On the Firing Line

The Book of the Week is “On the Firing Line” by Gil Amelio with William L. Simon, published in 1998. In this informative book, Amelio chronicles his short tenure as Apple Computer’s CEO from early 1995 to mid 1997.

Some might say Amelio made a foolhardy decision to take on the challenge of turning Apple around, when he had a secure and promising future as the CEO of National Semiconductor, whose recovery he had spearheaded. Throughout the book, he discusses the series of difficulties he faced and admits his errors in judgment.

Amelio handed grist to his critics on a silver platter because he allowed his employees to talk to the media, which had a field day on many fronts. The media also played him for a fool.

There were numerous factors out of the CEO’s control that also gave him a tough time. His predecessor allowed extreme price cuts on Apple’s products, and the sales team was playing a short-sighted game– a vicious cycle every holiday season, whereby they would give deep last-minute discounts to retailers to move inventory, putting a better face than otherwise on the financial condition of the company, as its fiscal year started on October 1.

Amelio was distressed to find that the corporate culture was fragmented along departmental lines. The engineers worked on products the sales department had no intention of selling. “Apple never had an official statement of strategy – which inevitably means that every executive, and most managers, design their own versions. Everyone pursues their own goals, rowing frantically but each pulling in a different direction.” One reason was that managers knew the company was in dire financial straits and feared their projects were going to be cut.

Some thought Amelio desperate and a sellout for holding meetings with the enemy, Bill Gates, to propose making Apple products compatible with Microsoft products. Nonetheless, he was wary of Gates because Gates was unreasonably stingy in his negotiations.

With Amelio at the helm, performance of the desktop models improved tenfold but sales fell. He attributed this to the presence of a subjective element in people’s reaction to Apple “…irrelevant to product quality, and has … a lot to do with what they read in the newspapers and how comfortable they are with the state of the company.”

Read the book to learn: how Amelio was too trusting when he negotiated his employment contract; about the fronts on which he did make progress, and how he was done in by Steve Jobs.

Four Seasons

The Book of the Week is “Four Seasons, The Story of a Business Philosophy” by Isadore Sharp, published in 2009. In the early 1950’s, in his early 20’s, the author worked with his father, a construction contractor. He served as construction manager, rental agent, salesman, and financier. He parlayed his experience into building hotels in later decades.

The first Four Seasons opened in Toronto in 1961. It was a motel. Because the location of the second Four Seasons (actually called “Inn on the Park”) was less than ideal– the Toronto section of North York– it had to offer a few unusual features and amenities, such as smoking and nonsmoking floors, a restaurant and a fitness center, in March 1963. The property manager got a famous sports trainer to run the fitness center. In 1966, the trainer was accused of pushing performance-enhancing drugs. “He later died of lung cancer, from smoking.”

In the late 1960’s, London already had five five-star hotels. But Sharp wanted to build another one anyway. He and his business partners “…signed an 84-year lease at 210,000 Pounds Sterling a year, to be renegotiated every 21 years. He insisted on having air conditioning, unlike the competition. The hotel, opened in January 1970, ended up costing 700,000 Pounds. The lease was modified to allow a renegotiation every fourteen years.

Over the course of four years prior to the building of the hotel, the author’s London contact engaged him in social interaction to make sure he was trustworthy. The foundation of business is trustworthy relationships. The author said of certain of his major investors and his brother-in-law, “There was complete trust. Once we shook hands on a deal, there was no need for lawyers and signed documents.”

The author established an investing policy due to skyrocketing inflation in the mid 1970’s: putting a ceiling on his share of ownership at a small percentage of equity. No more than $3-5 million per property. This was based on a simple calculation of the maximum hotel fees he would collect over the first five years; Four Seasons became a property manager, rather than a real estate developer.

The Four Seasons hotels offer high-end luxury, targeting exclusively wealthy Americans and business executives. As its culture has evolved, it has identified a set of values to which its employees adhere and by which it does business: respect, fairness, honesty and trust. Sharp sought to make it a companywide habit.

Sharp knew that employees whose jobs include direct guest interaction are the ones who directly generate most of the hotel’s revenue, and the experienced ones are “… storehouses of customer knowledge, role models for new hires and advisers for system improvement…”

The author claimed that hotels other than Four Seasons face the major competitive challenge of easily accessible reservations data due to technological advances. The Web “…put every week’s best hotel deal at every traveler’s fingertips, raising the specter of unusually lethal periodic price wars… We didn’t compete on price… we were the one hotel company that could take full advantage of the new [economy] without any problems.” Right.

The last quarter of the book was a brag-fest. Nevertheless, read the book to learn of Sharp’s unpleasant episodes with regard to: Sheraton in Vancouver, attempts to open hotels in Italy, India and Venezuela; political unrest in Indonesia, ownership of The Pierre Hotel, and much more.

The Impossible Rescue – Bonus Post

This blogger skimmed “The Impossible Rescue” by Martin W. Sandler, published in 2012.

This ebook describes the 1897 disaster in which eight whaling ships were hemmed in by mid-autumn ice for months when unexpectedly severe weather struck Point Barrow, Alaska. The total 265-member crews faced starvation, as they had insufficient food supplies for surviving more than a few months. They were subjected to darkness day and night, and temperatures tens of degrees below zero Fahrenheit.

The whalers’ volunteer-rescuers consisted of a few small parties of local natives and men from the United States who, at different intervals, coming from different directions, braved blizzards in trekking more than 1,500 miles overland with varying numbers of dogs, sleds, reindeer and hundreds of pounds in supplies. [It might be recalled that America purchased the territory of Alaska in 1867, and Alaska became a state in 1959.]

What the men did entailed life-threatening risks and extreme sacrifices. One of the groups was traveling with both dogs and reindeer simultaneously.  When sleds are pulled by both kinds of animals, “…the dogs follow their natural instincts to attack the deer.” Even keeping the dogs as far back from the deer as possible proved quite difficult.

Read the book to learn what happened to the rescuers and the rescued.

No-Man’s Lands – Bonus Post

This blogger skimmed the book, “No-Man’s Lands” by Scott Huler, published in 2008. In this ebook, Huler recounts the myth of Odysseus and his own actual travels to the places visited by the protagonist in the myth.

Huler writes, “For three thousand years, we’ve been telling each other the same story.” Nevertheless, there are a vast number of versions and interpretations of it. His solitary peregrinations covered the Mediterranean regions of Malta, Greece, Turkey, Sicily, Tunisia and Italy over the course of six months. Some people might look askance at the timing of his trip– when his wife was pregnant with their first child.

Read the book to learn of Huler’s adventures in this combination of yet one more myth-retelling, and travel writing.

On the Wings of Eagles

The Book of the Week is “On the Wings of Eagles” by Ken Follett, published in 1983. This ebook recounts how a group of employees from the American company EDS, stationed in Tehran, underwent an incredible, life-changing experience in early 1979, at the start of the Iranian revolution. H. Ross Perot, CEO of EDS, got “down in the trenches” with his men, and toward the end of the story, was portrayed as a Daddy Warbucks character; his endless money and friends in high places helped him magically remove bureaucratic obstacles to get things done in a hurry.

The Iranian government was EDS’s sole client in Iran. In mid-1978, it started to default on EDS’s multi-million dollar bill for engineering social-security and health insurance software. The extremely suspenseful series of events was focused on two EDS men in particular whom one Iranian in particular from the old (Shah’s) regime had arrested and jailed. He set their bail at an outrageous $13 million in a petty power game. There were three ways the company could get those two employees released from jail: “…legal pressure, political pressure, or pay the bail.” Or a few other ways, which were illegal.

Assistance and sympathy of the officials at Tehran’s American Embassy for EDS were less than forthcoming. There were many more serious problems to deal with.

Initially, the aforesaid Perot exhibited an American mentality, thinking that he and the bad guy could settle the matter with legalistic negotiations. However, Iran was not playing by the same rules. He then came up with a hare-brained scheme, which would involve breaking various federal laws if certain of its components were to occur in the United States.

As an aside– this blogger found it hard to get used to the vocabulary that Americans used at the time of the book’s publication– “…what the McDonald’s girl said to me…”  “…blond Swedish girl in her twenties,” “stewardesses” and “knapsack,” among other old-fashioned terms. There was also a funny scene late in the group’s emotionally traumatic saga. After surviving many serious threats to their lives over the course of weeks, the EDS group was on a plane that was having mechanical trouble in the air. “I can’t believe this,’ said Paul. He lit a cigarette.”

Read the book to learn the fate of the individuals involved in this riveting thriller.

The Story of the Waldorf-Astoria – Bonus Post

This blogger skimmed the book, “The Story of The Waldorf-Astoria” by Edward Hungerford, published in 1925. The Waldorf-Astoria was originally “The Astoria,” built by the Astors, a super-rich family.

For most of the 19th century and before, Broadway was the favored location for hotels. However, the 1880’s saw congestion from a street railway and cars. The thirteen-story, 450-guestroom Astoria was therefore originally located at 35th Street at Fifth Avenue. Construction started in 1891. “From the first the idea was to create a hostelry with as little of the typically hotel features in evidence as humanly possible… Haste was not permitted… The house was well-builded. And thoroughly. This ideal became an obsession on the part of the men who built it.” It opened in March 1893. In 1895, construction began on another hotel next door, of sixteen stories. In November 1897, the completed complex became known as the “Waldorf-Astoria.”

The hotel’s restaurant served partridge and lobster. Its general manager, George C. Boldt, believed in “management by wandering around.” In the summer of 1898, he commissioned a classy steam-yacht, the “Calypso” that could be booked by up to 25 guests for a day. He also offered car rides around town before common people drove. Boldt trusted all the guests, even those who asked to cash personal checks. No other hotels were so trusting.

The hotel boasted a number of “firsts.” It was the first building to have a passenger elevator in the United States. Boldt had the brilliant idea of carving a street at the rear of the combined hotels to ensure no one could ever take away their light and air rights between 33rd and 34th Streets. The Waldorf became the first hotel in Manhattan to take up a whole city block.

In 1776, in order to collect extra revenue, government official Peter Stuyvesant established the liquor license for taverns. “It was especially forbidden to sell strong drinks to Indians.” The hotel obtained a liquor license. Unfortunately, the passing of Prohibition cost the hotel lots of revenue. It re-purposed its bar. The Waldorf also offered a roof garden, which became an ice skating rink in the wintertime.

The author wrote, incredibly (italics added by this blogger), “Upon the broad open desk lie the registers, three or four of them so that in a pinch, as is frequently done, guests may be received and assigned rooms at the rate of sixty to ninety to the hour.”

Read the book to learn further details of the hotel’s existence through the mid 1920’s.

The Hoax

The Book of the Week is “The Hoax” by Clifford Irving, published 2006.

This is a personal account of an incredibly talented, savvy phony and writer, who, starting in 1969, with a co-conspirator, Dick Suskind, proceeded to write the autobiography of reclusive businessman Howard Hughes; phony, because he had never met Hughes.

McGraw Hill, Irving’s publisher, believed Irving when he told them he had actually spent time with Hughes. McGraw wanted to believe that it was going to produce an exclusive work on a billionaire businessman who, up to that point, had refused to let anyone publicize significant information on his personal life.

Irving and Suskind perpetrated their deception because: trying to get away with preying on the gullibility and greed of the publishing industry was a challenge that would make them feel alive.

Pursuant to the writers’ scheme, the book was “…based on fact and yet we had the freedom and power to infuse fact with the drama of fiction.” The writers did extensive research– spent hours poring over old city telephone directories, old maps, surveys, society columns and classified documents in order to perfectly embody Hughes’ voice in print. When they were concocting anecdotes, they inserted (real) people who were dead because dead people couldn’t sue for libel.

Incidentally, a whole other book could be written on the name for the marital anguish: soul-vomit, that Irving caused his wife with his adulterous behavior– that has so much female appeal on the big screen and in books.

Read the book to learn what was becoming of Irving and Suskind when Irving was heard to say, “You know, I’ve had a lot of experience in this past year burning manuscripts. It takes a long time and it’s not easy.”

Yes, Chef

The Book of the Week is “Yes, Chef” by Marcus Samuelsson, published in 2012. This is the autobiography of a famous chef. He was born in Ethiopia at the start of the 1970’s, but when he was three, he and his five year old sister were adopted by a Swedish couple.

Samuelsson grew up in Goteborg, Sweden. He enjoyed the suburban lifestyle of an industrialized country, including youth soccer. There were three posters on his bedroom wall: Michael Jackson, the king and queen of Sweden, and Pele. After ninth grade, Swedish schools channel students into a career-oriented or a university-oriented curriculum. In early 1989, after graduating, Samuelsson went to work in one of the fanciest restaurants in Sweden, “Belle Avenue.” At 21 years old, he supervised ten interns at a restaurant in Switzerland.

Because he was dark-skinned, Samuelsson encountered discrimination all his life– in the schoolyard and in employment. When he approached the restaurant “Bouley” to ask for a short-term internship, he was summarily turned away. The only famous black chef he had heard of during his training was Patrick Clark, who was ever rated only two stars by the famous restaurant guides Michelin and Zagat. Samuelsson writes, “When I had my own restaurant someday, I thought, I would never rule out someone based on race or sex or nationality…” He would hire all walks of life, due not to aiming for impartiality, but because he would achieve maximum cultural diversity.

To pursue his dream, Samuelsson thought he needed to continue to “pay his dues” in France. In order to get promoted, an aspiring chef has to “…completely give yourself up to the place. Your time, your ego, your relationships, your social life, they are all sacrificed.” In France, there were no intermediaries between farmers and chefs. The former were direct suppliers to the latter. In Switzerland, “We relied on shipments of shrink wrapped or frozen specialty items and that resulted in chronic separation between our product and seasonality.” The traditional French chefs’ training included brutal bullying of underlings by the upper echelons–who were the only employees who had job security.

In February 2008, Samuelsson opened his own restaurant, Merkato 55, which had an African theme. This blogger thinks it’s an insult to people’s intelligence to use the name “African” to describe an eatery, or use it in a book title, for that matter. This blogger theorizes that the labeler thinks people are too ignorant to recognize the name of an individual African country. African countries are all different, regardless of stereotypes.

Samuelsson and his business partners were pursuing a growth strategy. “In less than twelve months, we were scheduled to open eight new restaurants…” There were nine hundred guests at Samuelsson’s wedding in Ethiopia. Read the book to learn about Samuelsson’s take on cuisine, his successes and failures in connection therewith, and his unusual familial relationships.