Many factors forced a tough decision. Continue reading
In retrospect it does not seem like that great of a crisis. However, I have a very strong recollection that Wednesday, August 17, 1988, my fortieth birthday, was one of the worst days of my life.
I intended to to go the office and work all day, but the employees pretty much insisted that I take the day off. I was alone in our new house in Enfield. Well, Rocky and Jake were around somewhere, but cats are seldom sociable during the middle of the day. I don’t remember what Sue was doing.
I also don’t remember what I did all morning. I probably either went for a run of four or five miles—the heat did not bother me in those days—or tended to my vegetable garden.
I fixed myself something for lunch. I always ate early. Then, as usual, I lay down for a nap. I may have dozed off for a few minutes. When I arose from the bed, a crushing wave of melancholy swept over me.
I must have had a book to read; I always did. However; I did not feel like reading.Instead, for the first and only time in my adult life, I got down on my hands and knees in the yard that faced Hamilton Court and picked weeds.
I had been told by our neighbor, whose name was Fred, that both the previous resident of our house and the one before him were professional landscapers. They left us a beautiful lawn of bluegrass on the sides that faced the two streets and zoysia grass in the back. There were almost no weeds when we moved in, and, despite four months of neglect, there were still only a few patches.
While I attacked the invaders into our greensward, I took stock of my situation as I entered my fifth decade on the planet. There were undeniable positives:
- I was healthy. Sue was reasonably healthy. She had recently quit smoking, and that was very difficult for her.
- Sue and I had a nice new house.
- We had two nice pets.
- TSI had a real office that was smoke-free.
- We were in the process of negotiating a big contract with a client that everyone had heard of—Macy’s. The wooing of Macy’s and the subsequent installation there are described here.
- For the first time ever TSI had a salesman who was aggressive and appeared to be competent.
On the other hand, the mortgage meant that our nut at home was higher than ever, and our payroll was considerably higher than ever. IBM’s announcement of the AS/400 (described here) was very troubling. There was no provision whatever for the types of customers that we had been chasing for the last seven years. The new systems were considerably more expensive and less powerful for the models at the low end. I did not see how we could sell them to small ad agencies. The other software vendors could offer much cheaper systems. The alternative was to try to find larger agencies around the country with the budgets to buy more expensive systems. This was, from a marketing perspective, a new business.
I could see more unavoidable expenses on the horizon, too. We would almost certainly need to buy an AS/400 for development and support of the Macy’s installation.
We faced a lot of difficult work in the upcoming months. We would need to do the work to assure that our system for advertising agencies worked on the new system. At some point we would need to address the Y2K issue that was beginning to raise its ugly head in the press. Our date functions would not work in the year 2000, which really meant 1998 or 1999.
We did not really have the programming staff to meet these challenges. I could not depend on Sue to help. Denise Bessette was excellent, but she only worked part-time. Sandy Sant’Angelo could help a little, but she could not handle anything difficult. There was no getting around it; the bulk of the work was going to burden my undersized shoulders.
I could not see how the current arrangement could possibly work. Unless we received several surprise phone calls in the next few months, we must depend upon getting a second and third user of the new system that we planned to develop for Macy’s. I did not think that I could possibly get that system as then envisioned to the point where it was reasonable to market it before the company (i.e., Sue and I—the only partners) ran out of money.
I think that at this point I need to address what I call The Curse.
In nearly every respect my parents provided me with an exemplary upbringing. They somehow got me the medical care that I needed to overcome what could have been a debilitating birth defect. I did not have many medical issues thereafter, but they ably and promptly addressed my dental and vision issues. They paid for an excellent education. We had food, clothing, and shelter in a very safe environment. They let me follow my own interests. They let me play tackle football for two years, although I am positive that my mother thought that it was foolish. They did not even make me take dancing lessons after I threw a tantrum about it.
There was one thing, however. I remember distinctly them telling me on several occasions, separately and jointly, “Mike, we don’t care what you decide to do. We just want you to be the best at it.” Not “the best that you can be”, just “the best”. There is no “absolute superlative” in English. Unless a group is specified, it means “better than everyone”. In 1988 the world’s population was around five billion. In any endeavor only one of the five billion is the best.
So, by the standards that they had set for me, at age forty (40!) I was an abject failure. I had never been the best at anything in high school. If you took the worst quarterly grade average that everyone had, mine was the highest, but that counted for nothing. The goal was not consistency, it was supremacy. I was not the best at anything in college either. OK, I was the best debater at the University of Michigan, but I was not even good enough to compete in the National Debate Tournament. After that I was a horrible soldier. I was nowhere near to being the best actuary, if that even means anything. I was not the best debate coach, and, in the end, I could not see any path for pursuing that goal.
I was a really good programmer, but nobody considered me the best at any aspect. In fact, in the area that we had concentrated—ad agencies—we had apparently reached a dead end.
I did not articulate this line of reasoning even to myself as my pile of weeds grew, but it must have burned in my subconscious: At age forty this was probably my last chance to be the best at anything. But how?
From somewhere it popped into my brain that I had to fire TSI’s salesman, Michael Symolon, whose career at TSI is described here. The company had no choice1. We had to sacrifice marketing in order to get the new product ready. The income from the software maintenance contracts and the big Macy’s check might be enough to cover the payroll without Michael’s salary until I could get the product in good enough shape to sell to other retailers. It just had to. It would take a Herculean effort to accomplish all this, but I resolved to do it.
I felt horrible about this decision. I hated firing people. I only needed to do it a few times in thirty-five years in business. All of those occasions were awful, but this one was the worst. I felt that it was more my fault than Michael’s that we were in this position.
I told Sue my decision that evening. She agreed. I talked with Michael a few days later. I assured him that we would pay him his commission on the Macy’s project as soon as everything was completed. He seemed to take it fairly well.
One of the last things that Michael did was to schedule meetings for me in Chicago and South Bend, IN. In Chicago I was allowed to explain the AdDept system that we were about to install at Macy’s to IBM reps who specialized in retail. I knew that quite a few large retailers—Sears, Walgreens, Montgomery Ward, Marshall Field’s, and Carson Pirie Scott, to name a few—were based in Chicago. I thought that they would be very interested in being able to sell a new application and a (newly announced) AS/400 to a previously unautomated department. I am not sure why, but the reception to my presentation was disappointing. They did not even ask me many questions.
I rented a car to drive to South Bend for a demo of the GrandAd system the next day. I am not sure when this occurred, but my credit card was declined somewhere, maybe at the hotel in which I stayed in South Bend. I had to make a very depressing and stressful call back to the office to arrange payment.
We (or perhaps the IBM office) had done a mailing to all of the ad agencies in the area. Five or six had reported that they planned to attend. As usual, I loaded our software and demo data onto the System/36 at the IBM office. Only three people attended the presentation. They all sat together, paid little attention, and took no notes. After my presentation I talked with them for a few minutes. They were all from the same agency. They already had a UNIX-based system running a product called Ad-Aid. I asked them whether they liked it; they were noncommittal.
As I made the long drive back to Chicago that evening I mulled over what had happened. The more that I thought about it, the more convinced I was that the ladies in the audience were spies sent to learn the strengths and weaknesses of our system. This would ordinarily have made me angry; on that day it just depressed me.
For the next three and a half years I worked a large number of hours per week for fifty-two weeks of the year. We sent out a couple of sets of letters to advertising directors at large retailers across the country, and we received just enough positive responses to get by.
The second installation of AdDept (described here) was even more difficult than the first. Hecht’s, the third installation (described here), was a genuine turning point, but it wasn’t really until 1993 that we could consider investing in another genuine salesman—five years of scraping by with only one break, our short cruise of Greece and Turkey in 1992, as described here.
I think that I made the right decision. I cannot envision what life would have been like if I had chosen otherwise
1. Yes, we could have tried to borrow some money. However, we had no assets to use as collateral. The prospect of going down a path that might well have ended in bankruptcy seemed unthinkable to me. The idea of begging for money from relatives never occurred to me.
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