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 AxN. 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.
Designing our flag and running it up the pole to see if anyone salutes. Continue reading →
By the spring of 2000 Denise Bessette and I had pretty well outlined the steps required to implement TSI’s new Internet product and agreed on the name AxN (pronounced “A cross N”). It was a clearinghouse for insertion orders (reservations for advertising space) sent from advertisers (A) to newspapers (N). It also managed communications from both sides and allowed the newspapers to confirm the orders online. The process that Denise and I employed, including the division of labor, was described here. Details of the system design are posted here.
I should note that neither Denise nor I have a background in marketing. Most of our discussions about this project took place during the period shortly after Doug Pease, or marketing person left TSI. We had not yet replaced him.
The first non-technical question that we faced was how to fund the project. We never really thought about setting aside a pot of money, borrowing from a financial institution, or seeking investors. Instead, all of the coding made use of tools that we already had or were available at minimal cost. We knew that the company would eventually need to spend some money on marketing, but we had no idea how to budget for it in advance.
A critically important aspect was deciding how we would bill for the service. The insertion orders always originated with AdDept programs on the AS/400s used by TSI’s clients. However, for various reasons no more than twenty of them regularly produced insertion orders inside AdDept. We were already charging those companies a monthly fee for TSI’s support of the AS/400’s faxing software. How much more could we charge them? Most of them knew the limitations of faxing, but removing them was not a high priorities for any of them.
In 2022 the Tribune Company owns the Courant. The building that I visited has been abandoned.
On the other hand, the companies that used AdDept ran ads in hundreds of newspapers, and for most of those papers the department stores were by far the biggest purchasers of advertising. It was not unheard of tor some of these companies to spend hundreds of thousands of dollars per month for ads in a single newspaper. In order to assess the situation better I scheduled appointments with executives at the two major papers that were within easy driving distance, the Hartford Courant and the Springfield Union News & Sunday Republican1.
I explained our proposed approach to an executive at each publication.The lady at the Courant was not very enthusiastic about the idea, but she did say that the paper would consider whatever the customers wanted. She emphasized that the newspapers were already paying third-party services in order to receive the ads electronically.
The guy at the Republican was more engaging. He showed me the process of how his employees laid out an issue of the paper. They did not start by placing the stories in a way that would make the paper more attractive at the newsstand. They began by figuring out where the ads from Filene’s2, the May Company’s department store chain that dominated New England, would run. He said that sometimes they did not receive the ads until minutes before press time—or even later. However, they always held the space for every ad that Filene’s had scheduled.
So, both Denise and I concluded that TSI should bill the newspapers for the service and to offer it to the advertisers as an alternative to faxing at the same price, thereby bringing their net costs to zero. The big questions were how much to bill the newspapers and how to frame it. It did not seem right to bill the large newspapers the same amount as the smaller ones. The pricing had to seem both moderate and equitable.
Denise came up with the idea of five or so tiered billing amounts, where the tiers were determined not by a paper’s circulation but by its published column-inch rate. These rates were available in a publication called Standard Rates and Data to which most advertising agencies in those days subscribed. I had seen the huge books lying around at our agency customers. I asked employees at Keiler Advertising if I could have an obsolete copy. They gladly located a fairly recent one and gave it to me. I discovered that the rates3 for newspaper advertising varied wildly. As I remember it, we decided to set the floor value for the top tier of AxN rates at $150. So, any paper that with a standard rate of $150 or more per column inch would be charged $150 per month. Other papers would be charged proportionately less
This proved to be a rather easy concept to explain to the newspaper. Because the advertiser and the newspaper both benefited, the costs would be split between them. The newspaper rates were proportional to the publicly recognized value of the ads in their paper. Our fee was roughly equal to the price of one column inch of advertising space. The size of a full-page ad in a broadsheet newspaper was over 120 column inches. TSI’s fee would be a pittance to newspapers, most of which were still thriving financially in the early twenty-first century. If we could present the system as reducing the number of misunderstandings, the cost for the newspaper could easily be justified if even one free make-good were eliminated every few years.
In 2001 I made two trips to locations of AdDept clients to assess the feasibility of AxN for both the advertisers and the newspapers. The first trip was in January of 2001 to Houston, a city with two large AdDept installations, Stage Stores4 and Foley’s5. I gave fairly detailed demonstrations to the buyers of newspaper space at both locations. I showed the system to Stage Stores first. Here are some of my notes from that trip.
The AxN presentation went pretty well. Becky (Newman), the production manager, made a point to tell me that she was very interested in it. They also gave me a lot of suggestions as to what they needed, especially in the inserts area.
After the demo Becky showed me the AdDirect6 website. It is in many ways similar to ours. They list all of their clients. The only retailers are M&F8, L&T9 (who doesn’t use them), Stage, and Office Depot. The coolest thing about the site is that you can determine which fields are displayed as columns (but not the order of the columns). You can also specify up to three sorting fields. Finally, you can specify a filter to limit the list. Stage would like all of these. They would be less useful to others.
Stage pays AdDirect $10,000 per month. They plan to negotiate the charge down.
… Fort Worth(less) Star Telegram invoice for $500K. Foley’s never indicated that they thought that the papers would be reluctant to pay a little for the IO service. They seemed to think that they would do whatever they told them to do.
Foley’s was under the mistaken impression that all of the other divisions were using AdDirect.
The second trip was to Pittsburgh. I demonstrated the system to the advertising department of Kaufmann’s9, the May Company’s division that was based there. I was able to show the newspaper buyers on their own PCs that very little would be different when they began to use the AxN code that had been added to the AdDept system with which they were familiar. It was really just a matter of flipping a switch for each paper. The system did the rest.
I then signed on to TSI’s AS/400 from one of their PC’s and showed them what orders would look like from their perspective. I showed them in the AxN Handbook for Newspaper Users (posted here) what the orders looked like when the rep signed on with the newspaper’s credentials. They were very impressed.
After explaining how we planned to bill the newspapers, I asked Mary Ann Brown how difficult she thought that it would be to get the newspapers to cooperate. She said, “They’ll do whatever we tell them to do.”
I had appointments the next day with Pittsburgh’s two newspapers, the Post-Gazette and the Tribune Review. At the Trib I met with an IT guy. He found what we were doing very interesting. He verified that all the reps had access to the Internet, and he was quite pleased that our approach did not require him to purchase equipment or reconfigure what he had. The lady who was Kaufmann’s rep at the Post was more stand-offish, but she verified Mary Ann Brown’s assessment of their willingness to cooperate.
My third appointment was at the Cleveland Plain Dealer. I rented a car and drove to Cleveland for an afternoon meeting with Kaufmann’s rep. I soon discovered that we had a common acquaintance. He had just returned from a trip to Albany. He had met there with Fran Lipari, the owner of Communication & Design10, the agency that handled the Key Bank account. The rep was polite, but he was not a bit enthusiastic about the prospect of paying TSI for handling insertion orders.
I rated my success level at the three newspapers as a win, a loss, and a tie. That was not a great result, but we were still in the ball game. We were just at the stage in which we were ready to roll the product out to the first advertiser when something remarkable happened.
In 2001 TSI received a telephone call from someone at Belk11, a department store chain that was (and still is) based in Charlotte, NC. In the next few months I made many trips to Charlotte to discuss with them the use of the AdDept system. Since Belk already owned several AS/400s, the time between their approval of the AdDept contract with the accompanying design document for proposed enhancements and the beginning of the installation period was much shorter than usual. I remember that at one of those early meetings I was explaining how the AS/400 could automatically fax the insertion orders to the newspapers. Someone asked if it was possible to use the Internet to send the orders.
Guinea pigs love to whistle. Be careful; if you pick one up by its tail, its eyes will fall out.
I swear that I did not plant this question, but if I had thought of it ahead of time, I probably would have. I informed them that TSI had indeed developed just such a product, and we were about to roll it out to our existing customers. After I explained how it worked, Belk eagerly agreed to act as TSI’s guinea pig (sorry; I meant to type “Beta Site”) for AxN. This was such an ideal situation that I could scarcely believe it.
How TSI persuaded nearly all of the users of AdDept and hundreds of newspapers to sign up for AxN is explained in Part 2, which is posted here.
1. The name of the paper was changed to Springfield Republican in 2001.
2. Filene’s used AdDept for accounting functions, but only because the May Company insisted. I was never able to persuade the newspaper manager to abandon the elaborate set of spreadsheets that he had developed even though it did not produce insertion orders. The painful story of my attempts to get them to use more of the system have been chronicled here.
3. Most department stores negotiated much lower rates than the published ones. They often had complicated agreements about volume discounts.
4. The “standard rate” was the “open” rate for a black & white ROP ad in a daily edition. It did not include any discounts or premiums. I located a web page that actually included a page in one of the 2005 editions of Standard Rates and Data. It showed the complete rate card for the St. Petersburg Times, which happened to subscribe to AxN. It is on p.3 of the pdf posted here. SRDS, the company that published the physical book, now allows subscribing advertisers and agencies to view the rates on the Internet.
Becky Newman’s LinkedIn photo.
5. TSI’s long relationship with Stage Stores is recounted here. I do not have vivid memories of Becky Newman. Her LinkedIn page is here.
6. Foley’s was one of the earliest users of AdDept. The details have been posted here.
7. I have only a vague recollection of AdDirect. Apparently it was a way of entering ads for insertion orders online one at a time. The orders could be sent to the newspapers. This might be a reasonable approach for an ad agency, but retailers ran the same ad in many markets. Entering these one at a time would be unduly burdensome. If the $10,000 figure is correct, then the AdDept-AxN combination saved Stage a heck of a lot of money over the years.
8. M&F is Meier & Frank, the smallest department store division of the May Company. It was based in Portland, OR. Details of the AdDept installation at M&F have been posted here.
9. L&T refers to Lord & Taylor, the May Company division based in New York. The relationship between L&T and TSI is described here.
10. Much more has been posted about the AdDept installation at Kaufmann’s here.
11. Communication & Design (always “&”, never “and”) was one of the first ad agencies to purchase the GrandAd system. My adventures in installing and supporting that system are described here.
12. The details of TSI’s long and productive relationship with Belk are posted here.
As soon as the AdDept system at Macy’s in New York (described here) was running reasonably well, the May Department Stores Company became the most attractive marketing target for the system. The largest advertiser (at least in newspapers) in central … Continue reading →
The G. Fox & Co. store in downtown Hartford.
As soon as the AdDept system at Macy’s in New York (described here) was running reasonably well, the May Department Stores Company became the most attractive marketing target for the system. The largest advertiser (at least in newspapers) in central Connecticut was—by far—G. Fox, a traditional department store similar to Macy’s that was based in Hartford. They even had a store that was within walking distance of our new house in Enfield.1 I was well aware that G.Fox was part of the May Company and that the May Company was largely responsible for the development of the mall.
I had purchased a book from somewhere that contained marketing information on large retailers. In it I learned that the May Company, which had been in business since 1877, operated the following divisions in 1989:
G. Fox & Co. based in Hartford.
The Hecht Company with headquarters in Arlington, VA.
Filene’s, a former Federated division based in Boston.
Foley’s, a former Federated division based in Houston.
Kaufmann’s in Pittsburgh.
Famous-Barr in St. Louis
J. W. Robinson Co. in Los Angeles.
May California in Los Angeles.
May D&F in Denver.
May Ohio in Cleveland.
Lord & Taylor in New York.
Meier & Frank in Portland, OR.
Venture, a chain of discount stores based in O’Fallon, MO.
Payless, a chain of shoe stores based in Miami.
That’s fourteen independently run divisions that were, except for maybe the last one or two, good prospects for the AdDept system. I figured that if we could persuade the parent company to commit to using AdDept in all of its divisions, TSI would be set for life. Maybe they would even buy us! That was the way that small software companies thought (and dreamed) in the late eighties.
In fact, the May Company during that period was busy acquiring other department stores, and that attitude put a lot of stress on the advertising departments of the divisions that acquired the new stores. There is no doubt that the May Company’s acquisition of thirteen Thalhimer’s stores in 1992 was the impetus for Hecht’s to purchase the AdDept system that year.2 Hecht’s advertising department had been using a PC-based system for producing corporate reports. It was completely incapable of handling the extra load. Similarly, when May D&F was folded into Foley’s in 1993, the Houston division suddenly was facing a greatly increased workload. That caused them to call TSI for help, and we installed an AdDept system for them.3 Capacity was never an issue for AdDept; we always proposed hardware near the lowest end of the available AS/400 models. If a client outgrew its hardware, it could migrate to a more powerful model.
Filene’s store in Boston.
In 1993 G. Fox was absorbed by the Filene’s division. Having a pretty good idea of the problems that this would cause for the advertising department of Filene’s, we tried to interest them in using AdDept. However, for reasons that I have never completely understood, we were unable to get our foot in that door for many years. Filene’s advertising department never took advantage of a significant portion of the system productively enough that we were able to use them as a reference.4
Instead, our third May Company installation was at Lord & Taylor5, where I learned that L&T did not play by the same rules as the other divisions. In some ways that caused headaches; in other ways it was delightful.
Doug Pease: In 1993 Sue and I hired Doug Pease to handle our marketing. One of the primary reasons that we selected him was because he had formerly worked in G. Fox’s advertising department in Hartford. He was looking for a job because the G. Fox stores had been converted to the Filene’s logo, and the advertising for those stores was planned and purchased from the office in Boston. Doug was quite familiar with the work flow of an advertising department that was similar to the ones that TSI was targeting, and he also had some contacts in the industry. Our hope was that he could grab the brass ring of the May Company for us while I was busy trying to get the systems for the three divisions—and a few other retailers—that we had sold up and running.
This was a very important time for TSI. My image of those days resembles a hockey stick. Until that time TSI had experienced rather flat earnings. We were basically just getting by. By contrast, in the last seven years of the twentieth century we had as much work as we could handle, and our financial statements were much better.
Unfortunately, I have almost no notes for that entire period. I talked with Doug on a regular basis, but my focus was on the current installations. I depended on him to establish a relationship with prospective customers. As soon as we hired him we did a mailing to prospective customers, and Doug took to the phones. He talked with several people at the May Company.
The main liaison person between the May Company and the advertising departments of its divisions was named Fred Christen. I never heard anyone say a bad word about him. He had, of course, heard about our work at our three installations, and he seemed to be impressed.
I am pretty sure that we had another “guardian angel” at the corporate headquarters. I often seemed to be at an advertising department at a division at the same time as a corporate auditor whose first name was Linus. His job was to assess the way that divisions were reporting their advertising expenses and income from co-op programs for their vendors. He seemed to be impressed with the way that AdDept handled these things.
May D&F store in Denver.
Fred Christen left the May Company shortly after Doug arrived at TSI. I heard that Fred left to manage his family’s business. Doug established a relationship with Fred’s successor, Dennis Wallace. I am pretty sure that Doug made at least one trip to St. Louis, but I don’t remember the details. At any rate, at some point the May Company decided that AdDept should be installed in all of the department store divisions. At that point Robinsons and May California had merged, May D&F had been folded into Foley’s, Kaufmann’s had taken over the May Ohio stores6, and the May Company had divested the Venture stores. So, we learned about five new clients in one swell foop: Famous-Barr7, Filene’s, Meier & Frank, Robinsons-May, and Kaufmann’s.
In retrospect I find it rather incredible that I have so little recollection of the details of how or when this decision came about. It was definitely a momentous occasion for TSI, but I remember no fanfare or celebration at all. I don’t think that the deal was finalized until 1996 or 1997. In the interim I installed quite a few AdDept systems at other retailers.
Employees at the May Company treated us fairly from day one right up until the time that the company was purchased by Federated in 2006. Most of TSI’s dealings with the May Company were at the division level. The following is a summary of my notes of our dealings with the corporate entity after all of the systems had been installed.
Notes: The first note that I have is dated October 18, 1999. It makes reference to a “sales tax fiasco”. I think that this must be about whether it was necessary to charge sales tax on our software and services. Because all of our AdDept clients were in other states, we were generally able to avoid doing so. However, there is an Excel file with a similar date that lists three invoices for Robinsons-May, which was in California, and three for Filene’s, which was in Massachusetts. Massachusetts and Connecticut had an agreement by which each collected taxes for the other. So, we definitely needed to charge Filene’s tax.
We also had a problem with California. TSI’s second accountant, whose name I do not remember, was hired in the early days of the AdDept system. She advised us to register with every state in which we had clients. This was poor advice, and we changed accountants shortly after that. However, there is no way to take back a company’s registration.
I vaguely remember an issue from several years earlier that involved an arrangement that my partner (and later wife) Sue Comparetto had made with Gottschalks, another store in California. In this case, the invoices were probably sent to St. Louis and paid by the May Company. We had never registered in Missouri, and we never paid sales tax there.
On January 2 of 2000 I wrote the following email to my other partner, Denise Bessette:
I think that we need to get something established as soon as possible with the May Co. to get compensated for your time and mine. Do you have any suggestions? I also think that it might be time for one or both of us of us to go to St. Louis and talk turkey with them. I am serious about this. I really am tired of not knowing where we stand.
I found a six-page document dated February 7, 2001. It concerned the specs for a Planning System Interface. Evidently they had an application called WD that they wanted to feed. They provided me with a document describing the system that had at least sixty-seven pages. Evidently we had been talking about this for at least two years. The document lists my questions and their incredibly vague responses. No one could conceivably quote an interface based on the responses that we received. I only vaguely remember this whole process. “WD” sounds familiar, but I am pretty certain that we never quoted it, much less coded it.
Denise and I went to visit the May Company together, but I think that it was in 2002. I went to St. Louis in 2001 to install AdDept for use by Filene’s on an AS/400 in the Midwest Data Center. I stayed in the Adam’s Mark Hotel. I did not like where they told me to stay. This is what I wrote to Denise.
My hotel room in St. Louis is absurd. It is a huge suite. I located a microwave and refrigerator inside what looked like a chest of some kind. For some reason it is much easier to find these two features in places where it is impossible to buy food (because I am downtown). The bathroom is right by the door, about a quarter mile from the bed. There are two TV sets, but no Jacuzzi, at least not in the room. The thermostat is out of whack. You have to set it to nearly 80 to keep the room from being frigid. I fear that they may not offer free breakfast here. They did not mention anything when I checked in.
It is supposed to rain all day here. There may even be thunderstorms. I was too lazy to run on Sunday. I will probably regret it today.
I hope that the May Co. has a comfortable nap room. I have become quite accustomed to the two-hour post-breakfast naps.
I think that the guy on the phone is Dennis Wallace. I don’t recognize the other two.
I remember that room and the rain much better than I remember what I did at the May Company. On subsequent visits I stayed at a nearby Hampton Inn. Incidentally, more than two decades later I still take lots of naps.
I found an agenda for a meeting with the May Company dated August of 2002. This must be the trip that Denise and I took together. Here it is:
TSI
People
History
Founded in 1979.
Advertising in 1981
Retail in 1988.
First May division (Hecht’s) in 1991
Custom programming
Good at diagnosis.
Incredibly efficient system of delivering custom code using BASIC.
Two principles:
There should be one version of the truth;
Everyone should be able to take advantage of work done by others.
People capable of completing difficult projects within parameters.
AdDept
Intent
All administrative aspects.
All media.
Easily customizable.
Require a minimum of local support — AS/400.
Retail advertising is difficult.
All the difficulties of retail — stores, merchants, accounting, A/P, and co-op
All the difficulties of advertising
Multiple media, each with almost completely different structure
Media scheduling, production scheduling, estimating, loan room, etc.
System design
Scheduling:
Every media represented in the ad file.
Open on-line database works best when each person updates the system with information as soon as it is available.
One main program, many well-normalized files.
History of significant changes:
Production.
Financial.
Financial:
One main set of files (header and detail).
Many front ends with supporting detail files.
Two months, three amounts.
Interfaces
Cost accounting (data warehouse)
Detail at the department level using May Company rules.
Can also be used for other purposes:
Planning
Store-level analysis
Add-ons
Productivity
Competitors
Loan room inventory and transactions
Photo studio
May future plans
Filene’s
Uniformity
Best practices
Technology
Explain CFINT
Explain performance of 5250 v. browser-based
Why “web-facing” doesn’t help
Explain V5
BASIC compiler.
Should we convert to C?
Should we convert to Net.Data?
Should we convert to WAS/Java?
Should we look to Wintel?
Can’t save back very far.
InfoPrint server allows output as .pdf files.
Browser-based programming requires VPN or the equivalent for support.
Other things
AxN.
Peggy Southworth labels.
What else?
Some of this has fled my memory. I do remember that CFINT was a program that regulated performance. Prior to version 5 of the operating system the users could allocate priorities for jobs between “interactive” jobs (5250 sessions on terminals or PCs) and “batch” jobs (everything else, including jobs that relied on something between themselves and the operating system, such as a Java server). IBM wanted to show that the Java jobs had good performance. To do so it slowed down all jobs that were running as interactive. Nothing that IBM had previously done was as hated as this tactic.
I also remember the Peggy Southworth labels. Every division was required to create these labels for each print media job in a precisely specified format. We wrote a program for one of the divisions to do this for them.
The notes indicate that Denise and I met with Rob Cole and Mike Henry. I only vaguely remember them. I have a more vivid memory of Lew Allder, who was a Vice President in the IT department. He showed us around the machine room and assured us that the small size of our organization was not an issue with him or anyone else at the May Company. Everyone with whom we talked was very supportive of what we had done and what we were planning for the future.
Don’t take the bridge across the river.
I also remember one incident that occurred when we were driving either from or to Lambert, the St. Louis airport. I made a wrong turn, and we found ourselves on the bridge that goes across the river to East St. Louis, IL. I had no interest in taking a tour of that town. When there was a break in the traffic I jerked the rental car’s steering wheel to the left, made a clean U-turn and headed back to St. Louis. I think that this maneuver shocked Denise, at least a little.
I tried to find information on what became of the May Company employees mentioned in this entry. However, I was not able to find any information on the Internet about most of them. After a good bit of digging I found Dennis Wallace’s LinkedIn page, which is here. In 2022 he appeared to be working for a company in Houston that provides technical assistance to the hospitality industry.
1. All right, I never actually walked to G. Fox’s store in Enfield Square mall, but I could have.
3. The account of the installation for Foley’s is provided here.
4. The troubled AdDept installation at Filene’s has been documented here.
5. The Lord & Taylor installation is described here.
6. Doug and I made a strong pitch to Debra Edwards at May Ohio, but the division was eliminated before we could close the deal. That “whiff” is described here.
7. I think that Famous-Barr may have already committed to getting AdDept before Doug arrived on the scene, but their decision was probably made because of the May Company’s commitment to the project. The installation at Famous-Barr is described here.
We had a very good record of closing AdDept sales. Most of the whiffs fell into one of two categories:
Divisions of Federated Department Stores. Our relationships with various Federated divisions are described in detail here. They are not included in this entry.
Companies that did not advertise enough to justify a high-quality multi-user centralized database. We actually sold the AdDept system to a couple of these anyway.
TSI’s first efforts to market AdDept were concentrated around New York and New England. I figured that there were not very many retailers who could afford the system to keep track of advertising, but, then again, I did not really expect to justify the cost of the system at Macy’s in the very first module that we activated—ad measurement.
The strip mall in which the Enfield store was located was named after Caldor.
Our first attempt was a quintessential whiff. Kate Behart (much more about her here) had been in contact with someone in the advertising department at Caldor, a discount department store based in Norwalk, CT. Kate arranged for me to give a presentation to them at the IBM office in Norwalk. Of course, we had to make sure that the office had the BASIC program, and I had to install both the AdDept programs and some data that I had dummied up from Macy’s real data.
My presentation was flawless. The only problem that I encountered that day was the lack of an audience. No one from Caldor showed up. We never did find out why not. Kate called them repeatedly, but no one returned her calls. It may have had something to do with the fact that in 1989, the year that we installed the first AdDept system at Macy’s, the May Company sold Caldor to a group of investment houses.
Caldor went out of business in 1999.
I also paid a visit to another local retailer, Davidson and Leventhal, commonly known as D&L. Theirs were not exactly department stores, but they had fairly large stores that sold both men’s and women’s clothing. So, they had quite a few departments. The stores had a good reputation locally. The headquarters was in New Britain, CT.
This D&L ad was on the back cover of the issue of Northeast that featured my story (described here).
The advertising department only employed three or four employees. They wanted to know if they could use the computer for both D&L ads and ads for Weathervane, another store that they owned, as well. That seemed vaguely feasible to me, and so I said they could. In fact, we later did this for Stage Stores and for the Tandy Corporation, but both of those companies were much larger, and I had a much better understanding by then of what it entailed.
I didn’t even write up a proposal for D&L. The person with whom I spoke made it clear that what we were offering was way out of their price range.
D&L went out of business in 1994, only a few years after our meeting. Weathervane lasted until 2005.
I have only a vague recollection of doing a demonstration at IBM’s big facility in Waltham, MA, for a chain of auto parts retailers from Phoenix. The name of the chain at the time was Northern Automotive. My recollection is that I spoke with a man and a woman. If they told me how they heard about AdDept, I don’t remember it. After a very short time it was clear that AdDept was much more than the company needed. Although Northern Automotive had a lot of stores with four different logos, it only ran one ad per week. So there was really not much to keep track of. I had the distinct impression that the demo was just an excuse for the couple to take a vacation in New England on the company’s dime.
I don’t remember either of their names, but the experience list on LinkedIn for a guy named Paul Thompson (posted here) makes him a strong candidate. Northern Automotive changed its name to CSK Auto, Inc. not long after our meeting. In 2008 CSK was purchased by O’Reilly Auto Parts.
Won’t Paul be surprised to be busted thirty years later in an obscure blog?
Tom Moran (more details here) set up an appointment with employees of Genovese Drugs at its headquarters in Melville, NY. The two of us drove to Long Island to meet with them.
I probably should have talked to someone there over the phone before we left. The only impression that I remember getting from the meeting was that they were not at all serious about getting a system. We had a great deal of trouble getting them to describe what the advertising department did at the time and what they wanted to do. I was frustrated because I had considered this a relatively cheap opportunity to learn how chains of pharmacies handled their advertising. It was actually a waste of time and energy.
Tom tried to follow up, but he got nowhere. We did not submit a proposal.
J.C. Penney bought the company in 1998 and rebranded all the stores as Eckerd pharmacies.
Woodies’ flagship store in downtown Washington.
While I was working on the software installation at Hecht’s in 1991, Tom Moran coordinated our attempt to land the other big department store in the Washington, DC, area, Woodward & Lothrop, locally known as Woodies. I found a folder that contains references to correspondence with them. Tom worked with an IBM rep named Allison Volpert1. Our contacts at Woodies were Joel Nichols, the Divisional VP, and Ella Kaszubski, the Production Manager.
As I browsed through the file, I detected a few warning signs. The advertising department was reportedly in the process of asking for capital for digital photography, which was in its (very expensive) infancy in 1991. Tom was told that they hoped to “slip in” AdDept as part of the photography project. Furthermore, the fact that we were not dealing with anyone in the financial area did not bode well.
Someone wrote this book about Woodies.
Finally, we had no choice other than to let IBM propose the hardware. Their method of doing this always led to vastly higher hardware and system software costs than we considered necessary. I found a copy of IBM’s configuration. The bottom line was over $147,000 and another $48,600 for IBM software. This dwarfed what Hecht’s had spent. If the cost of AdDept was added in, they probably were facing a purchase price of over a quarter of a million dollars! That is an awful lot to “slip in”.
I don’t recall the details, but I remember having an elegant lunch during this period with someone from Woodies in the restaurant of the main store. It may have been Joel Nichols. It seemed like a very positive experience to me. He seemed eager to automate the department.
We lost contact with Woodies after early 1992. I seriously doubt that the advertising department even purchased the photography equipment that they had coveted. The early nineties were very bad for retailers. By 1994 the owner of Woodies and the John Wanamaker chain based in Philadelphia declared bankruptcy and then sold the stores to JC Penney and the May Company. Many of the stores were rebranded as Hecht’s or Lord and Taylor.
In some ways Fred Meyer, a chain of department stores based in Portland, OR, seemed like a perfect match for TSI. At the time they were almost unique, and we usually excelled at programming unusual ideas. Their approach to retail included what are now called “hypermarket” (department store plus groceries) stores, although they definitely had some much smaller stores as well. The one in downtown Portland was very small. I really thought that we had a good shot at getting this account, largely due to the fact that the IT department already had one or two AS/400’s. So, the hardware cost would probably be minimal.
She would be lucky to make it in nine hours; there were no direct flights.
I was asked to work with a consultant who, believe it or not, commuted from Buffalo, NY, to Portland, OR. I can’t remember her name. She knew computer systems but virtually nothing about what the advertising department did. She wanted me to tell her what AdDept could do, and she would determine whether the system would work for them. I have always hated it when a “gatekeeper” was placed between me and the users. I understand that they do not trust the users to make a good decision, but advertising is very complicated, and almost no IT consultants know much about it. I would not have minded if the consultant sat in on interviews that I conducted with people in advertising.
If I was allowed to meet with anyone from the scheduling or financial areas of the department, I do not remember it at all. I do remember spending an afternoon with the head of the company’s photography studio. AdDept had a module (that no one used) for managing shoots and another (used by Macy’s East) for managing the merchandise that is loaned to the studio for a shoot.
I remember the photo studio guy mentioning that they also did billable work for outside clients. He mentioned Eddie Bauer by name. He could not believe that I had never heard of it/him.
I probably botched this opportunity. Before agreeing to come out the second time, I should have insisted on meeting with whoever placed their newspaper ads and the person in charge of advertising finance. I did not want to step on the toes of the lady from Buffalo, but I probably should have been more aggressive.
Kate accompanied me on one of these trips. We probably flew on Saturday to save on air fare. On Sunday we drove out to Mt. Hood, where we saw the lodge and the glacier, and visited Multnomah Falls on the way back.
Freddie’s was acquired by Kroger in 1998, but the logos on the stores were maintained. There still is a headquarters in Portland, but I don’t know if ads are still created and/or placed there.
Aside from our dealings with Federated divisions2 TSI had very few whiffs during the period that Doug Pease (described here) worked for us. After one of our mailings Doug received a call from Debra Edwards3, the advertising director at May Ohio, a May Company division that had its headquarters in Cleveland. Doug and I flew Continental non-stop to Cleveland and took the train into downtown. My recollection was that we were able to enter the store from the underground train terminal.
The presentation and the demo went very well. I am quite certain that we would have gotten this account were it not for the fact that in early 1993 the May Company merged the Ohio division with Kaufmann’s in Pittsburgh. Management of the stores was transferred to Pittsburgh. Debra was hired as advertising director at Elder-Beerman Stores.
We stayed overnight in Cleveland and had time to visit the Rock & Roll Hall of Fame, which was right down the street from the huge May Co. building. I cannot say that I was greatly impressed with the exhibits.
A few years later Doug and I undertook a second trip to Cleveland to visit the headquarters of Sherwin Williams. Doug had talked extensively with the lady who was the advertising director there. He was very enthusiastic about the prospect of making this sale. By that time Doug had already closed a few big deals for us, and so I trusted his judgment. However, I could not understand how a company that really only sold one product could possibly need AdDept. Yes, they have thousands of stores, but how many ads do they run?
I don’t honestly remember anything about our discussion with them. Needless to say, Doug did not close this one, although he never stopped trying to revive it.
I don’t really count it as a whiff, but Doug was unable to close the deal with Liberty House in Honolulu after our epic trip to Hawaii in December of 1995. The details are recounted here.
I drove past two of the stores in Texas, but I never went inside.
Just as Marvin Elbaum had backed out of his contract with TSI for a GrandAd system in 1986 (as described here), so also one company signed an agreement for TSI’s AdDept system and, before we had installed the system, changed its mind. There was one big difference in the two situations. The second company was the Tandy Corporation, which had actually ordered installations of AdDept for all three of its retail divisions. At the last minute the company decided to close down Incredible Universe, one of the three divisions. The other two companies became TSI clients in 1997, as is described here.
It was not a big loss for TSI. IU was one of a kind. Its stores were gigantic multi-story combinations of electronics and theater. There were only seventeen stores, and only six were ever profitable. Those six were sold to Fry’s Electronics. The other eleven were sold to real estate developers at pennies on the dollar.
I did a demo for Mervyn’s California, a department store based in Hayward, CA. I think that I must have done the demo after finishing a training/consulting trip at Macy’s West in San Francisco. I cannot imagine that I would have flown out to the west coast to do a demo without spending a day or two gathering specs.
The IBM office nearest to Hayward was in Oakland. I took BART in the late afternoon from San Francisco to Oakland. There was quite a bit of excitement at the Holiday Inn at which I was staying. Someone had been murdered on the street in front of the hotel the previous night. There was one other very peculiar thing about this stay. I checked into a Holiday Inn with no difficulty, but I checked out of a different hotel (maybe a Ramada?). The hotel had been sold, and its ownership had changed while I was asleep.
The demo went fine. The guy who had contacted me—his name was Thiery or something like that—liked what he saw. However, the sale never advanced any further. This was almost always what happened whenever I got talked into doing a demo without taking at least a day to interview the potential users. At the time that I did the demo Mervyn’s was, unbeknownst to me, owned by Target. This might have explained the lack of progress. Target may have been restricting or rejecting any capital purchases at the time.
Mervyn’s was sold to some vulture capitalists in 2004. A much smaller version of the chain went out of business in 2009.
For some reason Doug and I once had a very short meeting with the president of Gottschalks, a chain of department stores based in Fresno, CA. He told Doug and me that he would get all of the other members of the Frederick Atkins Group to install AdDept. This organization (absolutely never abbreviated by its initials) somehow enabled its members to shop for foreign and domestic merchandise as a group. Nearly every department store that was not owned by the May Company or Federated belonged to it.
A few years after he made this promise he (or someone else at Gottschalks) arranged for me to speak before the members at one of their conventions in Naples, FL. I flew to Fort Meyers and rented a car from there. Naples was beautiful and reeked of new money. I gave my little spiel, but I did not have an opportunity to interact with any of the members of the audience. So, I did not get any direct feedback.
We eventually did sign up a few members of the group—notably the Bon-Ton (described here) and Elder-Beerman (described here). I don’t know whether my speech had any effect.
I think that the Frederick Atkins Group is defunct in 2021. The references to it that I could find on the Internet were all from decades past.
In (I think) 1999 Doug Pease and I made an unproductive trip to Columbus, OH, to talk with the IT director of of Value City about the possibility of installing the AdDept system for use by the advertising department. That adventure is described here.
First stop: Norfolk.
TSI got a phone call from a chain of furniture stores in coastal Virginia, Norfolk4, as I recall. As part of my crazy automotive support trip, I stopped by to talk with the advertising director at this company on my journey from Home Quarters Warehouse in Virginia Beach to Hecht’s in Arlington. I spent a couple of hours with him. When I discovered that the company had only three stores, I knew that this was a mistake. I told him that our software could address his problems, but the cost and effort would not be worth it for either of us. I advised him to hire someone who was a wiz with spreadsheets.
I think that I got a free cup of coffee out of it.
I can’t tell you what happened to the company thereafter because I don’t even remember its name.
We had two reasonably hot leads in 2000. I had to handle both of them myself. The first was at Bealls department store, which has its headquarters in Bradenton, FL. This was another situation is which I had to deal with the IT department rather than the advertising department. I am pretty sure that the company already had at least one AS/400. I have a few notes from this trip, but it is not clear whether I intended to do the demo on their system or on one at a nearby IBM office.
In any case I think that there was a technical problem that prevented a successful installation of the software needed for the demo. So, I had to improvise, and I did not get to spend much time with the people who would have benefited from the system. The whole thing made me very depressed.
I had some free time, and so I went to the beach. I stopped at a Jacobson’s store to buy a tee shirt to wear at the beach. The cheapest tee shirts in the store cost $100!
The beach was lovely, and it was unbelievably empty. The weather was pretty nice. A beach in Connecticut would have been packed in this type of weather.
All of these stores are gone.
We did not get the account, but the tale has an interesting coda. Bealls is still in business today. For years Bealls could not expand outside of the state of Florida because a different store with exactly the same name was already using it in other states. These Bealls stores were run by Stage Stores, a long-time AdDept client that was based in Houston. Stage Stores was still using AdDept when TSI went out of business in 2014.
In 2019 Stage announced that it was changing all of its stores into Gordmans, its off-price logo (which did not exist while I was working with them). When the company declared bankruptcy Bealls purchased, among other things, the right to use the Bealls name nationwide.
I remember going to Barneys New York in late 2000 to talk with someone in advertising. I also have discovered three emails that I sent to Christine Carter, who was, I think, either in charge of the advertising department or in charge of the financial side. Barneys only had twenty-two stores, and that included some off-price outlets. I don’t know how much they actually advertised.
Flagship store on 60th Street.
We never heard from them after my last email, which emphasized how easily AdDept could be adapted to differing needs even for companies the size of Barneys. By this time the very affordable AS/400 model 150 had been introduced. It would have been perfect for them.
I think that Barneys is dead or nearly so in 2021. All of the stores in the U.S have been closed, and even the “Barneys New York” brand was sold to Saks Fifth Avenue. However, the company also had a Japan division, which is evidently still operational.
I received a very unexpected phone some time in 2001 or 2002. It came from a man who had formerly worked at Saks Fifth Avenue and had taken a job as a Vice President at Sears. He knew that the advertising department at Saks had been doing things with its AdDept system that Sears’ advertising department seemed utterly incapable of. He invited me to the Sears headquarters in Hoffman Estates, IL, to investigate the possibility of installing AdDept at Sears.
At about the same time I had been in contact with the agency in a nearby town that Sears used for buying newspaper space and negotiating newspaper contracts. They wanted to talk with me about the possibility of working together. The agency’s name was three initials. I think that one was an N, but I am not sure.5
I arranged to spend consecutive days at the two places. It was cold on the day that I visited the agency. I learned that it recruited new clients by claiming that they could negotiate better rates for them because they also represented Sears. I suspected that this was baloney. Sears was a bid dog nationwide, but the amount of newspaper ads that they bought in any individual market was not that impressive. They were just in a lot of markets.
After the people explained the services that they offered to clients, I remarked that about 10 percent of what they did overlapped with about 10 percent of what we did. Privately I could not imagine that any of our clients who would benefit from their services.
I told them about AxN, our Internet product. They informed me that the papers did not want to sign on to their website for insertion orders. Of course, they wouldn’t, and they had nothing to hold over the papers.
We ended the meeting with the usual agreement to stay in touch and look for synergies, but privately I considered them the enemy.
I did not see a parking structure. Maybe I entered on the wrong side of the pond.
The next day was bitterly cold, and there was a strong wind. I located the sprawling Sears complex and parked my rented car in a lot that was already nearly full. I had to walk a long way to the main building, and I have never felt as cold as I did on that walk.
I could hardly believe it when I walked into the building. The ground floor was billed with retail establishments—a drug store, a coffee shop, a barber shop, and many more. I had to take the escalator up to get to Sears. I was met there by the woman with whom I had been in contact. She was from the IT department.
OK, now I get it. Our problem was that we did not have enough architects.
She took me up to meet the “advertising team”. Six or eight people were assembled in the room, and they all had assigned roles. I remember that one was the “system architect”, and one was the “database manager”. I almost could not suppress my amusement. What did all these people do? There was no system, and there certainly was no database. At TSI I handled essentially all the roles that everyone at the table described.
They asked me some questions about the AdDept system. When I told them that it ran on the AS/400, the system architect asked me if that system was not considered obsolete. I scoffed at this notion and explained that IBM had introduced in the AS/400 64-bit RISC processors that were state-of-the-art. I also said that, as far as I knew, the AS/400 was the only system that was build on top of a relational database. That made it perfect for what AdDept did.
I wonder how many “OS/2 shops” there were in the world.
They informed me that Sears was an OS/26 shop. I did not know that there was such a thing. In the real world Windows had already left OS/2 in its dust by that time. In all my time dealing with retailers I never heard anyone else even mention OS/2. It might have been a great idea, but IBM never did a good job of positioning it against Windows.
Besides, just because the corporation endorsed OS/2 should not eliminate consideration of multi-user relational databases where appropriate. The devices with OS/2 could serve as clients.
They explained to me that Sears’ advertising department had hundreds of employees, most of whom served as liaisons with the merchandise managers. Most of the ads were placed by agencies. I presume that the newspaper ads were produced in-house. No one whom I talked with seemed to know. The people on the committee did not seem to know anything about how the department did budgeting or planning.
The competition.
Someone talked about Sears’ competitors. The example cited was Home Depot. I don’t know why this surprised me. I must have been taken in by the “softer side of Sears” campaign a few years earlier.
After the meeting my escort took me to a remarkable room that was dedicated to the advertising project. It was a small theater that had ten or so posters on the wall with big Roman numerals at the top: I, II, III, IV, etc. There were no statues, but otherwise I was immediately struck by the resemblance to the Stations of the Cross that can be found in almost any Catholic church in the world. I asked what the posters represented. The answer was that they were the “phases of the project”. I was stunned by the assumption that the project required “a team” and that it was or indefinite duration. No one ever allowed us more than a month or two to have at least portions of the system up and running.
At some point I was allowed to give my presentation. The man who had worked at Saks attended along with a fairly large number of people. Maybe some were from advertising. I was never allowed to speak with them individually.
I never got to read the advertising department’s Wish Book.
My talk explained that AdDept was a relational database that was specifically designed for retail advertising departments. I described a few of the things for which it had been used by other retailers. I could not do much more than that. I had not been able to talk with any of the people in the department, and the IT people were clearly clueless.
When I returned to Connecticut I wrote to both my escort and the man from Saks. I told both of them that I did not know what the next step might be. I had not been given enough access to the advertising department to make a proposal. The whole experience was surreal. If someone had asked me to return, I would only have done it if I were granted unfettered access to potential users.
No one ever contacted us. I told Doug not to bother following up.
One puzzling whiff occurred during the very short period in which Jim Lowe worked for us. The strange case of Wherehouse Music is explored here.
Perhaps the strangest telephone call from a genuine prospect that I ever received was from Albertsons, a very large retailer with is its headquarters in Boise Idaho. The person who called was (or at least claimed to be) the advertising director there.
I had heard of Albertsons, but I did not know very much about the company. All I knew was that they were a chain of grocery stores in the west. Since advertising for grocery stores is basically limited to one insert/polybag7 per week, they had never seemed to be great prospects for AdDept. However, I never hung up on someone who expressed interest in the system.
The problem was that this lady insisted that I fly out to Boise to meet with her and her crew the next day. I tried to get her to explain what the situation was, but she said that she had no time to talk. She needed to know if I would make the trip. It was a little tempting for a peculiar reason. Idaho was one of the few states8 that I had never visited. Still, this sounded awfully fishy. I passed.
The incredibly bumpy road that Albertsons has traveled is documented on its Wikipedia page, which is available here. I don’t remember when the call from the advertising director came. I therefore have no way of knowing whether she was in charge of advertising for a region, a division, all of the grocery stores, or none of those. I might well have passed up an opportunity that might have extended the life of the company. Who knows? It looked like a goose, and it honked like a goose, but maybe going to Boise would not have been a wild goose chase.
Jeff Netzer, with whom I had worked in the nineties at Neiman Marcus (recounted here), called me one day in 2010. He asked me if I remembered him. I said that I did; he was the Aggie who worked at Neiman’s.
He informed me that he was now working at Sewell Automotive, the largest Cadillac dealership in the Dallas area. He said that they were looking for help in automating their marketing. I was not sure how well AdDept would work in that environment, but I agreed to visit them. His boss promised to buy me a steak dinner.
I flew Southwest to Dallas, and for the first time my plane landed at Love Field. It was much closer to Sewell than DFW would have been.
I found a great deal out about their operation. I doubted that we could do much for the agency for a reasonable amount of money. On my computer I recently found a three-page document dated September 23, 2010, in which I had listed all of the issues that I learned about at Sewell. A woman named Tucker Pressly entered all of their expense invoices into a SQL Server database. It was inefficient, and there were no programs to help them compare with budgets.
The main objective of the marketing department was to make sure that they were taking advantage of all available co-op dollars from Cadillac and other vendors. We could not help with this unless we wrote a new module. I described my reactions to their issues in a letter to Jeff.
I never heard back from Jeff, who left Sewell in 2012. Nobody ever bought me a steak dinner.
Sewell Automotive is still thriving in 2021.
In 2011 or 2012 I received a phone call from a lady from the advertising department at Shopko, a chain of department stores based in Green Bay, WI. I don’t recall her name. She said that she worked for Jack Mullen, whom I knew very well from both Elder-Beerman and Kaufmann’s. Before Doug Pease came to TSI, he had worked for Jack at G. Fox in Hartford.
I flew out to Packer Land to meet with her. They had a very small advertising department. They basically ran circulars in local newspapers on a weekly basis. As I remember, she and one other person ran the business office.
I worked up a proposal for the most minimal AdDept system that I could come up with and sent it to her. When I had not heard from her after a few weeks I called her. She said that the company was downsizing and, in fact, her position was being eliminated.
Jack also left the company in July of 2012. His LinkedIn page is here. Shopko went out of business in 2019.
1. Allison Volpert apparently still works for IBM in 2021. Her LinkedIn page is here.
2. As I write this I can easily visualize Doug stabbing a box with a pencil after a frustrating telephone conversation with someone from a Federated division.
3. I worked fairly closely with Debra Edwards when I installed the AdDept system at Elder-Beerman stores in Dayton, OH. That installation is described here. She was the Advertising Director there. Her LinkedIn page is here.
4. The “l” in Norfolk is silent, and the “ol” sounds much more like a short u.
5. I later learned that there were actually two affiliated agencies across the street from one another. I encountered the other one, SPM, in my dealings with Proffitt’s Inc./Saks Inc., which are detailed here. The agency was still around in 2023. Its webpage is here.
6. In fact IBM stopped updating OS/2 in 2001 and stopped supporting the operating system in 2006. I cannot imagine how Sears dealt with this. I pity their employees with nothing OS/2 experience at Sears on their résumés.
7. Polybags are the plastic bags that hold a group of flyers from diverse retailers. they are ordinarily distributed to people willy-nilly.
8. The others are Wyoming, Montana, North Dakota, and Alaska. I am not certain of Arkansas. I might have gone there with my grandparents when I was a youngster. The only place that I have been in Utah is the Salt Lake City airport.
Department store division of the May Co. with headquarters in Portland, OR. Continue reading →
Since 1932 M&F’s flagship store had occupied an entire block in downtown Portland.
Meier & Frank was a chain of departments stores owned by the May Company. Its headquarters was in Portland, OR. TSI never pitched the AdDept system to the store’s advertising department. In 1998 the May Company decided to order AdDept systems for the three department store divisions that were not already using it—Robinsons-May, Meier & Frank, and Filene’s.
M&F was by far the smallest of the May Company’s department store divisions. At the time of the installation it had only seven stores, which made it barely a quarter the size of the next smallest division.
These installations were quite different from the other systems that TSI had installed at May Co. divisions. They began with three days of rather intense sessions in TSI’s office in Enfield. We were teaching them about the system design of AdDept, and they were informing us about their policies and expectations for the system.
The previous May Co. installations began with a site visit in which I had learned about each department’s business procedures and priorities. TSI then presented a formal proposal for the base system and any custom code that I thought was needed. Only after the system had been delivered and installed did we provide training, and it took place at the company’s location.
At some point in 1996 a group of people from M&F visited TSI’s office for orientation and training. Those sessions were also attended by people who would be involved with the installation at Rob-May. Robert Myers, with whom we worked in the AdDept installation in the advertising department of the Foley’s division (described here), also was there to provide the perspective of a user of the system.
I found several photos that I took on the occasion of their visit as well as photos that I took in Portland. Since I was still using disposable cameras in those days, the quality of the prints is not great. I was lucky to have this much. On one trip I left a camera that was full of photos in my rental car. I called Avis on my next visit and learned that they had found the camera. They later mailed it to me.
The people: The photo at the left was taken after one of the training days in Enfield. On the last evening we all went to the Mill on the River restaurant, but I think that this photo might have been taken at a different place.
Robert Myers was seated next to me. In the photo he is on the far right. Three representatives of M&F are on the left. I am pretty sure that the guy with glasses was Brent Stapleton1, who managed the departmental network and was our liaison for the first part of the project. I do not remember the name of the fellow on his left, but I am pretty sure that his hobby was making root beer at home. He might have been Steve Mulligan, the Co-op Coordinator who moved to Ireland the following summer. I don’t remember the woman’s name or function, and I don’t recognize the next fellow. He might have been from Robinsons-May. None of these people appear in any of the photos that I took on my trips to Portland.
The last person on the left side of the table was definitely Doug Pease, TSI’s Marketing Director, who sat in on some of the training sessions. The other two people were from Rob-May and are described here.
The system was not actually installed at M&F until March of 2000. I think that they postponed it because Kaufmann’s and Rob-May were higher priorities.
The next five photos were taken at the department’s office on the thirteenth floor of the flagship store in Portland. The building had fifteen floors.
In the photo on the right, the seated woman was Dori Tierney2, who was responsible for scheduling M&F’s ads in the newspapers. She also produced the weekly calendar that was the primary document that was used by many people inside the department and out. The other woman was her boss, Sheila Wilson3, the Newspaper Manager. She formerly had worked at Hecht’s.
In the first year of the installation I worked with Dori more than anyone else because producing that calendar was the department’s first objective for the AdDept system.
I am almost certain that the woman surrounded by papers in the photo on the left was Kathy Reed, the Business Office Manager. One of her primary responsibilities was to produce at the end of the month the report of expenses and co-op income by CCN in the May Company’s required format, the so-called 790. AdDept produced this at all of the other divisions. We never succeeded at completely automating that process at M&F for reasons that are explained in the section about AdDept projects below.
I have no recollection of the people in the photo at right. Maybe I took this shot because they were both so photogenic.
Many of the people in the advertising department at M&F did their work on clunky old IBM PC’s. They complained that all of their machines were hand-me-downs from their counterparts at Robinsons-May in California.
I took the two photos shown above at the M&F office in Portland, OR. I do not remember the name or function of the woman on the left. The guy on the right was Bryan Kipp, the Planning Manager.
From searches on LinkedIn I discovered that the Broadcast Manager at the time was Shauna Thompson, and the Direct Mail Manager was Linda Farrington. I probably worked with both of them.
The first visit: A month or so after the training session in Enfield Doug Pease and I flew out to Portland so that I could install the TSI software on the AS/400 that IBM had delivered. We also met with several executives to make sure that we understood and could address the department’s priorities.
I was surprised to see that the entirety of eastern Oregon was essentially desolate, and the coast was so rugged as to be almost uninhabitable. The majority of Oregonians were concentrated in the cities along the Willamette River.
Multnomah falls is about 30 miles east of Portland on the Columbia River.
In those days it was much cheaper to fly on Saturday than on Sunday, and Doug and I did that on the first trip. I found among my M&F photos several of Mt. Hood and Multnomah Falls. On Sunday we took our rental car on a spin around the very scenic areas east of Portland. Kate Behart and I had also visited these sites on a sales trip to Fred Meyer4, another retailer based in Portland, a few years earlier.
Emily.
The Senior Vice-president of Marketing at M&F was Emily White5, whom Doug knew from when they both worked in the advertising department of the G. Fox department store chain in Hartford. She knew about TSI’s capabilities from her time at Macy’s West. The Advertising Director was Laura Rutenis6. I think that she had previously worked at Hecht’s.
On the first visit Doug and I spent quite a bit of time talking with Emily and Laura. They explained their difficulty as the smallest of the May Co. divisions. They had far fewer employees than the other divisions, but their stores had just as many selling departments, and they ran just as many ads (in fewer newspapers, of course), and they were expected to produce the same reports as all the other divisions.
The primary objective of the AdDept system would be to get the module for newspaper ads up and running as quickly as possible and to produce their weekly calendar in the format that they currently used. At the same time the quantitative and qualitative information for ads for all of the other media needed to be entered into the system so that all the expenses could be entered in AdDept (or imported from PC systems) and uploaded to the corporate accounting system. So, the remainder of the time on the first visit was spent familiarizing the employees with the programs for entering the data and showing them how to check their work.
The projects: I don’t remember much about most projects that we did for M&F. I am sure that the May Company wanted them to produce the 790 report using the AdDept system’s cost accounting programs. That would require them to enter (or upload from another source) all the expenses from every media. I am pretty sure that we reached the point at which all of the necessary data was in the system.
Nevertheless, AdDept never produced the 790 report at M&F because the department’s Business Office Manager had been fudging some of the allocations required by the May Co. The corporation’s internal auditor surely knew about this, but she had no assistants to help her in the Business Office, and it would not have been practical for her to implement all the required steps within the strict time restraints. I thought that it would be feasible for her to do it in AdDept, but I could understand why she did not want to commit to a process that she could never verify produced results that were consistent with her existing methods. Also, she was more confident that she could meet the deadline every month without using AdDept.
I definitely remember spending many hours working on the weekly advertising calendar, which was designed to be printed on a special Hewlett-Packard laser printer that the advertising department had purchased. It could handle very large forms. Printing from the AS/400 was ordinarily limited to text of at most 198 characters per line and a single non-proportional font, Courier New. So, it would not be easy to replicate what they were doing.
Every advertising department that we worked with produced a calendar that was the basis of communication with other departments and the brass. In every other case we had been able to convince them that what the AS/400 could produce in the usual way—with whatever changes they needed—would suffice. The alternative was for us to produce output files that could be downloaded to a PC and formatted for printing in Word, Excel, or other software, and a few chose that method. The people at M&F insisted that that was not good enough. They needed the calendar the way it currently looked and they did not want to take extra steps to provide it.
In order to produce the calendar that they required I decided to make use of research and coding involving PCL, the language that Hewlett-Packard’s printers used. Instead of creating “spooled files” that the AS/400 translated into PCL using its printer drivers, the program that I wrote for M&F created files of instructions that were sent directly to the printer. They bypassed the AS/400’s drivers because the files were already in the language that the printer understood.
This approach had the advantage of allowing the use of proportional fonts such as Ariel or Times Roman. It also allowed the use of simple graphics such as boxes, variable font weights and sizes, italics, bolding, etc. The end result was definitely more attractive, but the big advantage was that the format was already familiar to the executives from other departments to whom it was delivered. It could all fit on one page that included attractive fonts, boxes, and other things that no one ever saw on a computerized report in the nineties.
From TSI’s perspective there were, however, serious disadvantages to this kind of approach. None of the other people at TSI were even slightly familiar with PCL. On this project I wrote all of the code myself.
By 1998 I was generating only a fairly small percentage of the new code at TSI’s office. I spent the bulk of my time traveling to clients, installing new systems, training, writing up proposals for new systems, modules, and requests for custom programming. I also had important administrative obligations, including locating more appropriate offices for TSI.
I suppose that I could have asked Denise Bessette, TSI’s VP of Product Development to learn PCL 5 from the handbook that I had found somewhere, but there was no guarantee that we would ever use this technique again. Besides, time was of the essence, and she already had a lot on her plate. By far the fastest way to deliver the code was for me to do it. There definitely was too little time for me to teach her in a formal setting how it worked.
Also, as will become obvious, the logistics would not have worked if the programming “team” had more than one member. Denise did not want to travel more than necessary.
Another big disadvantage was that it took much longer to write code for the printer than to write reports that could be sent to the printer driver for translation. We had been using the AS/400 long enough that we had that process down pat.
Furthermore, because TSI did not have a printer that could handle the oversized form, there was no way to test the finished product in the office in Enfield. I had to write little programs that produced segments of the calendar, test them on an HP printer that we did have, and then write the code that stitched them together. Also, I could not even look at the output on the screen. I ended up delivering the code to M&F in person and testing it at their site with real data.
I should mention that Denise did not like this kind of cowboy coding at all. She thought that everything should go through the tried-and-true process.
Finally, if M&F had run into problems with the calendar when I was on the road—which I often was during that period—Denise and the programmers might have trouble isolating the cause.
In retrospect it might have made sense for me to decline this project. Someone from the May Company would probably have stepped in to help them find a reasonable substitute. However, I wanted a happy client, and I was quite sure that the people at M&F would not have been happy with anything less than what I did.
I did get the calendar program to work, and I do not remember them reporting problems with it after the first few days. I might have needed to make small changes to handle situations that they forgot to tell me about. That almost always happened.
According to my notes by February 25, 2000, things were going reasonably well:
So far I have not picked up specs for a lot of custom programming. I spent much of yesterday working on the calendar and the insertion orders. I finally got the calendar so that it is exactly the way they wanted it. The first faxed insertion order cut off the top ten lines of the page. I fixed it by rotating 270 degrees instead of 90. I can’t understand why that would make a difference. We also had a query class for the people who have some experience in working with AdDept.
Life in the M&F advertising department: In general the people in the department, like nearly everyone that I met from the May Co., were hard-working and enthusiastic about their jobs. They did feel that they were the parent company’s ugly step-child, and there were many things besides the outdated electronic equipment to bolster that feeling. For example, there were no restrooms on the thirteenth floor that the department occupied. The store’s selling floors certainly had very nice restrooms, and the employees were allowed to use them. However, that involved taking an elevator down from the thirteenth floor and back, which could add several minutes to the project.
The alternative was to climb the stairs up to the fourteenth floor. That floor must have had a purpose at one time, but by 1998 it was just a relatively empty area with plumbing. I found it sort of exciting to go up there. It was like being in someone else’s attic. You never could predict what had been put up there just to be out of the way.
I used the men’s room up there whenever I felt adventurous. It was quicker, and I had very low standards in those days. The picture on the right is surely worth a thousand words. There was only one stall in the men’s room, but it was almost never occupied even though, as you can see, the one urinal was permanently out of order. The sign on it helpfully advised “DON’T PEE HERE.” Someone had added a “K” to the verb.
I seem to recall that there was also a ladies’ room up there, but it did not get used much. At any rate I did not try to persuade anyone of the fair sex to take photos for me.
This was not the only unusual sight at M&F. Here is what I wrote on February 25, 2000:
Meier& Frank is a strange place. They have by far the worst facilities of any department store I have been in. I will try to take some photos today. One guy’s office is so small he can easily touch both walls at the same time. Several people are sitting in a former conference room. There is a pile of discarded computers in one hallway. Many places are dirty. One corner in the main part of the office had huge dust bunnies. It could not have been cleaned in months. Nevertheless, everyone seems in good spirits.
Most of my time in the the first few trips was spent with Dori. She had a small desk in a fairly large office that also held a lot of records and that big printer. Dori had one very peculiar trait, that she did not try to hide. She would verbally accompany her work with a softly spoken play-by-play: “I am walking over to the printer to get the schedule. Now I am getting last week’s schedule out of the file. Now I am taking them to …”
At the time I found it incredible that they would put up with this annoying behavior. In retrospect I think that I was too judgmental. She did her job, and they kept her isolated enough that she did not drive anyone else crazy.
I remember that for one visit they assigned me to work in a very small two-person office. I swear that it was so narrow that I could touch two parallel walls at the same time. I was put there because one of the occupants was on vacation. I found my temporary officemate quite funny. I remember that he had posted on the wall a cartoon of Beavis and Butthead talking about the newly elected team of Bush and Cheney. The balloons read “He said ‘Bush’, heh heh,” and “He said ‘Dick’, hee hee.”
In those days I drank a lot of Diet Coke and Diet Pepsi. I couldn’t tell the difference, but I could definitely tell if someone served me an off-brand. I happened to mention that I once tried to mix them. The guy with the cartoon solemnly warned me that that might not be legal.
I had completely forgotten about the following until I read it in my notes from February 23, 2000:
Brent got a call from someone from the May Company. Evidently they are considering getting new AS/400’s for both Meier & Frank and Filene’s because Dave Ostendorf told them that IBM is withdrawing support for the CISC systems.
Robinsons-May and Filene’s definitely got much faster systems, but I don’t think that M&F ever got an upgrade.
Life in and around Portland: I think that on our first visit Doug and I stayed in a Holiday Inn on the other side of the Willamette River. On later visits I think that I must have stayed somewhere closer to downtown. I ran nearly every day in those years, and I have a vivid recollection of running both through the streets of downtown Portland and in a large park along the Willamette River. I considered it very cool that the city allowed its citizens easy access to the riverfront. By contrast it was almost impossible to get from downtown Hartford to the banks of the Connecticut River on foot.
My memories of running in Portland are vivid and diverse, but I cannot remember being in a single restaurant or any other kind of store there. I think that I might have purchased lunch from a food truck or from a kiosk in the beautiful Pioneer Square, which was right across the street from M&F. I often saw a human statue there—a guy with silver clothes and makeup who posed in the square. In the above photo he is taking a break. I could not imagine a worse job than his.
Here are some tidbits that I wrote on June 12, 2000:
I often see strange things on the streets of Portland. Tuesday a pit bull was chained to a parking meter. It had a stick in its mouth. A guy was playing the “Lone Ranger” part of the overture from Rossini’s Guillaume Tell on a mandolin.
Someone from Salem Oregon stole over 300 lawn ornaments and decorated her lawn with them. She had hit houses in five counties.
I could park my rental car all day at a surface parking lot near the M&F store for a reasonable price if I arrived before the stores opened, which I always did. I also remember a building that had a huge octopus atop its front door, but I do not remember what was inside.
On the last few trips to M&F I stayed at a Homewood Suites hotel in Vancouver, WA. I selected it because it served free breakfasts and because it was fun to run along the mighty Columbia River.
The drive from the Homewood Suites to the M&F building, which was less than ten miles, was mostly on I5 and ordinarily took me only about fifteen minutes. If there was heavy traffic or an accident it might take twenty minutes, but I am pretty certain that I never spent as much as a half hour on the trip.
I remember that one of those evening runs was shortly after my tendinitis of the IT band had been diagnosed, and I had begun the prescribed exercise regimen. This outing was the first time that I had really tested how my knee had responded to the therapy.
I had to stop a couple of times because of the pain, but a thirty-second stretch allowed me to resume running. This was very encouraging to me because it indicated that the doctor’s diagnosis was accurate.
Homewood Suites.
My jogging path.
Sailboats on the Columbia.
Epilogue: The M&F advertising department used AdDept up until 2002, at which time the division was folded into the Robinsons-May division of the May Co. The stores still carried the M&F logo until 2006.
The flagship store in Portland, which at the time carried the Macy’s logo, was closed in 2017. The structure is still relatively intact in 2022. The developers have posted a web page that describes its current state. You can view it here.
The principal occupant is a luxury hotel called The Nines, but several other businesses are located.there including a Japanese store called Muji.
2. Dori Tierney’s Facebook page is here. When I looked she had three times as many friends as I had.
3. Sheila Wilson returned to Hecht’s after M&F was folded into Rob-May and then worked at Marshall Fields/Macy’s in Minneapolis. Her LinkedIn page is here.
