best opportunities. And why would it make sense to only recruit from the quarter of the population? That'd be stupid.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think very clear for every one of us today that having diverse teams is going to get to a better business outcome. And I do believe that if it had been Lehman Brothers and sisters, instead of Lehman Brothers, we would have had a different outcome. But if you also take it a very practical fashion, in one of our stores in Chicago that's in a Polish neighborhood,”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, thank you, Barry. And there's practical implications of that. Again, then I'm studying your monthly business meetings or even your board meetings with people and organization and then customers and business and then finish with financial results. If you take care of the first two, the profits will follow. And so it's a significant practical and philosophical transformation.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Beware because you're going to get a donkey. And in a world where you need creativity and people to be their best, motivation is going to be intrinsic. So that's what you need to be able to touch and get create an environment where people want to be their best and make a meaningful contribution in their work. So I think this is a very exciting phase. This is an urgent phase because I'm concerned probably like you and many others that we have a few ticking time bombs and three wonderful granddaughters. I want to do my best to try to quote unquote save the planet, frankly, to leave a better world, right? Than the current trajectory.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“New things because we're so influenced by some of the techniques we learned last century, including this top-down management approach and using an incentive. So that's something I learned over time. There's research by the MIT that shows that financial incentives deteriorate performance. The opposite of what we've learned, right? But if you treat somebody with carrots and sticks.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Want a doctor that's purely focused on my temperature because maybe he's going to put the thermometer in the fridge or in the oven, right? Depending. I want somebody who's going to be interested in what's driving my health and try to help me get healthy. And so we got confused by this obsession. And that was the only thing that mattered. And of course, there's extreme cases. You know, Enron is one of them where we lost track of why we're on this planet and our responsibility with doing the right thing. So this new model is a reinvention of business, probably going back to some of our roots, right? With the idea”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Use this to highlight the idea, which may or may not have been Milton Friedman's only idea. There was context when he spoke, but the obsession with profits being the only thing that matters has proven to be poisonous in an excessive focus on profit is poisonous. And there's several reasons for this. One is when you look at the reported profit of the company, by the way, if anybody believes that U.S. GAAP really tries to equate economic performance, study accounting again. It's not even trying. It's a set of principles. There's many things that Gap profit does not capture, including your negative impact on the environment or how well your sales force is trained. The other thing is it focuses on an outcome. So in medicines be a little bit analogous if my MD was focused on my temperature, right?”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Did you have a manual for the COVID pandemic? Did you have a manual for Back to the Office? No. So it's clear that we don't know. So we have to be able to say, my name is Hubert, and I need help, and we're going to work together. To figure it out. So that's a seat energy leadership leading from a place of purpose and with humanity and a great deal of humidity.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, and to quote, so to go back to France in 1789 at the moment of the storming of the Bastille, there's Louis XVI asked Monsieur de la Roche Foucault, is this a revolt? And Monsieur de la Roche Foucault's response says, no, sire, this is a revolution. And I think that's what it is. And it's really shifting things. You know, people are not the problem. They're the source. And they're also the ultimate goal. And I think that most people agree with this, Barry. The challenge is not agreeing with this now. I think it's really doing it. And I can speak from experience if you were to look at my face. You're learning from experience and trying to get better at this is a lifelong journey of learning to be vulnerable. I was raised being taught that you couldn't say I don't know. And now the world...”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“This new purpose, it doesn't work. You really have to start with what drives every individual, the company. And then you realize that, yes, what is your role? So in the book, I talk about the five B's of purposeful leadership. The first B's, be clear about what we were talking about. Be clear about your own purpose. Be clear about the purpose of people around you and how it connects with what you're doing at the company. The second one is be clear about your role as a leader. It's not to be the smartest person in the room. It's to create the environment in which others can be the best version of themselves. And of course, if you're leading a significant company, it does buy more than 100,000 people. The only thing that happens is things that you decide that you come up with, you're not going to go far, right? So it's all about creating this environment. So it's a significant mind shift. It's also about”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not just a CFO or CMO or CHO. And that's with a couple of exceptions, all of us at the same kind of goals in life, which is the golden rule. Do something good to other people. And that was very transformational because we said, well, we're the executive team of Best Buyer. At that time, we had saved Best Buyer. Where do we go from here? Why don't we use Best Buyer as a platform to do something good in the world and become a company that customers are going to love, employees are going to love, communities are going to love, and of course shareholders are going to continue to love. And so there's a seminal idea in my mind, which is connecting what drives us as individuals with the purpose of the company. And the thing is, for companies that are embarked on the purpose journey, they write down their purpose, but if they just try to cascade it down and communicate it to everybody and say, why don't you excited it?”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or with my wife, when we coach or mentor CEOs, we ask them to write their eulogy. What would you like other people to say on that day when you're not here to listen? And I think this is so meaningful because people talk about the purpose of the corporation. I think it starts with our individual purpose because motivation is intrinsic. And so how can you lead others if you cannot lead your life and yourself? For me, that's the beginning. In very practical, one of the turning point in our journey was every quarter we would get together as an executive team for an office site. And one day I ask every one of the executive team members when they were there, maybe two or three years old. We got some really cute pictures back, I can tell you that. And over dinner, we spend the evening sharing with each other a life story and what drives us in life. What's the meaning of our life? And what came out of that discussion several things? One is we realized that all of us were human beings.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, this is for me such an important transformation. I grew up believing that as the leader, what was important was to be smart. We all went to school and to some of the best goals in the early years of our career. The left brain is what's highlighting the smartest person in the room. I've learned over the years that this is not what drives a great outcomes over time. It's working a punishment because some dudes sinned in paradise or it's work something we do so that we can do something else that's more fun or is work part of our fulfillment as a human being. Part of our quest for meaning, right, to talk about Viktor Franco. And, you know, one of the things that I really invite myself to do and every leader to do is reflect on this.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're actually working on that with Professor Gupta, and it's going to be taught for the first time. This is going to be fun, right? This is going to be the last case of the marketing class in December. And so, of course, in my section is going to be ironic. I'm going to be Professor Jolie, and I'm going to be one of the protagonists. There's been other cases on Best Buy, but this one is going to be very much on the turnaround and transformation. So that's going to be fun. And I've also taught it, we've also taught it in some of the executive education programs. There is a Best Bad case now at Harvard Business School.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So HBS is a school where there's really not for the most part mandatory reading of any books. So I know that last year before the book was published, my wonderful section E from the MBA program, they all got a copy of the manuscript and had great conversations. So sometimes the book gets distributed, yes, to the participants of the executive education programs, but in the NBA there's little mandatory reading. I mean, I encourage people to read the book for sure, but it's by practicing that you really learn, right? It's BBS way.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Going to be a series of workshops for the top 30 people's custom programs one company at a time. And we're going to try to support them in their journey. We're doing our first fight up this fall and look forward to learning from that experience. And I think we're just in the early innings of that new era of capitalism. So so much to learn. I'm super excited to be part of that journey with a number of companies.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So on Monday, August 30th, that was the first day of school for the incoming MBA class. I'm one of the professors in the first year. I teach marketing, which is about focused really on how do you grow a company focusing on the customers. So that's one of the things I do. I'm also part of the faculty as a program for new CEOs. So twice per year, we have a small bunch of new CEOs that I did this when I became CEO that come here for three days, and we try to help them out. I'm also part of the faculty that's doing a program called Leading Global Businesses, and last but not least, I'm really passionate about the design for companies and then also in the NBA program called Putting Purpose to Work and Unleashing Human Magic. So many companies are on this purpose journey today.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“As leaders, we have to think about how we can create win-win-win outcomes for our customers, our employees, our vendors, the community, and ultimately the shareholders.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Which you can become. And that's one of the things that Jeff and I share, which is you're obsessed about your customers and becoming the best version of yourself you can be. Of course at Best Buy, we looked at Amazon. We wanted to, we actually, in a sense, we neutralized them, right? Because same prices, same great shopping experience that we ship as fast as they do. So let's call it a draw on the online business. And then we have our unique assets. And so you're not obsessed about your competition. In fact, in some cases, you partner with them. And I think the world, other than the COVID pandemic, there's another pandemic in the world, which is the fear or the obsession about zero-sum games. That's crazy, right? You get to collaborate and create great outcomes. And I think in this world,”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“to the Fire TV platform, which is their smart TV platform, to be embedded into smart TVs. And any smart TV with the Fire TV embedded in it, Best Buy is going to control that. It's only going to be sold at Best Buy or by Best Buy on Amazon. And when we did the announcement for this deal, we did it in a store in Bellevue, Washington, and Jeff came, and we had some media there. And Jeff said, a TV is a considerate purchase. You got to see the TV, Best Buy is the best, best place in the world where you can do this. That's why we're doing the partnership. And we build this stress-based relationship. And of course, the media, this was a jaw-dropping moment. And Jeff is a very generous man. It's interesting because it raises another question, which is, how do you think about competition? As you lead a company, do you obsess about competition or do you obsess about your customers?”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So Bestai has always sold Amazon products. Of course, we think about Amazon as a retailer, of course, as a cloud company, but Amazon is also a product company right there. They've had the Kindle and, of course, all of their ECO products. And BizBuy has always sold Amazon's products in the stores. Other retailers decided otherwise, but we felt these were great products and were here to serve customers. I got to know Jasper personally through the business council, both of us who are members there on the executive committee. And once I was invited to discuss our turnaround and how we had approached that transformation, Jeff was in the first row and being very kind. But then we did this significant partnership where I think it was in 2018, Amazon Gave Best Buy the exclusive”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Stories and illustrations, there's questions at the end of each chapter that people can use to reflect and act at their companies. So that's the book.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Treat profit as an outcome. And this formula, people call it stakeholder capitalism or purposeful leadership, I think everybody now talks about it and embraces the idea of most people. There's still a few who disagree. But the challenge then is how do you do this? How do you make this happen? And Barry, I felt that with my experience and the credibility of the Best Buy term, I could add my voice and my energy to what I call this necessary re-foundation of business and capitalism around purpose and humanity and provide like a guide for any leader at end level, frankly, who is keen to move in that direction, but like the rest of us needs help. And the subtitle of the book is Leadership Principles for the Next Era of Capitalism. And the book is full of very concrete examples.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, one is Milton Friedman, you know, shareholder primacy, and two is Bob McNamara, the former Secretary of Defense, an executive at Ford, who's almost the inventor of top-down scientific management. These approaches don't work. And I think they got us in trouble. And there's a growing number of us, right? I'm certainly not the only one, who believe that there is a better formula that business can be a force for good, that it's the idea that business should pursue a noble purpose and take care of all of the stakeholders, that you put people at the center, you embrace all stakeholders in some kind of declaration of interdependence. There's no need to choose between employees and customers and shareholders. It's by taking care of customers and employees and the community that generate great returns for shareholders.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, this is not a traditional seal of booking. And so much of what I've learned at business school, what McKinsey or in the early years of my career is wrong, dated or incomplete. And, you know, when I stepped back today or in the last couple of three years, even though the eternal optimist, I have to say it out loud, the world as we know it is not working. We're in this multifaceted crisis. You have, of course, a health crisis, an economic crisis, societal issues, racial issues, environmental problems, geopolitical tension. It simply is not working. And what's the definition of madness, right? It's doing the same thing and hoping for a different outcome. And for me, on my FBI most wanted list, there's two people.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so with the Geek Squad and the blue shirts, we're able to advise you when you're looking at what to do, but also help you implement in your home, help you figure out if something is not working across a variety of products. Let's take an example. If Netflix is not working tonight at your house barren, is it because of Netflix? Is it the pipe into the home? Is it the router? Is it the streaming device? Is it the TV? Honey, what is it, right? And we are honey. And we're going to be able to help you across all of these vendors. And so that's a big difference for the company. So really genius.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, Robert Stevens, who was a student at the University of Minnesota, is the founder of Geek Squad in 1994, a very creative guy. The name itself is cool, the logo. And so forth. And then Best Buyer acquired the company in 2002, and it was still quite small. And now, of course, it's become really big. It's 20,000 employees. And it's a key element of Best Buy's differentiation.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And because there's so much innovation that drives the business, it's a critical role we play. We also partner in service, best by sales, Apple Care and it's an authorized Apple service provider. So these partnerships really changed the game. In the US, I think it's not arrogant to say that Besba is the only player with which these large companies can do these meaningful deals. So this really changed the trajectory.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then in the appliance department. So it's been a series of wins for them. And once we have announced the deal with Samsung, other conversation with Microsoft, Steve Baumer, we had a conversation at CES, and a few months later with the Microsoft stores within Best Buy. And then it went on and on. Tim Cook at Apple told me that he didn't really like what we were doing. He understood it, but didn't really like it. And Apple has been a very important vendor to Best Buy. So what we decided to do with them is do more. It's partners with the world's smallest tech companies. It partners on product development, new product introduction.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, I mean, you're right to highlight this great company. The first deal we did with them was focused on phones and tablets and cameras. So in a matter of months, they had these stores within our stores. And it really put them on the map. It's interesting. If you go back to the 90s, Samsung was not the same company. They were really low end. The chairman at the time, so the father of the current of J.Y. Lee now, came to the U.S. and said, at some point I want Best Buy to carry us, that it would be the ultimate goal. And now they're one of our top five vendors, probably better than top five.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“The products compared with Apple. It was good for Samsung, right? Because the alternative then was to build 1,000 stores in the US, think it's difficult. And of course, we have this great location in great traffic. And good for us because it was part of our OPM strategy other people's money strategy. Of course, there were some good economics for us. And so that allowed us to offset the cost advantage in a Walmart or an Amazon would have. And that was a game changer. And if you look at our stores today, they're shiny because you have all of these shiny objects and you can see and experience all of these products. So that goes with you a game changer.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“This idea of showcasing. If you are Samsung or HP or even Amazon and Google Mails products, you need a place where to showcase your products, right? Because you spend billions of dollars on R&D. And if it's just a vignette on a website or a box on a shelf, you're not going to excite the customers. So you need a place where to showcase your products. And so when it deals, the first one was with Samsung, where we had a meeting in December of 2012, Barry, JK seen, the VenC of Samsung Electronics, came to visit us in Minneapolis in December of 2012. And over dinner, we did a deal where in a matter of months, he would have 1,000 Samsung stores within our stores where he could showcase his products. It was just across the eye from, we already had an Apple store within the store, and it was good for the customer because they could see”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. And then, yes, of course, the investors told me that's cute, but you're still going to die because your cost structure is too high. It's higher than Amazon or Walmart. So we did take $2 billion of cost out. But the way we won in the end was this aha moment of”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so everybody was talking about show rooming at the time. The frequency was not that high, actually. But of course, it was incredibly frustrating for the blue shirt associates in our store to spend time with you, Barry. We love you, but we spend 30 minutes with you entering all of your questions about the CEV, and then you buy it online. After 30 days of the company, we actually decided that we were going to take price off the table by aligning our prices.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“The company we had to work on making this come to life in all of our activities and really creating an environment where I think the summary of the turnaround was we unleashed human magic. We had 100,000 people plus, I think a spring in their step, connecting what drives them in life with their job and doing magical things for customers. And frankly, Barry, I learned so much along the way. And again, all of this sounds tough, but go back to, we went from 11 daughters to an antenna, 120. That was the key.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right team at the top. And then instead of focusing on headcount reduction, focus on growing the top line by leading the customer needs and fixing what was broken in the customer experience and treating headcount reduction really as a last resort. And then focus on mobilizing the team on what we need to do for the customers. That sounds soft, but that was our opportunity and that's what we did for the first two or three or four years. And then once we had saved the company, it was about where do we go from here? What kind of company do we want to build for the future? And that's where we focused on defining our purpose as a company. We said we're actually not a consumer electronics retailer. We're a company that's in the business of enriching lives through technology by addressing key human needs, which, you know, we'll talk more about this, but this was transformed because it's expanded our addressable market and helped us mobilize everybody.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so the first phase was all about fixing what was broken. And the advice I had been getting, Barry, was cut, cut, cut. You're going to have to close doors, cut headcount. We did the opposite. All of the stores were profitable. So frankly, there was no point in closing stores in a significant fashion. The first phase was a very people-centric approach. Listening to the frontliners, my first week on the job, I spent it in a store in St. Cloud, Minnesota, I think in France we would say Saint-Cloupe, but over there there's Saint Cloud. So there you go. And so my job was pretty easy, was do what they said we needed to do, like think of website, make sure the prices were competitive and so forth. The second element of the people centric building.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, everybody thought we were going to die. There was zero by recommendation on the stock in 2012. What I found as I was examining the opportunity to become the CEO, because my first reaction when I was approached was this is crazy, right? This is the same reaction as you described. But what I found is that it was nothing wrong with the backets or the business outside. What to see and touch and feel the parts and ask questions. And the vendor is importantly needed best buyer. They need a place where to showcase their products, the fruit of their billions of flowers of R&D investment. The problems were self-inflicted. Prices were not competitive. The online shopping experience was terrible. Speed of shipping was bad. The customer experience in the stores had deteriorated. The cost structure was bloated. You can fix it.”
2021-09-24 · Masters in Business · Hubert Joly on the Heart of Business (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source