1994-2014 TSI: AdDept Client: Gottschalks

Independent chain of department stores in Fresno CA. Continue reading

In the Model T days the name still had the apostrophe.

Doug Pease, TSI’s Marketing Director who was introduced here, took the phone call from someone in the IT department at Gottschalks (never an apostrophe) in 1994. Gottschalks was an independent chain of department stores based in Fresno, CA. I am not sure how the people in the IT department had heard about TSI. We had previously had only incidental contact with the Advertising Director there. Since they seemed like an ideal candidate for the AdDept system, I quickly agreed to talk with them in person.

The only reasonable way to get to Fresno was by way of LAX. Sometimes I drove (3+ hours). Sometimes I took the short flight.

Doug and I flew out to Fresno on a Saturday to make a presentation and gather specs about their requirements. On Sunday we decided to drive up to Carmel by the Bay and then drive down Highway 1 along the coast. This was a very pleasant trip for me, but, as I described here, Doug enjoyed it a lot less than I did.

The presentation and demo in Fresno seemed to go well, but almost no one from advertising except Robert Guinn1, the manager of the Advertising Business Office, attended. At some point during that first visit Doug and I were also introduced to the president of Gottschalks. He made the startling claim that he would make sure that the other members of the Frederick Atkins2 group would also purchase AdDept3.

Shortly thereafter a contract was signed, and a small AS/400 was ordered.

In December of 1994 I flew back to Fresno and installed AdDept on an AS/400 that the company had purchased from IBM. The machine was kept in the data center. That room had tight security, and it was always very cold, at least from my perspective. Because it was December, I had my overcoat with me. The only place that I wore it was in the data center.

Gottschalks’ headquarters was several miles north of downtown Fresno.

Gottschalks recommended that I stay at the DoubleTree hotel in downtown Fresno. It was right next to the casino4. The entire downtown area, aside from the casino, was pretty much dead by the mid-nineties. I did not like staying at that hotel. Fortunately, it was easy to persuade Gottschalks to let me stay somewhere on the north side of town that was both cheaper and closer to the company’s headquarters at 7 River Park Place East.


The primary purpose of the installation was not to improve or make more efficient Gottschalks’ advertising. Its main use was to keep better track of the money spent by the department. Here is what I wrote in 2000:

The liaison is now and always has been an accountant. The advertising department has shown very little interest in using the system. Their opinion is that the system was forced down their throats. This opinion is accurate. The accounting department and the IS department purchased the system in order to hold the advertising people’s feet to the fire.

On the other hand, there may be an opportunity here. Most of the people involved at the time of the installation have moved on. If contact is made with the new people, we may be able to sell them on efficiencies to be derived from using AdDept for scheduling.

Shortly after I wrote this evaluation Ernie Escobedo5, who succeeded Robert as TSI’s primary contact, arranged for an upgrade to the painfully slow AS/400 that they had been using. The new Model 170 was sitting next to the old one in the frigid data center when I arrived on August 19, 2000, to migrate the AdDept programs, the data, and everything else.


The fiasco: Writing about this episode is one of the most painful things in the entire 1948 Project. It was certainly the low point of my career as a cowboy coder.

The new system used RISC processors; the previous system used CISC. The compiled versions of the hundreds or maybe thousands of programs in the AdDept system needed to be converted. I had already done this a few times, including on a system used in TSI’s office. In fact, we used precisely the same model of AS/400 that Gottschalks had just purchased, and I was very familiar with the CISC model that they had been using. I knew that it would take most of the weekend to effect the changes, but I was quite confident of my ability to pull it off. I was so certain that I had scheduled time at Robinsons-May in North Hollywood for Tuesday and Wednesday. I planned to drive to Santa Clarita on Sunday evening and commute from the Hampton Inn there to Rob-May

The trip started very well. Here is what I wrote:

Yes, I often wore a suit, too.

I managed to get upgraded to first class for both legs today. Nadine told me that when she called three weeks ago they told her that there were no first class seats available on the Cincinnati to LA leg. It was indeed full, but I got one of the seats.

In first class they give you a hot wet towel before dinner. I have never quite understood what this was for. I guess that maybe they are afraid that the common people might have touched something on their way through our section. We wouldn’t want their common germs to mix with ours. I had delicious food on both flights. The food in first class on Delta is really excellent.

A guy across the aisle from me who was at least my age had a short haircut which had been dyed blonde on top. The only thing I can think of to explain this is that he must be the manager of a supermarket who did it to identify with his employees.

Wow! We just passed over Albuquerque. I could easily pick out the base that I was stationed on, the airport, and the two golf courses I played. The last was easy. They were the only green spots to be seen. The southwest is really desolate.

The drive to Fresno wasn’t too bad. Well, the first 22 miles were horrible, but the last 200 were easy. The car has a CD player. I played the duet CD through twice. I changed cars at Avis. When I got to Fresno, I realized that I still had the key to my first car. Whoops.

I am pretty certain that I stayed at a Holiday Inn Express on that occasion. I must have arrived late. The only room that they had was handicapped-accessible. There was a tub, but no shower. I had to sit down and spray myself with one of those handheld devices that are so common in Europe.

Both a football (soccer) and volleyball team are known as the Fresno Heat.

Although it was August, and Fresno had a reputation for very hot summers, I brought a jacket because I knew that I would be cold in the data center. If I had not, I would have been even more miserable than I was. David Seeto, our technical contact in the IT department, was there during the following process:

The new system came with the operating system and licensed programs already loaded. We had to call IBM to find out what to do. Unfortunately Gottschalks’ software contract did not cover weekends. Nevertheless we finally got IBM to tell us how to remove the licensed programs. When we did so, we got a processor check on the new machine. We called IBM again. They told us first that we probably had a bad disk drive, but we should try to IPL from the tape again. We did. This time the system said that it could not find one of the disks, but it completed the task. A second IBMer told us how to reconfigure the disks to find the second disk drive. By now it was 4 PM.

A “processor check” is a fatal error. The system is not usable without extraordinary intervention.

I then began the process of bringing over the data (trivial but time-consuming) and programs (much more complicated). The most important programs were in the library named AdDept. I successfully brought that entire library over to the new system. Then I deleted all the objects in the AdDept library on the old system. I don’t know why I decided to do that. It was certainly unnecessary, but I could not see how it could cause a problem. That system with all of its contents was surely headed for the junk heap anyway.

The process of converting all of the programs was still running when I left on Saturday evening. I came in on Sunday morning and was delighted to discover that the conversion had completed without any problem. I then put the system through some simple tests to make sure that everything was OK. I soon discovered that, while some programs performed correctly, a few of the most important ones did not. The most commonly used program in the system, WRKADS (work with ads), produced erroneous results.

I tried recompiling the programs that were producing erroneous results. That did not help. This was intolerable. I had no choice. I had to make the CISC system usable again. Here is what I wrote to my partner, Denise Bessette (introduced here), about the process.

David Seeto.

Well, I think that clearing that AdDept library was the stupidest thing that I have ever done. My recovery technique did not work. The 3/5 tape was missing everything changed from their previous install through that date. I had no way of knowing what the previous install date was. Therefore, I selected everything on the RISC box with a change date from 1/1 through 4/30. I think that this is a fairly good approximation since there was definitely an install here on 4/20. However, I did not discover this until 7 PM. I left Gottschalks at 11:15. The files were finished, but the compiles were still running. Could someone sign on tomorrow morning to test the WRKADS programs? Send me a message with the results.

I canceled my hotel reservation in Santa Clarita. I am staying at the Holiday Inn near Gottschalks. I plan to go into Gottschalks to make sure that things are running reasonably well.

Could you tell Mary Ng that I will try to be in early in the afternoon?

If I had to work with David Seeto every day I would have to take a header off of a bridge.

I only punched one wall today. The wall is fine, but one of my knuckles is very sore.

Gottschalks’ IT department placed a service call with IBM. A customer engineer appeared and ran diagnostics on the new hardware. He testified that it was all in order. As far as IBM was concerned, since the hardware was functioning correctly, the problem must lie in either its BASIC program product, for which IBM had withdrawn support, or our AdDept code. In either case it was not IBM’s problem. End of story. The fact that exactly the same model in Connecticut produced results that were different from those of the one in California did not affect the judgment of the IBM people in Fresno.

I tried to explain this to the people in the IT department at Gottschalks. I promised that I would continue working on the problem remotely. They were not a bit happy with a resolution that left them with an unusable computer that they had already paid for and a very slow one. However, they agreed to keep the new system on, as well as the communications setup that allowed people in TSI’s office to sign on to it. So, at least I would be able to gather data from afar.

I returned to New England with my tail between my legs. Two important clients were angry at me, and I could not blame either of them.

I had plenty to keep me busy for the next few months. At some point I flew to California to make up for the visit to Rob-May that I had canceled. A week or two later I flew to Bradenton, FL, to do a demo for Beall’s. After that trip I needed a few days to cobble together a detailed Design Document and a proposal.

During the periods in which I was at TSI’s office I devoted as much time as possible to trying to isolate the problem with Gottschalks’ new system and to find someone at IBM who would listen to my argument. I remember more about the former than the latter. I do, however, remember the moment when I asked an IBMer to look at an example that contained almost no programming code at all. While working in the BASIC interpreter at Gottschalks I displayed on the screen the erroneous result from a simple sum of two constants. I then performed the same task on TSI’s system and got the right answer.

The IBMer was forced to admit, “This must be a hardware problem.” A day or two later he got the customer engineer to return to Gottschalks and replace the “floating-point processor,” which I did not even know existed. Evidently it was used by BASIC and almost nothing else. I signed on and put the new system through its paces. Everything seemed to work perfectly. I called Gottschalks and scheduled another trip in November to effect the migration.

The flight out to California was not as pleasant as the one before the disastrous August trip. Upon arrival in Fresno I wrote back to Denise,”I was nearly overcome with sadness in the airport in Chicago. If this trip goes well, I will probably feel better. The last one made me rethink my whole approach to life.”

Gottschalks went from a grey box to a black one.

The November migration also occurred over a weekend. It went much more smoothly than the first one, but there were still quite a few hiccoughs.

I cleared out the TSIDATA library on the new machine. I then restored the data from the CISC box. It took six hours.

I keyed in all of the user profiles. I checked the system variables, the backup and cleanup schedules, and the automatic reply list entries. I set it up so that QSNADS was started with QBATCH. I keyed in all of the scheduled jobs. I scheduled jobs to stop and start fax support.

Todd Burke5 from IBM came in the afternoon. He had installed the operating system in August. However, he had failed to install the extended help, the previous compiler support, Advanced Function Printing (needed for faxing), and the Communications Utilities (needed for RJE6). He set up a console in the operator’s area so that it receives break messages from the QSYSOPR message queue.

DATEINFO7 was not in TSIDATA. I discovered this last time, but I forgot. I had to restore it from the old system.

I installed all changes from our system from 8/17 through 11/3. I didn’t leave on Sunday until 8 PM. I was the first to go. I was so tired that I missed my exit going back to the hotel.

I changed TOSHA_B’s user ID to TOSHA_A8 and STEPH_K’s to STEPH_M. If they are going to use ID’s like those, they should prevent the women from getting married.

Todd set up the faxing incorrectly. I don’t know what he did wrong, but the software support person had me delete everything he did and key it in again. She also had me fudge one of their files using DFU9!

When I left everything was working. David Seeto said that he felt as if a huge weight had been lifted from his back.

I’ve spent considerable time in the L.A. airport three times this year. No movie producer has yet to approach me with a multi-picture deal.

That was not the end of the story. I submitted two invoices to Ernie Escobedo for my time at Gottschalks in August and November. I did not ask for reimbursement for the dozens of hours that I had spent researching the problem and trying to get IBM to take a second look When TSI had not received payment more than a month later, I asked Ernie about them. He said that he was “not inclined to pay them.”

I wrote him a long letter in which I described the efforts that I had undertaken to get that defective new system to work. I also said that I understood why Gottschalks was still upset about the situation, but the villain in this case was IBM. The company had installed equipment that did not work and refused to recognize that fact just because the diagnostics that someone at IBM had designed did not allow the customer engineer to detect the problem. Ernie promptly approved the payment of both invoices.


Stephanie Medlock.

AxN: In 2003 Bob Wroblewski and I made a trip to California to show TSI’s online insertion order system to Rob-May and Gottschalks. That trip and Bob’s involvement with the project has been described here.

The reception to the presentation seemed quite positive, bur Stephanie never agreed to try AxN. She stuck with faxing her orders until the end.


Life in Fresno: During most visits to Fresno I stayed at a Hampton Inn that was a short drive from Gottschalks’ headquarters. I always rented a car; public transportation was not a viable option in Fresno. I found no restaurant in which I felt comfortable dining alone. For most suppers I got takeout. There was no shortage of establishments that specialized in fast Mexican food.

My only recreation was running. I was able to map out a course through the suburban streets near the hotel. Traffic was a problem at only a few intersections.

The weather always seemed good. The most peculiar thing that I remember about Fresno was the tule fog. Occasionally a fog bank would abruptly drop the visibility to zero for a short period of time. This happened once while I was there. On Highway 41, the major north-south road in the San Joaquin Valley, it caused a collision that involved a large number of vehicles. The phenomenon has its own Wikipedia page.


Epilogue: In 2000 Gottschalks acquired the Lamonts department store chain. The acquisition gave Gottschalks a presence in the Pacific northwest and Alaska. In retrospect this must have been the impetus for the upgrade to the AS/400. However, the results did not meet expectations. In 2008 the company was delisted from the New York Stock Exchange. In the next year it declared Chapter 11 bankruptcy. By July of 2009 all the remaining stores had been closed.


Robert Guinn.

1. Robert Guinn’s career after Gottschalks led him back to his alma mater, Fresno State, as is described on this webpage.

2. Frederick Atkins Inc. was a non-profit company that bought merchandise for the companies in the Frederick Atkins Group. In the late nineties quite a few independent chains of department stores still belonged to the group. A description of the concept is posted here. The company went out of business in 2015. At that point the number of independent department store chains could be counted on one hand.

3. As far as I remember, he persuaded no other company to buy the system. Of course, I did not expect him to. However, he did arrange for me to make a presentation to members of the group at a convention in Naples, FL. That adventure has been described here.

4. The Club One Casino, which was really just a card room, moved away from downtown during the pandemic.

5. I do not remember Todd Burke, but I found his LinkedIn page here. For some reason his list of experiences skips over his time in Fresno, as well as everything else in 1999 through 2018.

6. RJE is one of the hundreds of TLAs (three-letter abbreviations) employed by IBM in those days. It stands for Remote Job Entry. I don’t remember precisely how it worked.

7. I don’t remember what DATEINFO was used for or why it was not in TSIDATA, the library that contained all information that pertained to the client.

8. According to LinkedIn Tosha’s user ID would be TOSHA_G if she was still working at Gottschalks. For some reason I was not allowed to see her LinkedIn page, but I did find a reference to her here.

9. DFU was shorthand for Data File Utility. We never told any of our clients that it existed, and we never used it. It allowed the user to go in and change any field on any record of any data file. There was no audit trail whatever. This violates sacred principles of database design.

1998-2005 TSI: AdDept Client: Proffitt’s

Proffitt’s was a chain of department stores based, for the period in which I was associated with the company, in Alcoa, TN. Proffitt’s was the first division in the entity Proffitt’s Inc. The corporation changed both its name and orientation … Continue reading

Proffitt’s was a chain of department stores based, for the period in which I was associated with the company, in Alcoa, TN. Proffitt’s was the first division in the entity Proffitt’s Inc. The corporation changed both its name and orientation in 1998. The new entity was called Saks Inc. TSI’s relationship with that corporation and the people in Proffitt’s Marketing Group (PMG) has been described here.

Proffitt’s headquarters was four miles south of the airport. I usually stayed at the Hampton Inn at the top of the map. Although the town of Maryville was only about a mile away I seldom went there, and I never went to Knoxville.

I don’t think that I did a demo for Proffitt’s. Rather, the decision to use AdDept there was made by PMG based on the success of the installation at McRae’s that is described here. I definitely remember my first trip to the divisional headquarters. In April of 1998 I flew on Delta from Atlanta and arrived at McGhee Tyson Airport1, which is also located in Alcoa. I rented a car and drove the short distance to Proffitt’s headquarters, which was in a strip mall that did not have a Proffitt’s store. The mall’s anchor store, if you could call it that, was a Burlington Coat Factory.

By the day that I arrived, the advertising department’s AS/400 was already installed in a closet. Next to it was the system console. There was already a premium on space there, and it got worse very quickly. On some occasions I was required to work in that closet. It was a strong contender for the worst work environment that I had to endure.

The connectivity was also installed and configured by someone else. Specifically, TSI had nothing to do with the selection of the emulation software for the Macs.

Proffitt’s advertising department was not very large. The primary reason for this was that much of the creative and production work had been outsourced to an ad agency in Chicago named Ambrosi. I wrote this about the agency’s practices in April of 2000:

Ambrosi has a minimum charge of $175 for materials. They sent an invoice to Proffitt’s with a line on it with a $175 charge for “eye shadow kit.” Proffitt’s paid it without questioning it. The bill was nearly $20,000 over the budget – for one catalog.


The people: My original contact was the production manager, Tom Henry. All that I remember about him is that he took me to lunch that first day in his Corvette that was not really a Corvette. He said that it was “a knock-off”. I should have asked him to elaborate on the subject, but I did not. I think that we ate at an extremely inexpensive pizza place where you just pointed at the slices that you wanted. I have forgotten the name of the place.

Long after I posted this entry I discovered this photo of a meeting at PMG in Birmingham. Tom Henry is on the left in the shirt with horizontal stripes. On the opposite side of the table are two other people from Proffitt’s: Tom Waltz at the far end and Cindy Karnoupakis in red and white. I think that Tom W. was the manager of the business office before Jim Pierce. Cindy may have been his assistant. Steve VeZain of PMG is waving on the right. I don’t remember the meeting, and I have no firm recollections of Tom W. and Cindy.

I did not work with him much after that day. He was in charge of the department’s computers. Therefore, he had me train some people who worked for him how to check the backups. Leaving this important role up to them was a mistake.

I wrote this about the situation in early 2000:

This installation got off to a very slow start. All the people involved in the project initially bailed out when the data entry started. Three people are now involved – Jeannie Gorman for ROP, Lucy Delk for other media, and Jim Pierce in the business office. Jim, although a very laid-back guy, has more or less taken the bull by the horns in the last few months. They are now using AdDept for closing – accruals and the prepaid to expense journal entry for all media.

Don Alexander2 was the Senior VP of the department until July of 2000, but I do not remember dealing with him much. In fact, I remember very little about most of the people in the department until Marianne Jonas came from McRae’s to become the Advertising Director in August of 2000.

Jim Pierce handled the finances. His assistant was named Charlene. Christi Bullock worked with her. Jeannie Gorman scheduled and purchased newspaper advertising. Lucy Delk handled other media. I also took a photo that included a woman named Cindy. I don’t remember any of these people very well. I need to rely on the notes that I have discovered, and they do not begin until 1999. Furthermore, my research has been unable to determine anything about their subsequent lives.


Hardware issues: Most users of the AdDept system on AS/400’s experienced few if any problem with their hardware. If they did, they solved it themselves or got the IT department involved. My notes from Proffitt’s for 1999 and 2000 are replete with references to SNAFUs attributable to hardware. On July 13, 1999, I wrote “Evidently the power failure at Proffitt’s fried their fax modem.” This modem was used to send insertion orders automatically to the newspapers. If it was not working, Jeannie had to print the orders and send them one at a time via a fax machine.

The very next day I wrote the following about an incident handled by Jamie Lisella2 at TSI’s office:

Jamie got frustrated with Proffitt’s. As usual they have no one who is both willing and able to do something, in this case switch the modem cables for IBM.

TSI also had an HP Laser Jet 5 in its office.

TSI even was called about very trivial printer issues. This note is dated exactly two months after the modem cable problem:

Their HP 5 printer wasn’t working. The Powersave feature was on. I think when they had a power failure it may have reverted to the factory settings. I turned it off and restarted it. I printed out five copies of my write-up of how to take care of this. Maybe someone will read it this time.

In April of 2000 much of my attention was dedicated to getting TSI’s insertion order project, AxN, operational. I needed to document potential benefits vis-à-vis having the computer generate faxes.

I asked Jeannie Gorman to try to think of everything she hated about faxing insertion orders. She told me that she has to fax about one in ten by hand because they do not go through. While I was in the computer room I heard several busy signals.


The Disk Crash: In all of the time that TSI worked with IBM midrange systems, only one catastrophic disk failure2 ever occurred. It happened at Proffitt’s in late November or early December of 2000, only a few months after Marianne Jonas had moved to Tennessee from Jackson, MS.

One problem with IBM midrange and mainframe computers was that they were so reliable that users sometimes took them for granted. When I set up the system for Proffitt’s I programmed backup jobs that ran every night. All files used by AdDept were saved to tape. A different tape was used every night. They were recycled weekly. So, if there was a failure on Thursday, they could restore from the Wednesday night tape. If, for some reason that tape could not be used, the Tuesday night tape could be used, and so on. Total system saves were done whenever a new version of the operating system or a new set of PTFs4 was installed.

The process could not be completely automated. Someone had to change the tape every day and check to make sure that the backup completed normally.

Every multi-user system must have some method to prevent one user from overriding what another user has just done. On the AS/400 this was done at the record level. So, if one person was working on an ad or an invoice, other users were prohibited from deleting or changing information about that ad or invoice while the first person had the record open for editing. When the user finished working on an item or closed the program, the locked record or records were released. This occasionally caused problems when someone called up a record in a program that allowed editing and left the program open.

IBM’s backup procedure was also affected by locked records. It could be set either to skip backing up the locked files altogether or to back up the previous version of the locked records (called “Save While Active”). The latter sounded like a good idea, but it ran the risk of leaving some files out of sync with others. Besides, the backup was only really useful if all the files on it were complete.

When the disk drive was reported faulty, IBM replaced it with a new one. At that point it was discovered that the backup tapes for every day of the previous week were incomplete. The last usable backup was from the system save tape from more than a month earlier. Evidently no one had been checking the backup logs.

Of course,I changed planes in Atlanta.

When these facts were reported to TSI I ordered an “all hands on deck” response. The problem must have been discovered on a Friday. Jamie made a reservation for me to fly to Alcoa in time for business hours on Monday. Denise Bessette5 and I worked out a plan for getting as much of the data as possible back on the system while retaining the system’s integrity. We also devised ways of checking the consistency of the data and printing lists of records that should have matched but did not.

When I arrived at Proffitt’s Marianne escorted me to a conference room, closed the door, and screamed at me for a very long time. She said that it was irresponsible of me not to tell the people involved how to check the tapes. I explained that I had shown the people at Proffitt’s how to do this, and I had shown the two IT people whom she had designated how to perform this task at McRae’s. I also showed her the letter that I had sent to all of the divisions emphasizing how important it was to check the backup logs. It also explained the service that TSI offered for $150 per month whereby a TSI employee would sign on and check the logs every morning. Employees in the advertising department were notified if anything was amiss. Parisian was the only division that purchased this service.

Marianne was not persuaded or even mollified in the slightest by any of these facts, but she let me go on with my work to salvage as much as possible. The notes below include a lot of technical jargon, but at least they show how much effort I made to righten the ship. I have inserted footnotes to explain a few items.

Proffitt’s Recovery Journal

1. Sandy located all of the files missing from the save tape.

2. I used CHGJOB to bring all of the missing files up to speed.

3. I created records on the season file 6 for 001, 002, 011, and 012.

4. I deleted all logical files7 with 00 in them. These files were ones on the system save tape that were overridden by the ones on the nightly save tape.

5. I deleted all logical files whose source had been changed since 1/1/01. I then created them again.

6. I wrote a program named CRTPROFJCS to create DPJCSUM from DPJCSXMO. I ran it for 001, 002, 011, 012, and 021.

7. I created a logical file named DAACTSTAD2 to use in my program to create ads in 001 and following.

8. Dave Weeast left Jim a message that I should IPL8. I did so.

9. I used SQL to set the values of the latest projections in DPJCSUM to the sum of the open purchase orders plus the actual invoices for 001, 002, 011, 012, and 021. I did not change the original estimates. I tried to explain this to Marianne and to find out whether I should, but I couldn’t get her to understand what I was talking about.

10. I set up the user profile and the directory entry for Marianne, Ivy, and Phyllis Compton. These were the only people that had records in DAUSERS but no user profile.

11. I change the system value QINACTIV to 180. I also scheduled a job to end and start the interactive subsystem at 1 a.m. Bill9 said that we should do both of these things.

12. Marianne seemed to think that the store cost accounting would be worthless, but I still think that it is better than nothing for 002 and for the past.

13. Dave Weeast could not get the Mac network to come up. Daniel Moore10 came in at noon on Monday. Evidently it was never plugged back in. After he plugged it in it worked OK.

14. The HP network printer did not work. The IP address was wrong. I got the new one from Daniel and gave it to Dave Weeast. He changed the address, and it worked fine.

15. I changed DAACTSTAD2 to sort by expense class and month before ad number, so I could do a month at a time.

16. After a great many false starts I was able to get a program called CRTPROFADS to create the ROP ads for 011. It did not put in headlines. I set the columns and inches to 1 each. I set the ad type to 2 (B&W). I used defaults for everything else, borrowing the code from DM021 and DM041. I used storewide as the principal participant and assigned it 100% of the costs.

17. I wrote a query named ROPSEQ10 to extract the first pub on every ad. The results were stored in FEB01ROP, MAR01ROP, etc.

18. I wrote a program named RPFIXCI to calculate the column inches for each ad. It also deduced the ad type – black & white (2), one-color (6), or full color. I then changed the ad types in option 9 for the color ads and the size in option 1 for all ads.

19. I wrote a query named ACTST0011M to get the costs for each insertion in DAACTST. I wrote a second query named CHK0011M to compare this file with DMPSDET and report the discrepancies. I then fixed the obvious ones and kept the short list of the remaining ones.

20. I ran CRTPROFADS and RPFIXCI for February and March. I also did step 19 for both months. The March files and queries have 0012 instead of 0011.

21. The CPU attention light seems to be permanently on with SRC A6001730. Dave Weeast said that it is was OK.

22. Marianne complained about getting stuck in the “Cost” column in DM029 if she accidentally puts something there. I changed DM029S to accept blank, which is what they put in 90% of the time any way.

23. Jeannie did not put in a tape on Monday night, so we could not check the backup. She did put one in on Tuesday.

24. On Monday I worked in an office that had been turned into a shrine to Dale Earnhart. On Tuesday I worked in the closet in which they keep the AS/400. No kidding.

Issues

1. Marianne would like to be able to lock quantities in DM025.

2. I only got through March 2001. I ran CRTPROFAD3 but got no farther.

While I was at Proffitt’s I spent a little time researching what could have caused this problem. I was pretty sure that everyone turned off their terminals or PC’s before leaving every evening. I was quite certain that no one ever worked so late that their session would overlap the period scheduled for the backup. Moreover, there were only a few other scheduled jobs, and none of them locked records for important files.

Eventually I discovered that one person—a Mac user—did not close active AS/400 sessions before turning off the computer. The third-party emulation software running on the Macs, unlike the PC software that had been written by IBM, failed to notify the AS/400 that the session had ended abnormally. So, the job was still running, and records were locked. That user was Marianne herself.

When I left on Tuesday evening, I thought that the system was in pretty good shape. I left Marianne with a list of the ads that were still inconsistent and told her what needed to be done to fix them.

My recollection is that instead of proceeding as I suggested she decided to delete a large number of ads and have her employees key them in from scratch. That, of course, was her right.

Needless to say, TSI sent an invoice to Proffitt’s for the two days that I spent there. We did not bill them for any of the employees’ time. Marianne refused to pay the invoice. She insisted that the whole mess was TSI’s fault, and Proffitt’s would not pay.

The next time that I was in Alcoa I asked for a meeting with the man (whose name I do not recall) who replaced Don Alexander as Senior VP. I explained the situation to him. The invoice was promptly paid. I never mentioned anything about this to Marianne, and she never said anything to me. Our relationship thereafter was cordial but a little distant.


The Atmosphere:The trip to try to recover Proffitt’s files was no fun, but I went there a number of times, and I had quite a few memorable moments. I usually stayed at the Hampton Inn that was near the airport but not so near that the air traffic disturbed me. One night I was pleasantly surprised to see that I was the Guest of Honor. I received a basket of fruit and, I think, a bottle of wine.

My favorite place to eat was within walking distance of the Hampton Inn. Here is what I wrote about El Sazon11 in September of 1999:

I treated myself to chicken chimichanga last night at El Sazon, a nice little family-run Mexican restaurant within walking distance of the hotel. It came with rice, beans, guacamole, pico de gallo, chips and salsa. I also ordered iced tea with a free refill. My bill was $8.34 with tax. Things are a little cheaper here.

I wonder what you can get for $8.34 today.

My favorite place in all of Tennessee was Springbrook Park, which was about halfway between the Hampton Inn and Proffitt’s. It contained a 1.4 mile dirt path that wound through some very interesting scenery. I vividly remember jogging there nearly every night while listening to opera arias on my CD player or Walkman. Here is how I described one of those experiences:

I had a delightful seven-mile run yesterday evening. It was close to 70 with a gentle breeze. I love running in Springbrook Park – through the woods, alongside the brook, around the fountain, across the wooden bridge, up towards the playground. A few dog walkers, a few amateur joggers who never seem to do more than one lap, a few strollers (mostly in pairs), a lady just sitting in the sun on one of the many wrought iron benches, and two adolescent girls using a jar to catch something in the stream and then — on the next lap — painting each others’ faces with mud divert my attention momentarily from Professor Greenberg’s12 dissection of Verdi. The very end of the path is steeply uphill. On the last lap the tape had run out, and my calves started to cramp, but I liked the feeling. It meant that I was pressing just enough.

The atmosphere at the Proffitt’s building was also remarkable. The shrine to Dale Earnhardt had a serious competitor for most unusual workspace in the advertising department. One lady’s cubicle was filled to the brim with Warner Brothers cartoon characters—cutouts and stuffed versions of Bugs, Porky, Sylvester, and all the others.

In 1998 the University of Tennessee, located in nearby Knoxville, won the national championship in football. At the beginning of the 1999 season enthusiasm for the prospects of the Vols was at a feverish pitch, and Proffitt’s participated. Here is what I wrote about the most obvious manifestation.

Proffitt’s has put up a whiteboard across from the lunch room. Employees are encouraged to write their predictions for the Tennessee-Florida game. All day long yesterday people were standing around the board, which has also sprouted derogatory comments about various Southeast Conference schools.

After Marianne Jonas arrived, the atmosphere in the department became more serious. On the first occasion in which she invited me to Alcoa she did not let me rent a car. Instead she told me to stay at the Hilton at the airport. She personally drove to the airport and picked me up the next morning. I complained to her that my room was a very short distance from the end of the runway where the delivery service planes departed from between 2:00 and 3:00 in the morning. I got very little sleep because of the roar of their engines.

I needed to use cabs to get back and forth to the hotel for the rest of that trip, but thereafter she let me rent a car and stay at the much cheaper Hampton Inn.


Epilogue: In 2005 Saks Inc. sold the Proffitt’s and McRae’s stores to Belk13. The administrative offices in Alcoa were closed. Within a year all of those stores were converted to Belk stores or closed.

To the left is a photo of the Belk store in Foothills Mall in Maryville, TN. It was formerly a Proffitt’s.


1, McGhee Tyson Airport serves the greater Knoxville area. It is located south of the city in the town of Alcoa, which was named for its biggest employer, Alcoa Corporation.

2. My on and (mostly) off relationship with my sister Jamie is addressed in several blog entries. My relationship with the Lisella family is detailed here. The big crisis that developed shortly after her modem incident is described here.

3. Later versions of the AS/400 circumvented this problem using a technique called RAID (Redundant Array of Independent Disks) by which a set of disk drives could be recovered from redundant information on the remaining drives when one failed.

4. PTF is one of hundreds of three-letter abbreviations used by IBM. It stands for Program Temporary Fix. Every few months IBM would release a new set of PTFs for problems in the operating system or in IBM-provided programs.

5. More information about Denise can be found here and in many other blog entries.

6. The season file had two seasons per year. 001 was the spring season of 2000; 002 was the fall season of 2000. The two seasons that began with 01 were for 2001. Thus there was a mixture of past, present, and future on the file.

7. A “logical file” does not contain data. It contains pointers to data that may be sorted in a different order and may not include all of the records.

8. Dave Weeast was in charge of all AS/400’s for Proffitt’s Inc. More information about him can be found here. IPL, which stands for Initial Program Load, is IBM-speak for rebooting the system.

9. I am not sure who Bill is, maybe Bill Giardina, who worked in IT at McRae’s. That installation is described here.

10. I don’t remember Daniel Moore.

11. El sazon means “the seasonings”.

12. Robert Greenberg made a series of recordings for The Teaching Company (which subsequently changed its name to The Great Courses). They analyzed various aspects of classical music and opera. Sue Comparetto and I also attended a few lectures that he gave in association with performances by the Hartford Symphony Orchestra.

13. The advertising department at Belk was in a huge complex in Charlotte, NC. It used AdDept to manage its advertising. The details are posted here.

1991-2007 TSI: AdDept: Federated Department Stores/Macy’s Inc.

TSI’s dealings with Federated and Macy’s Inc. Continue reading

Let’s buy Macy’s!

For more than a decade after TSI began marketing AdDept, its software system for retail advertisers, the chain of department stores now known as Macy’s Inc. was called Federated Department Stores (FDS). The company was acquired in the eighties by Robert Campeau, a Canadian real estate magnate. For a short time it was merged with Campeau’s other stores and called Federated and Allied Department Stores. In 1992 the company emerged from bankruptcy as FDS, the same year that Macy’s filed for Chapter 11 protection. In 1994 FDS found enough cash in the cushions of the sofas in the furniture departments of its stores to purchase Macy’s shortly after Santa’s favorite retailer emerged from its own bankruptcy. Details of the takeover can be read here.

In the early nineties I was just beginning to learn about retail in America. It shocked me that a bankrupt company could stiff all of its vendors and then have the wherewithal to buy another company of about the same size. A lot of craziness like this happened in the nineties. I never did figure it all out, and the two companies involved in this transaction were a thorn in the side of TSI for the rest of its existence.

I don’t know why Val used a photo that cut off her chin.

In 1992 FDS had eight regional divisions. Each division produced and placed its own advertising from the divisional headquarters. The first FDS division that contacted TSI about purchasing the AdDept system was the Bon Marché, which was based in Seattle. I was called by Val Walser1, the Director of the Advertising Business Office there. She had received one of TSI’s mailings in late 1989 or early 1990, and she thought that the system might be what they needed. I talked with her in person twice, once at the Retail Advertising Convention in Chicago and once in Seattle. I gave Val a private demonstration in Chicago, and I showed the system to the rest of the team in Seattle. Those encounters have been described in some detail here.

No mention of Federated.

I don’t think that I knew at the time that the Bon Marché was part of FDS. Even if I did, I don’t think that I realized then that the parent company was about to declare bankruptcy. I was inexperienced; I probably made some errors in judgment. Perhaps I made a mistake by proposing a system that would only be minimally sufficient for their existing operation. Maybe we did not follow up often enough or in the best way.

Although Val informed us that she had requested funding for the system, it was never approved, and after a while we did not hear any more from her. We continued to send materials to her periodically. Until I began the research for this entry I was unaware that she had any involvement in deploying a system that was initiated by the FDS division most distant from Washington, Burdines in Florida. Val apparently oversaw the development of the administrative part of the FedAd (or whatever it was called at that time) system. By then her division was known as Macy’s Northwest, which was folded into Macy’s West, a long-time AdDept user, in 2008.


TSI’s fruitless contacts with Burdines have been documented here.


From the beginning I thought that Jordan Marsh, the Boston-based department-store chain, would be a valuable customer for TSI. Like the Bon Marché, Jordan Marsh was actually part of the Allied group before Campeau acquired Federated and merged all the stores into one gigantic chain. At one time there were also Jordan Marsh stores in Florida and San Diego, but by 1991 all of those stores had closed or were no longer controlled from Boston.

Kate Behart, whose career at TSI is described here, arranged for me to do a demo for people from Jordan Marsh’s advertising department at an IBM office. I don’t remember any of the names of employees at Jordan Marsh. In fact, the only things that I remember about our meeting with them were that Kate was very upset that I had used the word “gals” at one point and that they informed us that they wanted our system.

I am sure that Kate must have followed up on the presentation. She was very conscientious. However, nothing came of it.


Bloomingdale’s, the high-end department store with headquarters in New York City, contacted TSI several times. The last of these exchanges of telephone calls was handled by Doug Pease, whose successful marketing career at TSI is detailed here. We certainly sent them detailed materials about AdDept and the AS/400. I might have done a demo for them at the IBM office. I clearly recall that we went to their headquarters in Manhattan and gathered specs about their needs. I can still picture the Manager of the Business Office, who wore a three-piece suit and had a long pony tail. Guys with pony tails were not unusual in the creative and production areas of advertising departments, but he was the only one that I ever saw in the financial area.

Doug followed up on our visit with several telephone calls. At one point he became certain that Bloomies would buy the AdDept system. Nevertheless, not long after he had voiced his certainty, he got the telephone call that dashed his hopes. He never told me the details, but he was visibly upset about it.


One of the biggest disappointments in my career was not being able to land Liberty House, the department store in Hawaii and the Pacific, as a client. When Doug, Sue, and I flew out to Honolulu in December of 1995 to meet with Karen Anderson (detailed here), Liberty House was an independent chain of stores that included both department stores and much smaller stores in locations convenient to tourists. Those stores specialized in “resort ware”.

Macy’s on Union Square in SF.

Our presentation went very well. Karen told Doug in a subsequent conversation that she had requested funding for AdDept, but there was a freeze on capital purchases. The freeze persisted until the company entered bankruptcy in 1998 and closed most of the resort stores. When it emerged from bankruptcy it was gobbled up by FDS. At that point the remaining stores were relabeled as Macy’s, and administrative functions were transferred to Macy’s West in San Francisco, one of TSI’s clients.

So, this was as close as we came to a victory in our dealings with FDS/Macy’s Inc.. Many of the newspapers that had been used by Liberty House still subscribed to AxN in 2014.


AS/400s at FSG. I thought that I had a photo of Len, but I cannot find it.

At some point the AS/400 systems used by the three Macy’s divisions that used AdDept—Macy’s East, Macy’s South, and Macy’s West—were moved to the headquarters of Federated Systems Group (FSG) in Alpharetta, GA, a suburb of Atlanta. I flew down there to consult with Len Miller2, who was in charge of all of the FSG’s AS/400s. I don’t remember exactly what the agenda for this meeting was, but I remember that Len said that long-range plan of FDS was to replace the AS/400 systems with home-grown software running on other platforms. However, he assured me that at that point—soon after the merger with the May Company—it was a very low priority. They would still be using the AS/400s for several years.

My other vivid memory of that day was when we passed a room that contained perhaps twenty desks. At each desk sat someone working on a computer. All of the people were IBM employees who were consultants for Federated.

Len’s predictions both turned out to be true. All of the divisions except Bloomingdale’s were eventually folded into one gigantic Macy’s run from the Herald Square Building in Manhattan. The plan was apparently to use the system built for Burdines and the Seattle division, but it did not have all of the features that the people in New York needed. For several years they maintained AdDept in order to run the Loan Room (merchandise loaned to photo studio for shoots) module that TSI wrote for Macy’s East in the early nineties.


In May or June of 2005 I received a telephone call from Robin Creen3, whose title was Senior Vice-president of Macy’s Corporate Marketing. She wanted me to come to New York to discuss the AdDept and AxN systems. I made an appointment and took Amtrak to Penn Station. Robin instructed me to use the executive elevator at one of the 34th St. entrances rather than the employee’s entrance that I had always used on the other side of the building.

Robin’s office was not in the advertising department. It was on executive row. I don’t remember too much of the meeting, and I cannot locate my notes. I recall that I only got to meet with her once or maybe twice, and I never heard from her or about her again.

I did, however find a copy of a letter that I sent to her on October 7, 2005. Here is the text:

At our last meeting you told me that it was still too early to talk about the future of the existing May Company divisions. Since there have now been several definitive press releases about the makeup of the new Macy’s after the merger, I assume that those restrictions no longer apply.

Needless to say we are concerned about what effect the realignment will have on TSI. We have spent the last 17 years developing AdDept, the software product which has become the standard of the industry for administration of retail advertising departments. The May Company was our largest client.

We know that Federated Department Stores has been working with its Florida division for the last decade or so on a system which overlaps considerably with ours. I am sure that the company has by this time invested a considerable amount of time, money, and manpower in it. It may surprise you to know that I was supposed to be an integral part of the original plan. I met with Mike Rafferty and Gilbert Lorenzo in Huntsville, Alabama, back in the mid-nineties. Their plan at that time was to use AdDept for the accounting functions.

They wanted us to convert our system to run on a PC network using a home-grown relational data base and Microsoft Visual BASIC on each client. To me this seemed like a huge step backwards for us. Their approach would definitely have improved the appearance of AdDept’s front end and provided an integration with the production area, but no one could explain to me how we could possibly support such a system in many locations. The principal problem was that with their proposed architecture someone—presumably TSI—would be required to support both server software and client software. We have never had to support clients—the individual desktop PC’s and Macs. At the time networks were unreliable, Windows was not a mature product, and the Internet was in its infancy. TSI was already supporting a half dozen or more companies, including the two Macy’s divisions, which at the time were not affiliated with Federated. I honestly think that had we participated in the project at the level that they expected, TSI would not have survived as a company. Gilbert and Mike must not have liked my attitude, because we never heard from them again.

Since that time, as I wrote you earlier, most of the rest of the department stores in the country—as well as several other large retailers like Dick’s Sporting Goods—have successfully implemented AdDept in their sales promotion departments. They were able to get affordable systems tailored to their requirements. AdDept is not a sexy system, but it gets the job done.

No one in the entire country—no one—has the experience that TSI has garnered over the last 17 years in understanding the intricacies of administration of advertising systems. We are offering that experience to Macy’s Marketing. Four of the seven newly aligned Macy’s divisions—East, West, Midwest, and whatever the Marshall Field’s division is called—are long-time AdDept users. Lord & Taylor also uses AdDept. Moreover, a large number of May Company employees have considerable experience using AdDept in many different areas. If I were in your shoes, I would consider this as a valuable asset.

TSI has a very strong relationship with its users—both at the corporate and division level. If you talk with the people at the May Company, I am sure that they will verify that we have always done what they asked, that we do an excellent job of supporting our product, and that we give them a lot of bang for the buck.

There is one big additional factor. We are not on their payroll. When they wanted to spend money to make the system do new things, they used us. When they were tightening their belts, they did not have to worry about paying the salaries of programmers, system architects, data base administrators, etc.

So far in our discussions TSI has done most of the talking. What we would really like now is to learn what you and the other people in Federated’s management need to get out of the system. A goal-oriented approach works best for us. We have moved mountains for other clients, and we would definitely appreciate the opportunity to tell you how we would attack your biggest problems. We have never shrunk from such a challenge in the past. Our track record in this regard is essentially flawless. If someone will tell us what they need, we will provide it.

Do you think that we could schedule a face-to-face meeting with you and whoever else is involved in this project about this challenge? We have always been straight-shooters, and we would be eager to listen to whatever you have to say.


My last two encounters with Macy’s were both about insertion orders for newspaper advertising. TSI had developed and successfully marketed an Internet-based system for insertion orders to newspapers. Macy’s West, Macy’s South, and most of the May Company divisions that FDS acquired in the merger used it, and they all loved it. We called it AxN, which was pronounced “A cross N”.

I knew that, compared to our other AdDept clients, Macy’s East used a small fraction of the programs that comprised AdDept. Still, they were entering the ads, and, therefore, they were a good candidate to use AxN. I wrote to the Media Director, whom I had never met, and requested a meeting about AxN. He seemed very interested. We scheduled a meeting, I made a dozen or so copies of our sales materials for AxN, I packed them in my briefcase, and I boarded the 6:30 train again. I was alone because TSI had no marketing/sales person at the time.

The meeting was not what I expected. It was conducted by a man named Roman from the IT area, not the advertising department. My presentation was very well received. Roman said that it was very impressive.

He pressed me on whether TSI planned to provide a way to send the layouts for ads over the Internet. This surprised me. I thought that this was a problem that had been addressed years earlier. The market leader was the Associated Press’s AdSend service, but I also knew of several competitors. I said that TSI had no plans to enter that market. I explained that we had neither the infrastructure nor the expertise necessary to compete in that arena. Besides, none of our clients had asked for it, and they were not shy about requesting our services.

He said that we should consider it. Macy’s was looking for someone who could enable them to use the Internet for both insertion orders and the delivery of ads, “because, you know, one-stop shopping is better.”

What should I have said?

I had three hours on the train to mull this over. I had made a mistake by letting this remark go unchallenged. It seemed like such a silly thing to say. I thought that they would want expertise and experience, not fewer phone numbers.

If one-stop shopping really was the objective, then I had no chance of ever persuading them to use AxN. Therefore, nothing could be lost by asking for proof of any real value associated with having one vendor doing both tasks. I knew very well that the people who placed orders for newspaper ads were completely separate from the employees who created the actual layouts and sent them to the papers. This was true at Macy’s in New York and at every other large retailer that I had met with.

We never heard from them after that.

I learned later that Macy’s East’s advertising department had never used AdDept for insertion orders, even though they could have easily faxed the orders from the AS/400. Instead, each coordinator had developed ways to communicate with the reps at the paper. It sounded chaotic.


My last frustrating encounter with FDS (by then known as Macy’s Inc.) occurred in, I think, 2007. This one revolved around Dave Ostendorf, whom I had known quite well when he had been the liaison between TSI and the advertising department at Famous Barr, the May Company division based in St. Louis. Much more about my relationship with Dave and the installation at Famous Barr is posted here.

This is the only picture I could find of Dave Ostendorf. He is on the far left side of the table in the white shirt.

Dave called me about the use of AxN. He said that the people for whom he worked in Macy’s Corporate Advertising department asked him to find out how much we would charge for an interface between AxN and the system that had been developed internally. Dave was a very straight arrow. I trusted him (unlike everyone else mentioned in this entry) implicitly.

Of course, I asked for more details, but Dave would not provide them. He was rather sheepish about this. He advised me just to write up a proposal in our usual format with as many disclaimers as I wanted to include. He also specifically warned me not to low-ball it. So, I wrote up a quote for $20,000 that may have set a world’s record for use of phrases like “assuming that”.

A short time after I talked with him Dave resigned his job at Macy’s and moved back to his home town of Indianapolis. Needless to say, no one ever called about the quote. I have always suspected that it had been used as a justification for further investment in the corporate system.


So, my interactions with FDS and its successor Macy’s Inc. were completely fruitless. If FDS/Macy’s Inc. was the Brass Ring of our field of software, it was in sight quite a few times, but we were never able to snatch it.

My only real regret is that I do not completely understand why we continually failed. Our success with every other department store chain was close to universal, and the employees in the advertising departments at FDS and Macy’s divisions seemed enthusiastic about what TSI had to offer. However, in these situations we were up against an amorphous alternative, the system developed for Burdines and the Bon Marché, about which I knew very little.

One thing that struck me when rereading the letter that I had written to Robin Creen. I seemed to be asking for an opportunity to see the alternative. As a debater and a debate coach I was much better on the negative. I seemed to feel confident that if they just told me what they were using or planning to use, I could demonstrate what was wrong with it. Even if our software was lacking in some areas, I felt confident that we knew how to change AdDept to make it better.

Fortunately TSI found plenty of work outside of FDS/Macy’s up until the time that Denise and I were ready to dispose of the business. If some of these opportunities had gone the other way, it seems likely that we would have missed out on some of our other achievements.


1. Val Walser worked int the advertising department in Seattle until Macy’s brought all of her division’s administrative functions to San Francisco in 2008. Her LinkedIn page, which is here, says that she “directed development of a sophisticated, integrated software product, which was Macy’s premier marketing/advertising system managing all departmental functions.” I presume that this refers to the system once known as FedAd that was begun by Burdines.

2. Len Miller apparently still works for Macy’s in 2022. His LinkedIn page is here.

3. Robin Creen left Macy’s in 2008. Her LinkedIn page is here.

4. Dave Ostendorf’s LinkedIn page is here.

1988 TSI: The First Crisis

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:

  1. I was healthy. Sue was reasonably healthy. She had recently quit smoking, and that was very difficult for her.
  2. Sue and I had a nice new house.
  3. We had two nice pets.
  4. TSI had a real office that was smoke-free.
  5. 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.
  6. For the first time ever TSI had a salesman who was aggressive and appeared to be competent.
Interest rates in 1988 were very high.

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.

Eventually we faced facts and leased an AS/400 model B10.

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.

Not bloody likely.

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.

1990 TSI: The Paramount Pitch

Paramount? Seriously? Continue reading

It would have been folly to do so, but I certainly wish that I had kept my notes from our second Manhattan adventure. In a strange way it was an important milestone for TSI, but my recollection of the details are now very spotty, and the only aspect that I could verify from research on the Internet was that the year was almost certainly 1990. It may have actually begun in late 1989. Sue remembers nothing about this whole escapade.

In 1989 Gulf and Western changed its name to Paramount Communications, Inc.

The prospect was Paramount Communications Incorporated, which was based in New York City. I am not sure how the people conducting the software search heard about TSI. The Manhattan IBM office with which we sometimes dealt may have recommended us. We had a pretty good relationship with them. If the word “advertising” was mentioned in a conversation, they probably would have thought of TSI.

Of course, Sue and I had heard of Paramount studios. We had both seen the company’s logo on lots of movies. I am not sure whether we were contacted by phone or by a letter. In any case, we had only one face-to-face meeting in New York City with the person who was looking for a company to develop a system for them. She sent us a Request for Proposal (RFP) with fairly detailed specifications.

I generally hated RFP’s because they seldom allowed us to emphasize what we did best—come up with imaginative solutions to database problems that were difficult to implement. Instead they were designed to be easy to score and to prevent the vendor from distracting attention away from the most important issues. Each vendor’s answers were awarded numerical values. The software companies with the highest scores were asked to write up a detailed proposal, perhaps after an interview.

Madison Square Garden is actually close to round.

We were learned that Paramount owned a set of radio and television stations and some small cable networks. It needed a system to manage the advertising on these outlets. Of course, it also owned production companies as well as other things such as Madison Square Garden and its two permanent residents, the Knicks and Rangers. So, in some cases Paramount owned both ends of the transaction. This complicated matters, but we always liked complications. If nothing else, this helped explain why the company did not just use a software package designed for broadcast stations. Surely by 1990 there must have been some.

The RFP had set of a dozen or so numbered areas that required (or at least allowed) fairly extensive explanations.It also contained something that I had never seen before. At the end or perhaps in the cover letter it indicated that the submission should “be indexed” according to the required areas.

The proposal that I wrote was organized so as to emphasize our company’s strengths, namely our ability to deliver very large projects on time, our willingness to write custom code, and our strong relationship with IBM. I also sang the praises of the AS/4002. Needless to say, I did not emphasize TSI’s lack of experience in scheduling advertising from the media outlet’s perspective. In point of fact, I was convinced that we would be writing most of this code from scratch. At the end I included an index that listed the page number for the answer to each numbered area.

Individual 1 purchase the G+W building and made it a hotel.

A few weeks after we mailed the response to the RFP we were invited to come to New York to discuss the document. The company’s office was in the Gulf and Western Building at 1 Central Park West on Columbus Circle. Sue and I took Amtrak to the city and then the subway to Columbus Circle. Columbus Circle was thrilling. Neither of us had ever been there before; ascending from the subway elicited a “Wow!” from both of us. We had never seen a section of Manhattan that was not rectangular!

The meeting was less inspiring. I distinctly remember two aspects of it:

  1. The lady conducting the search (whose name I don’t recall) seemed annoyed that I had not organized our responses in the same order as the numbered areas. I explained that the RFP had not specified an order for presenting the responses. It said that they should be indexed, which is exactly what I did. She paused for a few seconds with an icy look on her face. She then asked my why I had organized it the way that I did. I told her that I was simply trying to make a case. The rest of the meeting went a little better. I don’t think that she had realized that the RFP had used the word “indexed” instead of “ordered”.
  2. She provided us with a little more information about the project, including the news that they favored a UNIX-based solution. The only other thing that I specifically remember came from Sue, who at one point remarked, “I am not sure that we even want this job.” I am not sure how this struck the lady making the decision, but it certainly shocked me. For the first time in the decade that we had been working together Sue and I apparently did not agree on the direction in which TSI should be heading.

Frankly I was not certain that it would be a good idea to undertake this project. In point of fact the situation at Paramount changed dramatically only a few years after our meeting. The whole company was purchased and then split in two with all the media outlets going to an independent company. If we had committed to a large investment in time and resources for Paramount’s project, we probably would have found ourselves out of luck at that point. As it was, we devoted the time and effort to the AdDept system3. At just about the same time that Paramount was acquired and then split up, the marketing of AdDept was really gaining traction.

If we somehow survived that crisis, we would have had to learn how to deal with show business people. Can you imagine?

In any case, I never begrudged Sue the right to her judgment. I wished, however, that she had told me about her misgivings earlier and in private.

We did not get the Paramount job, but we had one more memorable meeting about it. It was a flea on the world’s greatest (true) shaggy dog story, which is recounted here.


1. Prior to 1989 the parent company was known as Gulf and Western. In 1994 Viacom acquired a controlling interest in it. When that company split into two entities, Viacom and CBS, most of the stations went to CBS, and the film studio went to Viacom. Some other properties were sold. Wikipedia’s account of this period is here.

2. Much more about the hardware and operating system that were the focus of TSI’s activities from 1988 until the company closed in 2014 can be found here.

3. The design of the AdDept system is explicated here.