Index Account relationships vs. Asset-management group, 134 geographic territories, 165 Assignments and roles, 178 Accountability, 154, 187–188 AT&T Capital Accounts receivable, 116, 168 actions after sale of, 83–84 Achievement vs. plan, 156 growth of, 65 Adapt or die lesson, 161 origins of, 64 Aircraft fi nancing,http://www.pbookshop.com 56–57 SMB space investment, 117 Alcatel Lucent, 67 AT&T Capital Group, 2, 3–4 Allen, Bob, 186 AT&T Credit Co. Allen, Mel, 1–2 access to capital, 60 Ambiguity, 128 business purpose of, 56 American Transtech,COPYRIGHTED 5 credit MATERIAL card business, 61 Argentina, 109 development of, 57–58 Army Reserves, 37–38 enthusiasm at, 55 Asset management, 164, 165, Rothman start at, 53 166 sale of, 67–68 Asset redeployment, 177 SMB space, 116 205 index AT&T Credit Co. experience NCR, 66–67 AT&T Capital, 64, 69 NCR Credit Corp., 66–67 AT&T Capital growth, 65 networking, 63 AT&T Capital origins, 64 New York Times, 56–57 AT&T Capital sale, 69 organization reporting, 60 AT&T Credit Co. Paul Gustavson, 58 development, 57–58 personal relationships vs. due AT&T Universal, 61 diligence, 63 access to capital, 60 promotion, 60 aircraft fi nancing, 56–57 sale of AT&T Credit Co., Alcatel Lucent, 67 67–68 Alex Mandl, 64 Tom Wajnert, 56, 59–60, back problems, 58–59 62–63, 64 blended multiple, 65–66 AT&T Credit Corp, 3 business model, 58 AT&T divestiture of NCR, business purpose of, 56 66–67 company name change, 67 AT&T Universal, 61 credit card business, 61 Attrition, 168 divestiture of NCR, 66–67 Australia, 47, 104, 109, 175, 194 Eddie Decter, 58–59 Authorizations, 89 enthusiasm at, 55 fi nance company development, Back problems, 58–59 64 Back-offi ce issues goals, 56 operating effi ciency, 164 Guy Hands, 67–68, 69–70 operations, 141 IT Leasing deal,http://www.pbookshop.com 62–63 operations reporting, 166 Joseph Batchelder, 68–69 profi tability, 166 Larry Davis, 58–59 Banking laws and regulation, 103 leveraged buyout, 68 Barth, Andrea, 106 Lucent, 67 Baseball, 22 management shift, 59–60 Basketball, 19, 22–23, 37 Mark Hurd, 67 Batchelder, Joseph, 68–69 mergers, 62–63 Bayonne, New Jersey, 13–27 Morris “Morry” Tannenbaum, Bennett, Steve, 132 56, 62 Blended multiple, 65–66 206 Index Blitzer, Michael, 45 Business transformation Boiling the ocean, 177, 178 account relationships vs. Boy Scout Handbook, 200 geographic territories, 165 Brain drain, 107 accounts receivable, 168 Brazil, 104, 109, 124, 159 adapt or die lesson, 161 Briggs, Kathleen Cook, 183 Andy Grove, 162 Briggs Myers, Isabel, 183 asset management, 164, 165, Briggs Myers test, 183–184 166 Broderick, Bill, 22–24, 42 attrition, 168 Brother-in-law, 15 back-offi ce issues, 164, 166 Bunker mentality, 124 business model revisions, Business cycles, 114 165–166 Business design teams, in business plan, 163 74–75 business plan stretch, 163 Business focus, 114 business transformation Business location, 111 strategy, 163 Business model Carly Fiorina, 162 approach to, 147 chief executive impact, 164 for COMPAQ, 86 customer satisfaction, 168 COMPAQ Financial Services, economic cycles, 168 95 expenses, 168 elements of, 80 fi nancial indicators, 168 expansion with, 76 focus of, 162 Gustavson model, 58 Gerri Gold, 166 HP Tech Finance, 139–140, Great Recession, 167 142 http://www.pbookshop.comgrowing the business, 163 leadership knowledge of, impact of, 164 154 layoffs, 169 New York Times on, 75 leadership, 167 principles of, 72–73 Malaysia, 166 revisions to, 165–166 Mark Hurd, 162, 163 world wide basis, 134 modifi ed operating model, 167 Business philosophy, 3, 194 operating effi ciency, 164 Business plan is inviolate operations reporting, 166 (expression), 155 performance improvement, 168 207 index Business transformation (cont’d ) Centralized vs. decentralized pillars of transformative operations, 141 change, 163 CEO experience plan, 176 AT&T Capital departure, planning and implementation, 84 169 actions after sale of AT&T productivity, 168 Capital, 83–84 profi tability, 163, 166 authorizations, 89 profi tability vs. growth, 163 business model, 95 recession, 168 business model for COMPAQ, regional teams, 165 86 reporting relationship, 166 COMPAQ Financial Services, responsibility approach, 167 95 revisions to, 165–166 Dan McCarthy, 93–94 sales force productivity, 163 Das Narayandas, 99 sales quotas, 168 disaster response performance, strategy, 163 89 stretch goal, 163 Earl Mason, 85, 87, 90–91 survival, 162 Eckhardt Pfeiffer, 93 training money, 170 employee recruitment, 94–95 transformation model, 165 enterprise space, 91, 92 transformative strategy, 166 executive team, 94 value proposition, 165 global multinational customers, 98–100 Caen, Herb, 47–48 Goldman Sachs, 91 Caine, Jim, 46–47http://www.pbookshop.comgovernance committee, 90 Calendared meetings with direct Hewlett-Packard Financial reports, 154 Services, 90 Camp Onibar, 24 HPPS Global Credit, 90 Candidates, 190 investment hierarchy, 88, 91 Canion, Rod, 133 Japan, 89 Capellas, Michael, 121–122, 138, Jean Watmouth, 84 184 Jon Flaxman, 97 Captive fi nance company, 4, 53 Keebler building experience, Career path role, 2 96 208 Index Kitchen Table Summit, 95 College experiences living schedule, 88 Army Reserves, 37–38 Milton, 92 basketball, 37 operating model, 95 Carter Jefferson, 32 recruitment by COMPAQ, Charles Fiur, 36 93–94 Charles’ Men’s Wear, 36, 37 recruitment for, 84–92 closers, 37 recruitment for Compaq Empress Thedora, 32 Financial Services, 84–92 fraternity steward, 37 risk management, 90 Geno Genovese, 30, 31 Rothman meeting with history degree, 30 Pfeiffer, 86–87 incentive compensation, 36 scope of Compaq Financial integrity, 35 Services, 85 Jim Valvano, 32 Sidley and Austin, 94 L. G. Balfour, 35 Socio-Tech, 97 Marxist Perspectives (Genovese Socio-Tech model, 96 and Sussman), 31 speed of growth, 93 national politics, 38 Tom Wajnert, 84 Peter Karanas, 32 CEO profi le, 186 Richard Hughes, 30 Chaebols, 157 Rutgers, 29–30 Charisma and charm, 187 Sigma Alpha Mu, 33 Charles’ Men’s Wear, 36, 37 teaching, 35 Chase Manhattan Bank, 4 teamwork, 37 “Chat with Irv” session, 175 Time, 30 Check-in meetings,http://www.pbookshop.com 154 Vietnam War, 37 Chief executive, impact of, Warren Sussman, 31, 32 164 Wayne Dumont, 30 Chile, 109 College roommate, 34 China, 104, 109 Comdisco, 114, 115 Clean room, 144–145 Command and control structure, 9 Closers, 37 Commending and saluting, 174 Cold calling, 42 Communication Collaboration and with direct reports, 179 interdependencies, 189 honesty in, 189 209 index Communication (cont’d ) Poland, 175 media avoidance, 180 questions about emerging of message, 171–182 markets, 176 message grouping, 182 responsibility of leadership, speed of, 180 172 Communication of message Ronald Reagan, 177 asset redeployment, 177 social media, 173 assignments and roles, 178 social networking, 173 Australia, 175 speed of, 180 boiling the ocean, 177, 178 stretch, 179 business transformation plan, stretch targets, 179 176 sugarcoating, 179 “Chat with Irv” session, 175 town hall meetings, 173 commending and saluting, 174 truth-telling, 174 communication responsibility Company message, 175 of, 172 Company name change, 67 communication with, 179 Compaq Financial Services company message, 175 early facilities, 96–97 digital media, 173 operating philosophy, 11 with direct reports, 179 recruitment for, 84–92 emerging markets, 176 Rothman experience, 2 employee morale, 181 scope of, 85 executive communications, 176 Compensation, 74 focus limit, 177 Compensation proposal, 79 internal communications Compensation systems, 73 strategy, 172http://www.pbookshop.comContinuous efforts, 197–198 Jessica Marinaro, 175 Core business focus, 52, 114 job recognition, 174 Corporate acceptance, 79 leadership focus, 178 Corporate infi ghting, 142 Malaysia, 175 Cost takeouts, 143 Marshall McLuhan, 172 Coughlin, Tom, 197–198 media avoidance, 180 Creative business planning, message grouping, 182 200 New York Times, 181 Cultural implications, 144 operating model, 181 Custom sales, 160 210 Index Customer focus put through activities, 77 AT&T Credit Co. departure, 71 self-managed teams, 76, 79 business design teams, 74–75 Socio-Tech, 78 business model elements, 80 take off activities, 77–78 business model, New York Times Tom Wajnert, 78 on, 75 variance charts, 77 business model principles, 72–73 wealth creation model, 79–80 compensation, 74 Customer interaction, 157 compensation proposal, 79 Customer loyalty, 72 compensation systems, 73 Customer satisfaction, 73, 77, 139, consistent observance of 154, 168 principles, 80 Customer service, 77, 158 corporate acceptance, 79 Customer-in philosophy, 73 customer loyalty, 72 customer satisfaction, 73, 77 Davis, Larry, 58–59 customer service, 77 De La Hoya, Oscar, 15 customer-in philosophy, 73 DEC, 131, 132, 133 employee ownership, 81 Decision making process empowered employees, 81 acquisition mode, 131 expansion with business model, ambiguity, 128 76 asset-management group, 134 Gerri Gold, 72 Ben Rosen, 133, 135 global business, 76 business model, 134 Gustavson model, 72 COMPAQ departure, 135 hierarchical management style, Dan McCarthy, 129 76 http://www.pbookshop.comDEC, 131, 132, 133 Ireland, 76 Earl Mason, 131 Japan, 76 Eckhardt Pfeiffer, 131, 135 Jim Tenner, 72 European joint venture, 129 motivation, 81–82 fi ring, 133 operating model, 72 John Randell, 131 out-executing the competition, joint ventures, 128, 132 77 Lage Landen, 132 Paul Gustavson, 72, 82 Paul Gustavson, 134 promotion, 82 pre-nup, 130 211 index Decision making process (cont’d ) de La Hoya, Oscar, 15 recession survival, 123, 124 father, 14–15 Rod Canion, 133 Fraenzi Rothman, 15 Sevin Rosen Funds, 133 grandfathers, 20–21 Steve Bennett, 132 grandmothers, 20–21 value proposition, 134 Harlan Rothman, 16–17 world wide basis, 134 Jewish religion, 18 Decter, Eddie, 58–59 mentor relationships, 24 Delegation, 11 mother, 17, 19–20 Derivatives, 122 Muhlenberg College, 26 Deutsch, Claudia, 10–11 names/naming, 19–20 Digital media, 173 Rutgers, 26, 27 Dirty-fi ngernails Sandy Rothman, 21 with a customer, 160 Sarah Rothman, 21 day-to-day operations, 154 scholastic journalism, 25 Disaster response performance, Scholastic Press Association 89 award, 25 Dot-com bubble, 116, 119–120, sports enthusiasm, 21–22 121, 122 sports writing, 25 Due diligence vs.