Quasi-independent department store division of the May Co. Continue reading →
TSI enjoyed a good relationship for nearly all of the two decades in which the chain of department stores known as Lord and Taylor used AdDept to manage its advertising department. The headquarters was in one of the upper floors of the flagship stores on Fifth Avenue in Manhattan.
I don’t remember the details leading to the contract back in December of 1993. I am not sure that we even did a demo for them at the IBM office. L&T may well have been the first sale for TSI’s marketing director, Doug Pease (introduced here).
We had two very important things going for us. The Senior VP of Advertising at L&T was Howard Adler, who had seen what we could do at Macy’s East, the first AdDept installation (described here). Moreover, L&T was owned by the May Company, and two other May Company divisions had been using AdDept successfully for a few years.
In the April 1994 issue if the newsletter, Sound Bytes, TSI announced the fact that L&T had purchased the AdDept system and an AS/4001 on which to run it:
Lord & Taylor, the third May Co. division to use the AdDept system, is currently in the process of finalizing the specifications for its system. Their system will reside in the company’s Manhattan headquarters. All areas of the department will be connected through a PC network.
Although L&T was definitely owned by the May Company, it did not play by the same rules enforced on the other department store divisions. L&T’s advertising department was not required to produce the same monthly reports that bedeviled the other divisions. Its merchandise was different—I actually saw elbow-length gloves for ladies for sale there. It was much more autonomous in many ways.
The flagship store was more elegant than that of any of the other May Company stores. The nearest men’s room to the advertising department was between elevators on a selling floors. It was by far the most spacious, sparkling, and elegant restroom that I encountered at any office, department store, or anywhere else.
I always took Amtrak to Penn Station when I visited L&T. I usually walked to the store on Fifth Avenue unless the weather was really foul, in which case I stood in line at the taxi stand on 34th St. to get the next available cab.
I entered L&T through the employee entrance, which I think was on 38th St., and descended stairs to the security area. Someone would come down to escort me to the advertising department, which was on one of the upper floors. When I left in the evening, I had to get a note from someone verifying that the laptop in my briefcase belonged to me and had not been purloined from L&T.
An amusing set of incidents in Penn Station that occurred on one of my last visits to L&T in 2007 has been recounted here.
Lord & Taylor used direct mail more than regional department stores. Notes that I compiled in 2000 state:
A very large number of reports were done for them. Unfortunately they are almost all too involved to be used by anyone else. They are the only client that uses AdDept to keep track of bill inserts – the little things included in the monthly statements.
They set up production schedules for direct mail. At one time they used AdDept for estimating direct mail, but they abandoned it. They have job jacket programs for both ROP and direct mail.
L&T also did more magazine advertising than the other divisions. AdDept did not seem to help much in that area.
We developed as part of the original design document an elaborate system for them of managing their magazine advertising (“The Projection Book”) and comparing it with competitors’, but they do not use it.
I vaguely recall that at the very beginning the liaison between TSI and L&T was Norm Vlahos2. I have only a couple of distinct memories about him. The first is that whoever chose him for that role also assigned him and another fellow to act as “security officers” for the AS/400. Norm thought that they should be issued badges or at least arm bands to designate their authority. I also remember that Norm was responsible for ordering the food for the Greek-themed feast in which most of the department participated during one of my visits.
The other person whom I remember from those early days was named Charles. I am pretty sure that he was the finance director of the advertising department. Charles had a very unusual office. One of the walls was a gigantic mirror. I am not sure what its function was, but it made me very uneasy when I was required to sit in there to talk with him.
I later learned that Charles owned a string of karate (or something similar) studios in New Jersey. Maybe he used the mirror when he practiced his moves.
Charles ordered the food from the 2nd Ave Deli for the luncheon with a Jewish theme that the department held on one of my visits. It was the best deli food that I ever tasted.
After the initial period in which the tables and historical data were into AdDept and the users had become somewhat familiar with the system, Tom Caputo3 was assigned primary responsibility for the AdDept installation. This was a big break for TSI because we got to deal with a person who had both the authority and the expertise to make good decisions about prioritizing what the system should be used for. He made our lives much easier because we seldom needed to deal directly with the users. He was good at finding out exactly what they wanted or needed and conveying the information clearly to us. Over the years he sent us a very large number of custom programming requests—so many that he asked us to combine the billing for the $75 quote fees onto one monthly bill. We were happy to do that.
Tom worked with us at L&T until 2001. He then took a job at Saks Fifth Avenue, where we again had the pleasure of working with him.
After a while L&T provided Tom with an assistant, Chris Pease4, who was employed by L&T from 1996 through 2001. We often worked closely with Chris as well.
I have a lot of very vivid memories of Tom and Chris. I remember almost nothing about the innumerable small projects that we discussed. However I distinctly remember one episode. You can see from the photos that nearly all the men in the advertising department wore suits, white shirts, and ties. One morning Tom spilled coffee or something on his shirt. He dispatched Chris down to the men’s wear department to buy a substitute for him. I was pretty impressed.
Somehow, my visits to L&T became associated with big departmental lunches in the advertising department. Trust me; no one was celebrating my presence or the wonderfulness of the code and support that TSI provided. It was just that I showed up every two or three months, and that also was deemed a reasonable interval between departmental lunches.
There was always a theme for the lunch and an employee in charge of the choice of menu and restaurant. In addition to the Greek lunch ordered by Norm and the Jewish one managed by Charles, I seem to remember an Italian pranzo and a Mexican fiesta. There may have been more. I don’t remember too many specifics, but the meals were all both authentic and delicious.
If no departmental lunch was scheduled, Tom nearly always took Chris and me to a restaurant for lunch. We usually walked to a Chinese restaurant near L&T. On one of the last occasions we ate delicious lamb chops at a chop house. This was really the life.
After Tom and Chris departed, the installation entered a holding pattern. TSI’s primary contact for several years was Esther Roman5. I am pretty sure that she was in charge of the financial area of the advertising department. AdDept was just one of the tools that she used in her job.
Denise Bessette, Bob Wroblewski (who helped TSI with marketing of AxN to newspapers), and I made a trip to Manhattan in 2004 to meet with the newspaper coordinators, Jennifer Hoke6 and Ali Flack7. The purpose of the trip was to show them how TSI’s new Internet product, AxN (described here), could work for them. The ladies were rather enthusiastic about it, and L&T used the product for quite a few years.
In 2005 Federated Department Stores merged with and took over management of the May Company stores. L&T did not fit into Federated’s plans. Seven stores were sold or rebranded as Macy’s. The rest of the stores, including the flagship store and the headquarters in New York City, were sold to NRDC Equity Partners in 2006. In the following years NRDC also negotiated the purchase of Fortunoff, which was a chain of jewelry stores that was somehow linked with a group of stores that sold outdoor furniture. The intent was to use the L&T staff to manage these stores.
NRDC wanted to keep a separate set of books for the Fortunoff stores. L&T therefore asked TSI to create a separate instance of AdDept on the same AS/400. We figured out a way to do this (some tables and even data files needed to be shared) and installed it in late 2007 so that it could be tested for a couple of months and then used live in 2008.
Our main contact at L&T during this period was Esther. I also dealt with Dan Marrero, who worked for her, in 2007 and 2008. My notes for that period also mention someone named Rachel, but I don’t remember her.
The Fortunoff scheme was a fiasco. In February of 2009 Fortunoff declared bankruptcy after a lackluster holiday season during the Great Recession. NRDC tried to sell the chain, but there were no takers. By May of 2009 all of the Fortunoff stores had been shuttered.
Meanwhile, NRDC had purchased the Hudson Bay Company, the oldest corporation in North America. It decided that the HBC staff could manage the remaining L&T stores from Ontario. The last work that TSI did for L&T was to help with the migration of the programs and data to an AS/400 somewhere in Canada.
This marriage did not work very well either. In 2019 L&T was again sold, this time to Le Tote, a company that rents women’s clothing (!). The flagship store on Fifth Avenue was closed in 2019 along with some of the other stores. The Covid-19 pandemic rendered the recovery of the remaining stores unfeasible. All the remaining stores were closed by the end of 2020.
The Lord and Taylor name remains in 2021, but only as an online retailer. I tried to find out if they still sell those long gloves. There was no search feature on the website, and there was no category that formal gloves would fit in. So, I don’t think so.
Most of my trips to L&T were one-day excursions. I rode an Amtrak train to Penn Station in the morning and caught a northbound train back home in the evening.
On Thursday, March 6, 2008, however, I stayed overnight at a hotel. When the dates for the trip had been set, I checked to see what was being staged at the Metropolitan Opera that evening. When I discovered that Verdi’s La Traviata, one of my very favorite operas, was on the bill, I resolved to attend. I had seen this opera twice at the Bushnell in Hartford, and I owned a fantastic CD that featured Luciano Pavarotti and Joan Sutherland. I had listened to that recording dozens of times.
After work on the 6th I walked the 1.7 miles from L&T (or maybe the nearby hotel) to Lincoln Center. The theater was nearly full. My seat was near the front but way to the left. I had a terrible view of the stage, but the sound in the theater was so good that the awkward viewpoint did not affect my enjoyment much. I adapted.
The building was, of course, extremely impressive both on the inside and the outside. It was hard to believe that such a huge auditorium had such outstanding acoustics.
The curtain rose on the ballroom scene. I expected for my eye to be drawn to Violetta as the life of the party, but I was wrong. Even after she started singing I was slow to identify the shortest and chubbiest woman on the stage as the legendary lady of the camellias. Ruth Ann Swenson was in excellent voice, but it was impossible to suspend disbelief about her being either an irresistible Parisian courtesan or a woman in the last stages of consumption.
The other two leads, Matthew Polenzani and Dwayne Croft, were fine, but for me the real star was Franco Zeffirelli’s classic production. I especially enjoyed the last act, which employed the Met’s stage elevators and a staircase to transport the Germonds from Violetta’s parlor to her bedroom. Operas are seldom even slightly realistic, but I don’t see how this approach could be topped.
I discovered when researching this section of the blog that the first few performances of this opera back in the beginning of the season had featured Renée Fleming. That would have been something to see, but, then again, I probably would not have been able to scare up a ticket on short notice. Furthermore, if I had waited a week, I might have been able to see Jonas Kaufmann as Alfredo. I did not know who he was in 2008, but within a few years he became the most revered tenor in the world.
The 2007-2008 season was the last that Ruth Ann Swenson performed at the Met. Peter Gelb did not offer her any more contracts, although he insisted that it was not because of her weight.
1. A detailed description of the AdDept system design can be found here. Unique features of the AS/400 are described here.
7. I could not find a LinkedIn page for Ali Flack. However, there are strong indications that she continued to work for L&T after the management of the chain was turned over to HBC.
8. A detailed description of the AxN system can be found here.
It would have been folly to do so, but I certainly wish that I had kept my notes from our second Manhattan adventure. In a strange way it was an important milestone for TSI, but my recollection of the details are now very spotty, and the only aspect that I could verify from research on the Internet was that the year was almost certainly 1990. It may have actually begun in late 1989. Sue remembers nothing about this whole escapade.
The prospect was Paramount Communications Incorporated, which was based in New York City. I am not sure how the people conducting the software search heard about TSI. The Manhattan IBM office with which we sometimes dealt may have recommended us. We had a pretty good relationship with them. If the word “advertising” was mentioned in a conversation, they probably would have thought of TSI.
Of course, Sue and I had heard of Paramount studios. We had both seen the company’s logo on lots of movies. I am not sure whether we were contacted by phone or by a letter. In any case, we had only one face-to-face meeting in New York City with the person who was looking for a company to develop a system for them. She sent us a Request for Proposal (RFP) with fairly detailed specifications.
I generally hated RFP’s because they seldom allowed us to emphasize what we did best—come up with imaginative solutions to database problems that were difficult to implement. Instead they were designed to be easy to score and to prevent the vendor from distracting attention away from the most important issues. Each vendor’s answers were awarded numerical values. The software companies with the highest scores were asked to write up a detailed proposal, perhaps after an interview.
We were learned that Paramount owned a set of radio and television stations and some small cable networks. It needed a system to manage the advertising on these outlets. Of course, it also owned production companies as well as other things such as Madison Square Garden and its two permanent residents, the Knicks and Rangers. So, in some cases Paramount owned both ends of the transaction. This complicated matters, but we always liked complications. If nothing else, this helped explain why the company did not just use a software package designed for broadcast stations. Surely by 1990 there must have been some.
The RFP had set of a dozen or so numbered areas that required (or at least allowed) fairly extensive explanations.It also contained something that I had never seen before. At the end or perhaps in the cover letter it indicated that the submission should “be indexed” according to the required areas.
The proposal that I wrote was organized so as to emphasize our company’s strengths, namely our ability to deliver very large projects on time, our willingness to write custom code, and our strong relationship with IBM. I also sang the praises of the AS/4002. Needless to say, I did not emphasize TSI’s lack of experience in scheduling advertising from the media outlet’s perspective. In point of fact, I was convinced that we would be writing most of this code from scratch. At the end I included an index that listed the page number for the answer to each numbered area.
A few weeks after we mailed the response to the RFP we were invited to come to New York to discuss the document. The company’s office was in the Gulf and Western Building at 1 Central Park West on Columbus Circle. Sue and I took Amtrak to the city and then the subway to Columbus Circle. Columbus Circle was thrilling. Neither of us had ever been there before; ascending from the subway elicited a “Wow!” from both of us. We had never seen a section of Manhattan that was not rectangular!
The meeting was less inspiring. I distinctly remember two aspects of it:
The lady conducting the search (whose name I don’t recall) seemed annoyed that I had not organized our responses in the same order as the numbered areas. I explained that the RFP had not specified an order for presenting the responses. It said that they should be indexed, which is exactly what I did. She paused for a few seconds with an icy look on her face. She then asked my why I had organized it the way that I did. I told her that I was simply trying to make a case. The rest of the meeting went a little better. I don’t think that she had realized that the RFP had used the word “indexed” instead of “ordered”.
She provided us with a little more information about the project, including the news that they favored a UNIX-based solution. The only other thing that I specifically remember came from Sue, who at one point remarked, “I am not sure that we even want this job.” I am not sure how this struck the lady making the decision, but it certainly shocked me. For the first time in the decade that we had been working together Sue and I apparently did not agree on the direction in which TSI should be heading.
Frankly I was not certain that it would be a good idea to undertake this project. In point of fact the situation at Paramount changed dramatically only a few years after our meeting. The whole company was purchased and then split in two with all the media outlets going to an independent company. If we had committed to a large investment in time and resources for Paramount’s project, we probably would have found ourselves out of luck at that point. As it was, we devoted the time and effort to the AdDept system3. At just about the same time that Paramount was acquired and then split up, the marketing of AdDept was really gaining traction.
If we somehow survived that crisis, we would have had to learn how to deal with show business people. Can you imagine?
In any case, I never begrudged Sue the right to her judgment. I wished, however, that she had told me about her misgivings earlier and in private.
We did not get the Paramount job, but we had one more memorable meeting about it. It was a flea on the world’s greatest (true) shaggy dog story, which is recounted here.
1. Prior to 1989 the parent company was known as Gulf and Western. In 1994 Viacom acquired a controlling interest in it. When that company split into two entities, Viacom and CBS, most of the stations went to CBS, and the film studio went to Viacom. Some other properties were sold. Wikipedia’s account of this period is here.
2. Much more about the hardware and operating system that were the focus of TSI’s activities from 1988 until the company closed in 2014 can be found here.
3. The design of the AdDept system is explicated here.
When we were still living in Detroit, Sue Comparetto founded TSI Tailored Systems as sole proprietor. I helped her occasionally in the early days, but for the most part she did it alone. She never had any employees or, as far as I know, a business plan. She inherited a handful of accounts from her former employer. At first she had an office in Highland Park, a small and dangerous city surrounded by Detroit. Then, when TSI somehow obtained an IBM 5120 computer, she set up shop in the spare room in our house in Detroit.
Having the computer in Detroit allowed me to learn BASIC. Having access to the programs and listings from AIS, the company that wrote most of the software that Sue supported, allowed me to learn how business programs could be structured. We were self-taught. I had taken exactly one college-level programming class at Michigan in 19661; Sue had none. Neither of us had ever taken an accounting or marketing class. In fact, neither of us had ever even sold or helped market anything.
When we moved back to Connecticut, Sue registered TSI as a partnership. We worked together, but we never really agreed on who was responsible for what. I considered myself much better at programming than Sue was. I therefore expected to do the bulk of the coding (including software for TSI to use) and for her to handle nearly everything else. The way I thought of this was: she does the phone stuff; I do the computer stuff.
The first additional task that I felt obliged to take over was marketing. In Detroit Sue had never needed to find new clients. She was given a bunch of them, and she hoped that IBM would provide her with additional leads. When we moved back to Connecticut, however, we lost the ties with the Detroit IBM office, and it was difficult to make new arrangements. We had only a few clients and lousy credentials.
We scrambled to get a few custom programming jobs. I did nearly all the design, coding, implementation, and training. I pulled together a mailing list from phone books at the library and wrote letters to businesses that I thought might be interested in systems designed for our clients. We never made a lot of money this way, but it did generate some business. Eventually, IBM also gave us some leads.
We hired a receptionist/bookkeeper, Debbie Priola, and a programmer, Denise Bessette. The former freed up time for Sue almost immediately. The latter consumed quite a bit of my time for a couple of months, but eventually she helped a lot. Unfortunately, she decided to return to college and cut back on her hours at TSI. More details about the early years of TSI can be read here.
Both Sue and I found most of the decade of the eighties to be enjoyable but frustrating. The programming was fun and very challenging. Almost all of TSI’s customers appreciated our approach. However, we never came up with a good way of monetizing our efforts. The ad agency system, GrandAd, did better than the “anything for a buck” approach that we had been forced to use in the beginning. However, our market was effectively limited to agencies that were within driving distance and were too large for a PC system. In that reduced market, it was difficult to make enough sales to get by. Eventually there were so few reasonable prospects remaining that a change in strategy was essential.
I was convinced that our future lay in selling AdDept to large retail advertisers across the country. There was no real competition, and there seemed to be a good number of prospects.
I don’t think that Sue agreed with this change in focus. She had always favored local businesses over large corporations when purchasing something, and I am pretty sure that she also preferred dealing with smaller businesses over dealing with corporate executives. The fact that both of our first two AdDept clients declared bankruptcy and left us with tens of thousands of dollars of noncollectable invoices reinforced her attitude.
Sue had always been a night person. I was the opposite. I always was out of bed by 5AM or earlier. I usually became very sleepy around 9:30PM. I then took a shower and read a few pages of a book in bed. I was almost always asleep within a minute or two of turning off the lights. I stuck to this routine for decades, and I still do in 2021.
At some point in the eighties Sue developed a sleeping problem. She liked to watch late-night television, but she almost always dozed off in her chair. She slept very fitfully, waking up with a start and then falling back asleep. This went on for a long time—months, maybe years. Finally she went to a doctor. He prescribed a sleep study. It was not a surprise that it confirmed that she had sleep apnea. For reasons that I have never understood Sue was reluctant to purchase and then use the sleep machine. The models sold in those days were big, expensive, and ungainly. Even so, breathing well while sleeping is critical to good health.
I suspect strongly that this long period in which she was not getting enough oxygen when she slept impaired her performance at work and elsewhere. She regularly came in to the office late—very late. She was late for appointments. She missed appointments all together. The books were never closed on time. She repeatedly put off providing the accountant with tax information, even though the company’s operation was not a bit complicated. There were many other issues, but the worst thing, from my perspective, was that she made employees call the people with whom she had appointments in order to make excuses for her.
In 1987 or 1988 Sue gave up smoking. At almost exactly the same time, Denise did, too. So did Patti Corcoran, Sue’s best friend, and, halfway across the country, my dad. This was like a dream come true for me. I had never taken a puff, but for years I had worked in smoky offices and had taken Excedrin for headaches. When TSI’s office was declared smoke-free, my headaches went away forthwith, and they never returned.
Sue, in contrast, had a very difficult time quitting. She put on quite a bit of weight, which amplified the sleep apnea problem. She was also more irritable at work and at home.
I must mention one other factor: Sue never throws anything away. Okay, if it has mold on it, or it is starting to stink, she will discard it. Otherwise she stuffs things for which she has no immediate use in bags or boxes.
When I first met Sue, she was renting one room in the basement of someone’s house. It was not cluttered at all. She seemed to have no possessions except a water bed, a record player, and a few albums. By the early nineties we had a house of our own with two rooms that had no assigned function, a garage, an attic, and a full basement. All of them soon became full of junk. Both of our cars had to park outside because the garage was wall-to-wall miscellany.
TSI’s headquarters in Enfield was nearly as bad. Sue’s very large office was the worst. Strewn about were boxes and paper sacks full of correspondence and memorabilia. Her desk was always completely covered, and post-it notes were everywhere.
In the rest of the office stood several file cabinets. Of course, every business must retain records, and one never knew when the company might get audited. It was also critically important to maintain good records about contacts with clients and prospects, and our business, in particular, needed up-to-date listings of programs, which we had by the thousands. So, we had a lot of important paperwork.
No more mainframe announcements, please.
However, in TSI’s office could be found many other things, which by any measure were totally useless. One day I undertook to throw away the announcements that we constantly received from IBM about its products. These documents formed a stack about four feet high. 90 percent of these missives were about mainframe products. There was absolutely no chance that we would ever work with any of these machines. Even the remaining ones (all of which I intended to keep) were seldom of any value because the information might have been contradicted by a subsequent notice.
Sue asked me what I was doing, and I told her. She immediately got very upset and even started to cry. She just could not stand for anyone to make the decision to discard anything that she considered hers. I realized at that moment this was a reflection of a very serious problem. I put all the notices back in the file cabinet.2
1994 was a good year for J2P2, too.
1994: It was the best of times; it was the worst of times.
The business was finally taking off. Our new salesman, Doug Pease, was demonstrating that he was ideal for the job. The nationwide retail recession had ended. The retail conglomerates with money (or credit) were gobbling up smaller chains, and in most cases this worked to our advantage. We were approaching a position in which we need not ever worry about competition. Most of us were working very hard, but we were getting new clients, and it was exciting.
The problem was Sue. She was hardly involved in any of this at all. Her behavior was becoming really unprofessional. Doug complained about her often. She kept hiring assistants, and they kept quitting. I could not find out where we stood financially because our books were so out of date.
On a couple of occasions I was stretched so thin that I asked Sue to take trips to clients for me. I did not think that technical expertise would be involved. I just needed someone to find out what the users needed. The first one was to Macy’s East in New York. Sue never told me what happened, but the people at Macy’s told me years later that they had made voodoo dolls representing her and stuck pins in them.
The other trip was to Foley’s in Houston. Sue flew all the way there and then realized that she had brought no cash. Her credit cards had all been canceled by the issuers. Fortunately, she had a checkbook, and Beverly Ingraham, the Advertising Director at Foley’s, cashed a check for her.
In May of 1994 Sue and I took a very important road trip to Pittsburgh. We met with Blattner/Brunner, an ad agency (described here), and Kaufmann’s, a chain of department stores (described here). Both of these sessions went quite well. When we returned to Enfield, I was required to spend a lot of time working on the proposal for Kaufmann’s. It was the most complicated and difficult one that I had ever done, and if I did not do a good job of analyzing and estimating the difficulty of each element, we could suffer for this for years.
So, I asked Sue to follow up on Blattner/Brunner while I was working on Kaufmann’s. Sue had been there for the session in Pittsburgh. There was no one else I could turn to. She completely fumbled the ball. I was quite angry, but I knew that it would do no good to nag her about it.
On the other hand, I appreciated the fact that she was the founder of the company. These opportunities never would have happened if she had not started the ball rolling back in Detroit.
The day finally came when I just could not take it any more. I told her to go home and not to come in to work any more. There was no argument and no tears. She told me that I was making a big mistake and just left.
No one else thought that it was a mistake.
Within a day or so I approached Sue with the following arrangement: TSI Tailored Systems Inc. would be registered as a Chapter C corporation.
I would be president and have 55 percent of the stock, and Sue would would be treasurer with 45 percent. We would hire a new accountant to handle the corporation, and the bookkeeper would report to me. It would be my responsibility to make sure that the books were closed on time, and the taxes were paid on time. I would also do our personal taxes. We would fund the corporation with the difference between our accounts receivable and our accounts payable. If it needed cash (as it did a few times), I would loan as much as necessary to the corporation at a reasonable interest rate.
Sue was not happy about it, but she agreed to this. She did not even argue about the salary amounts that I set.
Amazon sells these.
Our new accountant’s name was Sal Rossitto2. He guided us through the transition. He advised us to set up an Limited Liability Company3, but I insisted on a true corporate entity that issued stock to its owners.
Setting up the new corporation was fairly straightforward. We had to open a new bank account. I found it to be a fairly simple matter to close the books every month within a day or two of the end of the month. We also set up a 401K with matching funds, a profit-sharing plan, and a good health and disability insurance plan from Anthem. None of this was difficult.
I am not sure who took over handling of the payroll after Sue left. TSI eventually hired Paychex to do it. Denise collected the time cards from the employees and submitted the requisite forms to Paychex.
Our accountants loved our Nov. fiscal year. They could work on our taxes in a less busy season.
I made one very good decision. We set our fiscal year to run from December 1 through November 30. We paid bonuses and made contributions in November. This gave all the employees the entire month of December to spend or save for tax purposes.
Dissolving TSI was a much more complicated task. Sue and Sal met often over the course of several months to unravel issues in the partnership’s books. I remember, among other things, some kind of ugly situation with regard to sales tax in California regarding the way that the installation at Gottschalks occurred. At the end of this process Sal confided to me that he now understood why I wanted to set up a real corporation.
The new logo as it appeared on invoices and letterhead.
We also ordered new letterhead. Ken Owen worked with me on the logo. I eliminated the stripes and the lean of TSI. The color around the TSI was pure blue. The colors to the left of that block went from a very light blue gradually darker almost to pure blue. The effect worked better on the computer screen than it did when printed.
For me the most important thing was to reestablish blue as the company’s color. It started with a light blue as shown at the top of the page, but over the years it had somehow evolved into something that was more green than blue. I hated it.
The next few years were boom years for TSI. I worked my tail off, and my travel schedule was a killer. I didn’t care. We had finally turned the corner, and the future looked very bright.
Life at home, however, was very difficult. Sue was obviously unhappy. She probably thought that I intended to dump her. I still loved her; I just did not want to work with her any more. I was quite sure that the company would do better without her.
displayed no interest in finding a job. This surprised me. She had had quite a few jobs since I met her. She really liked a few of them. She could summon up a great deal of enthusiasm about new projects, and she loved meeting new people. I could think of several occupations that she would fit very well.
Instead, she leased some space in an old office building in a questionable part of downtown Springfield, MA. She then fixed it up and rented it out to dance teachers who needed a place to give lessons. I don’t know how much of our money she lost on this venture. I am not sure that she even kept records of it. She certainly didn’t ask my opinion about it.
On weekends we still drove to Wethersfield to visit our old friends, the Corcorans, regularly. That helped quite a bit.
At one point Sue awarded herself a vacation. She drove to New Orleans to see a guy that she knew from high school who was into social dancing. She stopped at some other places along the way. I never asked her about what happened on this trip. When she returned she did not offer any details.
Eventually things got a little better. After the trip to Hawaii (described here) in December 1995 the situation became more tolerable for both of. At least we had some money to spend and save for the first time ever in our relationship.
1. The course that I took as a freshman at U-M taught a programming language that was unknown outside of Ann Arbor. It was called MAD, which stood for Michigan Algorithm Decoder. We wrote our programs on 80-column punch cards.
2. Perhaps you are wondering why I gave in without an argument. It was because I recognized quite early in our relationship that Sue was expert at playing the “Why don’t you …? Yes, but …” game described by Eric Berne in his best-selling book Games People Play. A pretty good write-up of the “game” is posted here. This is also the reason that I did not press her about the sleep apnea.
2. Sal Rossitto died in 2002. His obituary is here.
3. The purpose of an LLC is to protect the “members” from being personally responsible for debts and obligations undertaken by the company, but it is not as completely separated as a true corporation.
We installed at least part of the GrandAd system at all of the companies listed below. A few may have actually been Datamaster clients. My recollections of some installations are very dim. In a few I had little or no involvement
Visitors to O&P went through this red door on Elm St.
Although Keiler Advertising evidently had a famous red door in the twenty-first century, in the eighties the most famous red door in Hartford’s advertising community belonged to O’Neal & Prelle1 (O&P), the agency that was housed across the street from Bushnell Park in Hartford. Our negotiation was with Bill Ervin2, who was, I think, already the president of the agency.
We got this account because of a phone call from Paul Schrenker, the graduate student hired by our marketing company (described here). Paul called dozens of presidents of ad agencies. Bill responded that he was interested in our system. This was probably the only positive outcome from that endeavor.
I seem to remember that O&P bought a model 5364 from TSI. I do not remember doing any custom programming, but we almost always at least customized the invoices that they sent to clients.
I worked mostly with Liz Dickman, who was the bookkeeper. Of all of our agency liaisons, she was among the best to work with. She was able to do the reconciliations by herself more quickly than anyone else. I am not sure who drew the following beautiful schematic of the installation. It certainly is not my handiwork.
Evidently we installed a 5363. A 5364 would not have supported so many devices.
Here are my most vivid memories:
On one visit I had to carry something down to the basement. Halfway down the staircase I felt a stabbing pain in my right knee. It did not last, but it was the first time that I had felt pain there since I recovered from the operation in 1974, as described here.
If I was at O&P at lunch time, I generally bought a couple of tacos from one of the food trucks. I then sat alone on a bench in Bushnell Park and chowed down. One day while I sat with my legs crossed a starling popped up on my right shoe, which was about six inches off the ground. He perched there for at least a minute or two to see if I would reward him for his clever trick. When I failed to do so, he flew away.
I recall Liz informing me that she planned to take the CPA exam as a flyer. She said that she did not study for it, or at least not much. She was legitimately shocked when she later learned that she had passed. Perhaps it dawned on her that she was suddenly overqualified for her job. They made her a vice-president.
The installation really went downhill after Liz departed. The guy who operated the computer called TSI and asked for some training. We scheduled a day for him at our office in East Windsor. He was shocked when we billed O&P for it. Evidently either no one told him that TSI had a contract with O&P that clearly designated how much free training (plenty) they received, or someone gave him some bad advice. O&P didn’t pay the bill, and shortly thereafter the agency announced its liquidation.
I am pretty sure that we sold a model 5364 to Eric Tulin Inc.4 of Hartford, CT. It might have been TSI’s developmental system. I can remember spending a few days at the office on Hamilton St. The primary operator was a guy, but I don’t remember too much about him. I must have met with Eric as well, but I don’t remember the occasion.
The agency was not very large at the time. I don’t think that they had more than five or six employees.
I recall even less about Knorr Marketing5, which was (and still is) located in Traverse City, MI, which is in the northwest part of Michigan’s lower peninsula. The agency, which must have already purchased a S/36, called TSI one day out of the blue.
We sent them some materials, and even though they had never sen a demo, they purchased some portion of the GrandAd system. We sent Kate Behart to do the installation and training. Because we used almost exactly the same system for our record-keeping, Kate knew the accounting and job costing portions of the system. So, I assume that we did not install the media portion.
Kate must have done a good job. We hardly ever heard from them, but Knorr Marketing sent us a Christmas card for many years.
Another mystery GrandAd client for me was Brannigan-DeMarco of New York. They purchased their hardware from IBM. Sue took care of this account. I am not sure how much of the GrandAd system they used.
Sue worked closely with Angela Vaccaro, who was the primary operator of the system. She called for support every few months. Sue always took care of her problems.
Similarly, I know very little about Sullivan & Brownell6 of Randolph,VT. Sue handled everything about this account, too. She visited them occasionally. Sue did not need much of an excuse to schedule a trip to Vermont. She has always loved the whole state.
The only thing that I recall about the account was the fact that the media director was a Black woman. That would not ordinarily be even a little surprising, but this was, after all Vermont. In 1990 there were a grand total of 1,951 Black people in the state, including exactly zero lawyers and judges. In fact, only eleven Black people in total lived in Randolph.
Sue told me that the media director and her husband had a farm in the vicinity. Sue told me that she might have stayed overnight there once or twice.
Using a chain saw the husband carved a fox out of a tree trunk and gave it to Sue. It sat placidly on guard out in the grass just beyond the parking spaces of our office in Enfield for many years. In 2021 it wards off coyotes in our back yard. I took a photo of it. It has seen better days.
I handled most of TSI’s interactions with Knudsen-Moore (K-M), an advertising agency located in Stamford, CT. I thought of this as an important account because it finally gave us a toehold in the southeastern (wealthy) part of the state. I also thought that it was cool that one of our clients did business with both King Oscar and the WWE (then known as the WWF).
The audience for my demo was the seventy-two year-old7 bookkeeper whose name was Irene. I must have brought a PC, our 5364, and a terminal that we were evaluating for another client. Its screen was very large for the time. This became important because the bookkeeper had very bad vision. In fact, she later confided to me that the reason that she insisted that they choose TSI’s system was because of that terminal. Ordinarily my strikingly good looks are the deciding factor, but as I mentioned, her vision was poor.
The McMahons never showed up at their ad agency when I was there.
It took us several months, for reasons that will soon be apparent, to get them up and running. During this period the agency changed hands not once, but twice. Its final name, which persists to May of 2021 was CDHM8.
The holdups for going live with the system were the balances in accounts payable and accounts receivable. The values in these accounts are generally positive for A/R and negative for A/P. If a vendor bills you $100, and you immediately bill the client with a 10 percent markup, A/P will have a transaction with a value of -100, and the entry in A/R will be +110. There will also be offsetting entries, of course. The point is that every company should be able to justify its A/P with a stack of unpaid bills from vendors and its A/R with a stack of open invoices sent to clients.
I entered in all of the open A/P and A/R into GrandAd. I printed a list of each with totals. The system’s totals did not agree with what Irene’s hand-written worksheets said were the current balances. Not only that; her balances, which were reflected in the company’s official general ledger, had the wrong sign! The A/P showed a positive balance, and the A/R showed a negative balance. According to these figures the agency’s vendors owed them money, and they were in debt to their clients!
Irene still insisted that her figures were right. I asked for a meeting with the president, Bill Hoag. The bookkeeper attended, as did a couple of other people. Their accountant was not present. I explained the situation with words similar to those of the previous paragraph. She insisted that her numbers were correct because she had checked every entry. She knew this because there was a little dot next to each figure. Much screaming ensued.
The lady had been using the “balance forward” method. After each transaction a new balance is calculated. This is OK, but at least monthly this balance must be checked against the list of invoices. She had NEVER done this. I later looked over her sheets. They were replete with errors. She simply could not read her own handwriting.
The irony of the situation did not strike me until much later. If someone had caught this egregious error earlier, we would not have won the contract. She recommended us solely because of the big screen on the terminal, remember?
How in the world could an agency with books in this deplorable condition be sold twice? I don’t know.
They asked the bookkeeper to retire. The guy that replaced her was, in some ways, worse.
I am pretty sure that his first name was George. I don’t remember his last name, but I do remember that he insisted that any communication to him include the title “Esq.” Now, I don’t pretend to know who gets to use that title, but I would be willing to bet that not many of them lived at the YMCA, which is where this character lived. George got into arguments with us all the time, and he was abusive to TSI’s employees.
For the first and only time, I finally called the agency’s president about George’s behavior. He said that he would look into it. He called me back less than hour later. He said that the guy had not been in all week, and he was now officially terminated.
The next week the president told me that they had hired a new person. I think that his name was Roger. He was very easy to work with, and he had the record-keeping straightened out in short order.
I drove to CHM an least half a dozen times. I never saw Vince or any other McMahon. It was a big disappointment.
Sue handled the account of Charmer Industries of the Astoria section of Queens. The company distributed wine and liquor products. This was probably a referral from Quique Rodriguez, an IBM rep with whom we had a good relationship.
Sue and I drove there on, as I remember it, a Sunday, carried their computer and printer into the building, and made sure that they were working. Then we drove back to Rockville. I found the whole drive within the city terrifying. I wanted to stop, get out of the car, and kiss the earth when we were back in Connecticut. I have been to NYC many times, but I have never driven inside the city limits.
Ed Wolfe.
Charmer had a lot of companies. One specialized in the design of point-of-sale products in bars and liquor stores. Over the years it went by a number of names, including ACC Marketing and the Sukon Group. These were the people who used our system.
Our final liaison in the nineties was Ed Wolfe. As I recall, the company later decided to purchase a small AS/400, the system that replaced the S/36. The AS/400 is described in some detail here. I took the train to New York a couple of times to help with the setup of the new system. Ed was a nice guy and a good client.
Doherty-Tzoumas occupied this building on Dwight Street in Springfield.
I have always thought of Doherty-Tzoumas of Springfield, MA, as a bizarre advertising agency. Dianne Doherty9 was the president. She was totally unsuited to running this agency or any other business. Her husband was a very prominent lawyer. I think that he must have set her up in this business, perhaps for tax reasons. I can only speculate.
Her partner, Marsha Tzoumas10, knew her way around advertising and the business world at least a little, and she was very nice. I felt a little sorry for her.
The agency certainly tried hard to succeed. It always seemed to be a beehive of activity. Quite a few employees had been hired. They liked to hold “focus groups”11 for their clients’ products or services, an idea that I had never previously encountered.
I worked with Marsha and the agency’s bookkeeper to set up the system, and for the most part it seemed to go rather smoothly. However, when we showed the reports for the first monthly closing to Dianne she was overwhelmed.
Dianne hired a financial consultant to help her run the business. He might have been the company’s accountant, but that is not my recollection. I was in a few meetings with him. Most of them were fine, but in one meeting we were discussing the general ledger. Dianne made a very peculiar request. She asked if there were just two or three accounts that she should concentrate on. The request was, in my opinion, absurd. There might be a few that she could pretty much ignore, but to try to focus on any small subset of a company’s books was unthinkable. Most small businesses fail, and there are many paths to failure.
Nevertheless, the consultant took the bait and named a few accounts. I can’t even remember which ones he chose. I assume that cash was one. It is generally a good idea to know how much cash you have. He probably also picked A/P and A/R.
At any rate I knew in that instant that this business was doomed. I was right. In 1991 we received a letter from Dianne’s husband Paul proclaiming that the business was being liquidated. It was the only such letter that we ever received from an ad agency. They owed us less than $100, and so we did not consider suing for it.
I remember that on one occasion Marsha mentioned that she was looking for a good book to read. I recommended Larry McMurtry’s Lonesome Dove. I wonder if she took my advice.
In 1987 Rossin Greenberg Seronick and Hill (RGS&H)12 was the hottest agency in Boston, MA. The president, Neal Hill13, was not an advertising guy. Although I never met any of the other three partners, I am sure that they all had a good deal of advertising experience.
The agency had enjoyed two years of explosive growth. It wanted a computerized system for word and data processing. Neal and Ernie Capobianco14, the director of finance, interviewed us and all of our principal competitors. Their choice of the GrandAd system was a real feather in our cap. We were confident that we could do a great job for them, and we hoped that it would open the Boston market, which we had previously never been able to crack, for us.
A Wang word processing terminal.
The holdup was the word processing element. Neal loved Wang’s approach to word processing, and he thought that DisplayWrite/36 (DW/36) was inferior. However, no ad agency software had ever been written for Wang’s operating system. In fact, I had never encountered anyone who used it for anything other WP.
When Neal told us that they had decided to use our system, he asked what we would recommend for word processing. I said that I was not an expert, but the future was in PC’s. Furthermore, if they planned to use the S/36 only for GrandAd, a 5362, which could support up to twenty-eight locally attached devices, would be more than sufficient.
WordPerfect running in DOS did not look like the answer.
My assessment turned out to be correct, but in 1987 buying PC’s with good word processing software (the most popular at the time was WordPerfect) and connecting them would have been a formidable task. Personal computers in those days were still really personal.
Neal insisted that one system should address all the needs. IBM persuaded Neal that a model 5360 with DW/36 would serve their needs.
Neal approved the purchase of a 5360 (the washer-drier model) directly from IBM.
In the meantime I received a phone call from a salesman at Wang. He wanted us to convert our software to run on Wang’s equipment. I informed him that this would be a monumental task, and, although we had dozens of successful installations on IBM hardware, we had absolutely no experience with Wang’s approach. He told me that if we agreed to convert, he had an agency lined up that would use our system. I asked him if he was referring to RGS&H. When he confirmed it, I told him that they had already signed a contract with us. This was news to him.
The system that IBM proposed included terminals for almost all of the employees. The ones with PC’s got 5250 emulation adapters. Our end of the installation went fine. We did a great deal of custom coding for them. They had spent a lot of money on the system, and they reasonably insisted that it do exactly what they wanted.
Then the bombshell exploded. Microsoft let the world know that Neal Hill had written a letter to them. In it he bragged that RGS&H had poached the copywriter and artist from the agency that had handled advertising for Lotus Development, which at that time was considered Microsoft’s biggest competitor. Microsoft had not yet assembled its Office package, and Lotus 123 and Approach were very popular applications. Neal said that RGS&H knew what Lotus was up to, or words to that effect. He also sent them two plane tickets from Seattle to Boston.
I could sympathize. Evidently no one checked Neal Hill’s work either.
This episode caused a major scandal that has been widely written about in legal, advertising, and business circles as well as in the local press. In fact, if you google the agency’s name you will get several pages of articles about it. There are so many that is very difficult to find any other information about the agency.
Neal resigned in December of 1987. Ernie was named as the interim president. Our system was fully functional by this time. Ivan Dunmire served as our liaison. He did an excellent job.
TSI indirectly got swept up in this brouhaha. The articles in the local press mentioned that RGS&H had recently purchased a computer system that was characterized either as a mainframe or as a system that was much too large for the company. So, despite the fact that the people who actually used our software appreciated greatly what we had done, we never had the good reference account in Boston that we had hoped for.
Here are some of my recollections of my experiences with RGS&H:
You can’t make it in thirty minutes if you are afraid to exceed 10 miles per hour.
When I was driving Ernie to lunch one day he complained that my car smelled like tobacco smoke. It must have been Sue’s. Nobody previously had mentioned it. Evidently I was “nose blind” to it.
One of the two contenders for the most harrowing experience of my life (the other, getting caught in the Blizzard of ’77, is described here) occurred when driving back to Rockville. It was snowing lightly, and the traffic was moving at a fairly steady pace on the Mass Pike when I reached Exit #9 for I-84 near Sturbridge. To my surprise I-84 was nearly empty. There were no tracks in the road at all. I could clearly see the reflective markers on both sides of the road, and I used them for navigation. There really was no place to stop between Sturbridge and Rockville. The Celica and I passed no one, and we were only passed by one car traveling at perhaps 30 mph. A mile or so later I saw a car that had slid into the median; I assume that it was the one that had passed me. I did not consider stopping. When I finally reached the exit for Rockville, I had to guess where it was; the asphalt was covered with several inches of snow and there were no tire tracks. I did not think that my car would make it up the steep hills in Rockville, but it did. Sue was very worried; there were no cellphones in those days.
After we moved the office to Enfield in 1988, I usually drove to Springfield, took a Peter Pan bus to Boston, and walked a few blocks to the RGS’s offices. By that time “&H” had been dropped from the agency’s name.
I loved working with Ernie, Ivan, and the other people at the agency. There were no quarrels or misunderstandings.
I remember that I usually walked to McDonald’s for lunch and ate a Quarter-Pounder with Cheese and a Big Mac.
In the nineties Ivan called us a few times for support. By that time PC networks were becoming widespread, and people were touting the idea of “client-server” systems, a term that simply meant that the data was on one system used by everyone, but each person’s computer had its own set of programs. However, Ivan said that many of the people at the agency did not understand this. They thought that the term designated a system constructed to provide better service to the agency’s clients, and they wanted to know why RGS did not have one.
I tried to recruit Ivan to work for TSI, but he turned us down. I am not exactly sure what role he would have played at TSI, but I am pretty sure that he would have done a good job.
Our other installation in Boston, Rizzo Simons Cohn (RSC), was an even bigger fiasco. I was surprised to discover that Sue has almost completely repressed the memory of The Sign of the Three.
We had been contacted by a firm called Computer Detectives (CD). The guy on the phone told us that his company had been hired by the agency to find a computer system for them. It turned out that CD was a two-person company, the guy with whom we talked and his wife. His name was Larry Ponemon16. I don’t recall hers. We dealt almost exclusively with Larry.
Sue and I went to supper at a Chinese restaurant with them. The both ordered moo shu pork; this is the only thing that Sue remembered about them. They were very surprised when we told them that we had never really had a vacation.
We showed them the system, and they liked what they saw. We gave them a proposal for the GrandAd system running on a S/36 model 5363.
AT&T 3B2 model 400.
Larry called us to tell us that they had recommended our system to RSC, but the agency preferred to run its system on 3B2, a UNIX computer manufactured by AT&T. They asked us if we could convert our system to run on it.
We researched whether the S/36 version of Workstation Basic17 would work on a 3B2, and we were assured by the company that wrote and marketed it that it would. We told CD that we were pretty sure that it would, but we would need to adjust our quote to cover the conversion costs. We did so.
We then got to meet another consultant, who, among other things, sold and marketed AT&T computers. We told him that we were accustomed to working with IBM, and we trusted its commitment to support. If he sold the system to RSC, we wanted to know whom we would contact when we had problems or questions. He said that he was our contact. Remember that there were no cellphones, and this guy practically lived in his car. We would need to leave messages. The best that we could hope for was a beeper. Then we would need to depend on him to find someone who was willing and able help us. We were used to dialing 1-800-IBMSERV from anywhere. Someone ALWAYS answered.
The CD people were there at the meeting. They and the AT&T guy assured us that we and the agency’s users would get all the support that we needed.
We converted the software to work on Unix without an inordinate amount of difficulty. That, however, did not mean that it would efficiently do everything that RSC wanted in their environment. We knew nothing about how the operating system would perform when numerous users were working on the same files at the same time. Sue spent several days at RSC trying to get the system to work, but she ran into one roadblock after another, and no one was available to help her.
After a few weeks of this foolishness, the agency got fed up. CD had not disclosed to RSC, who had paid them handsomely to conduct the search, that they were being paid a “finder’s fee” both by us and by the AT&T guy. RSC had never voiced any preference for hardware; that was just a lie. Evidently they had told RSC quite a few whoppers, too. RSC sued CD, and Sue testified for the agency. AT&T took the hardware back and refunded at least part of the cost.
RSC reopened the software search. We submitted the same proposal that we had previously given to CD. Since we had already been paid for the UNIX version, we charged nothing for the GrandAd software or for the customizations. The other contender was a New York company (I can’t remember the name) against whom we often competed. Its software ran on UNIX.
I called the finance guy at RSC, Jonathan Ezrin18, and asked about their decision. He informed me that they had chosen the other vendor. I asked him what the basis for the decision was. He responded that mostly it was the cost. The answer astounded me. I asked him what the other software company had bid. It was about $10,000 higher than ours. I asked him how they could have considered this less than our bid. He said that to be fair they had included the cost of the software in our original proposal when making the comparison.
I assured him that we were not going to give that money back. I then told him frankly that theirs was the stupidest line of reasoning that I had ever heard, and I slammed down the phone.
RSC dissolved in 1990, less than a year after that phone call. I don’t know what happened to CD. I found no trace of them on the Internet, although Lavinia Harris has published a series of novels about a young couple who call themselves “computer detectives”.
I remember visiting Fern/Hanaway19 of Providence, RI, a few times. The agency had a System/36 that they had bought from IBM. I think that we installed one or two modules there, but I don’t remember which ones.
IBM must have told Arian & Lowe (A&L)20, an advertising agency of sorts in Chicago, IL, about TSI. Sue said that she went there once. She remembers that the floor of their office would have been good for dancing, but the only thing that she remembered about the company was that their main client was the Beef Board. They mostly produced point-of-sale posters and signage.
I installed some modules of the GrandAd system there and flew out for a couple of month ends. I remember several very strange occurrences.
The Director of Financial Operations for the agency was Neta Magnusson21. We generally had lunch together. She always had more than one martini. I could never have concentrated in the afternoon if I had imbibed a small fraction of what she downed. I stuck with Diet Coke or iced tea.
A&L used its S/36 model 5360 for word processing. One time when I was there working on the GrandAd system, they somehow lost some WP documents. A few people blamed me for this. I protested that I had not done anything to any documents. Fortunately I knew enough about how DW/36 worked that I could also demonstrate that I could not possibly have done anything.
I ordinarily stayed at a Holiday Inn that was a short distance from A&L. On one trip I had to stay an extra day. The Holiday Inn had no availability for that extra night, but they found me a place to stay and called a cab to take me there. The cab driver said that I definitely would not want to stay there. Instead, he took me to another place that was in a rather rough part of town. However, the room was OK, and it was only one night. I was, however, happy to be out of there the next morning.
The agency’s was in downtown Chicago. I had to take cabs back and forth to O’Hare. One time I somehow left my glasses in the cab. Believe it or not, the next time that I went to A&L I stopped at the taxi dispatcher. My glasses were in the Lost and Found box safe and sound.
One of the cab drivers spoke no English at all. His girlfriend sat in the front seat and translated for him.
Another cab driver picked me up at A&L. I wanted to go to O’Hare. He asked me for directions. I actually rode with a cab driver in Chicago who did not know how to get to the airport! Fortunately, this was one of my last trips to A&L; I could have given him instructions blindfolded.
The favorite expression of the system operator at A&L was “Have a good one!” I realized that this was cheerful and completely innocuous, but for some reason it really irritated me.
My favorite part of the trips to Chicago was the prospect of having an Italian beef sandwich, either at the airport or bought from a street vendor.
It seems appropriate to end with the bittersweet tale of Charnas Associates of Manchester, CT. TSI and IBM scheduled a presentation to the agency at the IBM office in Hartford. The presentation was scheduled to take two hours. I went to the office early and loaded our GrandAd demo system onto the 5360 at IBM. I also went over my notes for the presentation.
The turnout was unbelievable. Around twenty people showed up from the agency. I was always happy if we got one; I had done worse than that.
I had a lot of experience at this. The format varied by only a little. Someone from IBM acted as the host. He or she was always dressed impeccably and spoke glowingly about how wonderful IBM’s systems and support were and what a close working relationship IBM had with independent software developers like TSI. Then they turned it over to me.
I hated whiteboards after this.
Not this time. The IBMer went around to each and every person in the room and asked them what they would like the computer to do to help with their jobs. After each answer he would rush back to a whiteboard and add it to the list of items that were already on the board. The he would ask them to evaluate how important this was to them. He was hoping that they would attach a monetary value to it, but he was willing to settle for peace of mind or saving time. He dutifully recorded the values as well.
This went on for at least an hour and forty-five minutes. Then he spent a few minutes praising the System/36 before he let me talk for a couple of minutes. I could not possibly do my presentation in less than a half hour. So, I had to forget about my slides and my demo and try to talk about the big picture. The worst part was that damnable list on the whiteboard behind me. Needless to say, our software addressed less than half of the wish list. Of course no one suggested “Help us find which clients are unprofitable and why” or “Help us improve cash flow”.
I was so angry at the IBMer that I could have punched him. If I had not sworn after that fight in the fifth grade with Tom Guilfoyle that I would not engage in fisticuffs, I might have.
We followed up on this, but we never heard from Charnas.
A few years later in 1989 I was scheduled to give my first AS/400 demonstration of the AdDept system that I was still in the process of installing at Macy’s in New York. TSI did not own an AS/400 yet, and so I had made a backup tape at Macy’s. I planned to install Macy’s programs and data, dummy up the data so it was not recognizable, give the demo, and then erase the programs from the disk.
I never finished the first step. Something about the tape made the AS/400 system at IBM hang up. Commands could not even be entered at the system console. I worked with these incredibly reliable machines for twenty-six years. This was the only time that I saw something like this happen.
The IBM people were furious at me. They were certain that the problem occurred because our programs were written in BASIC. I calmly explained that the programs never got restored. Something happened during the restoring process.
Nobody from IBM attended my demo. I went to the demo room to do a song and dance with no accompaniment. Only one person was there, and she was not even one of our invitees. She identified herself as a media buyer at Charnas who had heard about the event from one of her clients. I explained how the GrandAd system worked and which agencies were using it.
She told me that Charnas had a S/36. She did not know the model. I asked her how big it was. “Oh, it’s big!”
She said that they used it only for word processing, and everyone hated it. That guy from the first demo had sold them a 5360 with no software except DisplayWrite36!
I don’t remember what happened after that too clearly. I am sure that I went to Charnas’s office in Manchester at least a few times in the early nineties. I think that I installed an abbreviated media system for them. Then I got heavily involved in the AdDept system.
Charnas apparently went out of business in July of 1992.
While I was looking for information about the agency I came across the book shown at the right. It was commissioned by Robert Bletchman, an attorney from Avon who died in 2008. His obituary is here.
There is only one copy of the book on this website. The title is How to Achieve the Release of Unidentified Flying Object Information from the United States Government.The first reader with $50 can claim it. Shipping is free!
The publication date for this book is in 1985. I am pretty sure that this effort antedated Art Bell’s Coast to Coast AM show on WTIC radio by approximately ten years.
1. O’Neal & Prelle went out of business in 2000.
2. Bill Ervin died suddenly in 2003. His obituary is here.
3. Liz Dickman is now the CEO of Integrated Physicians Management Services in East Hartford. Her LinkedIn page is here.
4. Eric Tulin Inc. changed names and ownership a few times before giving up the ghost in 1991.
6. In 2007, as reported here, Tom Brownell apparently transferred his client list to a group of his employees. They changed the name of the agency to 802 Creative Partners and moved the headquarters to Bethel, VT.
7. By coincidence 72 is my own age as I write this in May 2021. To be honest, if I tried to keep a manual ledger, I probably would not be able to read my handwriting either.
9. Dianne Doherty now goes by Dianne Fuller Doherty. She resides in Longmeadow, MA, in 2021. After the agency’s failure she devoted her life to helping other small businesses, especially those run by women, get started. Her story is described here.
10. Marsha Tzoumas is now known as Marsha Montori. In 2021 she is the Chief Marketing Officer at Six-Point Creative Works, an ad agency in Springfield. Her LinkedIn page is here.
11. I used focus groups in my short story (described here).
12. RGS&H went through five name change. Its final incarnation, GSOD, Inc. dissolved in 2007.
13. Neal Hill landed in Canada. His LinkedIn page is here.
Ernie Capobianco.
14. Ernie Capobianco telephoned me in the early 1990’s. At the time he had just started working at Valentine-Radford, a big ad agency in Kansas City. He arranged for me to meet with some principals and the IT guy. I also visited Ernie’s apartment in Johnson County. I think that I caught him at a bad time. His LinkedIn page, which skips over his time at RGS&H, is here.
15. Ivan Dunmire lives in New York City. His LinkedIn page is here.
Larry Ponemon.
16. I think that Larry Ponemon now runs the Ponemon Institute, which has something to do with privacy, security, and computers. His page on the organization’s website is here.
17. Workstation Basic was designed to emulate the Datamaster version of BASIC running under DOS and later UNIX. More information is here.
18. Jonathan Ezrin apparently now lives in Plymouth, MA. He does not have a LinkedIn page.
19. Fern/Hanaway was dissolved in 1998.
20. It appears that in 1991 A&L was taken over by Daryl Travis. Various versions of Arian, Lowe and Travis (no Oxford comma) existed after that, but I think that the operation in Chicago did not survive for long. The Beef Board account represented a high percentage of its billings.
21. I think that in 2021 Neta Magnusson lives in Geneva, IL, a suburb on the west side of Chicago.
In early 1988 Sue Comparetto, who had handled the GrandAd accounts in New York City, received a call at TSI from IBM’s Manhattan office. One of our contacts, Quique (KEY kay) Rodriguez1 wanted to talk with us about Macy’s New York. Its advertising department had been using software programs on an obsolete System/34 to keep track of its advertising expenses and income. The system had been developed internally by people who no longer worked for Macy’s. Documentation was minimal.
Macy’s New York had recently merged with Macy’s New Jersey. The new entity was called Macy’s Northeast, and its offices were on an upper floor of the “world’s largest store” on 34th St. in Manhattan. The advertising department’s existing system had already been stretched to the limits and would never be able to handle the increased load. Moreover, the users were not happy with some aspects of the code. Alan Spett2, one of a very large number of vice-presidents at Macy’s, had been provided by corporate with a budget for replacing or updating the existing system.
This may have been the last time that I actually jumped.
I jumped for joy and clicked my heels when I heard about this opportunity. For some time I thought that companies that produced and/or scheduled their own advertising represented a attractive untapped market for the skills and knowledge that we had acquired from our seven years works with advertising agencies. Evidently I was right. We had never approached any of these departments because I had absolutely no idea how we could even identify which companies created and placed their own ads.
Coincidentally, IBM had just announced a new mini-computer, the AS/400, to replace the System/36 (which had replaced the System/34 in 1983). This announcement and its implications for TSI are described in considerable detail here.
The train brought us to Penn Station, only a block or so from Macy’s.
I made several trips by Amtrak train to the city to document the requirements for the new system. Sometimes I was accompanied by Michael Symolon, TSI’s marketing director at the time, and sometimes by Sue. We soon learned that Macy’s advertising department did everything that an ad agency did except keep track of the amount of time spent on individual production jobs. In fact, they had an advertising agency name that they used when ordering media. In addition, the department had many other needs that regular ad agencies lacked. Specifically, they were required to allocate both production and media expenses to the selling departments. These departments were identified by three-digit numbers. Each was assigned to an administrative group that also had a number. In turn there were three levels of vice-presidents who “owned” administrative groups3.
Macy’s also billed the merchandise vendors (Clinique, Ralph Lauren, Levi’s, etc.) a portion of the expense for ads that featured their products. The cost to the merchandise department was net of these “co-op” billings. The contract could be for a percentage of the media cost or it could be a fixed amount.
The first phase of this job entailed providing Macy’s with everything that they needed to get the ads in all media scheduled—printed schedules in the format that they liked, “insertion orders” (called “delivery tickets” by other retailers) to accompany the materials sent to the media vendors, and so on—in every media. It also included keeping track of expenses and co-op for each level of the merchant hierarchy. There were several different formats that they used for reporting these breakdowns.
I envisioned that the creation of any ad would consist of five steps:
An ad number within the season and a version code that was usually blank would be entered, or ad numbers could be assigned by the system by pressing a function key.
A new ads screen allowed selection of the ad type (e.g., black-and-white ROP) and entry of the primary run date, which must fall with the season.
The other information that applied to all of the media for the ad would be entered on a header screen. This varied by type of ad, but each screen included selection of a pub group—a list of newspapers, markets, or stations.
A media selection screen showed one line for each pub in the pub group with dates, quantities, rates, and other costs or discounts. Any line could be edited or deleted. Additional pubs could be specified.
A participants screen to provide the list of departments or groups for the ad with the expected cost percentages and co-op amounts for each.
Storewide ads could be entered rather quickly. Ads with many departments or groups might take a few minutes. This approach was warmly received. The employees were accustomed to specifying the participants for each pub in the ad.
After the schedule was created, any aspect of an ad could be changed, or the ad could be killed, (in exceptional cases), deleted, or moved to a different date. New ads could be defined. Once the ad was run, the actual participants and the actual co-op could be provided. History records with dates, times, and user ID’s were kept for all changes.
How did Macy’s determine the percentage of the actual cost of each ad that was to be allocated to each department or administrative group? The process astounded me. In one room4 were seated from three to five clerks. Each was provided with a stack of newspapers and a list of ads that were scheduled to be run as well as lists of department numbers and the numbers of administrative groups. They looked through the newspapers to find the ads that Macy’s had run. They then measured—with a ruler!—each of the “blocks” in the ad to see how many columns wide (six columns to a page) and how many inches deep (i.e., vertically) the block was. They then entered the column inches for each block. For blocks that were not specific to a department or group, a special “storewide” department #999 was created. The total of the measurements must exactly equal the total size of the ad.
My approach changed this process so that the clerks measured ads, not insertions (the ad in a specific paper). If the ad was already measured, the clerk could see what had been entered, who did it, and when.
A similar process was also required for each page of each direct mail piece and newspaper insert. The ads for other media were not measured, but actual percentage breakdowns were recorded.
Similarly, the actual co-op dollars received from the selling departments (a process called “turning in”) could be recorded. Lists of missing co-op could be printed.
The most important financial reports for Macy’s compared the committed co-op and costs with the actual measured costs and actual co-op. They could be run for any or all merchants (the vice presidents who owned the departments) and any or all media.
Camex was located at 75 Kneeland St. in Boston.
In addition to all of this, Alan had ideas for other modules such as an inventory system for the merchandise used for photo shoots in the studio in Newark and a system to manage the shoots themselves. He also wanted us eventually to work on an interface with the Camex system that Macy’s used to create the images for the ROP6 ads and books. Thank goodness these ideas were not included in the original contract.
TSI’s GrandAd system for ad agencies had been built around a file for ads, the key to which was a three-digit client number and a five-digit job number. So, each client could have up to 99,999 jobs. For the departmental system, which I decided to call AdDept, I designed a similar structure, but, since Macy’s itself was the only client, I made the three-digit code stand for the season. 891 meant spring of 1989. 892 was fall of 1989. Eventually, a one-digit code for the century was added as well, but otherwise this proved to be a very feasible approach.
Many other structural changes were necessary. The most significant one was the designation of a one-character version code as part of the unique identifier (key) to the main media file. This could be used to make distinctions that varied by pub (media vehicle). For example, one item in an ad might be “swapped out” for a different item in another ad. The catalogs sent to some markets might not include some pages.
The new table for the pub groups mentioned above allowed Macy’s to identifying papers in which they often ran the same ad, e.g., the tabloids. There was no limit on the number of pub groups, and pubs could be in any number of pub groups.
I did not mention this to anyone at the time, but while I was gathering requirements, I noticed a very serious flaw in the design of Macy’s existing software for the S/34. The same ad was run in a few papers, but each insertion in each paper was given a separate ad number. The clerks doing the measuring were each assigned one or more newspapers. They measured and then entered into the computer the amount of space for each department in each ad. The person next to them might have already measured the same ad in a different paper, but there was no way for them to use that information; they had to key it all in again. So, with the S/34 design the increase in the number of papers added by the merger would more than double the work in allocating costs. My approach would decrease the work even with more papers. They would only measure the ad in one paper.
How great was this? The ROI for this feature alone would easily surpass the cost of the entire system in the first year!
How was such a colossal blunder possible? Well, the S/34 programs were designed for Macy’s New York, which advertised almost exclusively in only three papers: The New York Times (a broadsheet), the Daily News (a tabloid), and Newsday, a Long Island newspaper with a unique shape. Each of these would require separate versions and therefore separate measurements. However, all of the new papers were either tabloids or broadsheets. There was no need for separate measurements.
At some point in mid-summer TSI needed to do a presentation for Macy’s at IBM’s office on Madison Avenue in New York. There was no competition; no other software developer wanted anything to do with this project. The alternative for Macy’s was to enlist their IT department to do something. No one mentioned this, but I was quite certain that the IT department would not be able to deliver a functioning system that met all the requirements within the required time frame. Of course, I was not certain that we could do it either. However, we had delivered several large projects on schedule, and I was willing to put in the hours5 to make this one a success.
590 Madison Ave., then known as the IBM Building.
I wanted to demo the GrandAd system and explain how we would adjust the database to fit Macy’s. I made arrangements to use a S/36 in IBM’s office at 590 Madison Avenue to show how our advertising agency system currently worked and how it could be adapted. I considered–and still do–this to be the most important presentation that I ever gave. It was my only chance to persuade Macy’s Advertising Director, Howard Adler, that TSI should be contracted to do the project. I figured that if we got Macy’s, and we did a good job, a whole new market would be opened to us. At that point I was still naive enough to assume that other retailers would surely be much less difficult because we had already done the programming for the largest retail advertiser in the country.
I needed to transport our GrandAd programs and our demo data to New York. Not only was it not possible in 1988 to send them there electronically using something like FTP. We did not even have access to a compatible medium. The I/O device on IBM’s S/36 in NYC read 8” diskettes. Our system in CT used 5¼” diskettes. So, I saved our programs and our data onto nine 5¼” diskettes. Then I used a machine that I had purchased for just this purpose to copy the 5¼” diskettes onto previously blank 8” diskettes. I then loaded the 8″ diskettes into a “magazine” that I had obtained somewhere. The S/36 in New York included a device for reading diskettes from such a magazine.
This is the only photo that I could find of a magazine. The diskettes are inserted in and removed from the opposite side.
You say that you are not familiar with the concept of diskette magazines? For over a decade IBM used them on the S/34 and the S/36. As far as I know, no other system from any manufacturer followed suit.
They were almost completely plastic. Their width was about an inch and a half. The other dimensions were just large enough for 8” diskettes. One side was open to allow insertion and removal of diskettes. Small plastic rails on the top and bottom of the open side kept the diskettes separate from one another. The only thing on the magazine that was not plastic was a small metallic bar near the top of the open space that held the diskettes in. The bar could be lifted up on a hinge to allow access to diskettes. The machine that read the diskettes could also do this (like a juke box), and it was smart enough to read them sequentially.
The process of saving and converting the programs and data, which I probably did over a weekend, took several hours. I then inserted the 8” diskettes into the magazine, put it in my sample case with my other materials, and then stowed the sample case in the trunk of my Celica. I do not remember why, but I must have left the car in the sun for several hours. When Michael and I reached New York and took out the magazine, we could see that the little iron bar that restrained the diskettes had apparently become hot enough to melt little notches into all the diskettes. The magazine drive on IBM’s system refused to read them. O tempora, o mores!
Michael had a brilliant idea. He used a sharp knife to slit the edge of each damaged diskette and nine new diskettes that we borrowed from IBM. The actual data was not, of course on the plasticized paper that one could handle (and therefore slit). It was on a very thin circle of magnetized film inside. For each new diskette Michael replaced the blank film disk inside with the one that he had retrieved from a diskette that I had made. Then he carefully inserted the nine new diskettes that hopefully contained our programs and data into the magazine. I then loaded the magazine into the S/36’s magazine drive again and entered the command to restore the files. The machine successfully read six diskettes. However, at that point it made an awful noise and totally mangled the seventh diskette including, because we had no way to reseal the side that Michael had slit, the precious film inside.
My dog could not juggle six balls.
So, I was faced with the prospect of making the most important presentation of my life with absolutely no software to demonstrate. The pony in my “dog and pony show” was a stick-figure drawing. Would anyone notice?
Fortunately, my many years of experience in debate at adjusting a presentation at the last minute kept me from panicking. I began the presentation by apologizing for the technical problem. I then illustrated the approach that we proposed to take using the whiteboard that IBM provided, and I answered questions as well as I could.
It was enough. Macy’s agreed to put in motion the process of contracting with TSI. As Alan later said, “You were definitely the only game in town.”
The plan was to install the system in the “System/36 environment” of a B30 model of an AS/400. The I/O devices were a single 8” diskette drive and a ½” tape drive. TSI had no system that had either of these drives, and so our only choice was to execute the cumbersome conversion process every time that we needed to make changes.
TSI could not even afford J. Cheever Loophole.
I sent Alan our usual two-page contract. He sent it to their legal department and returned one with about twenty-five pages. I should mention that the TSI was dirt poor at this time. Sue and I had been low on funds before, but this was the first situation that rose to a crisis level. Details are posted here. We certainly could not afford a lawyer. I had to read the contract very carefully and assume the worst. After a few changes, we agreed, signed it, and started work. I did almost 100 percent of the coding. The other programmers were busy with work for our other clients, and I did not trust Sue to do the work.
I was not able to use a single program from the GrandAd system. I thought that at least one of the many insertion order programs that we had written for ad agencies would be usable without much modification, but I was wrong. The people in retail advertising just do not think like the people in advertising agencies. Every single program was written from scratch.
We had no time to produce a detailed design document describing the project. Our drop-dead deadline was the end of the season in late January. All programs must be totally functional. The process was:
Write the code.
Get it to the point where there was something to show to Macy’s.
Save the changes to 5¼” diskettes.
Copy the 5¼” diskettes to 8” diskettes.
Take the train to New York.
Install the new software from the 8″ diskettes. This could take up to an hour.
If changes had been made to the database definitions, make them on Macy’s system.
Make changes on the fly as necessary.
Show Macy’s how the new code works.
Save the changes to 8” diskettes.
Bring the 8″ diskettes on the train ride to TSI.
Copy the 8” diskettes to 5¼” diskettes.
Install the changes on TSI’s system.
The luxurious Windsor Locks Amtrak stop. This is the view looking north. From the parking lot the engine’s light could be seen under the bridge.
This was, to be sure, a terrible way to do things. It required me to make at least one trip to New York every week for several months. Usually it was up and back on the same day. I stayed overnight at a hotel a couple of times. Often I made two up-and-back trips in a week. Each trip required a twenty-five minute drive to the train platform. I boarded the train at 6:00 AM in Windsor Locks. There is only a platform there. I therefore sat in my car with the heat on until I saw the light of the train approaching.
The word you did not want to see was “DELAYED”.
If everything went well, I arrived back at the train platform at 9:30PM. The trains in the evening, however, were almost never on time. Those trains originated in Miami, FL. There were plenty of opportunities for delay as each one crawled its way north. A report on my most memorable Amtrak experiences is posted here.
During this process Alan would quite often come up with new thoughts as to what should be in the “base system” covered by the contract. I grumbled, but I almost always did what he asked. One morning I saw a Daily News in Penn Station with the headline “Macy’s Computer System is Driving Me Crazy!” I bought a paper, cut out the headline, and taped it to the inside of my sample case.
Meanwhile, TSI had received only a deposit from Macy’s. However, we were desperate to receive that final check. I saw no alternative to this nightmarish schedule.
The scope of the project was enormous, and almost nothing from the GrandAd code was usable for this project. In addition to everything else, the emphasis at Macy’s was on newspaper ads. In my experience ad agencies used the term “print”, which for them referred to direct mail and magazines. Most agencies treated newspapers as magazines that published more often on cheaper paper to a geographically limited audience. The ingrates who ran the papers did not even offer discounts to ad agencies. Macy’s, on the other hand, could run a dozen or more ads in one issue of a newspaper.
Time to go home.
Mirabile dictu! By February, 1989, the system was stable enough that Macy’s paid us most of the balance. This did not end the crisis at TSI, but it allow us to meet the payroll for a few months. In retrospect, I cannot imagine how we pulled it off. I remember working seven days a week. I was always at work by 6AM, and I seldom left before 7PM7. I admit that I always went home for lunch, and I usually took a short nap.
Gary Beberman.
What enabled the completion of this seemingly impossible task in that amount of time was the fact that Alan somehow got Gary Beberman8 to serve as the project manager. He could speak advertising to the workers at Macy’s and geek to us. I only trained one person; Gary trained the others. I am not sure where Alan found Gary or how he got assigned to the project, but he was a godsend. He saved us a huge amount of time and frustration, and he was also quite adept on pouring oil on troubled waters during the frustrating periods in which I was working feverishly on the code.
The next two projects for Macy’s were an inventory system for the “loan room” (usually called “merch room” at other retailers) and a more sophisticated system of entering and reporting actual costs, what Macy’s called “financials”. I gathered the specs for these projects on trips to Macy’s and produced detailed design documents, which Alan quickly approved.
Denise Bessette did almost all of the programming on these two large requests, and she did an outstanding job. I installed the code and showed the people at Macy’s how to use the programs.
Merchandise that was afraid of the traffic could have just as easily taken the train.
The loan room gathered merchandise needed for photo shoots and sent it to the photo studio in Newark or to some other location. Part of the automation of this process was the printing of tags for each item. Almost as soon as this was implemented, the amount of pilferage reportedly decreased dramatically. The merch room manager told me that previously a lot of merchandise had trouble remembering the way back to Manhattan from Newark. She was extremely happy with the new system.
Denise also completed the other project according to the approved design document, and I delivered it. The finance manager then produced a bevy of changes that she wanted. I offered to quote the changes at TSI’s usual fee of $75 per quote. Alan said that Macy’s was under the impression that these programs fell under the terms of the original contract. It clearly did not include them. He was also surprised that I insisted on charging for my time at Macy’s after the warranty period. I would not give in on these matters, and this caused some bitterness.
At some point in this process TSI leased an AS/400 model B10 from IBM. We hooked everyone up to it, and we converted all of Macy’s programs to run in the native environment instead of the System/36 environment. This project went fairly smoothly. I don’t remember any great headaches, and the programs were considerably faster.
In other respects the installation also proceeded rather smoothly as long as Gary was there, but when he and his wife moved to the West Coast, things started to get a little testy. Alan hired Satish Rahi9 (accent on the second syllable in both names) to manage the installation. Satish must have presented himself as an alternative to paying TSI to program reports. He thought that he could produce any desired output using a third-party query product from a company called Gupta Technologies. Their Wikipedia page is here.
Satish was shocked that the product did not work on most of our tables. I told him that there was nothing in our contract that said or implied that third-party products (of which even then there were quite a few) would work with tables that we designed and implemented. IBM’s Query/400 product had no trouble with any of our tables. After considerable digging I determined that the source of the problem was that we wrote records in BASIC, not in SQL10, which was not even available on the AS/400 yet. The designers of Gupta’s product evidently did not take this into account when they began marketing to AS/400 customers.
Satish started lecturing me about industry standards for databases. I explained that the industry standard for writing x-digit positive integers in BASIC was N x, which left-pads these numbers (such as the ad number) with blanks, as opposed to ZD x, which left-pads with zeroes. In fact, most versions of BASIC did not even have a way to write “zoned decimals” without writing extraneous code to do it11. One day I got so upset while arguing with Satish about this that I seriously considered driving down to the Amtrak stop so that, after sitting on a train for over three hours, I could ride the elevator up to his floor at Macy’s and punch him in the nose.
Not long after this conversation Alan fired Satish, and eventually we changed all the programs to “zone” all the integers. Of course, we got paid for neither this project nor the conversion to the native environment, but we felt that we had to do them to hope to stay in IBM’s and Macy’s good graces.
Denise Jordaens.
From that point on we dealt with Denise Jordaens12 and Lee Glickman13 at Macy’s. Things stabilized, but the department did not get nearly as much out of the system as it could have.
Over these years Macy’s went through a lot of changes. In January of 1992 the company declared bankruptcy, thereby leaving TSI with a stack of unpaid invoices. In 1994 Macy’s was absorbed into Federated Department Stores, which had itself just emerged from bankruptcy. This gave them a new set of standards to abide by. Eventually other acquisitions gave Macy’s in New York a large number of new stores to manage on the east coast. They continued to use the loan room system and to pay our maintenance bills. They never asked about any of the enhancements that were installed at Macy’s South and Macy’s West.
There were other complications as well. On one occasion Macy’s asked for someone from TSI to visit so they could explain their problems with and aspirations for the system. My schedule was totally booked for weeks in advance. I asked Sue to take the trip. She did. I don’t know what transpired, but Denise Jordaens later told me that they made a voodoo doll of Sue and stuck pins in it.
I may have made some bad decisions about Macy’s. I did not yet understand how decisions about products and services like those offered by TSI were made in a large retail advertising department. This issue is discussed in more detail here.
TSI probably should have charged more for the original installation and used the money to hire another full-time programmer. Maybe we should have tried to borrow money from somewhere. I was unwilling to put all of our eggs in the Macy’s basket. Macy’s declaration of bankruptcy was a devastating blow to TSI. When Macy’s was acquired by Federated Department Stores14, it appeared to me that the decision to concentrate our efforts elsewhere had been a sound one.
As it turned out, however, Macy’s eventually gobbled up nearly all of the regional department stores in the entire country. The strategy that I chose helped TSI succeed for more than twenty years, but if I had gambled on Macy’s, we might still be in business in 2021. On the other hand, we would have been working almost exclusively for Macy’s for most of that time. Such an experience might have really driven me crazy.
The story of the Macy’s installation had a bizarre final chapter. It is recorded here.
1. According to his LinkedIn page (which is here), in 2021 Quique Rodriguez is retired and enjoying family time. I suppose that it is possible.
2. Alan Spett lives in Atlanta in 2021. His LinkedIn page can be found here.
3. So, I designed the database with five levels of participants. The lowest level was always called a department, but the names of the other four levels to be used on reports and screens could be specified by each AdDept client. At all Macy’s divisions they were called Administrative Groups, Group VP’s, Senior VP’s, and Group Senior VP’s.
4. This same room housed the AS/400, at least for a while. I sat at an empty desk when I was there. When the first phase of the installation was completed, some of the measurement clerks were reassigned to other tasks.
5. Unfortunately, I don’t think that I was careful enough to account for the large number of unproductive hours that I would spend on trains, in meetings at Macy’s, and in converting files. The round-trip train ride alone accounted for six or seven hours and a drive of nearly an hour, So, each full day at Macy’s was matched by another full work day getting there and back!
6. ROP stands for “run of press”. All display ads (as opposed to preprinted inserts) that are run in a newspaper are called ROP. It is not an acronym; all three letters are pronounced.
7. I am a “morning person”. Any work that I did after 7PM was likely to be counterproductive. Moreover, I needed a few caffeine-free hours so that I could fall asleep at 10PM and stay asleep.
8. I have kept in touch with Gary Beberman. He moved to California to work as a consultant and then was employed by Macys.com. Macy’s West and Neiman Marcus hired him as a consultant during their AdDept installations. He was the only consultant whom I ever respected. He has lived in Marin County for the last five years. He and his wife are hoping to retire to Italy.
10. SQL (structured query language) was invented in the seventies by two IBM researchers, but at the time of the debut of the AS/400 no IBM computers used it much. The reason, we were told, was that it was much less efficient than the ISAM methods that IBM endorsed. Later IBM computers, including the AS/400, were designed to maximize the efficiencies of SQL queries.
11. What I said to Satish was correct from my perspective, but perhaps I should have asked him what made Gupta Technologies think that the AS/400’s relational database conformed to these “industry standards” that he cited. After all, SQL had been invented by IBM, and IBM was not yet positioning its AS/400 as an alternative to the “standard” databases such as Oracle, Sybase, or Informix.
12. According to her LinkedIn page (here) Denise Jordaens still works as coordinator of media systems for Macy’s.
13. I think that this might be Lee Glickman’s LinkedIn page.
14. A more detailed discussion of TSI’s long and torturous relationships with Federated Department Stores can be found here.