1997-2005 AdDept Client: Proffitt’s Inc./Saks Inc.

Posted on August 13, 2021 by Mike

Holding company in Birmingham, AL. Continue reading →

Proffitt’s (under the name of the Elliott-Proffitt Co.) began in 1919 as a department store in downtown Maryville (locally pronounced MARE vuhl) TN. Decades after it became a chain of department stores TSI’s AdDept system was installed in its advertising department. The account of that process is detailed here.

In 1984 the company and all of its stores were purchased by the RBM Acquisitions Co. It was led by R. Brad Martin, who had previously been a very young member of the Tennessee Legislature and a real estate mogul. Proffitt’s Inc. soon began an ambitious series of acquisitions and openings of new stores. In 1994 it purchased McRae’s, a chain of department stores based in Jackson, MS, that was actually larger than Proffitt’s by any measure except ambition.

Previous new stores that had been purchased by RBM were run under the Proffitt’s logo and administered from the company’s headquarters in Alcoa, TN. McRae’s was allowed to run as a separate division, as were subsequent acquisitions of the Parisian, Younkers, Herberger’s, and Carson Pirie Scott.

The lobby in Birmingham was rather impressive.

After the Parisian division was acquired, the corporate headquarters was moved to a beautiful office located at 750 Lakeshore Parkway² on the north side of Birmingham, AL. However, all advertising was still administered by each local division in its home location. The data center and the IT department were at McRae’s headquarters in Jackson, MS.

TSI had repeatedly sent promotional materials to advertising directors at each of the divisions. Doug Pease, TSI’s marketing director, followed up on the mailings and eventually encountered Fran Jose², who was a top executive of Proffitt’s Marketing Group (PMG), the organization that supervised the advertising departments in the divisions. He was impressed enough with the AdDept system that PMG made the decision to implement it in each of the advertising departments. By the time that I got involved in this endeavor Fran had moved on. This was fine. Doug referred to him as “a little Napoleon”.

In 1998 Proffitt’s Inc. bought Saks Fifth Avenue and immediately changed the name of the company to Saks Inc. AdDept had been installed in all of the divisions, including Saks, although Carson’s was no longer using the system (as explained here). In 2000 Martin divided the company into two divisions. One was Saks, the other was everyone else. Martin then moved to New York and ran Saks with little success for a few years before he had to sell it and all of the other pieces of his crumbling empire.

The people: I dealt mostly with Steve VeZain³, who hailed from Louisiana and LSU. He joined PMG in September of 1997. Steve had rather grandiose plans about managing the advertising departments of the various divisions. He made a couple of trips to visit TSI to discuss some of them. Only a few of those were ever put into play. I have rather extensive notes dating from 1999 about our interactions.

Steve’s wife worked in the same building in Birmingham as he did, but I think that she was a buyer or maybe the boss of buyers for the Parisian.

Steve took me to supper several times when I was in Birmingham. His favorite restaurant was Joe’s Crab Shack. I think that his wife accompanied us on one occasion.

I fond the above photo after I had posted this entry. I think that it must have been taken in 1996 or 1997 after the installation at Younkers but before the installation at Proffitt’s. I have no memory of this meeting, but attached post-its identified the participants. From left to right they were Tom Henry from Proffitt’s, Roger Wolf from Younkers, Tom Waltz and Cindy Karnoupakis from Proffitt’s, a guy named Chris from Younkers, and Steve VeZain.

One of Steve’s first moves was to hire Josh Hill, a native of Minnesota who was a recent graduate of the University of Alabama at Birmingham. In fact, Despite his accent, Josh was designated as Mr. UAB in 1997.

I spent a fair amount of time with Josh at various divisions. Steve sent him to oversee some of the AdDept installations, and he accompanied Steve on at least one of his visits to TSI.

Josh liked to lift weights and to ride his motorcycle at high speeds. I don’t know why he (or anyone else who grew up north of the Mason-Dixon line) decided to come to Birmingham for his education.

In late 1999 my sister, Jamie Lisella, quit working at TSI and moved to Birmingham to work for Steve VeZain at PMG. The circumstances have been detailed here.

In January of 2000 Jamie told me that Josh’s car had been involved in a serious accident, but he was OK. She also informed me that the employees at Saks Inc. were allowed to sign on to the Internet, and many of them wasted a lot of time there.

I have only sketchy memories of others who worked at PMG (or whatever it was later called). Kathy D’Andrea kept the corporate books for marketing. I don’t remember her, but I found a photo of her. One of the documents that I found mentions that she would be at Herberger’s at the same time that I was scheduled, but I do not remember seeing her there.

Dave Weeast was in charge of the AS/400’s for all of the divisions. We dealt with him fairly often, but I don’t think that I ever met him. I think that he worked in Jackson, MS, for Windell Manuel⁵.

I have no recollection of Corky Wicks⁶, who worked as a business analyst for the company from 1997-2006, but his name is in my notes.

By March of 2001 Jamie had left Saks Inc. I found an email from her to Dave Weeast and Windell Manuel, about the five AS/400’s that had been running AdDept.

What was the purpose of PMG? I had the impression that it did not have a specific agenda. Perhaps the idea was to impose standards upon the advertising departments of the divisions that had, in most cases, been operating independently for decades. What standards? I think that was a big part of the problem. TSI probably did not help. One of our selling points was that the system was easily adaptable to different philosophies of the administration of marketing. Some of the procedures used by the divisions were real outliers.

I think that Steve, Josh, and Jamie had all left Saks by early 2001. Perhaps the marketing group itself had been disbanded. The other organizations that we had worked with had nothing that was similar to PMG.

SPM: All five divisions (and even Saks Fifth Avenue) had been using an ad agency named SPM to place their newspaper ads. Saks dropped them some time in 1997 or 1998. All of the divisions hated working with SPM. Steve decided to drop them in the Spring of 1999. This was a break for TSI. All the divisions suddenly needed to produce insertion orders. We were rapidly able to implement insertion orders and faxing without too much difficulty.

Three interesting visits: This event was not mentioned in my notes, and so it probably happened before July of 1999. When I arrived in Birmingham on the first day of that visit Steve told me that he wanted me to attend a demonstration of a system that was being used for some aspect of either creation or production of ads at Carson’s.

The demo was conducted by two people from a software company that I had never heard of. These two guys were accompanied by Ed Carroll, who was still the Senior VP there. I knew him fairly well. He was the SVP at P.A. Bergner when the company declared bankruptcy in the middle of the AdDept installation. When Ed Carroll saw me he greeted me with a sarcastic “What are YOU doing here?”

I wasn’t quite sure myself. Steve had said that they were interested in implementing an interface with AdDept. After the demo—which I did not think was very good—I went to wherever I was supposed to be on this trip, probably upstairs in the Parisian advertising department. I later asked Steve if he wanted me to pursue this and quote an interface. He quickly dismissed that idea.

On another trip the SVP of advertising for Herberger’s—I don’t remember his name—was there for a meeting. At the time Herberger’s was about open two new stores in the Minneapolis area. They had scheduled an open house to hire people to work in the stores, but they had forgotten to run ads in the local newspapers. He spent several hours on the phone with local radio stations dictating copy to them and begging them to run ads for his company. I found it amazing that he did not trust anyone back in St. Cloud to handle this for him.

I also encountered the advertising director from Saks Fifth Avenue, the company that had just been acquired. I don’t remember her name, but at the time I knew her fairly well. I always wondered why she was in Birmingham that day. Maybe they were just telling her not to worry about any interference in the way that SFA did business.

The big project: At the end of July in 1999 Steve and Josh came to TSI’s office and described how they wanted a system for the corporate marketing group that was fed by the other five systems. Apparently they were able to sign on to the systems and get some of the information that they wanted. However, they wanted all of this to happen automatically when the departments closed their books at the end of the month.

I could see many problems. The divisions did not all play by the same rules. The May Company and Macy’s had methods of standardizing the reporting of their many and diverse divisions. I knew that some of the Saks Inc. divisions were keeping their records in ways that were anything but standard. I am not sure that some of them were even legal. This sounded to Denise Bessette and me like a huge amount of work with no evident benefit.

Problems at the divisions: My notes from 2000 foreshadow some big problems that were beginning to appear:

The infrastructure at the divisions needs attention. Each division has only one printer, and it fails often. They should get the most recent version of Client Access and set up sessions for the printers (at least some of which were put on the Mac networks for some reason). Some divisions use a version of 5PM Mac software that has bugs. Dave Weeast is in charge of all of the AS/400’s in Saks Inc., and he is hard to get in touch with.
The divisions cannot approve requests unless they take it out of their own budgets, which they will do under practically no circumstances. The current process for approving requests is difficult. The divisions request something. Denise and I write a description of it and send it to Jamie. She runs it by Steve when she gets a chance. There are dozens of issues from the divisions from the pre-Jamie period that have never been addressed. If Steve thinks there is some merit in the request (which usually means that one of the Senior VP’s has been yelling at him), he tells me to quote it. I quote it and send the quote to Jamie. She tries to get Steve to look at it and approve it.

I can’t look at hobbles, and I can’t stand fences. Don’t fence me in.

The email: By 2000 AdDept systems had been installed on separate AS/400 systems in Des Moines IA (Younkers), Alcoa TN (Proffitt’s), Jackson MI (McRae’s), St. Cloud MN (Herberger’s), and Birmingham (Parisian). When the responsibility for advertising for McRae’s was transferred to the Proffitt’s division, and the ad scheduling for Herberger’s was moved to the Carson’s division, Jamie arranged for the McRae’s and the Herberger’s AS/400 systems to be shipped to the computer room in Birmingham. I know this because I was a cc on an email that she sent to Dave Weeast and Windell Manuel on March 29 of 2001.

Dave, Windell,
I understand there is some confusion regarding the location and status of the five AS/400’s that I administered. I will be happy to work with the two of you to facilitate any restructuring of these systems. I would prefer to communicate only with you, as I have not had much, if any, cooperation from the personnel in Birmingham and I am tired of doing charity work. I reviewed this information repeatedly with management and IT staff at Saks Inc. prior to my departure. I would like to reiterate that sending one of these AS/400’s to Jackson for their big ticket system was being done as a favor.
There are three systems on hand in Birmingham; PARADV, HERBADV and MCRAEADV. All three boxes are located in the computer room on the second floor. The PARADV system is active and used by the advertising department of Parisian. Operating system level is V4R2, but the upgrade package V4R4 is on hand in Birmingham.
HERBADV and MCRAEADV are the surplus AS/400 systems due to fusion. I had these boxes transported to Birmingham last fall and upgraded the operating systems on both to V4R4. The IP addresses for network connection for these systems has been issued through Jackson and changed on both of the AS/400’s. However, the connection failed. I had been working with Jerry Aultman in Birmingham’s IT Department to get this resolved. My hunch is that the problem lies with the DNS entry, or lack thereof. Additionally, the advertising personnel also utilize the IBM FAX/400 product which requires installation of an inbound and outbound fax line via 7852 modem.
I ordered these lines through Jeff Bass. Although I provided him with account numbers to pay for installation and usage on these lines, as of my departure on 3/14, I had not been advised that they were installed and functional.
The fourth system, YNKADV, is physically located in Des Moines. This machine is an older model 40e. This is the system I had planned to ship to Jackson for the Big Ticket application. Before it can be shipped, the network connection on the HERBADV AS/400 must be resolved and the MAC connectivity issues addressed. Two phone lines must be active. The base AdDept software application is intact on this box. The data libraries for TSI’s AdDept application need to be copied and installed. TSI will need to consult on this process, as well as the installation of any subsequent custom software programming and the fax configuration. I have cleared out the user profiles on the HERBADV box and added the current Younkers’ users.
I had also planned to move the existing PROFADV system (located in Alcoa, TN – V4R2- also an older model) to the MCRAEADV box. The MCRAEADV system holds the base software previously used by McRae’s advertising personnel. This will be an advantage on the software side. Once again, the network, phone, fax and software issues described above apply to PROFADV, also.
All of these AS/400’s are covered by a software subscription valid through December, 2001. PARADV, HERBADV, MCRAEADV and PROFADV are all covered by a one-year, 24 x 7, focal point contract for IBM hardware and software. The YNKADV system is set up on monthly maintenance, so that the monthly payment could be assumed by Jackson after it is transported there. However, I did purchase a software subscription for YNKADV, so the Jackson personnel could order the OS upgrade at no cost. Mike Wavada at TSI should be able to assist with any questions regarding the IBM maintenance, as they were purchased through his company as a business partner with first right of refusal.
If there are any additional issues, please let me know.

I found this email remarkable. I don’t remember what model of AS/400 Younkers had, but there was never a model e40. However, the most remarkable thing was that Jamie had, at least according to this email, arranged for the two boxes to be shipped from St. Cloud and Jackson. I doubt that anyone cared much about the box in Herberger’s advertising department, but the one in Jackson was in the corporate data center. I cannot imagine how she had managed to get it out of there. It took a lot of chutzpah and, I imagine, some maneuvering.

After Steve, Jamie, and (presumably) Josh left Saks Inc. in 2001, we still had rather good relationships with the advertising people at Younkers, Proffitt’s, Parisian, and, especially, Saks Fifth Avenue. We were never able to convince Carson’s to use the AdDept system even after the division was purchased by the Bon Ton, which had been using it for years.

1. Incredibly, Brad Martin has no Wikipedia page. A biography is posted here.

2. Beautiful photos of this building were posted here. It is apparently occupied in 2022 by Evonik Industries.

3. I don’t think that I ever got to meet Fran Jose. He does not appear to have a LinkedIn page.

4. Steve VeZain left Saks Inc. in 2001. His LinkedIn page is here.

5. 6. Windell Manuel’s LinkedIn page is here.

6. Corky Wicks LinkedIn page is here.

7. SPM was affiliated with an agency that handled newspaper advertising for Sears and a few other retailers. The two agencies were across the street from each other. I met with them when I visited Sears. That adventure is recounted here. In 2023 SPM was still in business. Its website could be found here.

1998-2005 TSI: AdDept Client: Proffitt’s

Posted on June 29, 2021 by Mike

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

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

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

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

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

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

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

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

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

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

I wrote this about the situation in early 2000:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Proffitt’s Recovery Journal
1. Sandy located all of the files missing from the save tape.
2. I used CHGJOB to bring all of the missing files up to speed.
3. I created records on the season file⁶for 001, 002, 011, and 012.
4. I deleted all logical files⁷ with 00 in them. These files were ones on the system save tape that were overridden by the ones on the nightly save tape.
5. I deleted all logical files whose source had been changed since 1/1/01. I then created them again.
6. I wrote a program named CRTPROFJCS to create DPJCSUM from DPJCSXMO. I ran it for 001, 002, 011, 012, and 021.
7. I created a logical file named DAACTSTAD2 to use in my program to create ads in 001 and following.
8. Dave Weeast left Jim a message that I should IPL⁸. I did so.
9. I used SQL to set the values of the latest projections in DPJCSUM to the sum of the open purchase orders plus the actual invoices for 001, 002, 011, 012, and 021. I did not change the original estimates. I tried to explain this to Marianne and to find out whether I should, but I couldn’t get her to understand what I was talking about.
10. I set up the user profile and the directory entry for Marianne, Ivy, and Phyllis Compton. These were the only people that had records in DAUSERS but no user profile.
11. I change the system value QINACTIV to 180. I also scheduled a job to end and start the interactive subsystem at 1 a.m. Bill⁹ said that we should do both of these things.
12. Marianne seemed to think that the store cost accounting would be worthless, but I still think that it is better than nothing for 002 and for the past.
13. Dave Weeast could not get the Mac network to come up. Daniel Moore¹⁰ came in at noon on Monday. Evidently it was never plugged back in. After he plugged it in it worked OK.
14. The HP network printer did not work. The IP address was wrong. I got the new one from Daniel and gave it to Dave Weeast. He changed the address, and it worked fine.
15. I changed DAACTSTAD2 to sort by expense class and month before ad number, so I could do a month at a time.
16. After a great many false starts I was able to get a program called CRTPROFADS to create the ROP ads for 011. It did not put in headlines. I set the columns and inches to 1 each. I set the ad type to 2 (B&W). I used defaults for everything else, borrowing the code from DM021 and DM041. I used storewide as the principal participant and assigned it 100% of the costs.
17. I wrote a query named ROPSEQ10 to extract the first pub on every ad. The results were stored in FEB01ROP, MAR01ROP, etc.
18. I wrote a program named RPFIXCI to calculate the column inches for each ad. It also deduced the ad type – black & white (2), one-color (6), or full color. I then changed the ad types in option 9 for the color ads and the size in option 1 for all ads.
19. I wrote a query named ACTST0011M to get the costs for each insertion in DAACTST. I wrote a second query named CHK0011M to compare this file with DMPSDET and report the discrepancies. I then fixed the obvious ones and kept the short list of the remaining ones.
20. I ran CRTPROFADS and RPFIXCI for February and March. I also did step 19 for both months. The March files and queries have 0012 instead of 0011.
21. The CPU attention light seems to be permanently on with SRC A6001730. Dave Weeast said that it is was OK.
22. Marianne complained about getting stuck in the “Cost” column in DM029 if she accidentally puts something there. I changed DM029S to accept blank, which is what they put in 90% of the time any way.
23. Jeannie did not put in a tape on Monday night, so we could not check the backup. She did put one in on Tuesday.
24. On Monday I worked in an office that had been turned into a shrine to Dale Earnhart. On Tuesday I worked in the closet in which they keep the AS/400. No kidding.
Issues
1. Marianne would like to be able to lock quantities in DM025.
2. I only got through March 2001. I ran CRTPROFAD3 but got no farther.

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

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

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

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

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

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

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

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

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

I wonder what you can get for $8.34 today.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10. I don’t remember Daniel Moore.

11. El sazon means “the seasonings”.

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

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

1998 TSI: The Third Crisis

Posted on May 24, 2021 by Mike

Keeping Denise in the fold. Continue reading →

My recollection of many of the events portrayed below was fuzzy. I was not even certain of the year (1998) or the time of year (autumn) until I found a dated document. Lacking a good way of pinning down the details, I needed to guess at or be vague about some things.

Background: For me the period from 1995 through 1999 was the busiest, most exciting, and most stressful of any that I spent working for TSI. It was also the most potentially terrifying period. Our marketing director, Doug Pease_¹, had hit the mother lode and put us in a position to dominate the market on which I had decided to focus our attention back in the late eighties.

Most large retailers, especially department stores, were organized into divisions, and each division was responsible for its own advertising. So, when a large retail organization decided to name AdDept as the preferred system for advertising, we would usually install a system at each division. In 1998 the May Company,² which at the time had seven department store divisions, had already endorsed AdDept. Doug had also negotiated installations for the three divisions of the Tandy Corporation³ and he convinced the people at Proffitt’s⁴ Marketing Group (PMG) to purchase systems for six of their divisions. In addition to these, Doug had also made headway at several other potential clients such as Elde- Beerman, Gottschalks, and Macy’s West.

In short, TSI’s business was finally booming. The challenge was no longer whether the company could generate enough income to meet the next payroll. The question—and it was a very serious one—was whether we could meet our commitments to all of these new installations, almost all of which required significant custom programming.

There were a few other issues as well. The twenty-first century was approaching. AdDept had been made Y2K-compliant from the outset. We also had produced a version of the GrandAd system for the AS/400 that would work in the twenty-first century. We needed to convert all of the software that we used in TSI’s office as well. These undertakings were labor-intensive and required extensive testing. The details of those efforts are described here.

The company therefore faced tremendous challenges in providing the software and support for commitments that I had already made and for the prospective contracts that were almost certainly imminent. Furthermore, the person who had at that point done most of the AdDept programming, myself, would undoubtedly be devoting much less time to coding in the next few years.

I would be doing all the installations and on-site training. I also accompanied Doug on many sales trips. I gathered all of the requirements for new code and wrote the design documents and programming requests. I wrote all the marketing materials and anything else that needed to be written, as well. I also ran the business and extinguished the most serious fires. Last but not least, I did the great majority of the research on new hardware offerings and new software techniques. I still did quite a bit of coding, but I now relied on the programmers for most of it.

Fortunately, I had a team of all-stars to help. Sandy Sant’Angelo handled the support line, which during the late nineties was nearly always busy. She was quite good at documenting problems and making the customers feel comfortable. The programmers were Steve Shaw, Harry Burt, and Denise Bessette. Steve and Harry were both good programmers, and they were both familiar and comfortable with TSI’s programming standards. However, they had little knowledge of details of the AdDept system or the way that retail advertisers worked and thought. Early in 1998 Steve Shaw surprised me by leaving TSI to take a programming job at the Phoenix Life in Hartford.

Denise was extremely dependable. She was also very meticulous in her work habits and thoroughly familiar with both TSI’s standards and most of the basics of advertising. She told me that she did not want to travel, however. Therefore, I could not use her for any of the trips that I made to clients.

The Known Problem: I always tried to keep the employees—especially the programmers—happy. The work at TSI environment was, I think, generally positive. The company had very few rules. There was no dress code at all, although I expected the employees to spruce up a little when customers came to our office for training. I wrote up a short document that listed what we expected of employees. My door was literally always open.

TSI paid the programmers pretty well, and by the mid-1990’s we had implemented good programs of health and disability insurance and a 401K with matching contributions. Although I felt a great deal of stress during this period, I tried to avoid putting pressure on the coders.

I understood that there was one problem that was inherent to TSI and other small businesses: there was little or no room for advancement. I could reward people for good work, and I could try to make their work challenging and enjoyable. However, it they were ambitious and wanted to climb the corporate ladder, there was not much that I could do. I suspect that this is why Steve quit. Similarly, if they were interested in a position with more responsibility, my options were likewise limited.

I tolerated—and even encouraged—a certain amount of creativity, but after Sue left the office (described here) in 1994. I made all the important decisions. It wasn’t that I liked exercising power. I just reckoned that none of the programmers were interested in managing the business. I would have been happy just to code all day.

As good as the staff was, our upcoming workload was so massive that there was very little room for error. I knew, for example, that Sue and I could not consider another big trip until all the installations were stable, which might take years. I also understood that I had to keep the entire programming team intact if possible. As I have explained in other blog entries, I figured that every time that a programmer quit I lost at least six months of my own productivity between the time spent looking for a replacement, training him or her, and correcting all the mistakes. Furthermore, there was never a good time to look for coders, but 1997—just months before Y2K raised its ugly head—was one of the worst.

Harry and Steve were good programmers, but I knew very well that the key member of the team for the next few years was Denise. Losing her would be a catastrophe that I did not want to contemplate. I probably should have worried more than I did.

TSI’s Telephone System: Each desk at TSI had a unit like the one shown at the left. The company had many phone lines, but no one, not even Doug or I, had a direct line. TSI had two phone numbers that outsiders knew about. One line was dedicated to customers reporting problems or asking questions. That line was answered by Sandy.

The other number was in the phone book and on our letterhead and business cards. We disclosed it to prospects, vendors, and a few others. That line was answered by the administrative person.

There were also two rollover lines. If a caller called either the main number or the support number, and that line was busy, the phone would still ring, but someone at TSI would need to press the flashing button for a rollover line to answer it.

TSI relied on this phone system until the business shut down in 2014. Doug and a few others pressed me to get a more modern system in which each person had her/his own line. A couple of times I priced out these options, but I could see no advantage that was worth spending thousands of dollars. Besides, I liked our phones. In my assessment, they had one overarching advantage. They made it much more difficult for employees to initiate or receive calls from the outside. There was also a fairly strong incentive to keep non-business calls short.

Harry and Denise dressed up for a TSI Christmas party.

Denise Bessette: Denise was the first programmer that Sue and I hired in 1984. The details are posted here. She worked full-time for a couple of years and then part-time for quite a few years while she finished her undergraduate degree at Smith College and then earned a masters degree at Trinity College. In 1993 she became a full-time employee again. We let her use Sue’s office, which was better than her previous location, but it was still less than optimal because Sue never removed all of her junk after she stopped coming to the office in 1994. We also gave Denise a substantial raise. I tried to keep her in the loop on what direction the company was going, but I did not set up any kind of a formal process for doing so. I should have, but I didn’t. My excuse was that I was away on trips a lot, and when I was in the office I was exceptionally busy.

I should emphasize that, even though we had worked together for many years, Denise and I did not have much of a personal relationship. She invited Sue and me to her house in Stafford, CT, for supper once in the eighties. We never reciprocated, presumably because our house was always a mess. I doubt that in all of those years Denise and I had talked about anything besides work more than a handful of times.

During the time that Denise had worked at TSI she had occasionally received phone calls from her husband, her mother, or one of her sisters. She might have received one or two calls from other people. In the fall of 1998, however, even I, who would ordinarily pay little or no attention to such a thing, noticed that she was receiving numerous phone calls from a “friend” named Jackie.

Herberger’s: My most vivid memories of this period were when I was in St. Cloud, MN, the home base for Herberger’s a chain of eleven department stores, 1300 miles away from TSI’s office. At the time I was installing TSI’s AdDept system on a small AS/400 in the advertising department there. A more detailed description of the installation is posted here.

The offices were on an upper floor of this store.

I only visited Herberger’s a few times. The occasion that I remember the most clearly was certainly not my first trip there. It might have been the second or third. I remember that it was rather cold, but the weather did not approach the frigid levels for which nearby Frostbite Falls is famous.

In those days the only way to reach St. Cloud was through the Minneapolis-St. Paul airport. Northwest Airlines sponsored a shuttle service to the St. Cloud Regional Airport⁵. I can’t remember whether on this occasion I took that flight or rented a car and drove. I am pretty sure that I stayed at a hotel that was within easy walking distance of Herberger’s headquarters, which was on St. Cloud’s main drag, St. Gernaine St. I am pretty sure that I stayed two nights and then flew back to Connecticut on the third evening.

The main thing that I remember about my first day there was that I called the office several times to see if everything was all right. This was beyond unusual for me. On most trips, unless I needed help about some problem that I had encountered, I seldom called more than once. I have always hated talking on the phone, even if it was to people I liked. I liked all of TSI’s employees.

I don’t think that I spoke with Denise on any of those calls. However, I got the distinct impression that something was amiss. Although there was nothing particular that provoked alarm, the feeling of impending dread almost nearly overwhelmed me. I desperately wanted to get back to TSI’s office to discover the details so that I could deal with the situation. Of course, this was not possible. I had made a commitment to get the system up and running at Herberger’s, and I could not abandon the project because of a nebulous feeling.

After my first day at Herberger’s I ate supper by myself as usual. I don’t remember where I dined or what I did afterwards. I might have taken a walk. I might have read a book. I might have watched television. I do remember worrying.

I always got very tired after dinner. Every night I took a shower around 9:30 or 10:00 and then went to bed. I sat in bed for a few minutes reading a book. I almost never got through more than one chapter before the letters would begin to swim around on the page. I would then turn out the lights. Normally I was sound asleep within a few seconds.

St. Cloud in 1997 had newer cars, but otherwise it looked just like this.

Not this night. For a few hours I emulated Bobby Lewis—“Tossin’ and turnin'”⁶. I decided to make myself physically tired. There were not many choices available for nocturnal exercise. I dressed and put on my coat and hat. I then walked around St. Cloud for at least an hour. I did not go far. I just walked up and down the streets. None of the buildings seemed to have more than three stories. The only other thing that I remember noticing was a Maytag or Whirlpool store that sold appliances. I had thought that these stores—mainstays of my youth—had gone the way of the dodo, but they evidently still persisted in St. Cloud in 1998.

I eventually drifted back to the hotel and tried to sleep. I probably dozed off for a while before it was time to prepare for work. I remember that I ironed my shirt while I listened to Vivaldi on my CD player through my Bose headphones.

I was running on fumes that day. I chain-drank black coffee to try to remain alert. I took notes on all of the things that the Herberger’s employees said that they needed AdDept to do. I knew very well that Steve VeZain at PMG had already made it clear to me that no custom code would be provided for Herberger’s. Steve said that they needed to adapt to the system that worked for everyone else. I called in to TSI’s office several times on that second day, as well.

I flew back to Connecticut that night in an even worse mood than the foul outlook that these exhausting trips usually produced. On the one hand I was frustrated because the AdDept system did not work the way that the Herberger’s employees wanted it to, and there was nothing much that I could do to help them. They had no clout with PMG. They were, after all, by far the smallest division, and they were on the wrong side of the Mason-Dixon line. On the other hand I was also very apprehensive about what I would find out when I went into the office the next day.

The Denouement: On my first day back in the office Denise confided that she had been offered a job as IT director at a fairly small company that used an AS/400. I am not sure whether she would have any employees under her or not. Truth to tell, I did not care much what kind of job it was. My sole objective was to take whatever steps were necessary to persuade her to stay at TSI. I also learned that Jackie, as I expected, was a corporate headhunter for an employment agency.

I tried to talk Denise out of accepting the job. I emphasized how important I thought that she was to TSI. She asserted that she was mostly looking for something new. She had been doing mostly the same job for thirteen years.The best that I could get out of her was that she would think about it overnight.

Denise usually arrived at TSI’s office at about 9:00⁷. The morning following our conversation I went outside to meet her in the parking lot. I was extremely nervous when her car finally pulled into the lot. She got out and immediately informed me that she had decided to accept the other job.

I cannot say that I was surprised, but I was still crushed. I couldn’t face going back into the office. So I went and sat in my car and moped. I felt as bad or at least nearly as bad as when Bill Davey and I just missed qualifying for the National Debate Tournament in 1970 (described here) or when Sue abandoned me to go to Alaska in 1973 (described here). No situation in the intervening twenty-three years came close to evoking this feeling.

I had no idea how to deal with this situation. We had mountains of work. I was in no position to take on more of it myself, and I could only squeeze a little more out of Harry. I had made commitments to several clients. I could not select one or two to work on and dismiss the others. They all had deadlines, and they had given us deposits or were long-time clients that I was not prepared to disappoint.

Sitting in the car was not helping. I drove to the Enfield Square Mall, parked my Saturn, went inside, and walked around. At that time there were some benches inside. I rested on one of them every so often. Eventually a plan coalesced in my mind. It seemed like a good idea; I just wish that I had thought of it earlier so that it would not appear that I was being extorted.

That evening I discussed my idea with Sue. I honestly thought that it would be as difficult to persuade her to agree as it would be to convince Denise. I was wrong. She understood the important role that Denise played, and she agreed in principle with everything that I proposed. She also knew that I was miserable.

I located the original written proposal that I presented to Denise. It was somewhat different from what I remembered. Here is what it said:

Denise as Principal:

Denise will have 25% share⁸ in TSI. The three principals will have monthly meetings to go over the results of the previous month vis-à-vis the business plan and discuss other issues. The 25% share will entitled her to a presumptive bonus of 25% of the profits after employee bonuses and SARSEP contributions. Denise will give up her commissions.
Denise will be given a budget of $125,000 for fiscal 1999. She will have six objectives:
1. Do what it takes to bring our staff up to strength.
2. Work with Doug to come up with a profitable and sustainable business plan for current products: fee schedules for programming and support, etc. The deadline for this is April 1, 1999.
3. Come up with a concrete plan for TSI’s next software (or whatever) product. The plan should include recommendations about whether it should be done inside of TSI-AdDept or in another milieu. The deadline for this is September 1, 1999. TSI will pay for necessary travel. Mike has several frequent flier round-trips to use.
4. Come up with suggestions to ease tension and make work fun for everyone. This involves removing the “Wag the Dog” orientation we now have.
5. Implement remote dial-in support and a LAN (TSI will pay for the hardware).
6. Get someone AS/400 certified or figure a way around it.
Suggestion: Use part of the budget to hire Steve back in a new position. I would like to get five man-days of programming/support from the two of you, but this won’t work if there is not a firm system in place to guarantee freedom from support calls. The easiest way to accomplish this would be to work from some other location (which requires remote dial-in support).

I met privately with Denise on the following day. She was stunned by the offer and very impressed. However, she had already made a commitment to the other company. Moreover, there was another employee at the other company whose fate was somehow linked to Denise getting hired. I don’t remember the details. In any event Denise accepted my offer, I got our lawyers to make it legal, and she called the other company and Jackie. Neither was pleased.

This the first page of TSI’s revised stockholders agreement.

When I spoke with Denise, I made it clear that the monthly meetings would actually include Sue only if Sue insisted on attending, which I doubted would happen often. When we actually distributed annual bonuses, we gave Sue a minimal one and split the profits 50-50. The “concrete plan” became A^xN. I do not recognize the “Wag the Dog” reference, but within a year the company moved into a new office in East Windsor with a remarkably different atmosphere (as described here). The “someone” who became AS/400-certified⁹ was myself (as described here). Denise did not hire Steve Shaw back. Instead she hired Brian Rollet, who was something of a disappointment to her.

Denise and I worked together amicably and productively for another sixteen years. If she had not agreed to my plan, those years would have been been much less pleasant for me. I don’t know if I could have achieved half of what we accomplished together.

1. Much more about Doug Pease can be read here and in many of the blog entries about clients that he persuaded to purchase AdDept in the nineties.

2. TSI’s involvement with the May Company at the corporate level is posted here.

3. TSI’s dealings with Tandy Corporation are detailed here.

4. In the nineties Proffitt’s Inc. purchased all of those chains and turned them into divisions. After it purchased Saks Fifth Avenue, which already used AdDept, it changed its name to Saks Inc. TSI’s relationship with this company is described here. Separate blogs describe the individual divisions.

5. In 2021 this shuttle is no longer in operation. The only commercial flights from STC are on Allegiant Airlines. There are only two potential destinations—Fort Meyers/Punta Gorda and Phoenix/Mesa. Residents who want to fly anywhere else must somehow get to Minneapolis. Northwest Airlines filed for bankruptcy in 2005 and was acquired by Delta in 2008.

6. You can listen to the number 1 single on the Billboard chart for all of 1961 here.

7. Denise asked for this allowance when her son was young. It gave her time to get him off to school or wherever else he was headed. She also had a fairly long drive to Enfield and even longer to East Windsor. She often stayed late.

8. When TSI incorporated in 1994, Sue was given 45 percent of the stock, and I got 55 percent. The revised agreement left me with 40, Sue with 35, and Denise with 25.

9. IBM had implemented a new requirement for business partners. Not only did the software need to be certified, but also someone at each company must be certified by passing a test that was sales-oriented and a test that was more technical. I took both of these tests, as is described here.

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Tag Archives: Proffitt's Marketing Group

1997-2005 AdDept Client: Proffitt’s Inc./Saks Inc.

1998-2005 TSI: AdDept Client: Proffitt’s

1998 TSI: The Third Crisis