2004-2014 TSI: AdDept Client: Dick’s

Posted on December 12, 2022 by Mike

Chain of sporting goods stores in Pittsburgh. Continue reading →

Dick’s Sporting Goods is as old as I am. It started as small store in Binghamton, NY, that sold fishing equipment. In 1994 it was moved to the Pittsburgh area. In 2022 it had over 850 stores with over 50,000 employees.

TSI and Dick’s had a very long courtship. I am sure that I made several trips to Dick’s before we signed the contract. The first time that I visited the company it was still in its previous building, which was much smaller than the complex that it constructed in Coraopolis, PA.

We never gave up on selling them a system even though many of AdDept’s features would never be of much use to them. I knew that Dick’s IT department was committed to the AS/400 architecture. Therefore, the cost to them would not include the cost of additional hardware, which was often a deal-breaker.

I remember one sales trip in which I was asked to talk about the way that our system handled co-op—ads that feature a single vendor who has agreed to pay a portion of the expenses. I was pretty sure that no one would buy the AdDept system just to handle co-op, but I always tried to do what they asked. I have read through pages and pages of notes about the project of installing AdDept at Dick’s, but I found no subsequent mention of co-op

TSI and Dick’s formally tied the knot in a contract dated March 4, 2003. It was signed by Eileen Gabriel¹, who was Dick’s CIO at the time and me. I still have a pdf file of the document. Most of our contracts were far simpler than this one. Their lawyers obviously added quite a bit of language to the one that we submitted. Neither side ever had any difficulty about it during the more than eleven years that it was in force.

At the time that we negotiated the contract I did not understand (or, for that matter have much interest in) why Dick’s, which up until 2003 had always been in the “kicking the tires” column of prospective AdDept users, suddenly was rarin’ to go. I subsequently discovered two factors that probably contributed to the change in attitude: 1) The company went public in 2002. That probably provided a good deal of cash. 2) By then the advertising department had hired several employees who were familiar with what TSI and AdDept could accomplish². There probably were other favorable conditions that were not evident to me.

Planning for the AdDept system: Dick’s already had several large AS/400’s that were used for other aspects of its business. On one of them were PeopleSoft³ applications designed for the accounting and human resources departments. One of TSI’s major challenges would be to implement an interface between AdDept and PeopleSoft’s A/P and G/L systems. When employees in the advertising department entered expense invoices into the AdDept system they would automatically be sent to the PeopleSoft system for payment and posting to the General Ledger.

I found a document created by Paul Marshalek⁴, the first project manager for the AdDept installation. It provided the agenda for a one-day “discovery session” that was held in the Final Four room on April 16, 2004, almost exactly one year after the contract was signed. The scheduled attendees were Krista Fullen⁵ and Adam Sembrat⁶ from advertising, Don Steward⁷ from IT, Joe Oliver⁸ and Jeff Jones⁹ from finance, Paul, and myself.

The agenda includes a dozen items. During my preparation for this entry one caught my attention. I remember spending a lot of time at Dick’s on various aspects of print media from insertion orders (sent via A^xN¹⁰ from the beginning) to payment of bills to allocation of costs to stores. I did not remember much about broadcast. At the time they used an advertising agency called Empower MediaMarketing¹¹ based in Cincinnati. I could not find any evidence that we ever implemented an interface by which the buys from the agency were uploaded to AdDept. TSI provided this for most AdDept users, but it usually required custom programming or at least some fine-tuning.

Getting the AdDept system operational: It was made very clear to me that TSI’s client was the IT department, and the people in advertising and accounting were the IT department’s clients. So, the IT department made all the calls in this installation. In some ways this made things more difficult for me. I was never sure whether the advertising department was satisfied with our progress. On the other hand, we heard very few complaints, probably because everything that the advertising department really wanted was installed in phase 1, as described below.

Dick’s insisted on having two separate AdDept environments, one for testing of new code and one for production. Both of them were named after Greek gods of wind. Aeolus, the developmental system, was named after the keeper of the winds. Boreas, the production system was named after the personification of the north wind. TSI employees had no credentials for signing on to Boreas and no way to reach it from our office in East Windsor.

Aeolus and Boreas actually resided on the same AS/400, but they were in different partitions designed to make accidental intermixing of the two environments impossible. If separate boxes had been purchased, separate licensing agreements would be required for the operating system and IBM system-level programs. This would have made the installation of upgrades a much more difficult and time-consuming process for the IT department.

This installation involved a large number of interfaces and a great deal of custom programming. When we delivered a new batch of program changes—both routine updates and code specifically for Dick’s—we had to install the new code in Aeolus, implement the required changes to the database, and test them there. Advertising employees would then be required to sign on to Aeolus and make sure that both the new and previously installed AdDept programs worked. If the changes were not ones that they requested, it was difficult to get them to take this seriously.

During the testing and approval period a process that “refreshed” the AdDept system in Aeolus with the programs and data from Boreas needed to be suspended. If the timing of the suspension was not perfect, then all of the changes that we had installed during that period could be wiped out. A few times this happened to us, and it was quite upsetting.

When all of the advertising department asserted that the changes were good to go, the Aeolus system was refreshed, and TSI needed to install the changes again. The people in advertising would spot check what we had done. During this second period the AdDept system on Boreas was frozen. When the advertising people validated the changes, the Boreas system was refreshed with the new code and the transformed data on Aeolus. Only at that point could work resume. The primary purpose of all this was, I suspect, to eliminate the possibility that IT people might be blamed for deleterious outcomes.

This approach was much less efficient than our usual method of delivering code. I routinely installed new code to four or five other AdDept installations every weekend. Most of the time the users did not even know that I had done anything. There were occasional problems, but never anything that we could not address in an hour or so.

I don’t blame Dick’s for insisting that we follow their protocols, but we had had great success at over thirty installations with the approach that we had developed, and we would never have been able accomplish so much if we had been tied to Dick’s approach in all of them.

Inevitably, despite all of the precautions, some bugs slipped through the testing process—both TSI’s and the advertising department’s. Dick’s had a method that allowed us to make emergency changes to address them, but I don’t remember the details of how it worked. We only needed it once or twice.

If there was a problem or a request for new code, the users had to go through the IT department. The people who served as TSI’s primary point of contact—the liaisons—were people who worked in the IT department as project managers.

Perhaps the biggest problem with the enforced separation of the users from the developers was that Dick’s insisted that I do all the training after the initial installation in one of their training rooms. I did not like this at all. Often the people who showed up at these training classes were not the people who would be using the programs that we were installing. Sometimes I did not know what roles were played by some of the people. I did the best that I could under the circumstances.

At other installations—even the ones with AS/400s owned and operated by the IT department—I was allowed direct access to the users. I had a thorough understanding of the administration of retail advertising, a claim that could be made by none of our liaisons. Many times I could address their issues on the spot and direct them to programs or techniques that they were previously unfamiliar with.

I am certain that the installation would have proceeded more rapidly and with fewer problems if the IT people had allowed us to use our time-tested methods, but the idea was absolutely anathema to them. The IT department owned the AS/400’s, and they insisted upon their right of ownership. Bypassing this interference from the IT department was the primary reason that we always preferred for the advertising departments to have their own smaller systems that could eventually communicate with the systems running the other aspects of the business.

Our main contact at Dick’s during the installation and for some time afterwards was John Nelko¹², an IT employee whose specialty was the workings of the AS/400’s operating system, OS/400. Under his supervision I installed AdDept on Aeolus and built all the files that they would need to use. I also installed IBM’s BASIC compiler and interpreter. That product was no longer supported by IBM, but TSI was authorized to sell and install it. Most of the other IBM software—SQL, query, FTP, faxing, etc.—that would be needed was already on the box.

On that very first day John and I got the faxing to work. I also was able to send an insertion order through A^xN to TSI’s server. That required that FTP over the Internet was working. It also required that Dick’s be set up on TSI’s system as a valid sender.

TSI was assigned a user ID on Aeolus called TSIDICKS. I was told that the password was set to expire every sixty days. John worked with Denise Bessette in our office to get the SDLC communication working over the telephone lines. In the beginning that was how we accessed the system from TSI’s office.

There was a little time left over in that first visit for extensive training. My notes reported:

We got through the season table, expense classes, ad types, markets, pubs, rates, and print rates in the first training session. Everyone seemed comfortable with everything. In the second training class we went through the more difficult tables pretty thoroughly and entered a couple of ads.
The pub-store master table for inserts was not set up correctly by the program which¹³ I wrote to create the table. I fixed it. I used the Saks programs as the basis for DM220RDX and DM230RDX. Adam wants to show the costs on insertion orders. Most of the programs do not do this. I added a column for the Skid Color to the insertion order. I did this all during a long meeting which everyone in advertising attended on Wednesday afternoon.

I remember that the names of the insertion order programs for ROP and inserts began with DM220 and DM230 respectively. The “Skid Color” refers to the color of the tag that was attached to a “skid” (a pallet with no bottom deckboards) on which the inserts were stacked and packaged for delivery. Each version of an insert was assigned a different color.

These were my last few comments on that momentous trip:

Amanda Sembrat, then known as Amanda Greener.

We had a good luncheon meeting about the rest of the project. Steve Manning, the Budgeting Director, attended. They are considering whether to use AdDept to create real purchase orders for all advertising expenses.
I almost made the mistake of going to a Mexican restaurant on Cinco di Mayo.
I showed Krista how to respond to errors. At this point both Adam and Amanda were involved in other things.
I think that Adam overstepped his authority last time when he decreed that we did not need the broadcast interface. Helen said that we may need to revisit this. We had better be careful with Adam. He sounds like he has more authority than he really does.
Request #1 was approved.
They certainly want me to return for the first insertion order run. They may want me sooner than that.

The fact that Dick’s ran so many inserts in so many markets caused some unique challenges that were also mentioned in the notes:

Adam says that about 15 papers have separate rates for flexis, which are also called minis. We need to come up with some way of handling this.
Most of their events start on Sunday. If the paper does not publish on Sunday, they want it to default to Saturday, Monday, Friday (before), Tuesday, Wednesday, and Thursday (after) in that order. I set things up to work this way, I think, but I was not able to test every possibility. For Thursday drops, they want it to default to Wednesday, Friday, Saturday.
They want to use the holiday quantities for Thanksgiving. Is there a good way to do this?
They have some “events” which involve sponsorships with sports teams. The costs are spread over several months. I am thinking that we might use Stage’s amortizing programs for this.

The second trip June 14, 2004: Dick’s was one of the few clients for which a one-day trip was at least somewhat reasonable. USAir had many direct flights between Bradley and Pittsburgh. Because Dick’s was so close to the airport, I could easily get to the office at the same time as the employees.

I did encounter one major problem: I discovered that it was not trivially easy to meet with people in the advertising department.

I got there about 9 a.m., but I had to wait about 30 minutes as they tried to figure out what to do with me. Advertising is in the new building, but the reception desk is in the old building. Eventually they managed to contact Adam, and he showed me into the building.

Here is what happened once I got to the advertising area:

I spent most of the morning making sure that all papers were correctly designated as F for faxing or T for AxN. I called Lucia¹⁵ to make sure that we were in agreement concerning every paper.
I met with Adam, Helen, Paul, and Steve about where we stand and what is on the agenda. Steve said that they need to keep track of actuals versus budgets. It took me a while to figure out that he means by category on each book. Right before he left he gave me a list of the categories which they currently use. They also decided that advertising should meet with Jane Walker and the accounting people to make sure that everyone is on the same page.
I helped Adam set up a pub group for all of his insert papers. He also needs one of his main papers. I think that he now knows how to do this.
We put on an ad and printed insertion orders. Adam noticed that only the first 12 characters of the fax number appeared. I fixed this.
The sequence number for the NJS market was incorrect. Adam fixed it.
We discovered that there were no rates for 6-page tabs. They sometimes run 12-page minis (same as flexis) which ordinarily use these rates. I wrote a little program to help Adam key these rates in fast.
I was able to establish an FTP session on TSI270.
Amanda¹⁶, who is engaged to Adam, said that she had looked over the quote for the run list. It looked good to her. They would like to have it by 6/28, although, of course, they have not approved it yet.

They were unable to print. The printer which they formerly used is no longer near them. I called John Nelko. He eventually identified the printer. I need to send him a memo telling him which user profiles need to be changed to use the new printer, which is called Ad_Dept.
I think that DM022 should use the text description from the book size file rather than the dimensions for the size on screen #M22A.
We could not fax because the modem was not available. I will send an e-mail to John to try to reserve the modem one day this week. Adam wanted to wait until Friday, but I told him that I would be out of town on Friday.

The rest of the story: An AdDept Progress Report dated October 15, 2004, and prepared by (I think) Paul Marshalek identified phase 1 of the installation as “print media”, which for Dick’s was primarily in the form of newspaper inserts. Phase 2 was much more detailed. It had the following sections:

Pub-store allocations, which included implementation of an interface with the system that Dick’s used for sales analysis.
Other media: broadcast, magazines, and billboards (which everyone in advertising called “outdoor” even if the signs were in a building).
Another interface to “refresh” AdDept’s vendor table so that its data was consistent with PeopleSoft’s.
Expense invoices, which in AdDept were divided into media (which were entered against the schedule) and non-media (which were entered by job categories or sub-accounts). This project included the expense payables interface.
Media accruals that created the journal entry for the G/L in PeopleSoft. The document notes that the file containing the journal entry for August 2004 was delivered to Jane Walker¹⁴ in the IT department.
Cost accounting, which in their case meant advertising costs (including overhead) in all media per store.
Non-media closing, which included accruals from purchase orders and prepaids.

This list, which resulted from the four-day trip that I made in October of 2004, included some really big programming jobs, but I am pretty sure that they were all eventually implemented.

I met several new people on that trip:

Carol Mazza was a media manager who worked for Helen Burkholder. Krista and Erika Crawford worked for her.
Linda Weiss was tasked with entering broadcast invoices. She reported to Steve Manning.
Dave Derry was an internal auditor.
Todd Schultz worked in Expense Payables.
Jeff March, who worked at Galyans, a company that Dick’s had recently acquired, was scheduled to start work the next Monday as broadcast manager.
Rick Kohout provided me with files that I used to implement the sales interface.¹⁷

Most of my time on the October 2004 visit was spent with Krista. I checked over what she had done for ROP and inserts and helped her set up other types of ads. At the time Dick’s was rapidly expanding. New stores were provided with pre-opening and grand opening advertising support. These ads had their own separate G/L accounts, and we had to devise a way of handling them.

My next trip was in April of 2005. I gave a talk to eleven people to explain how AdDept does accounting. The tone of my notes indicates my frustration. Accounting for advertising is complicated. I could not explain it very well in a few minutes in a classroom setting.

I learned that Jeff Jones accrued to plan. Here is what I reported about the reconciliation process:

Jeff explained that he made his “accrual entry.” He actually closes to plan. He takes the planned expenses, subtracts out the invoices paid, and spreads the difference to markets in a spreadsheet.
We got the February accrual to match. This is not really much of an accomplishment. We just matched one AdDept report to another after eliminating all possible sources of error. We got the March accrual to match within .5%. We ran the report by ad so that Jeff could compare it with the list which he used for his accrual.

Accrual to plan is a bogus concept. The whole idea of accruing is to make the expenses and income occur in the appropriate month so that one can isolate problem areas as soon as they develop. Accruing to plan disguises difficulties because the actuals are forced to match budgets. However, it was not my job to explain this.

I came up with a list of eleven things that needed to be changed in the production system. At other installations I would have just fixed them myself, but I was not allowed to touch anything. Denise and I had to come up with ways to circumvent this restriction in each case.

I also listed six or seven small changes that they requested.

I returned to Dick’s on May 31 for one day to look at their pub-store allocation records. I discovered that because someone skipped the step of creating these records, the allocations of costs to stores for 2005 have all been wrong.

I also helped them address the issue of paying bills for ads that ran in 2004. I came up with a Mickey Mouse method that at least got the accounting right at the G/L level.

The notes from my only visit in 2006 are very sketchy. There were a couple of new people whom I do not remember, and someone in advertising asked us to quote a massive database of zip codes to help with ordering insert distributions. Some—but by no means all—newspapers allow specifications of zip codes for insert distribution. Both AdDept and A^xN handled this by special instructions.

I remember quoting creating this database, but I don’t think that we ever did it. The notes make no mention of any other media or any accounting issues.

I made one four-day visit in 2007. I met a lot of new people. Included in that group were Carl Abel and Bob Pecina,¹⁸ who would be our primary contact for the rest of our relationship.

Among other things I learned that the advertising department had begun using AdDept for billboards and magazines.

They expressed considerable interest in copying all ads from one year to another for planning purposes. This was an important but very complicated task for any retailer. TSI had software to do this. If everything was set up perfectly, or at least nearly so, it could save a lot of time and make for more accurate planning. If anything important about the process was ignored, it could make a gigantic mess.

I knew that it would be a nightmare at Dick’s for more reasons than I could name. I am pretty sure that nothing ever came of this.

I learned that their change reports were essentially useless because they included ads that were created in order to estimate costs under a specific scenario and then deleted. There were a lot of these ads. I think that we put in a Y/N field on the selection screens for change reports to allow them to be excluded.

The last major project that we did for Dicks was to create a separate installation for Golf Galaxy, a retail chain that Dick’s had acquired in 2006. The administrative functions were not moved to Coraopolis until 2008. I decided to create a separate blog entry for the Golf Galaxy project. It can be viewed here.

Mike Krall.

When reading my notes for the two trips that I took in 2008 I discovered that I also spent time with Mike Krall¹⁹, a young guy who had been assigned the daunting task of managing the “cost accounting” programs that showed in summary and in detail how expenses were attributable to stores using rules that Dick’s created. The reports depended upon all aspects of the data—media and production costs, sales, store allocations, etc.—being accurate.

Here are some of the notes from the time that I spent with him:

I spent most of the day on Wednesday with Mike Krall. He runs the month end programs in AdDept, but he did not really know what he was doing. He had a detailed set of instructions to follow.
I made some queries in ADVMOQRY for Mike Krall to provide him with net indirect expense (INDNETEXP) and net production expenses for ads in prior months (PRIORMOEXP). I explained that these would only get the data from Dicks. If he wants Golf Galaxy, he should make copies and change the libraries from TSIDATA to TSIDATAG.
Does DX112 expense the indirects? Mike Krall said that he does not create a journal entry for indirects.

The white areas are buildings. The main entrance was in the middle of the top set. The bottom building and most of the parking (grey) areas did not exist when I visited last.

The atmosphere at Dick’s headquarters: Working at Dick’s was unlike anything that I experienced at any other retailer. For the most part the administrative departments of the department store chains that dominated the list of AdDept clients were located on the highest floors of large downtown stores. The ambience in the lower floors was designed to generate excitement. The upper floors were at best boring and sometimes even dingy. Even the offices of retailers that housed their administrative functions elsewhere were mundane.

The gigantic lobby at Dick’s headquarters.

Arrival at Dick’s was not an overwhelmingly pleasant experience. Despite the massive size of the complex—and it is much larger in 2022 than it was in my last visit of 2008—the offices in Coraopolis were not trivially easy to find within the industrial park. The parking was not a bit convenient. In those days there was only one lot, and by the time that I arrived with my rental car only spots that were a long way from the main entrance were available.

I don’t think that I was ever in this room.

From the front door one entered a huge waiting area. No one without an employee badge could get past it without being escorted. My memory may be faulty, but I don’t recall that they ever gave me a temporary badge.

Incidentally, it would not have been a good idea to arrive early to try to claim a better parking space. I would not have been allowed past the lobby until the person or people with whom I was meeting were there.

Surrounding the lobby were eight or ten conference rooms. Each was named after famous sporting events—Super Bowl, the Masters, World Series, etc. They were extremely elegant. A few of our early meetings were held in one of them.

Dick’s also had a very nice cafeteria, which was called the Court Street Café. I am pretty sure that I ate there every day—except the time that lunch was delivered to our meeting—on every visit. It’s a good thing, too. There were no restaurant in or near the industrial park in which the headquarters resided.

I remember feeling quite short on one of my first visits there. I was at least six feet tall, but almost everyone I met was quite a bit taller. Later I heard about a volleyball tournament held somewhere inside the facility during the lunch break or maybe right after work. They already had an indoor basketball court when I visited. Now they have that (with a track around it), tennis courts, and a huge workout room.

Epilogue: Alone among TSI’s clients, Dick’s still seemed to be thriving in 2022. They even have a store in Enfield next to Costco. A very large percentage of the people with whom I worked in the early twenty-first centuries are still employed there in Coraopolis.

A decision made by Dick’s in late 2013 was the cause of the decision to close down TSI. At the time the income from maintenance fees was not enough to keep the company running. The income from custom programming had also dwindled, and there were no real prospects for sales of new AdDept systems.

We therefore depended on the steady stream of checks from the newspapers that subscribed to the A^xN service. Because several of our other largest A^xN users had outsourced the buying of their newspaper space to third parties, Dick’s many newspapers accounted for a large percentage of the remaining income. I knew immediately that the decision by Dick’s management to let an advertising agency order its newspaper space was the death knell for TSI. The details are described here.

The people at Dick’s were quite surprised by TSI’s decision. Someone called us and told us that they still wanted to use AdDept. They evidently thought that we had misinterpreted their communication about the agency. We had to explain that the A^xN contracts generated a considerable amount of income for us.

Denise Bessette may have made a private arrangement to provide some support for the AdDept system at Dick’s. I was 65 years old when we made the decision to close, and I was not interested in such a venture.

1. I am not sure that I ever met Eileen. If I did, I don’t remember the occasion. Her LinkedIn page is here.

2. Two people who may have played significant roles behind the scene were Helen Burkholder, an executive in Dick’s advertising department, and Bill Dandy, her boss. I did not spend a lot of time with either of them in this installation, but they were both certainly influential.

I had worked closely with Helen when she was a media manager at Kaufmann’s. The blog entry about the Kaufmann’s installation is posted here. I am not sure what Bill Dandy’s title was. I met him when he took over that job at Michael’s in Irving, TX. That very profitable installation has been chronicled here. Helen’s LinkedIn page is here. Bill’s can be viewed here.

3. In December 2014 PeopleSoft was acquired by Oracle. I am not sure what effect this had on Dick’s. It did not seem to affect the design of the interface.

4. Paul worked in the IT department, not advertising. His LinkedIn page can be viewed here.

5. Krista Gianantonio (née Fullen) was our day-to-day contact in advertising. Her LinkedIn page is here. She was familiar with AdDept and TSI from her previous jobs at Hecht’s (described here) and Kaufmann’s (described here).

6. Adam Sembrat’s LinkedIn page can be found here.

7. I don’t remember Don Steward at all. I don’t think that we had any subsequent dealings with him. He might have been Paul’s boss. His LinkedIn page is here.

8. I don’t remember Joe Oliver. His LinkedIn page is here.

9. Jeff Jones actually worked with the financial side of AdDept. His LinkedIn page is here.

10. Dick’s had stores all over the country, and they advertised in hundreds of newspapers. The fact that the advertising department was excited about electronic delivery of insertion orders gave a big boost to TSI’s efforts to expand the use of the A^xN product.

11. In 2022 the company is just called Empower. Its Wikipedia page can be found here.

12. John Nelko’s LinkedIn page can be found here.

13. When researching the notes I definitely realized that I had not yet learned when to use “that” and when to use “which”. This “which” should be a “that”. So should the “which” in the last sentence.

14. Like many of the other people listed in this entry Jane Walker is still employed at Dick’s in 2022. Her LinkedIn page is here.

15. Lucia Hagan was the administrative person at TSI during this period. Her history at TSI is described here.

16. My notes say that Amanda Greener was not actually employed by Dick’s; she actually worked for Dick’s printer. She evidently married Adam. Her LinkedIn page is here.

17. I have only the vaguest recollections of any of these people, but I found LinkedIn pages for several of them: Carol Mazza’s is here. Todd Schultz’s is here. Jeff March’s is here. Rick Kohout’s is here.

18. Bob Pecina’s LinkedIn page is here.

19. Mike Krall left Dick’s in 2011. His LinkedIn page is here.

2002-2005 TSI: Bringing AxN to Market Part 2

Posted on March 5, 2022 by Mike

Selling newspapers on the use of AxN. Continue reading →

A^xN was an Internet-based product developed and marketed by TSI. It allowed advertisers to send insertion orders (reservations for advertising space) to newspapers. It also managed communication between the two parties that culminated in the newspaper rep confirming the order. The process that Denise Bessette and I employed in designing and creating A^xN, including the division of labor, was described here. Details of the system design are posted here.

Part 1 of the marketing of A^xN is posted here. The narrative concludes with the signing of a contract by representatives of Belk¹, the department store chain based in Charlotte, NC, to purchase AdDept, TSI’s administrative system for advertising departments of large retailers. Part of the plan for the installation was to use A^xN for insertion orders. At the time none of the other AdDept retailers were using A^xN yet.

In the previous thirty or so AdDept installations the scheduling of newspaper advertising in AdDept had almost never been very difficult. It was always the first part of the project that we got to work smoothly.

I encountered an unexpected problem in that area at Belk. The company had recently consolidated the administration of four of its divisions into the office in Charlotte. Each of the four previous newspaper coordinators was now working in the office there and managed the advertising for the same papers that they had before. Usually, I trained the manager of the coordinators or just the AdDept liaison about how the programs worked. He or she trained the individual coordinators. In this case there was, at least initially, no manager. I was expected to train each of the coordinators separately. Most of them had been scheduling ads manually and ordering them over the phone. Some had never even worked on a computer before. Worst of all, all four soon realized that there was no way that Belk would need four coordinators when AdDept was up and running. There was not much incentive to cooperate.

Eventually these issues were all resolved, but the delays that the process caused meant that the rollout of A^xN would be postponed for a month or two. That was a headache, but it actually proved to be something of a blessing for TSI. It gave Denise and me some time to develop a plan for getting the newspapers aboard. Here is a list of the most important items:

TSI’s accounting system would needed to be changed to accommodate the newspapers as customers. Because the client file used a three-digit number as the identifying field, this task involved a significant amount of programming.
Belk would provide TSI with a list of its newspapers. For each we needed the contact name, phone, email, and address. These would be entered into TSI’s accounting system as (potential) customers. The three-character codes organized them by state. We also needed the name and contact information of the advertising rep at the paper.
I wrote a letter to be sent to the newspapers. It would be signed by someone at Belk but mailed by TSI. The purpose was to ask them to participate in a three-month test period of A^xN with no charge. Afterwards they would be asked to continue to use the system with a monthly fee roughly equal to the price of one column inch of advertising. One full-page ad in a broadsheet contained over 120 column inches.
Each newspaper would be sent the A^xN: Handbook for Newspaper Users, a copy of which is posted here. TSI would also provide telephone support, but we hoped that it would seldom be needed. We knew how to make systems that were easy to use.
At the same time the newspapers would be sent a contract for the test period. It emphasized that there was no charge for three months and that TSI was not acting as an agent for Belk. It also limited TSI’s responsibility to making a good-faith effort to address all reported problems in an expeditious manner.
After a week or so someone representing TSI would need to call the newspapers that had not returned contracts.
As soon as signed contracts were received, a TSI employee would activate the papers on the company’s accounting system and on the A^xN database. Then he/she would notify the appropriate coordinator at Belk to change the field on each variation of the newspaper’s record on the pub table in AdDept.
I would carefully monitor the processing of the first batch of orders. The system had never been stress-tested.
A second letter (from me) and a permanent contract would be sent to the paper after two months. It emphasized that either side could cancel the contract at any time with one month’s notice. The language about agency and responsibility was the same as in the contract for the test period. The starting date was at the end of the test period. There was no ending date.
When the contracts were returned the client records in TSI’s accounts receivable system were marked as active, and the newspapers were billed for the first month or quarter (their choice).
After a week or so someone representing TSI would need to call the newspapers that had not yet returned contracts.

This was by and large a good plan, but it had one rather obvious flaw. None of TSI’s current employees was suitable to play the role of “someone representing TSI” in steps 6 and 11. The programmers, including Denise, were far too busy with request for custom work in AdDept. The slot of marketing director at TSI was empty. I did not trust the administrative person to do this. That left only me, and I was notoriously bad at interactions by telephone. I have always hated talking on the phone, and people can often sense my discomfort. Besides, I wrote all of the new code. It was unquestionably a bad idea for the developer and the sales rep to be the same person. The sales person needs to know how to work with the potential customers, not the machine.

Denise devised a great solution to this problem. She informed me that one of her husband Ray’s cousins, Bob Wroblewski, sometimes did similar work for companies on a commission-only basis. She also came up with a sliding scale of commission rates. It was high in the first year and decreased in subsequent years. After three (or maybe five—I am not certain) years, there would be no commission.

We invited Bob, who lived in Rhode Island, to come to TSI’s office in East Windsor to discuss the matter with us. He liked what he heard, and I was favorably impressed with his experience and communication skills. He agreed to take on the job for Belk’s papers. After that we would assess how well the arrangement worked for both parties.

In reality it worked very well indeed for all of us. Bob was able to persuade all of the papers to agree to the test period. On that fateful day that Belk sent its first batch of insertion orders to TSI my recollection is that more than one hundred papers were involved. The A^xN programs flawlessly handled the orders and wrote the appropriate records on the data files. Emails were then sent to all of the newspaper reps. Very little time lapsed between the sending of the emails and the reps signing on to look at the orders. That surprised me a little.

Then a terrible thing happened. TSI’s trusty AS/400 locked up! No one—not even TSI employees—could do anything. I signed on to the system console, for which the operating system always reserved the highest priority. I was able to examine several job logs, and I determined that one of the steps that was being executed as soon as a rep looked at an order was performing an unexpectedly high amount of disk processing and using an inordinate amount of memory. I killed the interactive jobs for all of the newspaper and made sure that no one else could start a new session until the problem was addressed.

This was one of the tensest situations that I had faced in my career. I had to fix this problem, and fast. The step that I had determined was jamming the system would not be necessary until the rep decided to print the order or maybe it was the option to download the order as a csv file. I changed the code on the fly so that the onerous step was postponed until it was necessary. I hoped that that would spread out the activity so that the system was not overwhelmed right after a new order was processed.

There was no time to test what I had done. I removed the routine from the initial opening of the order and installed it in the routine that might be executed later. We then sent an email to the papers with an apology and a request that they try to sign in again. This worked much better, and, in fact, A^xN never had any notable performance problems again.

After Belk had been running successfully on A^xN for a few months, we decided to take our show on the road. Bob and I flew to California to meet with employees from two AdDept clients, Robinsons-May² and Gottschalks³. We enjoyed a pretty good relationship with both of them, and I wanted them to feel comfortable about working with Bob. I think that we spent only one afternoon at each location.

I don’t remember the details of the travel arrangements. We must have rented a car and driven from the L.A. area to Fresno. I don’t remember where we stayed or what we ate. I only remember that I was limping when I got off the plane, and I explained to Bob that I had tendinitis in my IT band. He said something like, “Don’t we all?”

Robinsons-May was quite interested in what we were doing with A^xN, but they did not go crazy over it. When I later asked them to let us approach their papers, however, they quickly agreed, and Bob was eventually able to sign up almost all of their papers, including the L.A. Times and the Los Angeles News Group, which included the Daily News and a group of suburban papers.

Some IT guys attended our demo at Gottschalks. They uniformly thought that our approach was great. However, the newspaper manager in the advertising department, whose name was Stephanie Medlock, had never used the faxing feature, and I never persuaded her to use A^xN either.

The trip was worthwhile. The people in both advertising departments had an opportunity to meet Bob, and he had a chance to see what it was like in an advertising department. Bob I got to know each other a little better, and Bob got a better idea about how A^xN fit into the process. However, I don’t think that he ever comprehended why it would be very difficult for us to approach advertising departments at places like Home Depot or Walmart—who did not have AdDept—about using A^xN.

Jenifer, Ali, Denise, and Bob at L&T’s office in Manhattan. This was the only photo of Bob that I could find.

Bob also accompanied Denise and me on a trip to Lord & Taylor⁴, the May Company division with headquarters in New York City. We took Amtrak and a taxi. I did not have any recollection of that trip at all until I found the photo that Bob appeared in. I don’t know when we went, but it must have been before 2005, the year in which I purchased my Cascio point-and-shoot camera for our second trip to Italy and stopped purchasing disposable cameras.

We met with Jennifer Hoke and Ali Flack, the two newspaper coordinators. I know this because I wrote their names on the reverse side of the photo that I found.

On the morning of October 14, 2003, I served as a pall bearer at a funeral in Passumpsic, VT, for Phil Graziose, the husband of my wife Sue’s good friend, Diane Robinson. After the funeral I drove to Providence, RI, for the wake of Bob’s wife. I have only attended perhaps a dozen wakes and funerals in my adult life. It was stunning to do it twice in one day.

Bob continued to represent us in dealings with newspapers until we ran out of prospects. From the beginning it was a mutually beneficial relationship. Bob earned a good amount of money in commissions, and the A^xN product complemented AdDept very well right to the end.

Over the years Bob and I had very few interactions other than the ones that I have described. Neither Denise nor I ever monitored his conversations with the newspapers. I always suspected that he may have overstated how important A^xN was to the retailers who paid for the newspaper ads, but what do you want? He was a salesman.

1. The people and events involved in the installation of AdDept at Belk and TSI’s relationship with the company are described here.

2. Robinsons-May was the May Company division based in North Hollywood, CA. My adventures in Tinsel Town are recounted here.

3. Gottschalks was an independent chain of department stores based in Fresno, CA. The company’s AdDept installation—including one of the worst experiences of my life—is discussed in some detail here.

4. The twenty-year relationship between TSI and L&T is explored in the blog entry posted here.

2002-2014 TSI: AdDept Client: Belk

Posted on March 5, 2022 by Mike

A study in Charlotte. Continue reading →

In the fall of 2002 I received a call from Bob Bowden, the IT Director at Belk, a chain of department stores that was (and still is in 2023) based in Charlotte, NC. He said that the company was closing its four regional divisions and bringing all the administration into Charlotte. He also told me that Belk was an AS/400 shop, and he was very happy to learn that we had developed software on that platform. He asked me to schedule a trip to Charlotte to demonstrate the system and to talk with the people in the advertising department. One of those people was Ellen Horn. I already knew Helen from the time that she was employed at Hecht’s (introduced here), but that was nearly a decade earlier.

A direct flight to Charlotte to 2 hours and 5 minutes.

This call was a godsend for TSI. The pool of prospective AdDept users had shrunk dramatically over the dozen or so years that we had been marketing the product to large retail advertisers. Moreover, our existing clients had at that point curtailed their desires for custom programming. TSI’s programmers were still busy, but the future did not appear as bright as before. Furthermore, we were without a marketing director, and our most recent efforts at mailings had turned up nothing. Best of all, Belk already had AS/400’s. Hardware costs would therefore be minimal, and we did not need to worry about convincing anyone of the critical importance of a relational database or the viability of the AS/400.

The AmeriSuites Airport hotel in Charlotte. I am pretty sure that it is no longer in business.

I immediately made arrangement in late October for a trip to Charlotte, a city with which I was somewhat familiar because of the time that I had spent there working with the Cato Corporation (introduced here). There were several direct flights on US Airways between Hartford and Charlotte.

I stayed—because of Bob’s recommendation—at the AmeriSuites hotel that was directly across the street from the headquarters building. Belk had a discounted rate there. The hotel had a shuttle service to and from the airport, and so I did not need to rent a car. That was fine for the first trip, but after the installation and the contract I rented a car so that I did not feel imprisoned.

I sent them a tape of the AdDept system and the sample data that I would use in the demo. Bob had told me that Belk had a nice theater in which I could make my presentation. People from the IT, Advertising, and Accounting departments would be in attendance. As usual, I spent the first day talking with users. In the morning of the second day I made adjustments to the demo system and tested everything that I planned to show.

Travel to Belk was easy. US Airways had several direct flights daily from Bradley International to Charlotte. Belk’s headquarters was a short drive from the airport.

I have been able to locate copies of fewer of my notes written for TSI’s employees, especially Denise Bessette, TSI’s VP of Application Development than I thought likely. I discovered notes from fifteen trips, as well as many outlines of programming projects. However, there are two big gaps in the notes that I brought back to TSI’s office. There are no reports dated between March of 2003 and December of 2006, and the last set is for February of 2009. I am almost certain that I made trips in 2004 and 2005, and I am absolutely positive that I visited Belk several times after 2009. Unfortunately, I have needed to rely on my memory for both of those periods.

Belk was unlike any other AdDept installation. The spacious and modern headquarters that stood in the midst of dozens of trees was about to be deluged with employees transferred from the other four divisions. It would undoubtedly be true that many of them would be superfluous in the consolidated setting. After all, cutting expenses, especially payroll expenses, was the usual motivation for the move. In the case of the advertising department, at least, the introduction of AdDept was bound to streamline many tasks.

One thing about the AS/400 setup at Belk really surprised me. Here is what I wrote:

AdDept resides on an AS/400 model 720 running V4R5. The system is also used for the Lawson accounts payable and general ledger systems and J.D. Edwards systems that are used for co-op billing and job costing. They hope to eliminate the J.D. Edwards system. They plan to upgrade the system in 2003. Dean Hajnas, who works for IBM, is the system operator for the AS/400. IBM manages the system for them. All requests for new user profiles and changes to user profiles must go through IBM. Belk employees are not allowed to touch the hardware.

That’s right; the Belk IT employees had absolutely no control over their own hardware. They had outsourced the management of the system to IBM. Quite a few IBM employees worked full-time in the Belk complex.

I met with a large number of people on the first visit, most of whom were new to me.

Ellen Horn’s title is media manager. Greg Case¹ and Jennifer Lennon² are ROP coordinators. I think that Bob Alexander³ is, too, but he was out. Debbie Edwards does broadcast, but I think that she works for Ellen. Steve Kelly⁴ is the Business Manager. Steve Yeager⁵, who is responsible for the massive network of spreadsheets, and Jan Adams work for him. I am not sure who is responsible for what. Tim Scott⁶, Miriam West (print production), Sherry Webb, and Amy Petrone attended the direct mail meeting. The last two run the data base marketing (Harte Hanks) system.
Ellen, Greg, Jennifer, and Steve Yeager have usable user profiles. They use PComm (like the May Company). They have one printer, which is everyone’s default – PRTA209. It was out of toner on Thursday.

The project manager for the AdDept installation worked in the IT department. Her name was Pat Cagle.⁷ If we needed something fixed in the system specs, the operating system, or the hardware, we dealt with her. She knew next to nothing about advertising.

I am pretty sure that this is Ellen Horn.

I remember that on one of the first visits Pat gave me a form on which I was asked to describe the AdDept system. I tried to get out of it, but she insisted. I composed a few paragraphs and gave them to her. I never heard about it again. What we ended up doing probably bore little resemblance to my essay.

The headquarters building had quite a bit of security. Passage through some doors required an employee badge; others required special badges. When visitors first arrived, the receptionist made a badge for each person who had an appointment, but the visitor’s badge did not allow them to go through the secure doors, and they still had to wait for an employee to come down to the reception area to escort them. Anyone who went out had to go through this again.

The alternative—which I admit that I sometimes employed—was to wait for an employee to come in or out and sneak through before the door closed. I occasionally just stuffed my badge in my pocket. Nobody ever demanded to see it. I always turned the badge in at the security desk before going back to New England.

I learned a little about the company’s history. Belk at the time had more than 200 stores and used 180 newspapers. Their biggest markets were Charlotte and Raleigh. Their stores were also in a large number of small markets, including Mt. Airy, NC, Andy Griffith’s home town and the model for Mayberry. I later learned from Steve Yeager, who kept a copy of a book about the company’s history on his desk, that it was a privately-owned corporation dominated by men named Belk. Over the years they made partnership deals with other retailers, most of whom they eventually bought out. That part of the operation, which began in 1888, had ended, but there were still a sizeable number of high-ranking executives in the building with same four-letter last name. Belk had that, but almost nothing else, in common with the Cato Corporation.

I can find no notes for it, but I must have made another trip to Belk after the one in which I collected specs for the Design Document and the detailed proposal. I remember another meeting in the theater in which I demoed the AdDept system. It was attended by a Vice President in the Accounting Department. Although I no longer recall his name, he made quite an impression on me. When I mentioned that I would not be able to come to Belk on a specified date because I had minor dental surgery scheduled, he said that I could come anyway, and he would do the job in the evening. I asked him if amateur dentistry was one of his hobbies. He only smirked.

Later, when I talked about using a fax card on the AS/400 for insertion orders, he volunteered—with no prompting—a question about whether the Internet could be used for transmission of the orders. That was how the subject of A^xN was first mentioned at the first retailer to use it in an operational setting! The design of A^xN is described here. The story of its marketing begins here.

I undoubtedly stayed at the AmeriSuites that day as well. It might have been on that occasion that I had my first opportunity to eavesdrop on Italians speaking their native tongue. There were very few people at the hotel. When I went to breakfast, the hotel’s restaurant was empty except for a small group of Italian men. I was not very far along in my study of the Italian language (introduced here), but I was delighted at my success at following a substantial portion of the conversation of my fellow diners. My wife Sue and I by that time had already scheduled our first trip to Italy for May of 2003. That journey has been described here.

The first Belk store was called New York Racket.

I remember trying to train the four ROP ladies from the divisions that had been discontinued. There might have been a fifth person supervising them. I made the long trek from the Advertising Department to the area that had been set aside for them. I have no records of any of their names, but I was required to give personalized training to each of them one at a time.

What is wrong with this picture? No, not the old photo; I mean the scene I depicted in the above paragraph. In the first place it surely would have been more cost-effective to have me conduct an ROP class that included all of them or, if that was not feasible, to train one person and let that person train the others. What kind of business pays an outsider $900 per day plus expenses to provide individual training for inexperienced clerks?

That was not the worst part. All of these ladies had moved to Charlotte so that they could continue doing the jobs to which they were accustomed. My training emphasized how fast ads could be entered and how fast and easy everything else was after that. The unfortunate result was that they all had to be comforted and assured that there would still be a place for them in the Belk organization. Maybe so, but I don’t think that it was in ROP.

I remember that shortly after these training sessions someone, perhaps Steve Kelly, asked me how many employees were required to manage ROP in other AdDept installations. I told him that it was hard to say because some also produced advertising schedules and some also verified charges from newspapers. However, I could think of no installation that had more than a couple of people.

By the time of my trip to Belk in February of 2003, data entry was in full swing, and I needed to make sure that everything was going smoothly.

It was sleeting on the evening that I arrived in Charlotte. I must have rented a car because I remember that the short drive from the airport to the hotel was horrendous. The roads had not been treated at all, and everyone was driving at less than 15 mph (and could not get up hills) or more than 50 mph (and was skidding this way and that). I was one of the few drivers on the Billy Graham Parkway who was doing a safe moderate speed. This kind of weather occurred at least once a year in New England. The temperature was above freezing; if the roads had been treated, they would only have been wet. Even if they weren’t, most New England drivers would compensate in a reasonable manner.

This is what a “state of emergency” looks like in Charlotte, NC.

I made my way around all of the idiotic drivers to the hotel. There I found out that my reservation had been moved to another AmeriSuites hotel several miles away in Arrowood. When I protested, the lady informed me that the entire city was in a state of emergency. I got in my car and drove south to Arrowood.

The next morning I drove to Belk. I reported in my notes what I found: “Belk did not open until 10:30 on Monday because of ice on the roads. Many people came in later than that. Some key players did not make it in on Monday at all.”

I mused to myself that I should have driven down to Charlotte in a truck filled with salt. I could have made a fortune on the black market.

I accomplished very little on that trip. The only good thing about this trip was that I found a better hotel for future trips.

The first priority in 2003, of course, was to get all of the ads entered into the AdDept database for the season that started in February. The people in the Advertising Business Office tried to run parallel financial closings for February and March. I spent a lot of time creating queries for them/ I worked most closely with Russ Taylor⁸ and the controllers, Karen Pardue⁹ and Debbie Morris¹⁰.

Eventually this installation included many interfaces with other applications, most of which also running on AS/400s. The implementation of the first interface involved the uploading of quantities for their direct mail and insert pieces. There were several disconcerting entries about it in my notes from the March trip:

I wrote a program for handling the direct mail quantities file, a sample of which I did not receive until Tuesday. It is DN172, which is option 1 on BELKDM.
I wrote instructions for uploading the quantities file and sent them to Steve Kelly, Steve Yeager, and Pat Cagle. Steve Yeager forwarded his copy to Tim Scott.
Tim Scott said that it takes six hours to run the query to produce one file for a month which shows direct mail quantities by store by month. Tim and his two employees cannot use the system while the query is running! As of Friday, there were still no quantities.
Belk must come up with a process for getting the store quantities file to the IFS. They do not have Client Access.

One of the early finance meetings at Belk. The short woman at the far end of the table is Karen Pardue. On her left are Steve Yeager and Steve Kelly. I think that the blonde with the big red mug is Debbie Morris. I don’t recognize the others.

Client Access was an IBM program that provided both terminal emulation and the ability to transfer files from or to a PC client. IFS stands for Integrated File System. Version 4 of the AS/400 operating system provided for storage of several types of files, including PC files, on the system. I cannot imagine a query on the native file system of an AS/400 taking hours. This is what the system does best. I wonder what system Tim Scott’s program was on.

I found nine files that contained lengthy outlines of closing issues that were dated April 15 through 17 of 2003. I evidently spent a week at Belk trying to close to close February and March in AdDept. There were still a lot of open issues on both files for Friday.

In May there are five .prn files (probably output files from queries on some system) that are labeled “Your CoQuery Mabelk”. They appear to have one line per store. I have no recollection about any of them, and the formats do not look familiar.

There are no other files of my notes until 2006. I cannot explain the gap, but there was a huge change in attitude when Denise Podavini¹¹ took over management of the Advertising Business Office in December of that year.

My notes from the visit in December of 2006 are fragmentary, but I also found several documents dated in that month in a folder called “Month End” in the Belk folder. Two of them were FAQs. The first, which was less than a page in length, explained the steps involved in setting up store allocation percentages for each pub in every media. The second, which was a little longer, explained how AdDept approached the challenge of allocating costs to stores. I have posted it here.

The others were specific “game plans” for Belk. One was a nine-page document that outlined the procedures for allocating all advertising costs at Belk. It had five “tracks”: I have posted this impressive document, which includes a few action items, here. The other two dealt with the difficult but critically important (but uncomfortably complex) process of making sure that all of the systems and processes involved were in sync. They have been posted here and here.

I should emphasize two things. 1) The processes described in these documents required that all ads in all media and all expenses and credits be recorded in AdDept. 2) All of the interfaces between AdDept and the other systems must have already been designed, constructed, and at least to some extent tested. Therefore, a great deal of interaction between Belk and TSI must have occurred in the years between 2003 and 2006.

At any rate the pace definitely picked up speed under Denise’s leadership. The January 2007 meeting involved a new project called the Printer-Shipper Report. Vee Hefney¹² and Kari Bates¹³ produced this report in order to indicate to the printers and/or shippers the quantity of copies of each direct mail or insert piece to be produced and delivered. TSI had already delivered AdDept’s version of this report, but on this trip I gathered specs for changes to it, for a method of automating delivery of the information to the advertising records area, and for several related projects.

Special events was usually the last area of an advertising department that I dealt with. The people there managed unique in-store promotions like celebrity appearances and trunk sales by vendors. During the July visit to Belk I met with Leigh Ann Lyle, Rochelle Franklin¹⁵, and Bridgett Barbee¹⁵, who were involved with this area. Sixteen years later I can summon forth only a dim recollection of these meetings.

I also spent a lot of time with Denise Podavini on this and every other visit. I returned to the office with a fairly long list of requests. By this time we had produced forty-two programming quotations for Belk in addition to those listed in the Design Document and initial proposal. Most of the quotes had been accepted, delivered, billed, and paid for.

The October trip was notable for two things. It was the first mention of the application that someone had developed for managing vendor contracts in Lotus Notes¹⁷. Sanjay Singh¹⁸, an IT employee, said that he would provide the layout of a file that we could import into AdDept. The other notable item was that the top item on the to-do list was Belk’s fifty-ninth request for custom programming.

My visit in May of 2008 centered on co-op. The fact that I still needed to do setup work in this area five years after the installation puzzled me when I researched it. Perhaps the use of the Lotus Notes program for co-op contracts affected the progress. Although several problems were uncovered, we must have dealt with them. The last line on my update report is “Everyone was very appreciative of the work. They can definitely see the value of this project.”

We did not receive requests like the following every day:

The Lotus Notes database will at some point in the not too distant future be replaced with something. So, they would like the BELKLNI menu to be called BELKCOOPI, and they would like all references to Lotus Notes to be changed to co-op contract database or something like that.

By this time Belk had acquired most of the Parisian (introduced here) stores. TSI had to deal with several problems involving the transition.

I made two trips in June. The first one dealt mostly with issues in the interface with the co-op contract database. I also spent a fair amount of time cleaning up the co-op transactions and reconciling the co-op accrual entry for May. Denise P. and I had to make several changes to the .csv file for the journal entry to be uploaded to Lawson. The last entry in the notes for this trip had very good news.

I ran the actual cost accounting by store for February through May in order to check the results of DACAJOBST. I could not find any problems. In all cases the total media and production costs seem to match and the store breakdowns seemed reasonable.

I came back later in the month to help with the reconciliation of co-op for June. The list of open issues after that visit contained only five items, and three of them were requests for new programming.

The topic for the first visit in September was the merchandise cost accounting system, which required another interface with the sales system. This one was for sales by department by month. It was very challenging to try to reconcile the results of the merchandise allocation program with the results of the program that allocated costs to stores. I don’t think that I ever attempted this at any other installation. Nevertheless, after quite a number of adjustments, I reported that “July matched the store cost accounting in media, production, and co-op.”

The last entry on the Issues page of my notes was short but powerful: “I got the specs for a gigantic use tax/sales tax¹⁸ project.” My write-up of the project’s specs can be found here.

I came back the next week to help finish the cost accounting reconciliations and discuss the details of the use tax project. Denise P. needed something to address the immediate problem of calculating the use tax liability in each jurisdiction.

I wrote five queries in ADVQRY for Denise P. so that she could estimate their use tax liability for this season.
BOOKS092 creates a file with all direct mail and insert ads that have printing costs. It must be run first.
BKMED092, BKPOST092, and BKOTH092 calculate the costs for media, postage and other for all the ads in the file created by BOOKS092. The results are stored in files.
BKALL092 ties the four files together to print the report.

I think that this was the first time since the Amtrak rides to Macy’s East back in the eighties that I visited an AdDept client on two consecutive weeks.

The use tax project was installed in January of 2009. It seemed to go pretty well. One issue that was reported exemplifies how complicated this project was.

Request #95¹⁹ stated: “At month end, if the ad ran in that month or a previous month, the sales tax amount will be moved to the (liability) account specified on the sub-account. Thus, sales tax will be treated like every other sub-account.” This is not quite correct. They will have one sales tax sub-account, but there are sales tax liability accounts for each store. One store’s account will be associated with the state. The amount should NOT be allocated to stores when the month end program is run. Instead, a store should be specified on the sub-account, and 100% should go to that state.

I also spent more time reconciling the store and departmental cost accounting. At this point they were using both of them extensively.

Of course, they needed to project the cost of use tax when they were planning. The last entry for the visit was this question to Denise B.: “Denise P. needs the projected use tax for her reports. Is that ready? She hopes to have the projected costs by store the first week of February.”

The last file of notes that I have is dated at the end of February, 2009. I am almost positive that I returned to Belk several times after that, but I have no record of any of those trips.

At some point after this Denise P. told me that Belk planned to outsource the buying of newspaper space. I told her that this would have a dire, perhaps even catastrophic, effect on TSI’s financial position because most of their papers subscribed to A^xN, and very few of them were used by any other AdDept client. She asked me how much money we would be losing. I told her. I was shocked when she promised to make up the difference. Evidently they expected to save a lot of money—most presumably in payroll—by outsourcing.

I didn’t think of it at the time, but this demonstrated quite a different point of view from when Belk promised to keep all five of its ROP coordinators back in 2003 and gave each of them personalized training in how to use AdDept to schedule newspaper ads.

Life in Charlotte: I happened upon a restaurant that I really liked called Skyland Family Restaurant. It was near one of the major north-south streets, South Blvd., but it was facing a side street. I drove past it once or twice even after I knew where I was going. After I discovered Skyland, I went there at least once on each trip. I am happy to report that it still seemed to be open for business in 2023.

The restaurant was owned by a Greek family. Everything that I ever ordered there was abundant, good, and inexpensive. My favorite was the pork chop meal. They also provided free refills on iced tea.

Several interior walls of the restaurant contained large water-color paintings that depicted unusual things. I am sure that I took some photos with my Canon point-and-shoot camera. However, I could not find them. The photo at the left is from the Internet.

I always ate by myself, and it was never very crowded. I suspect that they did more business at lunch time than in the evening. While waiting for my order I usually read something, usually the latest issue of Acquerello Italiano.

One occasion in 2008 stands out among my memories. A group of men were meeting in the back room, which was to the left of the area visible in the above photo. They were discussing in a serious and energetic manner what they could do to help Congressman Ron Paul of Kentucky win the Republican nomination for president. I had heard of Ron Paul, of course, but I did not take him seriously. Subsequently, I came to understand that he was a heroic figure to many Libertarians.

I went to several other restaurants. I have no complaints about any of them, but for me the experience at Skyland was both unique and very enjoyable.

After the first trip I always rented a car. I stayed at the AmeriSuites a couple of times and at Hyatt Place—also within walking distance of Belk’s headquarters—at least once. I went for a run almost every evening that I was in Charlotte. On the occasions that I was near Belk’s headquarters I ran around the park-like complex in which Belk was located and along the major road to the southeast of it, West Tyvola.

For most of my later visits the Hampton Inn in Arrowood, a neighborhood about five miles south of Belk, was my base. Even if it had not offered both free breakfasts and Hilton Honors points, I would have preferred it. The rooms were nicer, the service was better, and fairly often they had some free food in the evenings. It only took me ten or fifteen minutes to get to Belk, and there were some good places to eat in the vicinity.

I ran around a business park that was less than a block from the Hampton Inn. It wasn’t as nice an experience as running in a real park, but it sufficed for my purposes.

The only other type of recreation in which I participated was bridge. On one evening I played with Denise’s father²⁰ at the Charlotte Bridge Club. I am pretty sure that it was in 2010 because I remember that I had just become a Live Master. We had a mediocre result. I made a few mistakes.

He told me that Denise never had any interest in the game, but he was teaching her daughter how to play. He also mentioned that he knew Simon Kantor, whom I had once played against back in New England.

The Work Environment: The headquarters building was spectacular. The most annoying thing, as I described above, was dealing with security. The parking lot was huge. I usually got there early enough to take one of the slots reserved for visitors, but if they were full, I might need to walk quite a distance from my car to the front door.

It was also a pretty good hike from the advertising area to the cafeteria and the IT area, but I did not need to make those trips more than once per day. The cafeteria was worth the trek. The food was quite good, as was the selection. The prices were quite reasonable.

Once on nearly every trip Denise P. and I would go out for lunch. I always paid and billed it back to Belk. Her two favorite places were O’Charley’s and a Chinese restaurant called Dragon Buffet.

O’C’s was OK, but DB was my favorite because they allowed diners to serve themselves and take as much as they wanted. I generally had consumed two bowls of Won Ton soup and then some ginger chicken wings. I think that there were also free refills on iced tea.

These were all legitimate business lunches. There was no booze, and Denise and I talked about almost nothing except business. As soon as we had finished eating we returned to the office.

Back in 2003 I cannot say that I had a lot of respect for the people with whom I worked at Belk. However, after Denise P. was brought in, my opinion improved a lot. It may be that she sheltered me from some people who might frustrate me.

One peculiar thing that I remember about the advertising department was the fact that Ellen Horn always had a Golden Retriever in her office. Evidently she was training them to be emotional support dogs.

There also seemed to be a paucity of printers. I remember that on quite a few occasions I walked a considerable distance to pick up a report and then had to wait for someone else’s job to finish. When I was doing reconciliations, I often needed small reports fast. This was frustrating.

The beautiful headquarters building is vacant in 2023.

Epilogue: Belk survived intact longer than almost all of the regional department store chains with whom TSI dealt. However, in 2016, a few years after my last trip to Charlotte, the company had redesigned its headquarters. Because I always thought of Belk’s digs as better than any of the other department stores, this news surprised me. Imagine my shock when I read that in 2021 Belk decided to close this location entirely. Evidently they expect most people to work remotely and some to be stashed away in stores. I don’t understand how this could possibly work. Where, for example, are the computers?

That last decision was not made by the Belk family. In 2015 the company was acquired by Sycamore Partners. For the first time ever it would be run by someone not named Belk. The new CEO was not even a man!

On January 20, 2021, Belk declared bankruptcy, but the next day it emerged with an approved plan. This website claimed that in May of 2023 Belk still had 294 stores. That seems incredible to me. I wonder how many of those are “outlets”.

1. According to LinkedIn Greg Case still was working for Belk in 2023, as were quite a few of the people whom I could locate on LinkedIn. His profile page is posted here.

2. Jennifer Lennon’s LinkedIn page is here.

3. Bob Alexander’s LinkedIn page can be viewed here.

4. Steve Kelly’s LinkedIn page is here.

5. For the first part of the installation I worked with Steve Yeager a lot. I remember that he said that he was originally from somewhere in Massachusetts. I am not sure how he ended up in Charlotte. I also remember that he had a fancy car of some sort (as opposed to my ten-year-old Saturn). He told me that he liked the way that he looked in it. I found Steve’s LinkedIn page here.

6. Tim Scott’s LinkedIn page is here.

7. Pat Cagle’s LinkedIn page can be viewed here.

8. I had not encountered anyone like Russ Taylor. Someone once asked him if he had graduated from the University of South Caroling. He answered solemnly, “Yes, I am a cock!” He also used to sneak out every so often for a cigarette break. His LinkedIn page is here.

9. I worked with Karen Pardue on virtually every trip until she moved to another position. Her LinkedIn page is here.

10. Debbie Morris assisted Karen Pardue. In 2008 she assumed management of co-op. Her LinkedIn page is here.

11. TSI had a long and productive relationship with Denise Podavini, who was born and raised in New England. I found her LinkedIn page here. It still lists her as directing the financial aspects of the advertising department, but I wonder if, given the drastic changes at the company, that is still accurate.

12. I remember Vee quite well. I briefly met with her on several trips. Her LinkedIn page is here.

13. Kari Bates eventually took over Vee Heffney’s job. Her LinkedIn page is here.

14. Rochelle Franklin’s LinkedIn page can be found here.

15. Bridgett Barbee’s LinkedIn page is available here.

16. I was mildly amused to hear at one of the later meetings that the IT people, or more likely employees of an ambitious software vendor, were investigating the feasibility of replicating in Lotus Notes what AdDept did. IBM had purchased Lotus Development Corporation in 1995, primarily to get its hands on Lotus Notes, a product designed to make it easier for workers to collaborate. I had done a little research on that software. I could have told them that they would be crazy to try to use it as a comprehensive multi-user database. They would be sending a boy to do a man’s job. After a few months they came to the same conclusion.

17. Sanjay Singh’s LinkedIn page is here.

18. According to Denise P., nearly every jurisdiction expected Belk to pay use tax on certain aspects of the cost of creating a direct mail catalog or an insert. The rates and what portion was taxable varied by jurisdiction. It seems incredible to me in retrospect that this had never been an issue in the previous six and a half years of the installation at Belk, and—even more mind-boggling—no other AdDept client had ever mentioned this issue. I have no idea how this could be possible. Almost all of the AdDept clients were in precisely the same business as Belk, and most used direct mail as much as Belk did.

19. I am pretty sure that we quoted and delivered more programming requests for Belk than for any other client. The request numbers were well into three digits when we closed TSI in 2014.

20. I think that Denise P.’s father’s name is David Wroblewski. I searched the American Contract Bridge League roster for players in Charlotte with lots of masterpoints and a Polish name. His was the only one.

1999-2000 TSI: Finding the Best Person

Posted on February 24, 2022 by Mike

Our attempt to hire René Conrad. Continue reading →

In the second half of 1999. after my sister Jamie Lisella had left TSI (explained here), the situation at the company was simultaneously the most exciting and the most perilous of its entire experience. On the one hand, business was very good; our services were much in demand, and the relationship problems of the previous few years were pretty much behind us. We had a good staff that could produce great code on a reasonable schedule. We also had plans to move into a new office in East Windsor that we were designing to fit our needs (described here).

However, the company did face some serious issues.

TSI had no marketing director, and we had done no marketing of any note for at least a year.
TSI no longer had an administrative assistant. I had take over these tasks, and I had better things to do.
The size of the potential market for new sales of our primary product, AdDept, an administrative system for retailers, was dwindling, mostly do to mergers and consolidations in the retail industry. Another factor was the fact that AdDept was already installed in a large number of locations.
The computer that we knew best, the AS/400, had limitations that made it difficult to sell to companies that were not familiar with it. Specifically, the screens and output were not considered “modern”.
The Internet posed a serious challenge. At the end of the century every business could see aspects of the opportunities that it offered, but few could see a clear pathway to using it profitably.

My partner, Denise Bessette, and I discussed these issues fairly often. We knew that we were understaffed in critical areas. Although a good case could be made for getting a new marketing director forthwith, the previous marketing person, Doug Pease, had left the company a few years earlier because I asked him to stop selling new AdDept systems for the simple reason that our existing clients were so demanding that we were struggling to keep up with their requests for new programming. It seemed to me that we should address our other problems before we hired someone to generate more sales.

I was aware that René Conrad was frustrated with her position as planning manager at Kaufmann’s in Pittsburgh (introduced here). I had great respect for René and her work. In the wake of Jamie’s departure I discussed with Denise the possibility of asking René to work for TSI. Denise was receptive to the idea, but there certainly were a lot of detail that needed to be put in order.

After talking with René over the phone a few times in August of 1999 I sent the following letter to her:

I have been thinking a lot about this. I also met with Denise. As usual, she had some good ideas. It seems to me that there are three things we need to address: 1) a job description that we all can live with; 2) a solution to the relocation problem; 3) a suitable compensation scheme. You may have other issues, too. If you do, I would greatly appreciate it if you would tell me as soon as possible.
1) Job description
You asked me if this was Doug’s job. The answer is no. We hired Doug to sell AdDept systems. We hoped he would be able to do other things, but the only other one that he was accomplished at was setting up time and action plans and agendas. In the last five years we have taken an immature product with a small client base and made it into a comprehensive administrative system used by a large portion of the most powerful and successful retailers in America. What we really need now is someone with insider knowledge to help us shape our company for the next 10-15 years. This is the primary role we would like you to pay. We realize full well that this is much less structured than what you are used to. We hope you would look forward to the challenge and can adjust to this type of environment. The second most important objective would be to relieve some time pressure from Denise and me. I hope that you would be able to relieve me of some of the training time either by eliminating the need for it by improving our documentation or by taking some of the trips yourself. The other side of the coin is that neither Denise nor I can afford to take on new unbillable responsibilities. The case in point is supervision of the administrative assistant. Jamie did this work for such a long time that she required very little oversight. I don’t see how we could afford to hire you if you did not supervise this person. I don’t see how this job can be performed from anywhere except our office, certainly for the next few months. You will have an awful lot to learn about how our company works. You know all about Kaufmann’s and a little about the other May divisions, but we have 17 other clients. We work very closely together at TSI. I don’t see how this could be done by phone. We also do not have the infrastructure for remote use of our system. We have a dial-up connection through the network, but it uses phone lines.¹ We would spend a fortune on long distance if someone had to dial in to our system, and, of course, that is the only way to dial in to our customers. Setting up an internet connection is expensive, and we would probably have to hire someone to do it. It also drags security issues in as well.
2) Relocation
I don’t exactly know how to sell you on Connecticut. Our new office promises to be very nice. You will have the biggest office with three windows. We will make sure that you have whatever you need to be productive. I have made a commitment to everyone to make the work environment so nice that people will love to come to work.
As I said, we have no death marches.
I think you will like working with our staff. If there was any negative feeling in our office, it left with Jamie. We are in the process of hiring an administrative assistant.² If you don’t like the person we hire, you can get someone else.
The area is pretty nice. The weather is certainly no worse than Pittsburgh’s.
We are two hours from Boston, which is full of activity. We are only three hours from New York by train. Vermont is only 1.5 hours. The long island shore is an hour or so.
You will have to make new friends. That is never easy.
We would REALLY like you to come see what we have to offer. Denise is eager to show you Northampton, MA (about 20 minutes north), where she went to school.
3) Compensation
I am pretty confident that the compensation issue can be worked out without much difficulty. I told you about how much Doug had been making. I neglected to tell you that 2/3 of that was in commissions. I think that we need to revamp the compensation scheme somewhat. Doug concentrated on new AdDept sales. It took him a few years, but eventually his efforts outstripped our ability to support the new customers. I get the distinct impression that you aren’t interested in that kind of job. We want to sell AdDept systems, but we think we need to develop other sources of income as well.
We propose that you receive 35% of the profit on hardware sales; 10% of the revenue on AdDept sales (assuming I take all the sales trips by myself); 20% of AdDept module (e.g., CAPS interface) sales; and 50% of “project management” income. The last would be defined as any trips (at $900 a day) that you get customers to agree to let you take. If you can persuade them to pay you without taking a trip, all the better.
You will be part of the process of developing new products or services. We will negotiate with you what percentage you get.
The starting base salary would be $50,000. e will agree to pay you an additional $2,000 per month as salary in lieu of commissions for the first twelve months. If your commissions were $500, $4,000, $800, and $3,000 in the first four months, you would be paid $2,000, $2,500, $1,500, and $2,300.
We have done no marketing in more than two years. Nevertheless, in the next year I think that one AdDept sale is almost certain (Carson’s)³ and one is likely (Dick’s)⁴. It is possible that Dick’s will happen very soon, in which case I will have to pay Jamie commissions. There are two almost certain hardware sales (Carson’s and a box for Saks Inc.). At least three or four customers could definitely use faster boxes, and the new 170’s are very attractive.
Adapting to life in a small company will not be easy for you. On the other hand, I think that the profiles of TSI and René Conrad mesh well. We are stable, free of debt, and full of kindred spirits. We need a smart, aggressive, well-connected person. You’re it.
Have you seen the W.C. Fields movie, “The Bank Dick”⁵? Fields’ character Edgar Soucè (accent grave on the last syllable) has a prospective son-in-law named Og Oggleby who works in a bank. Fields is trying to talk him into embezzling money to invest in shares of stock in The Beefsteak Mine. The pitch is “You’ve got to take a chance when you’re young.” Soucè explains, “My uncle Huffnagle, a balloon ascentionist, took a chance. While he was aloft in his balloon one day, he espied a haystack 2,000 feet below him He took a chance. He jumped out of the balloon and aimed his flight at the haystack.”
“Gosh,” says Og. “Did he survive?”“Uh, no,” says Soucè. “But that’s the point. If he’d been a younger man, he might have. You’ve got to take a chance when you’re young.”

We contacted René, and arranged for her to fly to Connecticut and spend some time talking with us in our new office. We bought a round-trip plane ticket for her and arranged for her to stay at the nearby hotel, which was, I think, a Best Western at the time.

I picked up René at Bradley on, I think, a Saturday morning in December 1999 or January 2000. Denise drove in from her house in Stafford. We tried to explain that the situation at TSI was very positive, but we wanted to hire someone who could help us face the issues of the twentieth century. René’s biggest concerns were the fact that she was used to fixed goals and rewards for meeting them and whether her presence would be required in Connecticut. Unbeknownst to me she had strong ties to Pittsburgh and was not impressed by the social scene in the Hartford-Springfield area.

A few days before Denise and I left for our trip to PartnerWorld in San Diego I received a letter from René in which she declined our offer. It was disappointing but not surprising. When we got back from San Diego, I wrote up my thoughts for Denise’s consideration and then on February 7 I set this letter to René:

Denise and I were disappointed but not very surprised to receive your letter. I think that the three of us would have had an enjoyable and successful time working together, but there is more to life than work. At least, I think I read that somewhere.
We both gave careful consideration as to whether the job could be performed remotely. We also examined whether there was a feasible arrangement that involved two weeks here and two weeks there. The thing is that we want someone we can work closely with, and we just don’t see how that would be practical without the person being in the office. Denise and I often have impromptu conferences, and I think that the close sharing of ideas has helped the company immensely. Our primary objective is to find someone with slightly different experiences and a somewhat different outlook to join in the process.
We are still convinced that you would have been the best person for the job, but we accept that we now have to look elsewhere. We both look forward to working with you.

We did not get to work with her for long. In 2002 the May Company moved the administration of the Kaufmann’s stores to the headquarters of the Filene’s division. René began working with a local non-profit theatrical organization, about as different from TSI as imaginable.

TSI did not get to add Dick’s, which is also in Pittsburgh, to its client list until 2004. On a training trip I met up with René. She showed me where she worked, and we had supper together.

What if?: It is difficult to say how different things would have been if we had hired her. In the short term there might have been very positive results. I wrote on February 17, “It occurred to me in a fit of melancholy at 5 PM on Friday that René Conrad could probably have forestalled the Cato fiasco. She could also probably have taken the Meier & Frank trips, or at least one of them.”

On the other hand, she could not have helped us much with the May Co. It is almost impossible to imagine getting much more work from them. Perhaps she could have penetrated the barriers that Macy’s set up, and we could have continued our relationship with them after the grand consolidation. Even if she did, how would it have helped us.

I don’t think that she could have helped much with A^xN. Denise came up with a great solution to the problem of marketing it to newspapers. I cannot imagine what René she could have figured out a way to use the connections we established between advertisers and newspapers for some other purpose that was valuable to one or the other.

While working on this project I contacted René through LinkedIn. Her page is here.

1. In 2023 it is strange to read about concern about telephone charges. At the time we used MCI for long distance. Every month our bill was in the thousands..A few years later our network and Internet connections made it feasible for employees to sign on to our AS/400 from home through a local carrier. In fact, one of our programmers, Michael Davis (introduced here), did this from Pittsburgh after changing from local employee to remote contractor. Denise worked from her home on Cape Cod during the last year of so of TSI’s existence.

2. The administrative assistant whom I hired was Nadine Holmes (Introduced here).

3. I can hardly believe that I was ever “almost certain” that TSI we would get Carson’s (introduced here as P.A.Bergner). Steve VeZain must have told me or Doug something that I later repressed.

4. The Dick’s Sporting Goods installation has been described here.

5. I planned to insert a link to this routine, which I consider the best comedy sketch ever, on the Internet, but I could not find it posted anywhere.

1994-2014 TSI: AdDept Client: Saks Fifth Avenue

Posted on January 27, 2022 by Mike

TSI had a long but bumpy association with SFA. Continue reading →

Saks Fifth Avenue (SFA) is more than just a store. For decades it has been a chain of high-end department stores throughout North America as well as numerous smaller affiliated stores. In the early nineties its headquarters was in its famous flagship store on Fifth Avenue in Manhattan. The first Saks store was opened in 1867, and for decades the enterprise was owned and operated by the Saks family. However, since 1923 Saks has been owned and controlled by outside organizations except for a two-year period beginning in 1996 when it was a public corporation. Even then 50 percent of the stock was retained by its previous owner, the Bahrain-based firm, Investcorp.

I, of course, was blissfully ignorant of most of this when, in the early nineties, TSI began pitching the AdDept system to the advertising department of Saks. In fact, my presentation to Saks may have been the first one that had a fairly serious chance of succeeding. I don’t remember the demo, but I surely gave one at the IBM office on Madison Avenue. I also definitely visited the office of the Saks’ advertising department, which at that time was on one of the upper floors of the store on Fifth Avenue to collect the requirements for the official proposal.

It did not take me long to realize that SFA was very different from Macy’s. The Senior VP at Saks was a woman, and her secretary was a man. I am embarrassed to report that I don’t remember either of their names. Theirs was an unusual setup in the early nineties. More surprising to me was the fact that around his desk were posted large glossy photographs of shirtless male models.

Saks’ advertising department was responsible for more than just the Fifth Avenue store. There were dozens of full-line stores that bore the SFA logo strategically positioned around the continent in locations with the requisite number of rich people. They also managed the little advertising done for even more Off Fifth outlet stores that sold the merchandise that had not been sold at the SFA stores. They also had responsibility for advertising for the Armani Exchange stores. I never quite understood why.

This was the OTS at 700 N. Michigan Ave. in Chicago.

For me the most surprising thing about Saks’ approach to advertising was its focus on New York City. Macy’s focus was somewhat similar, but their primary purpose in purchasing AdDept was to be able to hand additional markets. Saks divided their SFA stores into two groups: New York and OTS, which stood for “out-of-town stores.” Their newspaper advertising was heavily focused on the New York Times. They may have used Newsday for the Long Island store, but I don’t think that they used the other tabloids at all.

Saks also advertised very heavily in fashion magazines. In some ways the system could treat magazines as newspapers that only published one issue per month, but in other ways they were quite different. A fair amount of programming was required to handle Saks’ advertising in Vogue and other such periodicals.

Saks signed a contract with TSI in 1994, which was a banner year for the company. I made sure that all of the users of and prospects for the AdDept system knew that Saks was now on our client list by including the news in an issue of Sound Bytes, TSI’s short-lived newsletter.

At Saks Fifth Avenue, the national retailer based in Manhattan, the implementation of the AdDept system is scheduled for May 1. Advertising personnel will be connected to an AS/400 located at the company’s data center in Lawrenceville, NJ, through a Token Ring network. Both Mac and PC users in all areas of the department and the advertising business office will have access to the data. In addition to the wealth of standard features in AdDept, custom programming will provide the department with the ability to produce advertising schedules by store, to track advertising expenses (gross, vendor, and net) by merchandise vendor, and to produce change reports that conform with the way that the department is organized.

Reading this blurb again brought to mind a few unusual aspects concerning the installation.

I made at least one trip to Lawrenceville, which is closer to Philadelphia than to Fifth Avenue, probably at the time when the AS/400 was installed in 1994. Almost never did anyone from TSI deal with anyone from that facility, and they had never had a hardware problem. However, several years later we received a very strange phone call from someone there who requested that someone from our office dial into the system over the modem. They said that no one could remember where they had put it; they hoped that the noise produced by the modem—it never answered on the first ring—would lead them to it. Apparently it worked. In 1998 all of Saks’ computers were moved to the Proffitt’s Inc. facility in Jackson, MI. I installed a newer faster machine there.
My recollection is that Saks used very little of the custom programming that TSI had coded and implemented at the time of the installation until Tom Caputo arrived eight years later. They mainly used the AdDept system as an easier way to key in expenses for their accounts payable and general ledger systems, which AdDept was designed to feed.
The phrase “the way that the department is organized,” brought back memories of the difficulties that I encountered while training at SFA. The ROP (i.e., newspaper ads) manager, in particular, was quite uncooperative in helping me understand how she worked. She evidently considered ROP her own little fiefdom, and suspected that revealing the knowledge of how her area worked might affect her job security. This was by no means the last time that I was faced with this sort of heel-dragging.

I remember a few other details about that initial installation:

I heard one interesting story related by an employee at Saks. The person at the headquarters who monitored sales by store had been very concerned because the Beverly Hills store in California had in the previous few months posted much lower sales than expected. A call to the store manager revealed a simple explanation: “The princess died.” Evidently a Saudi princess had been purchasing so much so regularly from the store that her untimely demise had dramatically deflated the the store’s total revenues.
Once or twice I spent consecutive days in Manhattan during the installation. Saks arranged for me to stay in a luxurious room at the nearby Sheraton. It was by far the nicest place in which I ever stayed for business.
I remember that on one occasion SFA had asked for a day of training, for which TSI charged $1,000. I discovered when I arrived in Manhattan that no one who actually used (or had any intention of using) the AdDept system was available to spend time with me. So, for several hours I “trained” three interns. For all of them English was a second language. One was named Oscar; I don’t remember the other names.

In subsequent years I was not a bit happy with the state of the installation at Saks. It made me realize that the success of our installations was largely dependent upon the strength of our liaison. The person needed to have the ability to grasp the intricacies of the system, a personality adaptable to working with both TSI and the users of the system, and the clout (direct or indirect) to deal with problems once they had been identified.

I very much wanted to use Saks as a reference account, but they used so little of the system that I was reluctant to mention them. I was frankly puzzled as to why it seemed so difficult to get anyone outside of the finance area interested in making the system work for them. The person with whom we worked the most was Jeanette Igesias¹. She was conscientious enough, but she had neither the authority nor the inclination to involve any of the other areas more fully.

In 1998 the retail world was shocked to learn that Saks Holdings, Inc., the parent company, had been acquired by Proffitt’s Inc.², a company that a few years earlier consisted of a set of stores in Tennessee that could have all fit easily inside the Saks store on Fifth Avenue. Almost immediately after the acquisition the parent company’s name was changed to Saks Inc.

Shortly thereafter I was in Birmingham, AL, to work with employees of the advertising department for the Parisian³, a chain of department stores that Proffitt’s Inc. had previously acquired. The corporate headquarters was also located in the same building. I happened to encounter the same Senior VP from Saks’ adverting department whom I had met in the early nineties. She was there to meet with people from what was then still called Proffitt’s Marketing Group (PMG). She knew that I had been frustrated with the pace of the installation at SFA. She even remarked that maybe under the new ownership they could get something done.

At about this time Ava John was hired by Saks. I think that she worked under Jeanette until Jeanette left SFA in 2002. Thereafter Ava was TSI’s principal contact for the part of the system used by the advertising business office, which included recording invoices that were uploaded to the corporate accounts payable system.

In 2008 Ava was arrested and charged with running an embezzlement scheme that netted her and her friends and relatives more than $680,000 over the course of five years. That may seem like a lot, but it was only a little over $10,000 per month, a tiny fraction of what Saks spent on advertising. I discovered a single mistake at another installation that was about as large as this.

At the time I did not hear about any of this, and, to the best of my knowledge, neither did any of TSI’s employees, but the scandal was reported in all three of New York’s major dailies. The Post‘s coverage can be read here. I was unable to discover anything posted on the Internet about the ultimate legal resolution. I also know nothing more about Ava.

In 2001 Tom Caputo, who had been TSI’s primary contact at Lord &Taylor⁵ for several years, was hired by Saks. He had a number of responsibilities in the advertising department, one of which was to oversee the AdDept installation. Tom’s office was not in the flagship store, but in an office building across the street. I met with him there several times. I cannot remember what projects we did for them, but I remember that Tom seemed frustrated with the situation there, or, more likely with what the world of retail had become in the twenty-first century.

Tom stayed at Saks until 2014, the same year that Denise Bessette and I decided to shut down TSI. I had one further contact with him. He asked me if I knew of any job openings that he would qualify for. I had to reply in the negative. By that time the demand for both people and software that was adept at administering the advertising for large national retailers was negligible. I felt sorry for my many acquaintances who were not able to disassociate themselves from this undertaking as smoothly as we did.

In 2007 Saks was spun off from the other department stores that were part of Saks Inc. The executive who had cobbled together this retail giant, R. Brad Martin, summarily abandoned the leadership of the rest of the stores to someone else and elected to run just SFA. His decision to remove the jewel from the crown was described in this New York Post. article.

In 2013 the company was purchased by the Hudson Bay Company, the oldest corporate enterprise in North America. The company had already purchased Tom Caputo’s previous employer, Lord & Taylor. One of the last projects that I worked on at TSI was helping with the migration of SFA’s AdDept system to the HBC computers located somewhere in Canada.

There are still many Saks Fifth Avenue stores. HBC opened a huge store in Toronto in 2014 and at least two other stores in Canada. Administration of all of the stores seems to be split between Toronto and New York.

1. Jeanette Iglesias’ LinkedIn page can be found here.

2. Much more about TSI’s relationship with Proffitt’s Inc./Saks Inc. is available here.

3. Details about the Parisian installation of the AdDept system are provided here.

4. You can read about this major boo-boo here.

5. The history of the AdDept installation at Lord & Taylor is documented here.

Wavablog

Memoirs, bridge, popes, travel, and other stuff

Tag Archives: Bessette, Denise

2004-2014 TSI: AdDept Client: Dick’s

2002-2005 TSI: Bringing AxN to Market Part 2

2002-2014 TSI: AdDept Client: Belk

1999-2000 TSI: Finding the Best Person

1994-2014 TSI: AdDept Client: Saks Fifth Avenue