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Tech Data CEO shares thoughts on his last day

October 3, 2006
Tech Data CEO shares thoughts on his last day. Check it out:
(Tampa Tribune (FL) (KRT) Via Thomson Dialog NewsEdge) Sep. 30--It's 2:30 p.m. on Steven Raymund's last day as chief executive of one of the biggest companies in the Tampa Bay area and he's pacing the floor and talking on the phone -- with his replacement.



Books sit in stacks around the room. Photos and awards are down off the walls in boxes. Co-workers are stopping by to shake his hand.

On Monday, he officially hands over control of Clearwater-based Tech Data Corp. to his hand-picked successor, Bob Dutkowsky, a veteran of corporate powerhouses such as IBM Corp.

"This will be Bob's office Monday," says Raymund, a soft-spoken, stocky and fit man of 50, who built Tech Data from a company that booked less than $1 million in annual sales in 1981 when Raymund was 26 to $20 billion on the eve of his retirement.

Tech Data has played it s part in creating the information revolution that helps run the world economy -- largely by selling computers, printers, PDAs, Internet routers and pretty much anything else electronic to major corporations and computer resellers such as CDW and Circuit City .

But now, looking around the room, Raymund says life's too short to do just one thing for years on end. He wants to exercise, travel and spend more time with his family.

Before leaving, Raymund has time for some reminiscing and some parting advice on building a big company. In short: learn from competitors, strike win-win deals, plan years ahead, do the ethical thing and exercise regularly.

QUESTION: What do you plan in the next few weeks?

ANSWER: I'm being deliberate in keeping my calendar open, unlike my normal M.O., where everything is planned from sunup to when I put my head on the pillow.

I'd like a break to enjoy life with my wife. I'll work on getting in better shape. I have an 8:30 a.m. appointment with a trainer tomorrow. I serve on some boards, some non profits that will fill up some days. Maybe learn some more Spanish.

Q: What was the company like when you joined?

A: Small, parochial. There were 15 employees selling data supplies and paper forms in Tampa and Orlando. My first title was operations manager, and I helped process orders and purchases. I definitely loaded my share of shipping cartons with merchandise to customers. Right after I joined in 1981, there were some employees who wanted to buy the business, and when I joined, it was clear that was not going to happen. They absconded with a bunch of files and all our vendor relationships. We lost most of our business and a lot of customers.

Q: Your dad was the founder. What did he say?

A: He gave serious consideration to closing it down, and we had only one product line of any exclusivity to support the leaky ship.

Q:Did you tell your father, "Please don't shut this down?"

A: I did. He said "Steve, I don't know if this little business is going to make it, but here are the keys. I'll help as much as I can, but it's kind of up to you to make it happen." But we got a little momentum and by 1986 we were going public. We grew from less than $100,000 [ in sales ] a month to $36 million a year [in five years].

Q: Did you try to model Tech Data on any other company?

A: Yes, the larger players in our space. You run into your competition at trade shows and other places. I didn't know much about this business. And a great place to learn is from your competition. We would be at $5 million and say, "That guy's at $25 million. What's his strategy? His cost structure? What people does he have?" It's not real creative, but it's pretty effective.

Q: Any personal credos or philosophies that helped along the way?

A: Yes. One is that business is a win-win proposition. A lot of people look at business as trying to outsmart the other guy and get the better of them.

Sure, I worry about the competition, and I like to beat them. But I worry more about serving our customers well. If I understand their needs and satisfy them at a competitive price, I will win my fair share of business.

Q: Other credos?

A: I strongly subscribe to empowering our employees and managers. I start with the assumption that everyone shows up to work interested in making a contribution and building their career. My job as boss is to provide them with clear targets, tools, feedback and coaching. I manage more by exception than by inspection or mandate. I try to look at employees as customers.

Q: What's been the toughest time in your career?

A: Right now. For 23 years, we were always a strong performer in our market.

This is first time when we've underperformed relative to the market, particularly in Europe. In America, we're fine. But it's been frustrating and disappointing to me and our shareholders to deliver the results we have for the past six quarters. Frankly, I'd like to finish the job and hand over a little healthier company.

Q: What's been your biggest operational mistake?

A: Probably the biggest mistake we made was a hasty and probably poorly managed integration of a company we bought in Europe called Aslan that set us back a year or two.

Q: Biggest accomplishment?

A: We've managed to build a $20 billion , Fortune 100 enterprise with a $2 billion market valuation and provided income to support 8,000 families around the world. Add all that up and we can be pretty proud of that. A lot of people depend on this place to support their families.

Q: What advice would you have for people who run a small company and want to make it big?

A: Try to visualize your business in three years, and try to anticipate the resources you'll need in order to prosper then so you're ahead of the curve. Get the best people you can afford. Overpay rather than compromise.

You'll be happy you made that investment.

So many companies are finding themselves caught in ethical issues lately.

Q: What's your advice?

A: As tempted as you might be to cut an ethical corner, it's never worth the price. It backfires on you. I'd rather be honest and a little poorer than be dishonest and a little richer.

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Copyright (c) 2006, Tampa Tribune, Fla.
Distributed by McClatchy-Tribune Business News.
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