Tag Archives: AxN

1988-2014 TSI: The Nature of Retail Advertising

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A different world. Continue reading →

For retailers that sell a wide array of products and also have stores in a fairly large number of markets, advertising has long been both extremely valuable and very complicated. In the two and a half decades that TSI concentrated its work on the advertising departments of these retailers advertising was expensive. Newspapers in major markets charged over $100 per column-inch for ads, and the department stores and big-box retailers bought their ads1 by the page (126-132 column inches), not the column inch. Therefore, the advertising departments were charged by the management of these retailers with 1) negotiating the best rates possible, 2) using the mix of media that provided the most bang for the buck, and 3) designing and producing the ads that produced the most sales.

Most large retail advertising departments were divided into roughly the same areas with which we had become familiar at advertising agencies: media, production, and finance. The years that we had spent working with advertising agencies helped us understand some of their issues. However, the differences were many and complicated:

  • A primary difference was that retail advertising was event-based rather than campaign-based. Most retail events were the same from one one year to the next: Presidents Day, Easter, Mother’s Day, Father’s Day, etc. The dates might change a little, but the approaches were usually similar.
  • Another fundamental difference was the calendar. Most retailers organized their finances and advertising using a 4-5-4 retail calendar2. The first month of the year was usually February. Most retailers divided the year into two “seasons”, spring and fall. Fall began in August.
  • The large organizations had a separate manager for each major media: newspapers, direct mail, and broadcast. A few also had a magazine manager. Inserts (the pull-out flyers in newspapers) were usually treated like direct mail in the production area, but were ordered by the newspaper area.
  • Newspapers were much more important for retailers than for other types of businesses, especially in the nineties when potential customers still started their day by reading the local newspaper.
    • Each retailer negotiated an annual contract with each paper. The contracts often provided significant discounts for the quantity (column-inches) or nature of the advertising. For example, one retailer got some of its full-page ads in one of its major papers free if it met established criteria for other ads! On the other hand, if a retailer ran too little advertising for the contract period, the penalties could be staggering.
    • Not all newspapers were the same dimensions. There were two basic sizes, tabloid and broadsheet, but the actual dimensions varied somewhat. Sometimes ads were just photo-reduced to fit, sometimes different versions were necessary.
    • Inserts were included in the contract, but the rules as to how they were counted varied.
    • Some ads (called “spreads”) covered two full pages and the marginal area in the middle (“the gutter”).
  • Merchandise suppliers often paid for part of the cost of ads that featured their products. This was called “co-op”.
  • Most large retailers needed to know the net (of co-op) cost of ads for each merchandise area. The bonuses for the merchandise managers depended upon their sales markups less net advertising expenses.
  • Many retailers with a large number of stores needed to know the net (of co-op) cost of ads for each store. This was tricky for markets that included multiple stores.
  • Many chains had more than one logo (name on the front of the store). They required different versions for production purposes.
  • A few chains had more than one financial entity. This was challenging.
  • The financial books absolutely had to be closed within a few days of the end of the month. In some cases, especially in the May Company divisions, a set of corporate reports in specified formats were required every month.
  • No agency that TSI had dealt with had a photo studio, but many of the retailers did.
  • The production area of most of these retailers borrowed merchandise from the selling departments. The merchandise was sent to a photo studio, either in the department or outside. After the shoot the merchandise needed to be returned or at least accounted for. A special area called the “loan room” or “merch room” managed this activity.
  • Most retailers did a high percentage of their business in the second half of November and December. Many of them froze their computer systems (no purchases, no upgrades, no testing) during this period, which might extend in either direction.
  • No law specified that every retailer must follow every tenet listed above. Every AdDept installation required some custom code.

The sales pitch: After only two or three installations I had felt comfortable talking with ad agency executives. They generally knew nothing about computers. For the most part they cared little about efficiency; we could almost never point to a position that could be eliminated. It was therefore difficult to persuade them that the computer would save them money. I generally focused on three things: 1) how careful record-keeping could help them locate which clients were unprofitable; 2) how the GrandAd media system would allow improved cash flow; and 3) how a computer system could help if they got a chance to win a big client. I called the last one of these the “reaching for the brass ring” argument.

These arguments did not translate well when we tried to persuade retail advertisers. Usually the retailer had already decided whether or not to get a system for reasons that we could not control. Something had happened that made the current method of handling the work no longer feasible. Macy’s acquisition of the Gimbles stores overwhelmed the system that the advertising department had been using. Hecht’s was in a similar situation after it acquired John Wanamaker. Belk desperately needed help when they consolidated five divisions into one in Charlotte.

Although this phrase is now popular, I had never heard it before I started using it in the ’90s.

Often I would not be acquainted with the circumstances that motivated the important players. I always emphasized the value of having one central set of data to which everyone could contribute and from which everyone could draw. I called this approach “one version of the truth” by which “everyone could benefit from the work done by others.” Everyone could appreciate these notions, but placing a dollar value on the idea of shared data was difficult. Fairly often I would find something in my talks with employees that was horrendously inefficient or even dangerous or illegal, but I could not count on it.

An equally difficult problem was trying to figure out which individual(s) needed to be convinced. In some cases the IT department might not even participate in the software search, but they may have veto power over the final decision. Finding out where the sale stood often required someone from TSI who was willing and able to spend a great deal of time communicating by mail and phone. This was something that I was definitely loathe to do. Fortunately, I found someone, Doug Pease, who was quite good at it. Much more about him is posted here.

One thing that we did not need to worry about was competition. No other software company was crazy enough to attempt to address this market. A few retailers tried to develop something in-house. They all ended up spending millions of dollars or giving up or both.

Difficulties after the installation: I disliked two things about dealing with advertising agencies as clients: 1) It was sometimes difficult to get them to pay their bills; 2) they tended to go out of business or merge with competitors without warning.

We had no problems with retailers paying their bills except when they declared bankruptcy. The first time that this happened I was totally unprepared. A few smaller clients later closed down entirely, but none of these events was catastrophic to TSI.

An equally vexing problem was when one chain of stores acquired another. If the other chain had no system, this usually worked in our favor. If they both used AdDept (TSI’s administrative system for large retail advertising departments described here), we lost one client, but the remaining one usually became more dependent on our support and services. They often also asked us to help with the transition as well.

In the end, however, most of our biggest clients were acquired by Macy’s. The advertising was all managed by one department in New York. That process spelled doom for AdDept because by the time that it happened, Macy’s no longer used AdDept.

One other trend usually produced a little work on the AdDept side, the outsourcing of newspaper buying. We were usually asked to design and implement interfaces with the company that bought the ads. Unfortunately, this same process had a dire effect on AxN, TSI’s method of delivering and managing insertion orders online. When Dick’s Sporting Goods announced in 2014 that it was outsourcing its buying of newspaper space, we decided to shut down TSI.

Decision-making: The ways that decisions were made in retail advertising departments differed fundamentally differed from the way that entrepreneurs like advertising agency executives did. If I could talk to one of the principals at the agency, I could explain why the GrandAd system could produce positive results that could affect 1) the agency’s bottom line, and 2) the agency’s reputation. The situation was totally different in the advertising departments of large retailers.

The department either had a budget for a system or it did not. These were two entirely different cases. If the department had a budget, it was probably because of some huge external factor involving a merger or a takeover. In that case, the eventual purchase was almost a foregone conclusion. The challenge was to fashion a proposal that was within the budget, but not by much.

If the department was not in that position, the process was completely different. The first step was to find a person who had enough authority to requisition funds. This was usually the advertising director. However, advertising directors seldom requested information from us. Our contacts were generally much lower on the totem pole, usually the manager of the business office in the advertising department. So, we would first need to convince our contact and then convince the advertising director either directly, if possible, or indirectly.

We then depended upon the advertising director to requisition the funds. We might not have any idea who would evaluate the request. Sometimes it was someone in corporate finance, sometimes it was someone in the IT department, and in the large organizations approval might be necessary by a holding company such as the May Company, Federated, or Tandy.

At this point it was important for us to recognize which was the case. I was poor at this part of the job, but Doug Pease was much better. If he could connect me with the right person, I could usually frame the arguments for him or her. If no money was available, of course, we probably would not get the sale anyway. During some periods retailers were all tightening their belts. In tough times nobody in retail considered any capital purchase that did not generate sales.

If the final decision needed approval from the holding company, it was extremely difficult for us to influence them directly. In some cases like the May Company and Tandy, it worked out amazingly well for us. TSI’s problems with Federated are documented in detail here.

I began to appreciate the complexity of the situation when one customer told me that “Christmas only comes once.” He meant that the department had a budget at that point, but it had to spend the entire amount in that fiscal year. After that they would be strapped for cash. In general, that was how things worked.

However, some advertising departments had figured out a way around this. They charged the merchandise managers more than the ads cost. I do not know how they accounted for the difference, but they were sometimes had accumulated enough money in this fashion to circumvent the decision-makers in finance and IT. I know for a fact that the AdDept system was financed this way in a couple of cases.

The finance people generally were not upset when they found out about the unauthorized purchase. It was usually easy to determine that AdDept reducee administrative costs fairly rapidly. The IT department, however, might be more upset, especially if the AS/400 was not on their list of approved hardware systems.

Ancillary expenses: For entrepreneurs like ad agencies all expenses came out of the same checking account. The retail advertising departments had a different perspective. Sales tax and travel expenses probably did not hit the advertising department’s line on the income statement. No one ever complained about either type of billing, and they were always paid promptly.

However, the company may have had some rules about travel expenses. I was once grilled about flying first class for a training session. I had to provide proof that I purchased an economy fare and was upgraded by the airline. Some retailers insisted that I stay at a hotel at which they had a special rate. This was usually folly on their part. I liked to stay at Hampton Inns because of the free breakfast and the Hilton Honors points. Hampton’s rates were almost always lower than the “special rate” of the designated hotel.

1. Display ads in newspapers are always called ROP. It is not an acronym; the three letters, which stand for “run of press”, are always pronounced individually.

2. Every week starts with a Sunday. Every month has four or five weeks (twenty-eight or thirty-five days). The purpose of this arrangement and many examples are provided here.

1984-2014 TSI: Denise Bessette

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Programmer becomes partner. Continue reading →

TSI’s first, last, and best programmer was Denise Bessette. The beginnings of her career at TSI are documented here. At some point in the second half of the eighties she decided to finish her undergraduate degree in economics and mathematics at Smith College in Northampton, MA, and then get a masters degree in econ at Trinity College in Hartford. She lived in Stafford, which is forty-two miles from Smith and thirty-two miles from Trinity. She commuted to both schools. During this lengthy period Denise continued to work part-time at TSI. She also raised her son Chris. Frankly, I don’t know how she did it. She never seemed burnt out or exhausted.

After she graduated she returned to work full time. At that time I named her vice-president of application development. I also arranged that Denise could share a portion of Sue’s office. At the time I did not think that there was much more that I could do. The layout of our office in Enfield (described here) provided for only two offices. Sue had the corner office. The other one was used by our salesmen. I worked in the computer room.

This arrangement seemed to work fairly well for a while. In 1994, because of TSI’s “second crisis” (described here), Denise was able to establish herself in that office. A few years later Denise decided that she needed to try to work at a company in which she had more control over her situation. This prompted TSI’s “third crisis”, which is described here.

After that situation was very pleasantly resolved, Denise and I worked productively as partners until the company was dissolved in 2014. She was in charge of getting the programming and support done and hiring the technical staff. She also continued to handle the payroll. The administrative and sales people reported to me. I continued to do the sales calls, demos, installations, and training. I also spent countless hours researching alternative approaches to our way of doing business.

After TSI moved its office to East Windsor and installed a network with a connections to the Internet, Denise handled all phases of it and worked with our clients to establish and maintain access to their computer systems. I was more than happy to let her deal with those issues.

She also managed the people who cleaned the office and a few other similar functions.

Memories: Denise caught on to my style of programming faster than any other coder that we hired. I was somewhat upset when she went part-time to be able to finish college. The silver lining was that it was unlikely that she would quit before she got her degree, or as it turned out, degrees.

In the eighties Denise sometimes brought her son Christopher into the office. She stashed him in the supply closet. No, she did not shut the door. He seemed to be content with whatever she gave him to play with there.

I remember that on one occasion Denise invited Sue and me to supper at the house in Stafford where she lived with her husband Ray for supper. It was a very nice house with a deck. The heating was provided by one or two stoves that burned wood chips. I had never seen such a thing.

That was the only time that we visited them. If you are wondering whether we reciprocated the invitation, the answer is no. I am not sure why, but we almost never invited anyone over to any of our residences in Connecticut. We probably were still living in Rockville.

I played golf with Ray and his dad a few times. They liked to play at Grassmere, a short public course in Enfield with only nine holes. I seem to remember that one hole had a huge tree right in front of the green. If you did not hit your drive far enough, your only shot to the green was to try to hit a wedge or nine-iron over the tree.

When we hired Denise she was a smoker. In the late eighties she quit cold turkey at about the same time that Sue, Patti Corcoran, and my dad also quit. I don’t remember her getting irritable or fat during the drying out period.

On one occasion her kitchen sink got backed up because Denise poured instant mashed potatoes down it. I bought her a box of instant mashed potatoes as a memento. Later I kicked a dent in one of our cabinets when I got upset at a client. She bought me an inflatable Fred Flintstone to punch when I got angry. It is still in the basement in 2023, but I haven’t tried to inflate it in a few decades.

Denise knew that I read quite a bit. She was taken aback when I casually remarked that I did not enjoy reading female authors, especially ones in the science fiction or fantasy genres.1 On her recommendations I read several Anne Tyler books. They were all fairly good, but I had to admit that Breathing Lessons was close to a masterpiece.

I was always envious of Denise’s cars—a sporty Mazda when she started working for us and a string of BMW’s thereafter. When in 2007 I bought my sapphire blue Honda Accord coupe, she said, “That sure doesn’t look like my grandmother’s Honda!”

She was almost never ill in the thirty years that I worked with her. Then again, neither was I. I remember that she got an infection from inner-tubing on the Farmington River on one of TSI’s summer outings. We never tried that again.

Denise and I enjoyed a very productive trip together when we attended the IBM PartnerWorld convention in San Diego in 2000. The details are described here.

Denise drank mostly tea and Diet Coke in cans.2 She ordinarily just dipped the teabags in the hot water once or twice. I’ve never seen such a weak beverage. Her favorite was Earl Grey. I purloined for her envelopes of tea from the hotels at which I stayed. She seldom took a lunch break; she just grazed on what she brought with her.

At some point in the nineties Sue Comparetto, Denise, and I attended a performance of Carmen at the Bushnell Theater in Hartford. We all enjoyed the opera well enough, but I was disappointed that, as usual, Sue was late and so we missed the talk that was presented before the show.

Several years later Denise and I spent an hour or two at the Wadsworth Atheneum in Hartford. She wanted to show me some impressionist paintings. They did nothing for me. I am a Philistine when it comes to art.

Denise was afraid of escalators. She avoided them if possible. If not, she was very tentative. She did not like the moving sidewalks at airports, either.

When Christopher was in high school Denise told me that his best friend was a girl in his class. She alleged that they were just friends. Although this sounded preposterous to me, I kept my mouth shut.

Competition.

I remember when Christopher graduated from high school and was in the process of selecting a college. Denise wanted him to go to a good school in New England. He wanted to go to Penn State. I advised her to tell him that he would have a better chance with the girls at a local school. At PSU half of the male students were linebackers on the football team. I doubt that she took my sagacious advice. He became a Nittany Lion.

She especially did not like it when Christopher joined a fraternity in State College, but he somehow survived the experience, and Denise is now a grandma.

Their cottage was much smaller and a few blocks from the Sound.

Denise loved bodies of water—oceans, lakes, ponds, rivers, anything. She was always happier when she was close enough to experience a body of water through any sense. For years she and her husband Ray had a cottage in Old Saybrook near the Long Island Sound. Several times they took vacations in Aruba.

In 2013 Denise and Ray sold both their house in Stafford and the cottage and moved to Cape Cod. I saw her only a few times in the last year that we worked together and never since.

Business Relationship: For the most part Denise and I had a very productive relationship. Largely it was a case of staying out of each other’s way and (after I made her a partner in 1997) coming together in November and December to evaluate progress and distribute bonuses.

A blog entry about the agendas for the periodic meetings that the two of us enjoyed from 2001 through 2006 has been posted here.

Denise provided some needed organization and discipline to TSI’s approach to programming. My “cowboy coder” philosophy dictated that when I was at a client’s site, and someone complained about a problem, I would immediately investigate it. I often was able to fix it on the spot within a few minutes. This often made me a hero at the client’s office, but a pain back at TSI. It was not easy to isolate all of the things that I had changed, bring them back to the office in an orderly manner, and integrate them into the master copy of the system without disrupting processes used by other clients. Keep in mind that I installed thirty-six AdDept systems, and they were all running the same code.

I eventually had to refrain from addressing any problems at a client’s site. I documented them but did not change the code. … All right, I’ll fess up. Sometimes I could not keep myself from making changes that I was 100 percent certain would not interfere with what was being done at the office. Denise was not a bit happy when I did this. Perhaps we were fortunate that eventually our clients lost the willingness to pay for me to travel to visit them.

The only other point of contention between Denise and me involved research. Both of us knew that the platform on which we had built AdDept–BASIC programs on the AS/400–was considered obsolete by many people in the world of data processing. In most cases these people had veto power over a purchase of our system. It was generally a waste of time to try to persuade them that their evaluation was erroneous. They were hired as experts. We were just potential vendors.

Denise and I agreed that the ideal solution would be to move the whole system to the Internet to avoid the standards that were being established by IT departments. This approach is now called Cloud Computing. However, we were never satisfied that we could do it without man-years of work and considerable expense.

If there was no pathway to the cloud-based approach, the issue was whether the problem was BASIC or the AS/400. I thought that we should investigate the programming languages that coders were using on platforms outside of IBM. At that time the most popular languages were C and C++. C was somewhat similar in structure to BASIC. C++ was its object-oriented version. I spent some time researching the IBM version of C and concluded that a transition to C was possible but unquestionably difficult.

For reasons that I never understood Denise was quite upset at me for spending any time investigating this possibility. I had absolutely no intention of asking her to convert the programs. I was just trying to see whether it was a possibility.

The other side of this coin was Denise’s advocacy of converting all of our BASIC programs to a version of RPG, a language that was popular on the AS/400 but nowhere else, dubbed ILE.3 I never understood the reason for this, but it kept the programmers busy after the requests for programming began to dry up. So, for the most part I kept my opinions to myself.

After Denise moved to the Cape she only came into the office a few times a month. She was in rather constant communication by telephone with Jason Dean, who, at that point, was our only programmer. I liked it a lot better when Denise was in the office all of the time, but my philosophy had always been to take advantage of whatever time she could give me.

1. I need to explain this. I have no doubt that women can write as well as men by virtually any measure. In 2023 (as this is being written) they definitely dominate the publishing industry. However, I contend that women have a basic fantasy about being rescued, and men have one about being heroic. I contend that this is not cultural but innate. Nature, not nurture.

I find that reading about the latter fantasies more interesting than the former. Is that a crime? I have never like a science fiction or fantasy book by a female author. Several times I got suspicious in the middle of one in which the author used initials or a pseudonym and looked up the author used initials or a pseudonym. After looking the author up and discovering the secret I stopped reading. Before you ask, I have never read a single word of the Harry Potter books.

2. I always thought that cola from plastic bottles tasted a little better. For some reason the two liter bottles are always cheaper and usually on sale somewhere. I like both Diet Pepsi and Diet Coke equally. I always have bought whichever one was cheaper. After the business closed I switched to the caffeine-free versions.

3A 220-page document from IBM that aims to show why ILE is a superior approach can be viewed here.

1998 TSI: The Third Crisis

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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 Pease1, 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.

Steve Shaw.

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.

TSI’s corporate ladder.

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:

  1. 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.
  2. 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.
  3. 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 AxN. 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.

1985-1988 TSI: Adventures in Marketing

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Building a better mousetrap was not enough. Continue reading →

When we moved from Michigan to Rockville, Sue and I knew almost nothing about marketing. When the business was closed over three decades later, we knew a lot more. Unfortunately, at least half of what we had learned was probably wrong.

In Detroit Sue had depended on IBM for referrals. When we moved we learned that the branch offices had no specific policy on this. Each salesperson knew a few of the independent software companies. Since no one in the Hartford office knew us, it was folly to depend on IBM in Connecticut.

The first year or so was the only time in the first three decades of the company’s existence that I had time on my hands. I wrote a little system on the 5120 to keep track of leads. I got most of my information from the Yellow Pages in the reference room of the Hartford Public Library.

I definitely remember sending a letter to the area’s jewelry stores. I think that we also sent one to construction companies. I do not remember how we did these exactly. Perhaps I just wrote a program on the 5120 to print letters with data from the lead tracking system. It seems unlikely that we had letterhead and company envelopes with our Rockville address yet.

I think that we got the lead for the Harstans account from the jewelry store mailing. I don’t remember any responses from anything in the construction industry. If we received any inquiries, Sue would have dealt with them.

I found a business card from the Detroit days in our basement.

After we had purchased a Datamaster with a letter-quality printer, we converted the lead tracking system to run on the new machine. We also invested in company letterhead and web-mounted company invoices. Both were Nantucket grey with light blue lettering. The TSI was striped in imitation of IBM’s logo, but we used a sans serif font.

We definitely did several mailings to ad agencies. Potter Hazlehurst responded to the first mailing. Other mailings may have at least produced a few lukewarm leads.

We received two free pieces of publicity. The GrandAd installation at Harland-Tine was featured in Basic Society News. This was described here. The other article, an interview with Dick Keiler, was published a few years later in AdWeek New England. It is described here.

We also bought our only ad ever in the same issue of that magazine. It was a waste of money.

By 1983 we began to get quite a few leads from IBM. We closed many of these deals, but most required significant custom programming and offered virtually no opportunity for additional business. What we wanted to sell were ad agency systems that took advantage of work that we had already done.

We participated in a campaign organized by a marketing manager at IBM to allow its salesmen to promote “IBM Advertising Agency Solutions.” He asked the third-party developers of ad agency software to provide a list of how their software could benefit ad agencies. Someone then took all of these items, assembled and sorted them all into one huge list, and put them into an attractive fold-out piece in which each of these advantages was claimed for “IBM solutions.”

Of course, no system marketed by anyone actually did all of those things, and some of the advantages were incompatible with others. Furthermore, none of the names of the companies that marketed and supported the software were included. The pamphlet only mentioned “IBM solutions” until the very last paragraph, which stated, “When you combine the specialized capabilities of IBM Business Partner applications for advertising with the quality control, product support and service that accompanies IBM systems, you have a comprehensive and powerful solution. One that can meet the needs of your agency today—and continue to serve you and your clients tomorrow.”

I was very upset when they sent the finished product. Set aside the atrocious grammar of the last sentence fragment. Who will possibly use this piece? IBM reps could not (or at least should not) use it because it doesn’t indicate which business partner could address which problem. No ethical business partner could hand it out because the prospect might think that the software company was claiming all of these advantages for its own product. I suppose that if we were allowed to white-out the parts that did not apply to our systems, we might be able to use it, but it would not look too professional.

When I explained that this was false advertising because the “IBM solution” described within did not exist, he was taken aback. He honestly thought that we would all be happy just to be associated with IBM. I admitted that we were. However we were ALWAYS in competitive situations. We could not afford to be associated with erroneous claims like “IBM creative applications help your writers and artists work more efficiently.” Our software did not improve the efficiency of the creative staff one iota, and if we tried to get the writers and artists to trade in their Macs for IBM iron, we would be run out of the office on a rail.

In addition, there were a couple of advantages that were unique to our approach. Of course, I had listed them, and they appeared in the pamphlet. I resented that every other Business Partner was authorized to claim these advantages, if only implicitly, for its own software.

With the help of Ken Owen of the Edward Owen Company we developed some leave-behinds that were at least a little professional looking and much less likely to get us sued. We put the write-ups of various aspects of the system in notebooks that had the company’s name and logo on it. The first batch were blue with white lettering. Subsequently we reversed the color scheme.

When we gave presentations. we put all of the handouts in folder like the one shown at left. The cover was generic enough that we could use it for any of our software products.

Our mailings for the ad agency system included self-addressed prepaid bounce-back cards on which the recipient could indicate the agency’s interest in our product. This certainly increased the quantity of positive responses that we got, but it also meant that we needed to spend more time qualifying the leads.

By 1986 Sue and I were frustrated with our sales efforts. We had been in business for more than five years. We had amassed a reliable set of reference accounts, but we were still struggling just to meet our payroll.

Sue set up some kind of business relationship with a guy named Joe Danko. I think that he was a consultant who had somehow come across our GrandAd product. He wanted to be our representative in southeast New England. Since the proposed arrangement involved no investment on our part, we agreed to it.

Sue corresponded with a former IBM VAR (as we were) named Jim Holland, who had started a business in Colorado helping others selling “turnkey systems”. Sue liked his approach, but he sold his business to a company in Paramus, NJ, called Motivational Marketing1. He convinced us to drive there for a “Motivational Marketing Working Session” in January of 1987.

We drove to the company’s offices and met with, I think, one of the founders of the company, Gary Farber2. We told him that we were having trouble closing deals for our software system for advertising agencies. We thought that we needed to hire a salesman, but we were not sure how to do it. He outlined a plan for us. It seemed pretty costly and did not directly address the need for a salesman, but if we scored even one or two deals, it would be worth it.

Two guys from the marketing company came to our office in Rockville. The older guy was named Irving; the younger one was Nick Pitasi. They told us that the first step in their plan was to contact our clients to get a more objective view of TSI’s strengths and weaknesses. Nick called everyone on our list of clients. He reported back to us that our clients loved us, and they particularly liked the fact that we educated them. This was rather nice to hear, but we already knew that we had very good reference accounts. We had thought that we were not doing a good job of using this information to our advantage.

Since we had said that we needed a “closer”, and since we already had a relationship with Joe Danko, Irving invited him to our office to interview for the job of salesman. Irving conducted the interview in Sue’s office upstairs in Rockville. I sat in. Sue might have attended as well, but she doesn’t remember it.

I was astounded at how awful Joe’s performance was. Without being asked about it, he went on and on about his involvement in lawsuits over his divorce. I would never have considered hiring him to take out the trash.

After the interview Irving told us that he thought that Joe would be OK as our salesman. Perhaps we should have cut our losses at this point. Irving and Nick might be able to help us in some way, but they certainly seemed unwilling or unable to address what we considered our most critical problem.

Their next step was to hire someone to call the presidents of ad agencies. We had a pretty good list in our lead tracking system. By this time Nick was handling our account by himself. He engaged a guy named Paul Schrenker for this purpose. Nick wrote a script for him. I could not believe how many presidents talked with him when he asked for them by name. I would have bet that he would not reach any of them.

The only person who accepted Paul’s call and expressed any interest was Bill Ervin at O’Neal and Prelle in Hartford. I visited them a couple of times, and they eventually agreed to a contract. The story of that installation is here.

One day I observed Nick while he was calling one of the presidents. It was impressive. A secretary answered the phone. Nick said, “Put Bill on, please.” When the secretary asked who was calling, he just said with supreme confidence, “It’s Nick from TSI.” The president picked up the phone, and Nick talked with him. I certainly couldn’t have done this.

Nick dropped by the office a couple of times after that. He had been in the office enough to see how things were run. By then he was familiar with how Sue would miss appointments and how disorganized she was. On one occasion I asked him whether he thought that we could make a go of it. He said that he did not see how. What a depressing moment that was.

Maybe I should have given up at that point, but I had no plan B. I was almost forty years old. I had burned through several occupations already. I did not want to start over.

When I first started to work with Sue I figured that I would do most of the programming, and she would do the rest of the work. After all, she had much more experience in business than I did, and she loved to talk on the telephone. She was certainly much more of a “people person” and less of a tireless coder She could figure out how programs worked and fix them, but I had never seen her write so much as a single program.

That was not the way that things worked out. As the years went by I took on more and more of the responsibilities. By the late eighties she was doing the accounting and the payroll, and that was about all. Even so, she could not keep up with it. The answer was not increased staff. We went through as many administrative employees as Murphy Brown.

We needed help with sales. The marketing consultants were nearly as worthless as all the other consultants that we had dealt with. We needed to hire a salesman. We terminated our agreement with Motivational Marketing in February 1988.

On March 2, 1987 (Sue’s thirty-sixth birthday), we sent out out a newsletter to all of our clients. It was three pages of 10-pitch single-spaced type on 8½x11″ paper. Mostly it dealt with hardware, but there was also half a page of information about changes that we were making to the S/36 version of the GrandAd system.

I located copies of issues numbered 1 through 6. The fifth issue, dated March 29, 1988, reflects the influence of Michael Symolon, our first marketing director. The first page of this issue announces three new ad agency clients. In addition, the first page is printed on GrandAd stationery that Michael ordered rather than on TSI letterhead. A post-it note attached to the copy that I found indicated that I was slightly annoyed that the subsequent pages did not match the cover page in either color or weight.

This issue is really meaty. I think that Michael or Kate Behart must have done most of the work on this issue and the others in this format. Issue #5 contained six pages of text and a copy of an article from the November 30, 1987, issue of ADWEEK about the installation of the GrandAd system at Rossin, Greenberg, Seronick, and Hill.3

I do not remember how many issues of those newsletters we produced. After I purchased and taught myself how to use PageMaker, the name of the newsletter was changed to Sound Bytes from TSI. At first it was 8½x11″, but the later versions were printed on both sides of 8½x14″ paper and folded to be 8½x7″. They also contained two columns per page, different fonts, and graphics. I located only one copy of each of these formats.

The main purpose of most of the subsequent newsletters was to announce new AdDept clients or new modules developed for existing AdDept clients. There may have also been one focused on TSI’s Internet insertion order system, AxN.

1. I think that Motivational Marketing still exists, but it has now evolved into a call center located in Rochelle Park, NJ. Its website is here.

2. Gary Farber’s LinkedIn page is here.

3. Much more about Michael Symolon’s career at TSI can be read here. More about Kate Behart has been posted here. The description of the installation at RGS&G is here.

1981-1988 TSI: GrandAd: System Structure

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The design of TSI’s ad agency system. Continue reading →

This entry is rather wonkish. There are no funny stories. I just wanted to record the details while I could still remember them.

I gave our system the name “GrandAd”, but I doubt that anyone ever called it that. We were lucky if the users called it “TSI” rather than “Mike’s system” or “Sue’s system”. The original programs were designed to be run on a Datamaster with an external hard drive (described here). A few years later the system was converted to run on a System/36 (described here). We also converted it to run on an AS/400 (described here).

In the early eighties, administrative software systems generally fell into two categories: BICARSA (Billing, Inventory Control, Accounts Receivable, Sales Analysis) and GLAPPR (General Ledger, Accounts Payable, Payroll). Accounts Receivable was abbreviated as A/R. The GLAPPR modules were abbreviated as G/L, A/P, and P/R)..

GrandAd contained versions of all of these modules except payroll. I don’t remember even one of our agency clients using TSI’s payroll system. From an accounting perspective the distinctive features were that the GrandAd system had two separate methods of billing—media and other—that fed a rather standard accounts receivable system and a unique “media liability” module. The accounts payable system likewise had two separate sets of data entry programs, one for media vendors and one for others. If a bill from a media vendor included production charges, it could be entered in the media payables program after the media portion was completed.

None of the operating systems used by our customers distinguished between tables and data files, but our documentation usually did. In our parlance a table was maintainable by the users through simple editing. Data files could only be maintained through transactions that always created auditable detail records. Transactions were also usually entered in batches that updated the data files all at once. Changes made to items in tables took place immediately. Some important tables contained a few fields that could not be edited by the users. For example the G/L master file contained thirteen fields for the amounts for each month and adjustments. These fields could only be updated by transactions.

Every table had a unique key. The open item files for A/R, A/P, and media liability also had unique keys, as did the file with job costs by category and the media detail table. Detail files for transactions either had no key or keys that were not unique.

There was also one record-oriented specs table that TSI did not tell users about. We maintained this ourselves. It contained things like the agency’s name and address and a large number of “switches”, mostly binary Y/N designations that indicated whether the agency used optional features or the manner in which it used them.

Here were the principal tables, at least as I remember them:

  • Client: The key was a three-digit number. There was a field on this table for an “associated” client number to handle those cases where one company owned several semi-independent entities. Client #10 was usually used for in-house jobs and #11 for one-shot projects.
  • Job Type: The key was a two-digit number.
  • Job: The key was the client number plus a three digit-job number. The numbers could be assigned by the system. A few agencies had their own job numbering system. We kept this number as a twenty-character reference number. In general, 90000 was used for media billings. Every job was assigned a job type.
  • Job Cost Categories: The cost categories also had three digit keys. The categories were of three principal types: time, agency-owned materials, and vendor costs. The entries in the time categories consisted of hours worked on a job. The entries in the materials categories were dollar amounts. The vendor costs came from the accounts payable system.
  • Employee: The key was a three-character code. Initials were usually used here.
  • Rate: The key consisted of the employee code and the category number. It might also have had a date to allow rates to keep up with inflation.
  • Vendor: Vendors were keyed by a five character code and a two-digit location number. Checks were always cut to the name and address on location #0.
  • Media Type: A two digit code identified types of media—radio, television, magazine, newspaper, mailing house, yellow pages, etc.
  • Pub: Like the vendors, pubs were identified by a five character code and a two-digit number (usually 0). Every pub was associated with one vendor and had one media type. A vendor could have any number of pubs associated with it. Although the name “pub” was derived from “publication”, this table was also used for other media entities.
  • Media Ad: The key was the client number, a five-digit ad number, and a one-character version code (usually blank). The ad number was usually the production job number, but it could be something else.
  • Media Schedule: The key was the media ad key plus the pub key plus the date in the form YYMMDD and a two-digit number to preserve uniqueness. The last field was necessary because the same ad could be run more than once on the same day in the same publication or station. Three costs were stored on each record: net (the amount the agency paid the vendor), gross (net plus agency commission), and charge (the amount the client would pay).

The system provided for the following types of transactions:

Transactions were ordinarily entered in batch mode.
  • Menus specific to each type of transaction allowed for recording of new items, editing or (at least deleting) of items entered but not updated, printouts of the contents of the batch, and updating of data files.
    • Production and fee billing. Invoices could be printed on special multi-part forms or just recorded. The update program created records on the A/R detail file. Summary records on the job file were updated and entries were created in the batch file for the G/L system.
    • Media billing: Detail was selected from the media schedule. The update program created records on the A/R detail file, media liability records, and G/L batch entries. Summary records on the job file were updated.
    • Media payables: The update filled in the amount relieved on media liability records and created A/P Detail records and G/L batch entries. YTD spending on the vendor table was updated.
    • Other payables: The update created G/L batch entries. YTD spending on the vendor table was updated. For production costs job cost detail records were written and the job-to-date costs on the job file and job cost summary file were updated.
    • Checks: Invoices from vendors could be selected for payment in various ways. The update program wrote A/P detail records and entries for the G/L batch.
    • General ledger: Entries were generated by other modules, but they could also be entered one at a time. The update program wrote out journal entries and updated the monthly totals by account.
  • Live entries:
    • Cash receipts: The program to record cash received from clients updated paid amounts on open A/R items, and cash received month-to-date and year-to-date on the client table. It also wrote out A/R detail records and batch entries for the general ledger.
    • Individual disbursements: This program was used for partial payments, write-offs, and other A/P issues that were difficult to handle. It could also print checks, but that feature was seldom used by agencies.

The best thing about AdDept and also the worst thing was the month end reconciliation process. That is, it was the invaluable process that underscored the reliability of the data, but its vigor was still dreaded at the end of each month.

We provided the customers with checklists for what needed to be in agreement with what at the end of the month. For example, the total for the list of items in A/P must be the same as the balance in the A/P account in the G/L. If there were discrepancies, I showed the users the reporting tools to use to find the discrepancy and how to fix it. This could easily consume an entire day, and I often had to help them for two or three months before they understood what was causing the errors and how to fix them.

An account at one installation showed a discrepancy of only ten cents that we discovered was the result of three different errors, each of which was for more than $1,000.

I mostly dealt with the manager of the business office. However, I almost always sat down with one of the principals to go over the cost accounting report by client at least once. This report had columns for each source of income (media commissions, fees, billings for production jobs) and both direct and allocated expenses. A primary purpose of the reconciliation process was to insure that the total profit by client was the same as the total profit on the general ledger1. I tried to make it clear that the allocation of indirect expenses was only as accurate as the timesheets. If some employees (media buyers, for example) were not reporting their time accurately, the accuracy would suffer.

I have no doubt that our competitors did a lot less for their customers. Some tried to support their clients without any on-site visits. Some partnered with locals to provide hand-holding. I feel sure that they must have had some unhappy customers.

We actually used parts of this same process in TSI’s office. An unintended benefit of this rigorous approach was that it was rather easy to catch embezzlers.

The system was not sexy. The screens were green, and the output was columnar. The first few months were frustrating and difficult for almost all users. However, in the end it always saved a lot of time and produced valuable information.

One of our agency clients told us that they used a PC-based system called Media Management Plus2 to purchase broadcast commercials from radio and television stations and to evaluate the performance of the spots. We contacted Glenn DeKraker at the company in New Jersey. He told us that the software had several forms of files that it could produce to feed billing and accounting systems. We chose one of them, and wrote software on the System/36 (it would have been very difficult to do it on a Datamaster) to create records on the ads file in GrandAd’s media system from the records uploaded from the PC.

It worked smoothly from the beginning. We did not need to make any adjustments to our files at all. The users just needed to follow a simple convention when it came to naming the pubs. They had to use the call letters and a one-character code: A for AM, F for FM, and T for television.

This project taught us not to fear building interfaces with other software companies.

The original design of GrandAd was surprisingly stable, especially when the constraints under which we operated are considered. The screens supported nothing but text and had only 78 usable columns and 24 rows. The reports were limited to 132 characters on each line. The amount that could be stored on the hard drives was quite limited. If a customer ran out of room, the options were poor.

It was, thank goodness, never necessary to increase the size of any fields, although we had to pass on requests for proposals from two agencies. One was a New York agency that specialized in theatrical productions, each of which was a separate client, and a separate agency that specialized in want ads. Our biggest problem was in handling the version of the system that was used by TSI. When we started selling the AxN system to newspapers, The 999 clients allowed by the three-digit client number might not be sufficient. Besides, we did not want to intermingle the newspapers with our other clients. We decided to allow alphabetic characters in the client number field.

In retrospect we obviously should have used eight-digit dates from the beginning. We devoted countless hours in the late nineties to fixing this oversight.

1. Occasionally some G/L accounts, such as investment income, were excluded for this purpose.

2. In 2021 the company is now known as CoreMedia Systems. Its website is here.