Minding the store

Apple’s Retail head was recently replaced. The hire seems to have been a mistake dealt with quite swiftly. It is tempting to think that the firing of a manager is due to a failure in their performance, measurable in quarterly reported metrics. But this is not often the case. It may be true of sales or some operations, but most strategic management decisions take months to make and years to implement before you can have the luxury of measured results. And even then the dependencies of performance are many and outside the control of specific managers.

John Browett joined Apple in April and left in October. A mere six months. How did Apple retail perform in those two quarters? Very well actually. Which is to say, as well as it has previously given the overall performance of the company. The correlation can be shown between store revenues and iOS device shipments:

Store visits increased to 94 million in Q3, second only to fourth quarter of 2011. The growth was 21%. Year-on-year growth in revenues was about 17% for both quarters, in-line with company growth. Profits grew 5% in Q2 and 25% in Q3.

Average visitors per employee picked up slightly but remained largely unchanged since 2008.

Employment increased in proportion to visitors, consistent with previous quarters.

Store openings were 9 and 18, above the recent past but consistent with historic trend.

[It should be noted here that the lead time for a store’s opening is longer than the development time of an iPhone so whatever was opened was probably planned in 2010 or so.]

Based on employment time and cost, the “performance” of the stores were not divergent from the overall historic trend (and product launch cycles of the company.)

If stores did not show any effect of poor management, then why was Browett fired? I suspect it had mostly to do with a mis-match of understanding of the job the stores are hired to do by consumers and by Apple itself. The company treats the stores as a sales channel but also as a communications channel with its customers. Recall when Steve Jobs was asked why they stopped attending MacWorld (and any other trade show) he answered that they had the dialog they needed with customers through their stores making.

That dialog is engaged between 100 million visitors and 42,000 employees every three months. The average time spent with each visitor is 13 minutes. Each visitor also leaves about $45 behind. As I put it earlier, the stores are the face of the brand.

Whoever is in charge must understand this special relationship. The surprise for me is not that Browett was fired, but that if he did not understand this relationship, how was he ever hired?



  • I think that there is a “good” part in this.
    Cook et al. cut to the bone what was a bad decision quickly.
    It remembers me of Steve & the MobileMe team… but before it happened.

    It seems to me that the management is still in good shape.

  • vincent_rice

    From this side of the ‘pond’ Browett’s hire was always a complete mystery. His last stint at electrical goods retailer Dixons in the UK was characterised by a customer experience that is the very antithesis of what Apple tries to achieve.

    His instinct for cost-cutting via lay-offs and poor maintenance was exposed pretty quickly. Tim Cook was swift to can someone who clearly didn’t get the Apple way, but his hire was a serious mistake that was pointed out at the time by many.

    Still, after 6 months at Apple he never needs to work again.

    • greg

      I’ve heard this view about his tenure at Dixon’s expressed several times before and I can’t understand how Apple wouldn’t have been aware of this. It seems to me it would be pretty easy to check. I can only surmise that it may have been a Jack Welch situation, where Welch was considered some type of genius at the time until everyone realized that all he really did was slash jobs. His legacy now, not so much a genius, just another mid level guy who knows that the quickest way to increase the bottom line is to reduce remuneration.
      Perhaps Apple looked too much at the Dixon numbers during his tenure, rather than the customer service experience. Still, it is perplexing.

      • FalKirk

        “I can’t understand how Apple wouldn’t have been aware of this.” – greg

        People are not always their surrounding circumstances. Excellent employees often come from mundane or even bad companies. Jony Ive was working at a failing Apple. Cook was working for Compaq.

        Clearly Cook saw something in Browett’s resume that impressed him. What is was, we may never know.

      • jwoodgett

        Do we know whether Cook ever visited a Dixons store (even at Heathrow)? That is what is so perplexing. The Dixons culture is writ clear to any visitor and about as antecedent to Apple retail as Walmart is to Holt Renfrew. Hiring is an art though, and the rapid correction speaks to mechanisms being in place. After all, the ship may be steered not quite as efficiently with a good crew but without a captain at the helm, but a bad captain is more likely to cause catastrophic floundering (Costa Concordia).

      • Corrector

        Please learn what “antecedent” means.

      • jwoodgett

        Brain auto-correct…. antithetical. Apologies.

      • oases

        That excuse only works if you’re an underling. It can’t be used if you’re top dog.

      • JohnDoey

        That is why Cook fired the guy and didn’t blame other people for it.

      • Mork from Ork

        or its quite possible he interviewed quite well and had good answers for the policies he implemented at Dixon’s (the board told me to, etc.), and I understand Apple is a quite different place.

      • TheEternalEmperor

        Maybe just a simply mistake. No matter how good Apple is, it is run by humans and humans make mistakes.

      • JohnDoey

        And Apple has to hire people with non-Apple Store experience to work in their unique stores and sometimes it won’t work out.

      • oases

        Agreed, though I wonder if the best person to run Apple retail isn’t already at Apple – hidden in plan sight.

  • I tried calling Tim Cook this morning. They told me he was on an important call. Then I tried to Reach Ron Johnson and they said he was on the phone….

    (ok, not really. But with JCP crashing this morning, maybe RJ is staying close to the phone)

    • Kristian

      Nope. He is not. ““‘Today, JCP is really a tale of two companies,’ said Johnson in a statement. ‘By far the largest part of our store is the old JC Penney, which continues to struggle and experience significant challenges as evidenced by our third quarter results. However, the new JCP, centered around the shop concept, is gaining traction with customers every day and is surpassing our own expectations in terms of sales productivity which continues to give us confidence in our long term business model.’” – Hibah Yousuf reports for CNN Money.

      • That was my meager attempt at humor. I’d be shocked if he went back to Apple.

  • FalKirk

    The Browett hiring and firing could be looked at three ways.

    1) It’s a bad sign that Cook made this hire in the first place. Browett always seemed like a poor choice. This bodes ill.

    2) It’s a good sign that Cook acted so quickly and decisively to fire Browett. He corrected his mistake. This bodes well.

    3) The truth is, we don’t know what this bodes. It was an egregious mistake followed by a rapid correction. In my experience and observation, people are very slow to correct their mistakes if they correct them at all. Cook seems to run counter to this trend and that’s a very unusual and very good thing.

    What we don’t know is whether Cook has an eye for talent or whether that’s a blind spot. We also don’t know if he learns from his mistakes. I’m willing to assume that he does or he wouldn’t be where his is today.

    Apple fans can take heart from the fact that Cook recognizes and rapidly corrects his mistakes. We will all have to wait and see if he can learn from those mistakes too.

    • The numbers are what usually matters when you don’t have the possibility to really know a person. Customer service experience was not a issue it had to be that way for that type of business, where lowering the cost was all that mattered, apple is really the exception in business not the rule.

      Given the numbers the guy seemed to be one that gets results. Obviously in apple result must come in different ways but you can’t always say if a person is able or not to follow new rules and understand new business models.

      I explain better. You get results.
      You can be good at doing just one thing or you could be just good and adapt to the thing you have to do understanding correctly what has to be done.
      How can anyone know in advance?
      Finding a guy successful in apple’s store business model would have been better, but apple is unique, the reverse is also true, see jcp, an apple guy can not be good in a different world.

      So to me your first point is an error now but not then or at least not an obvious one like everyone now suggest. I think that it is not the talent that was missing but the capacity to really understand the apple’s way in retailing given the past experiences.
      Way way better to correct the mistake once you discover it.

    • Mark

      Falkirk, I think the addition of the “This bodes ill/well” at the end implies ownership of the idea when reading that isn’t fully counteracted in terms of typical rhetoric by what follows, especially when that is followed by “It was an egregious mistake”. So at what point do you stop the “didn’t you read” missives and begin to wonder if the point has more subtlety than it should for this genre of writing? I already showed that it wasn’t any more a mistake in comparative terms with the Papermaster hire/fire, probably less. Apple risks failure, and that is why they succeed so I don’t know what was egregious about it. It was a failure, that’s all.

      BTW, you could have made it clear even on a fast read that you don’t hold these views by using some irony. “If instead of “This bodes ill” you’d have said “Apple doomed to failure” and instead of “This bodes well” you’d said “AAPL at $1000 in 30 days for sure” or some such I doubt anyone would have been confused. No harm no foul, but I think most people here read better than you think.

      • FalKirk

        I said the Browett hiring and firing COULD BE looked at three ways. Clearly this did not communicate what I thought it was communicating.

        Oh well. Communication is hard. I’ll try to do better next time. 🙂

  • Mark

    >> It’s a bad sign that Cook made this hire in the first place. Browett always seemed like a poor choice. This bodes ill.

    Oh stop. This is reminiscent of Jobs’ hiring of Mark Papermaster for head of mobile device hardware engineering. Does that sound like an important job at Apple? They sent the lawyers against IBM to even hire him, and then let him shortly thereafter for reasons never directly stated, and certainly not the iphone 4 antenna, but for reasons we all know and were even leaked. He didn’t fit into Apple corporate culture or their expectations. That was two years ago and this already went down the memory hole?

    Apple is a demanding place to work. Be glad that they fire people who don’t work out even if it is embarrassing to both parties. Most companies would hang onto them to save face. When they stop doing this it will be time to worry, and the corporate culture will have changed.

    • FalKirk

      Did you read the rest of my comment or did you just stop after the first line?

      I was pointing out that there were three possible takes. The first take – which you are chastising me on – is one that I rejected.

      • Mark

        I took an axe to the idea. I should have stated it differently so as to hit a hypothetical person who believes it. Many do, as you say. Sorry for stating it abrasively.

      • FalKirk

        No problem. Communication is hard…

        …at least for me. 🙂

  • petermillard

    The surprise for anyone with experience of a Dixons store (Browett’s previous position) was that Browett got the job in the first place; hard to imagine a worse fit IMHO – maybe he had a good agent…

  • the Ugly Truth

    Hiring at this level may have involved a third party recruitment agency. Furthermore, his credentials (as they normally do) and his English accent may have charmed whomever was interviewing him. Whomever recommended him obviously didn’t do a quick research on the outfit he used to run.

    Why 6 months? Anyone past probationary period usually will end up with more money as compensation if they are fired without cause.

  • Relentlessfocus

    Hiring people for a key job is a tricky business. There is a limited amount of time you can afford to leave the position open. There is a limited pool of people to choose from at any given time and sometimes you have to make a least worst case hire, or at least it feels that way.

    I would have thought that the whole leadership team interviewed Browett and met to discuss their reactions. As others have pointed out Browett might have given good answers for his actions at Dixons and might have talked the Apple talk. References must have been checked. Yet somehow Browett wasn’t the chap for the job. At least the mistake wasn’t compounded by holding on to him. From my talks with Apple retail employees morale rapidly shot down during Browetts short reign

    So Tim and the boys made a mistake in hiring him. Kudos to the leadership team for a) listening to the complaints of their employees and b) having the courage to admit the mistake and rectify it. Not always an easy thing for senior management. Mistakes happen in life, anyone here never make a mistake? it’s how you manage things afterwards that is important.

    • BitterExperience

      “References must have been checked” Not necessarily. I’ve been amazed several times by executive hires that turned out badly and it seems no one ever checked their references. One had a gambling habit and defrauded the company to feed it, turned out he’d left his previous employer under a similar cloud but no one had checked with them before hiring him!

      Some at the top seem to find the idea of reference checking “unseemly”, fit only for non-executive employees. Also, today many are reluctant to say anything negative about former colleagues in case it gets back to them and lawyers get involved.

  • oases

    My perception from the outside—which means I could be totally wrong—is that Cook relied too much on the headhunters. I quick bit of googling on Browett’s former company, or just asking around would have been enlightening.

    I wonder if there was a bit of that with Maps top. Did Cook ever play around with Maps a bit before it was released? Weren’t the errors blindingly obvious? Sometimes one can have too much confidence in one’s deputies. Nobody likes an inveterate inteferer but you need keep a beady eye. It’s like ‘too many cooks spoil the broth’ vs ‘many hands make light work’. Which is true? Well it depends…

    I do think Apple suffered from working to a deadline on Maps though, and for that reason maybe Horace is right about Jobs being to blame for allowing the company to get trapped like that…just as he allowed Schmidt to be a fly-on-the-wall. Even if Cook—or anyone—had been more on top of things, would they have had the time to get it right?

    I wonder if Cook’s greatest strength (which I glean to be his lack of arrogance and therefore ability to appreciate others’ talents and let them shine) may also be his biggest weakness and vice-versa. But you’re all correct, he’s not proud; he can admit his mistakes. This is good. Now how good a learner is he?

    • JohnDoey

      Apple Maps works great in Northern California, where Tim Cook lives and works.

      Tim is CEO. His responsibility for Apple Maps is to fire Scott Forestall, who was the one responsible for iOS software, of which Maps is a part. Tim obviously did that.

      • oases

        That explains a lot (maps good in nocal), but its a bit depressing as a foreigner to hear that. It’s a teensy bit shabby or unprofessional for it not to be done evenly well. I always hated the fact that I didn’t have a proper native dictionary in OS X in the U.K. for years. I always used to think ‘Microsoft would never do that’, even though I loathed Microsoft.

      • I’ve gotten two bad routes from Maps in the Bay Area this week. I like and use Maps, but the data quality needs some work.

    • GuruFlower

      The Maps dustup would be a good topic for an investigative reporter to look into. I have never had an issue with Maps and use it frequently (in the NE USA).

      What I do think happened is that when the iPhone 5 and iOS 6 came out the Google/Samsung PR departments swung into action and hired some folks to start writing up the “flaws” in the 5, both in articles and in the flood of negative commentary on those articles. This has all the characteristics of an orchestrated PR attack.

      • I don’t think they’d need to orchestrate it, since anything to do with Apple is click-bait, and a headline that says “Apple releases another good new product” doesn’t get as many clicks as “Apple screws up again”, I suspect….

        So I think it’s easier to attribute this to the group-think of the blogosphere than to deliberate action. Which isn’t to say that Google etc. won’t capitalize on this, but I frankly doubt they started it. And there are plenty of Android fans who will happily bash Apple at any time, not necessarily for any particularly valid reason (and unfortunately a similar set of Apple fans who like to bash Android similarly).

      • GuruFlower

        The war that’s going on between Google-Android/Samsung vs Apple is about market capitalization and market share. It’s a marketing war that’s being played out in the financial and tech media. And I think Google’s finger prints are all over it.

        We tend to forget though that the other big war is between Google-Android and Microsoft because this one is being played out quietly in the courts, not the media. Google is getting hammered there, but we don’t hear anything about it except here:

        According to Mueller at Foss Patents, 14 companies that manufacture devices using the Android OS have agreed to take royalty bearing license agreements with Microsoft. That is, companies using “free” Android must now pay a royalty to Microsoft for the privilege. Yet not a peep out of the Google and the Android fanboys. Why? Google doesn’t consider Microsoft a threat to it’s business plan for mobile the way it sees Apple.

        Florian Mueller is an example of a writer who has taken strong stands against Google and admits to taking remuneration from Oracle to present its case against Google. (He also strongly presents Apple’s case but says that he is not on Apple’s payroll.) Likewise, I am quite certain that Google has many freelance writers presenting it’s side in the financial and technical media.

      • I’m not saying they *wouldn’t* do this kind of PR manipulation, but mostly that I don’t see them needing to — I believe there are plenty of people who will help them out for free.

        As it happens, I do follow FOSS Patents, and I don’t think you characterize Mueller’s position accurately, certainly not the way I recall him describing it. And I also recall that he was skeptical of Google well before he noted that he’d taken on Oracle as a client, though it wouldn’t surprise me that they’d hired him as a consultant partly because he favored their position. But I wouldn’t be so certain that makes Fosspatents a paid mouthpiece for Oracle.

      • GuruFlower

        Mr. Mueller does an admirable job of following the patent wars. I read his reports nearly every day. But I don’t pretend that he doesn’t have an editorial point of view, because he does.

        Newspaper reporters and ethical journalists of all stripes alert readers early in every story if they have any financial interest in a subject in their story. Mr. Mueller and countless other bloggers work for themselves and are only responsible to their own consciences for “full disclosure” clarifications. If Mr. Mueller has a financial interest in Oracle (or any other company he mentions) he should make it clear when he first mentions that company’s name.

        For those interested, here are links to the court order in the Oracle v. Google case that brought Mr. Mueller’s name into the record as well as the judge’s decision on whether Google had hired writers to advance its case against Oracle. Not enough for a legal ruling against Google but, IMO, Google left itself enough wiggle room to allow any interpretation. If any of the hundreds of thousands of people Google mentions in its rebuttal write a contrary article about a company Google is in competition with, then “full disclosure” is a must for the author to have credibility. (Needless to say, the same applies to those who carry Apple’s banner: LOL, I own shares of APPL.)

        The Judge Alsup’s order:

        Oracle’s reply:

        Google’s reply:

        Judge Alsup’s decision:

        Mueller’s statement of his relationship to Oracle:

      • I agree, there’s definitely a point of view at FOSS Patents, but I don’t think it’s necessarily a paid one. Thanks for digging out the reference to his Oracle consulting disclosure that I was too lazy to chase down.

        There’s a real issue with bias and influence in the blogosphere beyond the specific case of paid-for content and astroturfing. Companies court and influence bloggers in a lot of ways, most notably access to information and early review hardware. I think all they really need to do is encourage people who are pointed in the direction they like. There’s plenty of ego powering the blogosphere, I don’t think it needs to be pumped up with money all that much, just nudged by corporate PR on occasion. That was mostly the point I was trying to make.

    • Personally I really like the iOS 6 maps much much better than the old maps.

      After a 2000+ mile trip using it and an Android device and my car’s built in nav system.

      My cars system did OK (stayed off freeways as much as possible) but had lots of “incomplete map data exists and guidance can not be provided in this area”.

      iOS 6 maps had a single error in a state park outside Roswell, NM. The error routed a non-exist ant road (NM 409).

      Google maps had 4 errors all dealing with incorrectly spelled road names. For example Google might have 6079NW CRD and the actual name would be 6097NW CRD. The street locations, however, were correct and routing had the right turns.

      All systems were able to point and find restraunts and state parks for sleeping.

      iOS maps was fundamentally better presented.

      Google maps had more data on local establishments.

      iOS maps behaved better.

      Google maps had better search results.

      I am one of the 98% of users that could give a rats behind about transit routing.

      • I’m guessing you don’t live in a dense city. Lots more than 2% of iOS customers do, though.

      • Live in a metro with 5 million people. Travel to dense metros frequently. I would be surprised if more than 2% of iPhone users ever used transit routing on their smartphone more than or equal to once per year.

      • DaveChapin77

        I find iOS6 maps superior to what came before. For me at least, nav, vector tiles, and pre-loading for offline viewing are the most welcome new features. I live in a large metro area in the pacific NW.

        Google for one really did Amp-up the anti-iOS Maps story starting from before it launched with their special presentation dedicated to Google Maps.

        I am not surprised by the full court press against Apple here. An OEM kicked one of their core services to the curb. One that had previously been entrenched. You don’t want other OEMs to get uppity (like Samsung w/ a fork). And you sure don’t want it to happen to Search next.

    • jvi1000

      Hopefully Jonathan Ive will be able to fill that role.

  • Richard Earney

    Dixon’s is a dreadful store. Generally full of awkward clueless teenagers trying to push extended warranties to customers. It was such a weird hire, you have to wonder what was going on!

  • HammerOfTruth

    Why doesn’t Tim Cook just promote Steve Cano? He did a great job after Ron left. At least he didn’t screw with the employees hours after giving them a raise.

  • JohnDoey

    “Stores making” should read “stores-making” or maybe “store-making.”

    Steve Jobs said he did product introductions as though they were only for his close friends. I always thought the stores were that way, too. The idea that you would buy something is secondary because it is obvious that you will once this magical product is introduced to you buy your friend at Apple. This ends up being a better sales pitch than the hard sell.

  • GuruFlower

    On December 31, 2011 an article appeared on the website entitled “Ex-Genius: Apple No Longer Values Retail Staffers”. A former Genius was forced into leaving his job and he wrote an email to Tim Cook thanking him for the job experience but warning about the impossible difficulties the employees were facing.

    This became a bit of a fire storm with current and former employees writing commentary revealing quite a lot about what goes on behind the shelves in Apple stores. Not a pretty picture. It’s worth a read, particularly the commentaries:

    Browett was hired four months later and I felt at the time that he was being brought in partly to resolve some of the issues discussed in that article. It became obvious almost immediately that, far from helping the situation, he was throwing fuel on the fire, cutting pay and reducing staff. Apparently that was also his history at Dixons.

    A surprising fact that came out in the commentaries on the ifo article was that Apple almost never promotes store managers from within the ranks but prefers to hire managers from other retail establishments. This may provide a clue as to why Browett was brought in even though he had no Apple experience. Hiring senior employees from outside the company appears be a part of the Apple corporate culture.

    In hindsight it appears that Browett’s hiring may have been a rushed response to the staff problems by Cook in the early days of his tenure as permanent CEO. The retail division certainly needs a capable administrator with good HR skills. I hope Browett’s replacement brings an open ear to employee issues.

    • jvi1000

      Good point. I’ve been wondering why they can’t simply promote someone who worked under Ron Johnson while he was at Apple.

      • GuruFlower

        Many seem to hope that Steve Cano, Sr. Director of International Retail at Apple will be given the boost. We’ll see if Apple breaks with tradition and elevates him to the top position in retail.

  • Ted_T

    1) Ron Johnson came from Target. Is Target that much nicer than Dixons? (I have no idea, just asking).

    2) Apple’s number one retail problem is expanding Apple Stores too slowly outside the US. They have not met their announced goals for China, they have no presence yet in India, the number of stores in Europe is not commensurate to the size of the market, doubly so Asia. My guess is they were looking for a non-American to help fix international expansion.

    • oases

      Good point.

  • bernie1001

    Have not read all comments but in my opinion it’s simply a matter of Mr Cook findinding out that Mr Browett didn’t have the leadership capabilities neccesary in an Apple context to hands-on lead the numerous AppleStore employees.
    This is very difficult to evaluate in interviews and tests so no obe to blame for the hiring.

  • Jeff G

    Malcolm Gladwell cited stats and studies in his book, Outliers, about NFL quarterbacks and teachers. In it, it becomes pretty obvious that any amount of research ahead of time does not predict very well who are going to be the stars and who are going to be the flops (Think Michael Jordan, 3rd pick overall in NBA draft and Ryan Leaf, 1st pick overall in NFL draft – Some of you might ask… Who is Ryan leaf? That’s the point) And, lots of data and analysis support this view. Did someone rise to power in sports or business because of their own greatness, some immeasurable quality, or were they a black swan?

    Browett must have shown some qualities that made him worth a gamble. Business and life are full of gambles. Many said, iPad and iPhone were unwise gambles. If they would have flopped, Monday morning quarterbacks would have abounded, indicating as they are now with Browett, “Obviously it was a bad choice.” Bull.

    It was a risky choice. They didn’t like what they were seeing. They fixed it. It’s not the last risk, or the last “mistake” Apple will make. At least I hope not!

  • Gromit1704

    When you were in Dixon’s the other day, did you think ‘Apple should employ the man who set up this retail mecca?’

    Thought not. Anyone familiar with the Dixon’s retail experience knew that Browett was a very strange appointment.

    By the way, next time you are in Manchester, you must stay longer. A very disruptive city, it kick off the industrial revolution. There is lots to see.

    • Not necessarily, but when I went to Target I did not think, “Whoa, this is where Apple’s retail genius should come from.”
      Nor would someone going to JC Penney today think “Wow, this is the result of Apple retail store genius.”

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  • iphoned

    One swing and one miss for Cook.

  • iphoned

    incomprehensible that Apple needs to go outside for a retail head hire.

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  • Some of us asked that question of how he was ever hired months ago. there is video of him on youtube where he sounds like he has no comprehension of the value of service if it doesn’t equal a sale. That combined with customer satisfaction at his previous two store chains leads one to believe that he has no understanding of a store as it relates to a value of brand, and Apple is nothing if their brand has no value

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  • Like lots of other objectives, there’s always a mistake here and there. Most importantly, learn from these mistakes. Repeating mistakes = not a learning organization.

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