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1986-2005 TSI: Marketing Employees

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TSI’s salesmen. Continue reading →

By the mid-eighties Sue and I really needed help with marketing. We had some good products to sell, and our service was fantastic. However, our salesmanship was poor. I could often persuade people that I could develop a solution to a difficult problem, but I was not very good at persuading them that TSI’s product and approach were better than those of our competitors.

The first person whom we engaged to represent us was Joe Danko, who lived on Cape Cod. At first the relationship was on a commission-only basis. Later we considered hiring him as our salesman, but we decided against it. The details are described here. Joe was never actually an employee, and we never paid him for his services. I don’t know how much effort, if any, he put in on our behalf.

Trust me; Paul was nothing like this guy.

We hired some consultants to help us. They, in turn, hired a graduate student named Paul Schrenker, to sit in Sue’s office in Rockville when she was on the road. We provided a list of presidents of ad agencies and their phone numbers. In only a few cases was it a direct line, but, even so, quite a few people agreed to talk with him. Ad agency executives were all about relationships. Whether Paul was a potential client or a potential vendor did not matter that much; many agency heads were always on the lookout for connections. So, a surprising number of advertising executives accepted a cold call from a graduate student who knew a lot about biology but very little about any aspect of the business world.

The Patriots debacle was not O&P’s finest hour.

One of the ad agencies, O’Neal & Prelle in Hartford, agreed to an appointment, and we eventually closed the sale. Paul did not participate in closing the sale, but he did make the first appointment.

TSI severed its relationship with the consulting firm. We decided instead to hire a full-time salesman, and we approached it in the same way we had recruited programmers and administrative people—by placing an ad in the newspapers. I think that we interviewed a couple of people. One stood out, Michael Symolon. He seemed excited about the job, and he was quite well-spoken. He was a graduate of Central Connecticut. He had worked in marketing for five years at Triad Systems, a company that specialized in software for dentists.

What about TSI?

I think that we hired Michael at some point in 1987. His LinkedIn page, which can be found here, was no help in this determination. Although he included previous and subsequent employers, he left TSI off of his list of experiences. We paid him a pretty good salary as well as commissions.

I remember that when he first began to work at TSI Michael was gung ho about setting up a nationwide sales organization. He advised me to schedule annual trips to exciting destinations exclusively for the most productive reps of our software systems.

Michael.

This attitude shocked me a little, but he eventually revised his expectations when he discovered how complicated the GrandAd product was. Our competitors could undercut us on price on the hardware, and there was not much that we could do about it. The key to selling was almost always our willingness to customize the system for the prospective client. The idea of setting up a network of sales agents seemed unworkable to me. If I could not deal with the people personally, how could I assess what changes were necessary and feasible?

We gave Michael room to be creative in his approaches, but I was not ready to discuss how to celebrate sales generated by imaginary salesmen.

9.5 rounded up.

Terri Provost left the company shortly after Michael was hired. Michael interviewed and hired Linda Fieldhouse to take her place as administrative assistant/bookkeeper. Both of them are described here. Michael assured me that Linda was “at least a nine and a half.”

I am pretty sure that Michael and I went on a couple of ad agency sales calls together. I remember driving up to Vermont with someone—it probably was Michael. When I got out of the car I realized that I was wearing the pants for my pin-stripe suit with my blue blazer. We did not get the sale, but I don’t think that my fashion faux pas was the cause. Vermont is not known for haute couture.

I also remember that Michael accompanied me to Keiler Advertising once. Evidently he had once dated Shelly, who at that time was in charge of bookkeeping there. Michael was very embarrassed by the incident. I did not ask him for historical details.

I don’t remember him closing sales of any new GrandAd clients.

We took Amtrak from Hartford’s Union Station to NYC.

Michael also came to New York City with me for at least one very important presentation to Macy’s in 1988. He was almost a hero, as is described here.

Michael invited Sue and me to supper one evening at his house in Farmington. We got to meet his wife and kids. It was a very nice house, but I don’t remember any details.

I am sorry to report that Michael was at the center of TSI’s first great crisis, which is described here.

I ran into Michael at Bradley International one day in late 1988. He told me that he was working for a company that sold advertising software to magazines. I told him that Macy’s had finally signed the contract, that I had been working my tail off to get all the software written and installed, and that TSI would send him his commission check as soon as we got the final check from Macy’s. There did not seem to be any hard feelings.

For a couple of years TSI muddled along without a salesman and with very little effort at marketing. Those were very difficult years in a number of ways. By the spring of 1991 the AdDept system had two pretty substantial accounts, and we felt that it was time to start marketing it seriously nationwide.

Meanwhile, our ad agency clients seemed perfectly content with their current hardware and showed no interest in converting to the AS/400, the system that IBM had introduced in 1988. It is described here.

We hired a young man named Tom Moran to help with marketing. He was a very nice guy, but he knew next to nothing about computers, advertising, retail, or, for that matter, marketing. He was definitely eager to learn, and he was willing to follow up on leads, which was the most important thing. Plus, both Sue and I liked him.

I remember going on two trips with Tom. The first was for a meeting with Hecht’s in Arlington, VA. Sue, Tom, and I drove down to the Washington area. A Motel 6 on the Maryland side of DC kept the light on for us, and I am happy to report that no murders were committed (or at least none reported) there that night. It was the first and last time that I stayed at a Motel 6.

The three of us met with Barbara Shane Jackson, who was in charge of Hecht’s patchwork PC system and her boss, the advertising director, whose name I don’t remember. Tom did not contribute much, but it was a good meeting on the whole. In the end we got the Hecht’s account.

The RAC was held at the Hilton in downtown Chicago.

Tom and I also attended RAC, the Retail Advertising Conference, in Chicago. It was a huge pain to get everything prepared for our booth there. We had to rent an AS/400 from IBM and to hire union employees to set everything up. Nevertheless, we did manage to get our demo computer system working by the time that the attendees came to visit the vendor area.

Some vendors who were familiar to us were there. Camex, the company from Boston that specialized in programming and selling heavy-duty Sun workstations for the production of ads, had an exhibit that was ten times as large as ours and had a dozen or more people. Tapscan, the broadcast software company. was right across the aisle from our booth. One young lady who worked there must have accidentally left her skirt at home. It appeared that over her black pantyhose and high heels, she was wearing a wash cloth that she purloined from her hotel room.

Most of the conventioneers were drunk or at least tipsy by the time that they reached our area. We made one contact with the ad director of Hess’s, a department store chain with headquarters in Pennsylvania. Tom gave him a copy of our sales materials and got all of his contact information. Unfortunately, almost as soon as we had begun correspondence with him, Hess’s was acquired by another retailer, and his position was eliminated.

The convention would have been a complete fiasco except for two things. The first was that I got to introduce Tom to the indescribable pleasure of Italian beef sandwiches purchased from street vendors in the Windy City.

The other redeeming event was the appointment that I had made to do a demo at the convention for Val Walser, the Director of the Advertising Business Office at The Bon Marché, a department store chain in the northwest. The programs worked without a hitch, and she was very impressed with what the system could do. She even invited us out to Seattle for a presentation to the relevant parties at the IBM office there.

Tom accompanied me on that trip, too. Our plane landed in Seattle very late, well after midnight. We checked into our hotel, but we only managed to get a couple of hours sleep. We went to the IBM office, where I checked that all of the software was working correctly. By this time I had been chain-drinking coffee for several hours, and still I felt very sleepy. This was an important presentation, and I had to be at my best.

The demo seemed to go pretty well. Everyone was attentive. The people from the IT department were asking tough questions, which usually boded well for us. I was so tired that I could barely concentrate. As we were putting away our materials I realized that I had been drinking decaffeinated coffee all day.

Nevertheless, I convinced Val and the other important parties. We put together a hardware and software proposal, and they submitted a requisition to the IT department, which also approved it. However, the powers that be at Federated Department Stores1, the mother ship, vetoed it.

This episode taught me that TSI needed someone who could navigate his way through the bureaucratic structure to find out what the hold-up was. Tom was not ready for this kind of responsibility. In the end, we decided that we could not afford someone who just tagged along for demos. In fact, we were really in the position where we could not afford anything.

Fortunately, we were able to use the Hecht’s installation as an entrée into the May Company, which at the time had about ten divisions. Not long after that I persuaded Foley’s in Houston to install the system, too. I also convinced Neiman Marcus in Dallas to get the system.

A grainy photo of Doug in an airport.

Those sales gave TSI both a solid base of accounts and enough revenue that we again looked for a marketing person in 1993. We found what we were looking for in Doug Pease, who had actually worked in the advertising department at G. Fox, the local May Company chain.

At first I had hoped that Doug could do some of the demos, but I soon gave up on that idea. I knew exactly what the system did, what it could potentially do, and what was beyond us. The programmers were generating a lot of code every week, and so these lists were in a constant state of flux. Besides, I had a great deal of experience at public speaking, and Doug did not. I don’t think that I would ever have trusted anyone with the demos.

Doug was a real bulldog once he had a hot lead. He was extremely good at following up on everything. In his first year we closed extremely profitable sales to Lord & Taylor, Filene’s Basement, and Michaels Stores.

Susan Sikorski

In April of 1994 I received an email from a woman named Susan Sikorski, who worked at Ross Roy Communications, Inc. in Bloomfield Hills, MI. The company at the time had eight hundred employees (!) and seven satellite offices. They wanted a production billing system that would feed their Software 2000 accounting system and some internally developed applications.

A few years earlier I would have considered this opportunity a godsend. We had already written interfaces for Software 2000 accounting systems for two AdDept clients. We loved to do interfaces, and the more complicated they were the better. However, we were so busy with programming for clients that Doug had landed that this was my response:

Unfortunately, as I looked over your package, I realized that our system does not really measure up to your requirements. We would have to make very substantial modifications to meet even the minimal requirements. Since we specialize in custom programming, this would not ordinarily be a great issue to us, but at this time we would not even be able to schedule the work for many months. So, I guess that we will have to mass.

And it was almost certainly a good thing that I was forced to make that decision. In 1995 Ross Roy Communications was purchased by the mega-agency called Omnicom Group. If TSI had been chosen for the project, I strongly suspect that the plug would have been pulled on it before the system became fully operational. Susan found a new job at Volkswagen in 1996.

Meanwhile, in the next few years Doug managed to get TSI’s AdDept system into all of the remaining May Company divisions, as well as Elder-Beerman, the Bon-Ton, Stage Stores, two Tandy divisions, Gottschalks in California, and all but one of the five divisions of Proffitt’s Inc., which later became Saks Inc..

Doug and I took many sales trips together. The most memorable one was in December of 1997 to Honolulu to pitch Liberty House3, the largest retailer on the islands.

Doug using a client’s AS/400 for something.

We had a little free time while we were there. Doug and I used it to climb to the top of Diamond Head together. He was an enthusiastic mountain biker, he had been a soccer player in college, and he was quite a bit younger than I was. I was in pretty good shape from jogging. So, neither of us held up the other.

Sue accompanied us to Honolulu, and after Doug returned home, she and I had a great time on four different islands, as is described here.

The other trip that was the most memorable for me was when we flew to Fresno, CA, to pitch Gottschalks, a chain of department stores in the central valley.

In those days you could save a lot of money by flying on Saturday rather than Sunday—more than enough to pay for a day’s food and lodging and a car rental. Doug and I considered going to Yosemite on our free day, but there was a problem with the roads there. Instead we decided to drive along the coastal highway from north to south to maximize our views of the coastline.

Somebody else’s photo.

I did not have a camera, but Doug did. His was a real camera of some sort. I was not yet into photography, and I had not brought a disposable camera on the trip. Doug took lots of photos. In fact, he ran out of film. When we stopped for lunch he bought some more film.

Doug took a lot more photos on the rest of the journey, or so he thought. When we got to Fresno he discovered that he had no photos at all after lunch. I don’t remember whether he forgot to load the camera after he took out the film. Maybe he did not wind it, or there was a technical problem. That was not the worst of it. He also somehow lost the first roll of film when we stopped for lunch, and it also contained the photos of his newborn child taken before we left.

But, hey, we got the account.

I guess that Doug is unloading new equipment in Enfield.

Doug and I almost never disagreed about what the company should be doing. However, near the end of his tenure he came up with an idea that I just could not sanction. He wanted us to start a new line of business in which we contracted for large chunks of advertising space from newspapers at a discount and then resold it to small businesses at a profit. Maybe he could have sold a lot of space; maybe he couldn’t. In any case such an undertaking would leverage no TSI products or services and none of the skills that the rest of us possessed. In short, he was asking me to backstop a new source of revenue for him. I declined to do so.

Doug and I made a great team. I gathered specs and did the demos. He attended, met the players, and subsequently followed up on everything. When the prospect had signed the contract, he made sure that all the i’s were dotted and the t’s crossed and ordered the hardware if they bought from TSI or a business partner.4 By 1999 we had more work than the programmers and I could handle. I told him to stop selling new software systems until the programming backlog could be reduced to a more manageable level, which would not be for at least a year. He made the imminently reasonable decision to look for another job.

After TSI moved to East Windsor in late 1999, we hired one more AdDept salesman, Jim Lowe. His previous experience was with a company that marketed hard cider. The challenge was to get retailers to give them adequate shelf space. It was retail experience, but not exactly the kind that we had dealt with.

Jim was a smart guy, and he could have been a good salesman for us. We went on a trip together to Wherehouse Music in Torrance, CA. Wherehouse was a large chain of music stores in California. Jim and I stayed in a nearby Holiday Inn the first night. We used MapQuest to find to the Wherehouse headquarters the next morning. At the very first turn MapQuest advised us to turn right. This seemed wrong to me, and I turned left instead. We reached the building in less than ten minutes. I don’t know when we would have arrived if I had turned right.

It was a very strange meeting. Rusty Hansen, whom I knew from Robinsons-May, had told them about us. We never got to meet with him or anyone else who seemed to know what they wanted. We did get to meet the president of the company, who was wearing jeans and a tee shirt. I never did figure out what this whole episode was about. The company went out of business within a couple of years.

Jim only worked for us for a few months. He took an offer that was very similar to his old job. Before he left he helped me with a mailing that produced some good leads. I sold the last few AdDept systems to some of those retailers by myself.

Jim’s advice to me when he left was that TSI should concentrate on AxN, which is described here. I don’t think that he ever really understood that the horse must precede the cart. We needed retailers to be sending us insertion orders in order to be able to send them to newspapers.

Bob in Denise’s office.

Bob Wroblewski was, as I recall, a relative of Denise’s husband. In November of 2003 Denise came up with the idea of paying Bob to get the newspapers signed up.

I got to know Bob on a trip taken by the two of us to California to persuade Rob-May and Gottschalks to use AxN. We both misjudged how well the two demos went. The people at Gottschalks seemed excited; Rob-May was somewhat cool. However, Rob-May soon came around, and I never did persuade Stephanie at Gottschalks to use AxN.

Here is how the marketing process worked. After a retailer’s advertising department that scheduled its newspaper ads in AdDept agreed to use AxN for insertion orders, it provided us with a list of its newspapers with contact information. I wrote a letter to each paper asking them to subscribe to the service. The letter was printed on the retailer’s letterhead and was signed by the advertising director or ROP manager at the newspaper. However, it was sent by us along with a contract that I had signed. The monthly rate was approximately what the newspaper charged for one column inch in one issue. This was a negligible fraction of what the advertiser spent. Then Bob called each one and persuaded them to sign up.

I don’t know (and I don’t want to know) what Bob said to the papers, but he had a very high success rate. He also earned quite a bit for himself in commissions. At one time we had over four hundred newspapers that subscribed for the service!

Bob’s wife died while he was still working with us. I drove to Providence, which is where he lived, for the wake.

1. Federated Department Stores owned many large chains that were all very promising potential AdDept clients. The rejection of The Bon Marché’s request may have been a blessing in disguise. In January of 1990, shortly after this meeting, Federated filed for Chapter 11 bankruptcy protection. It could have been really ugly.

2. Susan Sikorski is apparently working as a consultant for Avaya in 2021. She is featured as a graduate of Wayne State on this webpage.

3. We learned later that the advertising department at Liberty House had approved the purchase of the AdDept system, but the order was never placed because in March of 1998 Liberty House filed for Chapter 11, and the funds for new systems were frozen.

4. TSI was throughout its existence a certified member of IBM’s Business Partner program. However, because of the size of the company we were bit allowed to sell IBM hardware directly. Instead, we needed to pair up with a “managing Business Partner” who actually could place orders. We dealt extensively with several of these companies—Rich Baran, BPS, Savoir, and Avnet. There may have been others.

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.

1994 TSI: The Second Crisis

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The I in TSI comes to stand for Incorporated. Continue reading →

This entry requires quite a bit of background.

When we were still living in Detroit, Sue Comparetto founded TSI Tailored Systems as sole proprietor. I helped her occasionally in the early days, but for the most part she did it alone. She never had any employees or, as far as I know, a business plan. She inherited a handful of accounts from her former employer. At first she had an office in Highland Park, a small and dangerous city surrounded by Detroit. Then, when TSI somehow obtained an IBM 5120 computer, she set up shop in the spare room in our house in Detroit.

Having the computer in Detroit allowed me to learn BASIC. Having access to the programs and listings from AIS, the company that wrote most of the software that Sue supported, allowed me to learn how business programs could be structured. We were self-taught. I had taken exactly one college-level programming class at Michigan in 19661; Sue had none. Neither of us had ever taken an accounting or marketing class. In fact, neither of us had ever even sold or helped market anything.

The partnership’s logo as it appeared on the first set of ring binders.

When we moved back to Connecticut, Sue registered TSI as a partnership. We worked together, but we never really agreed on who was responsible for what. I considered myself much better at programming than Sue was. I therefore expected to do the bulk of the coding (including software for TSI to use) and for her to handle nearly everything else. The way I thought of this was: she does the phone stuff; I do the computer stuff.

The first additional task that I felt obliged to take over was marketing. In Detroit Sue had never needed to find new clients. She was given a bunch of them, and she hoped that IBM would provide her with additional leads. When we moved back to Connecticut, however, we lost the ties with the Detroit IBM office, and it was difficult to make new arrangements. We had only a few clients and lousy credentials.

I copied company names and addresses from the Yellow Pages.

We scrambled to get a few custom programming jobs. I did nearly all the design, coding, implementation, and training. I pulled together a mailing list from phone books at the library and wrote letters to businesses that I thought might be interested in systems designed for our clients. We never made a lot of money this way, but it did generate some business. Eventually, IBM also gave us some leads.

We hired a receptionist/bookkeeper, Debbie Priola, and a programmer, Denise Bessette. The former freed up time for Sue almost immediately. The latter consumed quite a bit of my time for a couple of months, but eventually she helped a lot. Unfortunately, she decided to return to college and cut back on her hours at TSI. More details about the early years of TSI can be read here.

Enjoyable but frustrating.

Both Sue and I found most of the decade of the eighties to be enjoyable but frustrating. The programming was fun and very challenging. Almost all of TSI’s customers appreciated our approach. However, we never came up with a good way of monetizing our efforts. The ad agency system, GrandAd, did better than the “anything for a buck” approach that we had been forced to use in the beginning. However, our market was effectively limited to agencies that were within driving distance and were too large for a PC system. In that reduced market, it was difficult to make enough sales to get by. Eventually there were so few reasonable prospects remaining that a change in strategy was essential.

I was convinced that our future lay in selling AdDept to large retail advertisers across the country. There was no real competition, and there seemed to be a good number of prospects.

What about “sell”?

I don’t think that Sue agreed with this change in focus. She had always favored local businesses over large corporations when purchasing something, and I am pretty sure that she also preferred dealing with smaller businesses over dealing with corporate executives. The fact that both of our first two AdDept clients declared bankruptcy and left us with tens of thousands of dollars of noncollectable invoices reinforced her attitude.

Sue had always been a night person. I was the opposite. I always was out of bed by 5AM or earlier. I usually became very sleepy around 9:30PM. I then took a shower and read a few pages of a book in bed. I was almost always asleep within a minute or two of turning off the lights. I stuck to this routine for decades, and I still do in 2021.

At some point in the eighties Sue developed a sleeping problem. She liked to watch late-night television, but she almost always dozed off in her chair. She slept very fitfully, waking up with a start and then falling back asleep. This went on for a long time—months, maybe years. Finally she went to a doctor. He prescribed a sleep study. It was not a surprise that it confirmed that she had sleep apnea. For reasons that I have never understood Sue was reluctant to purchase and then use the sleep machine. The models sold in those days were big, expensive, and ungainly. Even so, breathing well while sleeping is critical to good health.

I suspect strongly that this long period in which she was not getting enough oxygen when she slept impaired her performance at work and elsewhere. She regularly came in to the office late—very late. She was late for appointments. She missed appointments all together. The books were never closed on time. She repeatedly put off providing the accountant with tax information, even though the company’s operation was not a bit complicated. There were many other issues, but the worst thing, from my perspective, was that she made employees call the people with whom she had appointments in order to make excuses for her.

To the best of my knowledge none of the people whom I listed relapsed even once.

In 1987 or 1988 Sue gave up smoking. At almost exactly the same time, Denise did, too. So did Patti Corcoran, Sue’s best friend, and, halfway across the country, my dad. This was like a dream come true for me. I had never taken a puff, but for years I had worked in smoky offices and had taken Excedrin for headaches. When TSI’s office was declared smoke-free, my headaches went away forthwith, and they never returned.

Sue, in contrast, had a very difficult time quitting. She put on quite a bit of weight, which amplified the sleep apnea problem. She was also more irritable at work and at home.

I must mention one other factor: Sue never throws anything away. Okay, if it has mold on it, or it is starting to stink, she will discard it. Otherwise she stuffs things for which she has no immediate use in bags or boxes.

When I first met Sue, she was renting one room in the basement of someone’s house. It was not cluttered at all. She seemed to have no possessions except a water bed, a record player, and a few albums. By the early nineties we had a house of our own with two rooms that had no assigned function, a garage, an attic, and a full basement. All of them soon became full of junk. Both of our cars had to park outside because the garage was wall-to-wall miscellany.

  • Fire hydrants!
  • Junk.
  • Really old junk.
Sue is not the only hoarder in her family. These photos were taken in the lot behind the Slanetz Corp. office.

TSI’s headquarters in Enfield was nearly as bad. Sue’s very large office was the worst. Strewn about were boxes and paper sacks full of correspondence and memorabilia. Her desk was always completely covered, and post-it notes were everywhere.

In the rest of the office stood several file cabinets. Of course, every business must retain records, and one never knew when the company might get audited. It was also critically important to maintain good records about contacts with clients and prospects, and our business, in particular, needed up-to-date listings of programs, which we had by the thousands. So, we had a lot of important paperwork.

No more mainframe announcements, please.

However, in TSI’s office could be found many other things, which by any measure were totally useless. One day I undertook to throw away the announcements that we constantly received from IBM about its products. These documents formed a stack about four feet high. 90 percent of these missives were about mainframe products. There was absolutely no chance that we would ever work with any of these machines. Even the remaining ones (all of which I intended to keep) were seldom of any value because the information might have been contradicted by a subsequent notice.

Sue asked me what I was doing, and I told her. She immediately got very upset and even started to cry. She just could not stand for anyone to make the decision to discard anything that she considered hers. I realized at that moment this was a reflection of a very serious problem. I put all the notices back in the file cabinet.2

1994 was a good year for J2P2, too.

1994: It was the best of times; it was the worst of times.

The business was finally taking off. Our new salesman, Doug Pease, was demonstrating that he was ideal for the job. The nationwide retail recession had ended. The retail conglomerates with money (or credit) were gobbling up smaller chains, and in most cases this worked to our advantage. We were approaching a position in which we need not ever worry about competition. Most of us were working very hard, but we were getting new clients, and it was exciting.

The problem was Sue. She was hardly involved in any of this at all. Her behavior was becoming really unprofessional. Doug complained about her often. She kept hiring assistants, and they kept quitting. I could not find out where we stood financially because our books were so out of date.

On a couple of occasions I was stretched so thin that I asked Sue to take trips to clients for me. I did not think that technical expertise would be involved. I just needed someone to find out what the users needed. The first one was to Macy’s East in New York. Sue never told me what happened, but the people at Macy’s told me years later that they had made voodoo dolls representing her and stuck pins in them.

The other trip was to Foley’s in Houston. Sue flew all the way there and then realized that she had brought no cash. Her credit cards had all been canceled by the issuers. Fortunately, she had a checkbook, and Beverly Ingraham, the Advertising Director at Foley’s, cashed a check for her.

In May of 1994 Sue and I took a very important road trip to Pittsburgh. We met with Blattner/Brunner, an ad agency (described here), and Kaufmann’s, a chain of department stores (described here). Both of these sessions went quite well. When we returned to Enfield, I was required to spend a lot of time working on the proposal for Kaufmann’s. It was the most complicated and difficult one that I had ever done, and if I did not do a good job of analyzing and estimating the difficulty of each element, we could suffer for this for years.

So, I asked Sue to follow up on Blattner/Brunner while I was working on Kaufmann’s. Sue had been there for the session in Pittsburgh. There was no one else I could turn to. She completely fumbled the ball. I was quite angry, but I knew that it would do no good to nag her about it.

On the other hand, I appreciated the fact that she was the founder of the company. These opportunities never would have happened if she had not started the ball rolling back in Detroit.

The day finally came when I just could not take it any more. I told her to go home and not to come in to work any more. There was no argument and no tears. She told me that I was making a big mistake and just left.

No one else thought that it was a mistake.

Within a day or so I approached Sue with the following arrangement: TSI Tailored Systems Inc. would be registered as a Chapter C corporation.

I would be president and have 55 percent of the stock, and Sue would would be treasurer with 45 percent. We would hire a new accountant to handle the corporation, and the bookkeeper would report to me. It would be my responsibility to make sure that the books were closed on time, and the taxes were paid on time. I would also do our personal taxes. We would fund the corporation with the difference between our accounts receivable and our accounts payable. If it needed cash (as it did a few times), I would loan as much as necessary to the corporation at a reasonable interest rate.

Sue was not happy about it, but she agreed to this. She did not even argue about the salary amounts that I set.

Amazon sells these.

Our new accountant’s name was Sal Rossitto2. He guided us through the transition. He advised us to set up an Limited Liability Company3, but I insisted on a true corporate entity that issued stock to its owners.

Setting up the new corporation was fairly straightforward. We had to open a new bank account. I found it to be a fairly simple matter to close the books every month within a day or two of the end of the month. We also set up a 401K with matching funds, a profit-sharing plan, and a good health and disability insurance plan from Anthem. None of this was difficult.

I am not sure who took over handling of the payroll after Sue left. TSI eventually hired Paychex to do it. Denise collected the time cards from the employees and submitted the requisite forms to Paychex.

Our accountants loved our Nov. fiscal year. They could work on our taxes in a less busy season.

I made one very good decision. We set our fiscal year to run from December 1 through November 30. We paid bonuses and made contributions in November. This gave all the employees the entire month of December to spend or save for tax purposes.

Dissolving TSI was a much more complicated task. Sue and Sal met often over the course of several months to unravel issues in the partnership’s books. I remember, among other things, some kind of ugly situation with regard to sales tax in California regarding the way that the installation at Gottschalks occurred. At the end of this process Sal confided to me that he now understood why I wanted to set up a real corporation.

The new logo as it appeared on invoices and letterhead.

We also ordered new letterhead. Ken Owen worked with me on the logo. I eliminated the stripes and the lean of TSI. The color around the TSI was pure blue. The colors to the left of that block went from a very light blue gradually darker almost to pure blue. The effect worked better on the computer screen than it did when printed.

For me the most important thing was to reestablish blue as the company’s color. It started with a light blue as shown at the top of the page, but over the years it had somehow evolved into something that was more green than blue. I hated it.

The next few years were boom years for TSI. I worked my tail off, and my travel schedule was a killer. I didn’t care. We had finally turned the corner, and the future looked very bright.

Life at home, however, was very difficult. Sue was obviously unhappy. She probably thought that I intended to dump her. I still loved her; I just did not want to work with her any more. I was quite sure that the company would do better without her.

displayed no interest in finding a job. This surprised me. She had had quite a few jobs since I met her. She really liked a few of them. She could summon up a great deal of enthusiasm about new projects, and she loved meeting new people. I could think of several occupations that she would fit very well.

Instead, she leased some space in an old office building in a questionable part of downtown Springfield, MA. She then fixed it up and rented it out to dance teachers who needed a place to give lessons. I don’t know how much of our money she lost on this venture. I am not sure that she even kept records of it. She certainly didn’t ask my opinion about it.

On weekends we still drove to Wethersfield to visit our old friends, the Corcorans, regularly. That helped quite a bit.

At one point Sue awarded herself a vacation. She drove to New Orleans to see a guy that she knew from high school who was into social dancing. She stopped at some other places along the way. I never asked her about what happened on this trip. When she returned she did not offer any details.

Eventually things got a little better. After the trip to Hawaii (described here) in December 1995 the situation became more tolerable for both of. At least we had some money to spend and save for the first time ever in our relationship.

1. The course that I took as a freshman at U-M taught a programming language that was unknown outside of Ann Arbor. It was called MAD, which stood for Michigan Algorithm Decoder. We wrote our programs on 80-column punch cards.

2. Perhaps you are wondering why I gave in without an argument. It was because I recognized quite early in our relationship that Sue was expert at playing the “Why don’t you …? Yes, but …” game described by Eric Berne in his best-selling book Games People Play. A pretty good write-up of the “game” is posted here. This is also the reason that I did not press her about the sleep apnea.

2. Sal Rossitto died in 2002. His obituary is here.

3. The purpose of an LLC is to protect the “members” from being personally responsible for debts and obligations undertaken by the company, but it is not as completely separated as a true corporation.

1988-2014 TSI: The IBM AS/400 and its Follow-ons

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An amazing system. Continue reading →

In the eighties IBM sold two mini-computers1, the System/36 and the System/38. It was hard to understand why. They both supported the same programming languages (RPG, COBOL, and BASIC), cabling, and peripherals. They both were aimed at small businesses that used them for traditional “business” applications—as opposed to graphics or calculation-intensive jobs. There was a large overlap in the targeted customers for each system. Both systems were even designed at the same IBM facility in Rochester, MN.

For several months rumors abounded in the trade magazines for these products that IBM would soon announce a new computer to replace both of them. The code name was Silverlake.

The announcement was made on June 21, 1988. I attended a briefing at the IBM office in Hartford. The name of the new system was AS/400. The “A” stood for “application” because every program ever written for either the S/36 or the S/38 would run on the new system. Neither the S/36 nor the S/38 could be upgraded to an AS/400, but the new system accepted all of the software and most of the peripherals. The thrust of the pitch was that IBM was providing the “best of both worlds.”

A System/38.

This claim was possible because the “native” environment of the new operating system was based on the System/38. The new system also supported a “System/36 environment” that allowed programs written for that system to run with no changes. Since the native environment was much more efficient than the S/36 environment, software developers were expected to migrate their code to the native environment as soon as they could.

My immediate interest was in the price of the low-end systems. I was bitterly disappointed. The least expensive model, the B10, cost much more than the 5363, which was a perfect fit for most of our target market. Once again, IBM just refused to address the millions of small businesses that could be served very well by an economical system that could handle a handful of simultaneous users. In 1987 IBM had finally introduced such a system. With this announcement just one year later a perfectly good solution was replaced by a much more expensive and unproven one.

So, from the perspective of selling to local advertising agencies and other small businesses, the announcement was a nightmare. However, as is described here, Macy’s gave TSI no choice but to embrace the AS/400. They wanted to hire us to develop a system for them, but they had no interest in purchasing obsolete hardware.

IBM’s approach eventually worked out in our favor. The AS/400 had many outstanding features that were not available on the System/36.

The B10 was the size of a two-drawer file cabinet. The B60 required four racks. All were announced in 1988.
  • The new system’s operating system was built over a relational database. I am not sure that most people in the S/36 community knew this at the time because IBM did not even mention it at the announcement meeting, and the database was not even given a name (DB2/400) until much later. All anyone knew was that it sure had fast file access.
  • The defining feature of the operating system was inherited from the System/38: Single-Level Store. I never have understood this completely, but the effect was that the main processor did not care whether programs or “pages” of data were already in memory. The task of managing storage was managed by other processors. So, the problem that occurred on the System/36 when too many jobs were running simultaneously would not occur on the AS/400. Moreover, the compiler on the AS/400 took advantage of this setup to make the programs run much more efficiently under normal conditions as well.
  • For our purposes the big advantage of the AS/400 was that BASIC programs on the AS/400 were compiled, not interpreted. This meant that we could externalize routines that were performed by many programs, and one program could call several other programs that could run simultaneously as “batch” jobs without tying up any terminals. These were huge advantages.
  • The BASIC interpreter that was invaluable for debugging was NOT eliminated.
  • The AS/400 operating system was designed to be able to take advantage of future hardware advances. Because potential customers were more concerned about solving their immediate problems, this was not a great selling feature. However, it was definitely a great “keeping” feature. Ever program that we wrote in 1988 still works on hardware marketed by IBM thirty-one years later!
  • The first announcement did not require this, but eventually every AS/400 came with a 1/4” cartridge tape drive. This eliminated the nightmare of having to convert repeatedly from one storage means to another.
  • Priority could easily be assigned to certain jobs.
  • A modem could be attached for faxing. Our AdDept customers used these for insertion orders until we devised a better way of handling them.
  • The system could be attached to an Ethernet or Token Ring network.
  • IBM’s query tool was a big improvement. We insisted that all of our clients licensed it, and I personally trained at least one employee in its use. That worked fine unless the person who had been trained left the company or was reassigned. We also offered support for designing and helping with queries, but we charged a monthly fee for this service.
  • Printing was much more flexible. Even laser printers attached to PC’s could be used for printing reports. I learned PCL, Hewlett-Packard’s printer language, so that I could design customized reports with fonts and simple graphics (borders and the like could be generated on HP printers. This was very popular with our customers.

Although some things continued to frustrate me about the AS/400, I grew to appreciate it more and more. It was not designed for tiny developers like TSI, but it allowed us to produce software with features that went way beyond the capacity of any model of the System/36. By the time that the E models of the AS/400 were released in 1992, the low-end systems represented very good investments for the companies who were interested in TSI’s products and services.

On the other hand, IBM’s approach meant that independent developers who marketed to the end users directly rather than to IT departments—and there were a lot of us—had to devised a way to survive until IBM provided us with a reasonably priced product. Those four years were very difficult for TSI. The company survived, but the grim reaper’s shadow was on our door quite a few times.

TSI’s B10 had a diskette drive and a QIC tape drive.

Over the course of twenty-six years, TSI had at least four AS/400’s (or follow-ons. named iSeries or System i) All of them worked spectacularly well. We hardly ever called IBM for either hardware of software support. We purchased or leased all of them at big discounts because we were developers. On the first one, a B10, I prudently scraped together enough cash2 to order the maximum amount of memory and disk. It was adequate for development purposes, but if one of our clients had tried to run its business on it, it would have been embarrassing. For one thing the operating system itself required almost half of the unit’s disk space! Subsequent releases of the OS required much more disk.

Still, we lived with it, and we came through on the other end.

How well did the strategy work for IBM? In 1988 IBM was one of many competitors in the mini-computer market. The others were DEC, Hewlett-Packard, Data General, Wang, and a host of other companies. By the mid-nineties all of the competitors had conceded the entire market for reasonably priced multi-user computers to IBM. All of them except HP went out of business, and even HP (after several mergers) now makes and sells only PC’s and printers. This stunning event went almost unnoticed by most so-called experts. They blamed poor management by these companies for their demise. Were they all stupid? No, the AS/400’s were demonstrably superior.

Lou Gerstner.

The mini-computer market still exists, but almost no one talks about it, because IBM has hidden its premier product inside hardware with other brands. The only thing that IBM left for the AS/400’s legions of devotees to cling to was the letter i. When Lou Gerstner took over the reins of IBM in 1993, he put a heavy emphasis on services, which were very profitable, over hardware and software, which evidently were not. So, Gerstner never liked the AS/400 approach because the IT departments that used it had little demand for IBM services. For example, at some point in the twenty-first century I visited Macy’s IT department in a suburb of Atlanta. Dozens of IBM employees went to work there every day. One extremely large office contained desks for them and no one else. Macy’s had several AS/400’s or i series systems there. One person managed them all, and he worked for Macy’s, not IBM.

Users of TSI’s software systems loved their AS/400 computers, and they never purchased any services from IBM beyond maintenance contracts.

The AS/400’s operating system (OS/400) employed strict typing of objects. Every object had one and only one type, and it was unchangeable. On a PC a developer—or even an end user—can change the type (as designated by the three-digit “extension” after the period). For example a text file named sample.txt can easily be changed to a comma-separated-values file sample.csv. Users could even make up their own extensions.The operating system might warn the person that changing the extension might make the file unusable by certain applications, but it would still allow it.

The AS/400’s native environment, in contrast, had a limited number of well-defined object types, many of which had equally rigorous subtypes:

  • Database files could be physical or logical. A logical file is equivalent to what is called a “view” in SQL.
  • Programs had subtypes for each supported language. A new language called CL3 was added.
  • Menus were lists of options displayed on the screen, usually with a command line at the bottom. Each option had a number.
  • Commands were routines that could be invoked on any command line. A command was essentially a shortcut for calling a CL program.
    • The names of the commands supplied by the operating system. were consistent throughout: VVVAAANNN, where VVV was a three-character abbreviation of a verb, AAA was an optional three-character abbreviation of an adjective, and NNN was a three-character noun. For example, DSPSYSVAL was the command for Display (DSP) System (SYS) Value (VAL).
    • Most commands had parameters. For example, the GO command required the name of a menu object as a parameter. GO BACKUP caused the system to display and execute the menu object named BACKUP. Pressing F4 after keying in the command displayed a data entry screen for all of the parameters.
    • TSI created a large number of commands in
  • Several other object types, such as line descriptions and spool queues, were used by the system software. Most system objects of all types (except commands) began with the letter Q.
  • BLOBs were objects that did not fit any of the other types. They included all types of images, video, sound, etc. They were added in later releases.

Users could not create new object types or subtypes, but new ones often appeared in new releases of the operating system.

Every object had a name, which was limited to only ten characters. A letter was required for the first character. The other characters could be letters or numbers. A few special characters were also allowed. The names were NOT case-sensitive.

Every object resided in a library, which was itself and object with a ten-character name. This was a departure from the S/36, where data files were not assigned to libraries. On the AS/400 two objects in the same library could not have the same name.

On the S/36 and for a short time in the S/36 environment on the AS/400 TSI used periods in the names files that were associated. For example, files that began with “M.” in the GrandAd system were media files. In the native environment of the AS/400 such files caused a problem for some third-party programs that users might wish to employ to create customized reports. So, TSI changed the names so that the first one or two characters served to group files.

Third-party programs and programs written in other languages also had difficulty with integers that were left-padded with blanks4, as BASIC programs have always done. TSI changed all of its programs to pad integers with zeroes instead of blanks. So, when the value of a three-digit number was 15, it was written on the AS/400 database as 015, not (blank)15.

1. The terms mini-computer and midrange computer referred to multi-user systems that were not powerful enough to run the business applications of major corporations. The System/36 and System/38 were certainly mini-computers. At its introduction so was the AS/400. The twenty-first century models, however, were more powerful than the mainframes of the eighties.

2. I suspect that TSI actually leased it.

3. CL stood for Control Language. CL was the easiest language ever. It was simply a list of commands to be executed in order. Since CL programs were compiled, they could be called from other programs written in any language.

4. I considered this an intolerable bug in the software developed and marketed by the other company. I encouraged the person trying to use the software to complain to whomever claimed that the product would work on AS/400 files. Eventually, we changed our files and programs to forestall a brouhaha.

1981-1983 TSI: GrandAd: The First Two Clients

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1 + 1 = a marketable system? Continue reading →

We were very fortunate that IBM announced the Datamaster in 1981, the same year that Harland-Tine (H-T), an advertising agency in downtown Hartford, began its search for a computerized administrative system. Most advertising agencies both produce and place ads. At almost any ad agency that was large enough to consider automating, those two functions were assigned to separate groups of people. All previous low-end (under $20,000) IBM computers had no way for two users to share data. More details about the Datamaster can be read here.

Harland-Tine’s offices were in this building at 15 Lewis St., near Bushnell Park.

1981 was also the year that Sue and I moved back to Connecticut. We were also fortunate that Harland-Tine happened to have the same accountant, Dan Marra from Massa and Hensley, that TSI used. Dan told Dave Tine, the president of Harland-Tine about the time and materials billing system that we had written for his firm. As Bob Dylan sang in “Idiot Wind”, “I can’t help it if I’m lucky.”

The unique nature of advertising agencies is described here. The system that we designed for Harland-Tine is described in considerable detail here.

The installation, which began in December of 1981, went pretty well. Westy Jones1, the office manager, oversaw the installation. In phase 1, which lasted about six months, the system consisted of a job costing module, production and fee billing, accounts receivable, accounts payable, and general ledger.

Near the end of the first phase Sue worked with the people at H-T to generate some publicity for both companies. The Basic Society News, a tabloid-sized monthly newspaper dedicated to the Datamaster community, published on the front page of its August 1982 edition a rather detailed account of the installation. It was a really nice write-up with well-chosen photos. We showed it to whomever we encountered.

Until I reread the article for this blog entry, I had forgotten that H-T had also purchased a second Datamaster to use for word processing. The Datamaster had outstanding WP software, but I don’t remember ever having seen a daisy-wheel printer in H-T’s office. The Datamaster’s dot-matrix printer did have a “letter-quality” mode that sort of filled in the dots, but I would not expect any advertising agency to settle for that. Agencies are all about presentation, and dot-matrix output has never really been considered appropriate for important communications.

I have no memory of anyone named Janna Sherman. Maybe she used the Datamaster for word processing.

The second phase of the installation involved the module for media scheduling—including insertion orders, media billing, and media payables—and cost accounting (client profitability). My recollection is that H-T was able to use most of what we had developed for Potter Hazlehurst without significant changes.

I am pretty sure that H-T purchased the 30MB hard drive when they for the second phase. I don’t remember whether they purchased a third Datamaster for the media department. They might have used the one that had originally been intended for word processing.

Westy is standing. The guy is an artist who had little or no involvement in the installation. This photo was probably staged.

Considering how much time that I spent on this project, I have surprisingly few vivid memories. Westy hired Diane Ciarcia2 as a bookkeeper and primary operator of our system. She was, thank goodness, easy to work with. She was good at explaining why she didn’t like something that the software did. So, we were able to make the system rather easy to use without too many missteps.

At about the same time that Diane was hired, Sandy Bailey, a wise-cracking New Yorker, was hired as Director of Finance. She and I got along very well. She must have still been there in 1988. I remember remarking that we were furiously pitching the advertising department at Macy’s in New York. She said “If you get Macy’s, you’re all set.”

In 1984, I think, Harland-Tine merged with another Hartford agency the name of which escapes me. The other agency had been one of the very first agencies in the country to automate. Fortunately for us, their system ran on an outdated IBM 5120. So, the new agency, which set up shop in H-T’s office space, continued to use our software.

This, I take it, is a Sunfish.

The new agency was named Harland, O’Conner, Tine, and White3. I never met O’Conner; I don’t even know the right pronoun to use. I occasionally saw Will White4 in his office, which contained several copies of The Sunfish Book that he wrote. I guess that it contained all that you ever need to know about a type of sailboat that I, a native of Kansas, had never heard of. You can still get a copy on Amazon.

Diane Ciarcia left the agency during this period. A young lady from Jamaica was hired to replace her. Because the system was rather stable by this time, we did not need to work closely with her. Eventually someone discovered that she had been issuing checks to accounts that she had opened under various reasonable-sounding names and booked them as production expenses for the agency’s largest account, Hitchcock Chair.

She was not able to run this scam for very long. Dan Marra discovered discrepancies using the month-end reports that our system produced. He credited the audit trails that the system provided with unearthing the scheme. H-T definitely fired her. I don’t know if she was ever prosecuted.

Everyone should agree that flavored coffees have no place in an office. If employees what to put stuff in their cups, fine. MAKE MINE BLACK!

I have one other strong memory of TSI’s first agency installation. This was the beginning of the period, which lasted for more than two decades, during which I consistently worked long hours often seven days per week. I also needed to be very alert whenever I was working. It was very easy to make catastrophic mistakes, and, as always, nobody checked my work. I had become dependent on help from coffee, especially when I was on the road.

I remember wandering into Harland-Tine’s kitchen5 one morning. I poured myself a cup of bitter black caffeine and ported it back to the accounting area. When the first few drops hit my tongue I almost spit them back into the cup. Evidently someone thought that it would be “a nice change” to add a little flavor.

The second ad agency that we landed was Potter Hazlehurst Incorporated (PHI) of East Greenwich, RI. As I recall, they responded to a mailing that we did in 1982. Sue and I drove to their office on Route 2, where we met with Russ Hahn, the office manager, and Bruce Brewster, the accounting manager. Russ said that he liked what we had done, but they also needed a system for media. He also said that they needed to be able to see a summary of the profitability of each client on one report. He showed me what he did by hand for Herb Sawyer, the agency’s president.

We drove back to Rockville and drew up a proposal. IBM proposed two Datamasters and the hard drive that acted as a server for both data and programs. One computer was designated for accounting and one for media.

Potter Hazlehurts’s offices were in this building. The parking lot was bigger in the eighties. They had about forty employees. Herb had a reserved spot for his black Celica.

On the second trip we met with Herb for lunch, which was served all’aperto. He had not been available to meet with us on the first visit. I was almost as nervous as I had been back in 1962 in my first debate in high school, which is described here. Herb was friendly but serious. I could see that he had some doubts about our ability to pull this off. In the end he signed the contract, and we went to work.

A very fortunate thing for us was that PHI billed all of its media in advance. For example, they billed in the month of November the ads scheduled to run in December,. We designed the system so that prebilling the media was the norm. This helped us in the future in two distinct ways.

  1. It was much easier to accommodate billing in the same month or a later month than it would have been if we had started with the assumption that the ads had already run and tried to come up with a way of handling prebilled placements.
  2. It gave us a valuable selling feature. If the agency already prebilled their media, the system could handle it. On the other hand, if it did not, using our system gave the agency the opportunity to try to convince their clients that they should get the invoices in the preceding month so that they paid in the month that the ads ran. In those inflationary times, receiving the money a month or two earlier could be a big factor.
In the eighties “Online” and “Mobile” were science fiction, but “Print” included newspapers, magazines, direct mail, polybags, yellow pages, and others.

A difficult decision had to be made about the design of the media scheduling system. The different types of media differed greatly. For example ads in print media generally ran only once in an issue of a publication. Broadcast ads almost always ran repeatedly, and most of the time the date and even the program might not be specified. The size of a print ad was measured in column inches. The size of a broadcast ad was measured in seconds. The most surprising thing to me was the “broadcast calendar” that began every month on a Monday.

Furthermore, some types of ads, like billboards or yellow page advertising were sui generis.

On the other hand, it would be easier for the accounting people if the important financial information was in one place. Data entry for billing and payment would be easier, and the programs would run faster.

I decided to designate one file in which all ads were defined. It contained all the financial information and all of the other information for print ads. The fields that were peculiar to broadcast were kept in a separate file. Eventually we created a file for yellow pages, too.

The key to the ads file was the client number, the ad number (usually, but not always the production job number), and a one-character version code to distinguish different sizes of the same basic ad. I never regretted handling media this way.

I spent many days at PHI. I remember every inch of the drive. Most of the morning drives were toward the east. The sun was directly in my eyes. The return trips were mostly due west, and the sun was again in my eyes. I did not own prescription sunglasses. If there were clip-ons available, I did not know about them. It was brutal.

The Burger King in Killingly is still there, but now it has a lot of competition.

There was not much in the way of retail between Rhode Island and Rockville. On return trips I would almost always stop at the drive-through window of the Burger King on Route 101 in Killingly, CT. The consistent part of my order was a large Diet Coke to keep me alert for the rest of the journey.

If, as often happened, it was late, I would also order a whopper. One time they had a special on “Bullseye burgers”, which were two regular BK hamburgers that were a little thicker than usual and cooked with Bullseye barbecue sauce. The burgers were placed on a long roll and topped with bacon. I ordered one, and I really liked it. Ever since, whenever I cook burgers for myself on the grill, I mix Bullseye barbecue sauce in with the ground beef before cooking.

Hold the cheese.

Incidentally, I have very long fingers. At the time BK advertised that “It takes two hands to handle a Whopper.” I can assure you that I was easily able to drive while holding any BK sandwich in one hand. It did get a little clumsy if I had to change gears on my Celica.

I remember that one time I worked so late that I had to stay overnight. PHI arranged a room for me at a motel in North Kingstown, the next town to the south. It was run by an Indian couple (a rarity in New England in the eighties) with forty or fifty children who had the run of the place. It was an unusual experience for a Kansan, but I did not encounter any difficulties.

I cannot remember much about any of PHI’s employees other than Russ and Bruce. I remember noticing that over half of them had Italian names.

Bruce was a little younger than I was. He was a big guy. He was really into sailing. He had a boat of his own, and he devoted most of his spare time to it. He also disclosed to me that he would really like to be a crewman on a yacht that competed for the America’s Cup.

Russ was a few years older than I was. He was a bit of a fuddy-duddy, but he always took me to lunch. I really appreciated that. When the agency’s fortunes began to slide in the nineties, he was one of the first employees to be laid off.

I am not sure of the year in which PHI closed its doors for good. At the very end Herb Sawyer was operating the Datamaster by himself and calling us for help in closing the books. I found this rather sad.

When the PHI installation stabilized, we no longer had two customers with separate systems. We had two diverse advertising agencies using customized versions of the GrandAd system. I was fairly confident that we could market it successfully.

1. I think that Westy’s last name is now King, and in 2021 she resides in Enfield.

2.Diane’s married name is Carrabba. In 2021 she apparently lives in Bloomfield.

3. The accepted abbreviation was “Hot W”. If I had been asked my opinion, I would have suggested putting Mister White first and using “White hot” for short. It is probably a good thing that they didn’t. Shortly after incorporating, they changed the name to Harland & Tine & White.

4. I think that Will White is living in Arcadia, FL, in 2021.

5. It was a real kitchen, not just a place to make coffee and keep lunches. Susan Harland often prepared gourmet meals for clients and prospects.