he had built trust with suppliers, so they gave him free groceries until he could afford to pay them back. Years later, when he was going door to door in Manhattan selling Xerox copiers, befriending lobby doormen throughout his territory eased the young salesperson’s entrance into buildings – and into the offices of potential customers.
This “everyone matters” methodol- ogy scaled at SAP. To help revive its U.S. business, McDermott strength- ened ties with SAP’s business partners such as consulting firms, which sold SAP’s software to their own clients. Observes McDermott, “Only when
An Early Success BILL MCDERMOTT
When I was in high school, the owner of a corner deli where I worked want- ed to sell the little store. I convinced him to sell it to me for a $7,000 loan, including interest, with a promise that I would pay him back within a year. He agreed, and I got to work. My biggest hurdle was increas- ing sales. I had to figure out ways to get more customers into the store. The business, however, had serious competition. A few blocks away were a convenience store and a super- market, and I quickly realized that I was not big enough to compete with chain stores on price or selection. Instead of offering more products at cheaper prices, my deli’s success would depend on offering customers something my competitors did not. So I asked myself a simple but critical question: Who was my base? To fig- ure this out, I became obsessed with watching and listening to people in the neighborhood. Soon, three types of new customers emerged. A block and a half away was a senior citizens’ complex full of elderly folks who did not like or were physically unable to leave their homes. They needed groceries, but my competitors didn’t offer delivery services. Bingo! I knew what to do.
you build trust, respect, and transpar- ency among employees, customers, partners, and vendors can you win.” Methodology #6: Always remember that humanity is the highest purpose. Winning, he believes, is not about a specific end but about how an end is met. Vision, strategy, and execution all pale in comparison to how people are treated. For years, this approach has dictated his decisions. He holds two memories especially dear. First, as an earnest young sales rep, McDermott dropped his daily routine the minute he heard that his co- worker’s wife had a baby. McDermott hopped in a cab and was the first per-
Just like that, by regularly dropping off milk and eggs and bread to their doors, senior citizens became a customer base.
I noticed something else: Every
Friday, dozens of blue-collar workers streamed into my store, flush with cash from their weekly paychecks. The problem, I observed, was that, by Sunday morning, these guys were broke. I didn’t see them again until the next Friday. It hit me: I would ex- tend them credit. This was a first for the workers. They were grateful. No one ever stiffed me, and I won their respect and loyalty. I identified a third customer base by watching high-school kids line up outside the convenience store down the street. The store’s manager was letting only four kids into the store at one time because, I figured out, he thought they would steal stuff if he let too many inside at once. The store’s lack of trust in its teenage customers was my window of opportunity. I told the kids I’d let them in 40 at a time. I also installed a few video games. Soon the deli was bustling after 3:00 p.m. on weekdays. Not only were the kids popping dozens of quarters into the machines, they also bought drinks, snacks, and sandwiches. Be- cause I gave them trust and expand- ed my services to include games, the teenagers gave me their business. By focusing on serving these three
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son at the hospital, flowers in hand. Years later, as CEO of SAP America, when a close co-worker’s father passed away, McDermott rerouted his sales trip and flew from the West Coast to the Midwest, driving another two hours to attend the funeral in a small Minnesota town. “The true measure of a leader is not only what you accomplish while in of- fice,” he writes in Winners Dream, “but the feelings and memories that linger once you leave.” For McDermott, when methodologies and humanity go hand-in-hand, everyone wins.
Watch additional videos with Bill McDermott.
groups, my store’s sales grew. Eventu- ally I had enough continuous profit to share money with my family, buy myself a brand-new 1980 metallic- gray Firebird, and pay back the $7,000 early. When I sold the deli after graduating from college, the deli’s profit had funded my education. The lessons I learned growing the corner store helped me build a successful sales career that led to senior-management positions and, eventually, to the global CEO role I have today. In almost every position, I’ve been responsible for growing revenue and profit. Time and again, I’ve expanded my services and mar- kets by following these takeaways from my deli days:
Get to know your customers. Ask yourself, “How can I identify and serve their unmet needs? How can I create a better experience for them? What do they want besides the prod- ucts or services I currently offer?” Differentiate yourself. Ask yourself, “What are my competitors doing to win more customers? What can I of- fer that’s significantly better or more unique than what my competitors are offering?” Create more value. Ask yourself, “What is the best blend of eco- nomic value and relationship value? How can I add more value to move from a preferred vendor to a strate- gic innovator?”
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