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From Sales Clerk to Best Buy's No. 2: Brian Dunn Speaks About His New Role: President

Posted on: Saturday, 25 February 2006, 06:00 CST

By Scott Carlson, Pioneer Press, St. Paul, Minn.

Feb. 25--On his first day as a commission sales clerk for Best Buy Co., Brian Dunn hit the floor at the retailer's Minnetonka store with little clue how to do the job.

"It was not a good day," Dunn recalled.

Store manager Larry Kerr soon came to Dunn's rescue, offering tips on how to work with customers. Kerr's advice paid off: About 18 months later, Dunn became a sales manager at Best Buy's store in Minneapolis's Uptown district, marking the start of what would be a steady ascent at the company.

Fast forward 20 years: Dunn on Sunday becomes Best Buy president, making him the company's No. 2 day-to-day executive behind Chief Executive Brad Anderson. It's a job that will raise Dunn's visibility with Wall Street and Best Buy's more than 120,000 employees.

These days, Dunn is in charge of several Best Buy business teams and oversees the company's more than 900 North American locations. He also is watching over Best Buy's ongoing rollout of its nationwide marketing initiative that is focusing on different customer segments.

In a recent interview with the Pioneer Press, Dunn talked about his new job and challenges ahead for Best Buy. The interview has been edited for brevity and clarity.

Q: What is the biggest change in your new job?

Dunn: Before it was focusing on the day-to-day operations of the business. Now, I am charged with growth of the enterprise and driving our traditional and new businesses in North America, including the Geek Squad and customer centricity.

Q: Who is Best Buy's biggest competitive threat?

Dunn: I view everybody as a competitive threat. The competition we face is the toughest it has ever been. Wal-Mart and Target are strong players in this space. I think they see the commoditization of our products as an opportunity to move big tonnage. But the differentiator for us is we are aggregating and connecting those technologies for customers. We just don't sell flat-screen TVs to put on walls but, rather, we put together home theater systems. When we get all of our elements together, with the blue shirts (Best Buy clerks) and the Geeks, I like our odds.

Q: What about Circuit City, which had been slumping for two or three years but now it seems to be on a rebound?

Dunn: We look at their ads and know what they are promoting. But I don't focus on them per se, but what matters to our customers and how do we create a differentiated experience.

Q: What other challenges does Best Buy face?

Dunn: We need to be more nimble and quicker as we move into the future. The life cycles for products are shorter, and commoditization comes sooner. But there is also new technology coming up.

There is a constant need to bring in fresh talent. I would like to see us be even faster.

Most of the changes we have made (in the past) have been in times of troubles. Now we are changing at a time of plenty. Our transformation to become a customer-focused company is so important right now.

Q: You acknowledged recently that Best Buy moved too quickly in its fiscal 2006 third quarter in speeding up the rollout of customer centricity. As a result of that experience, what is Best Buy doing differently?

Dunn: We are slowing down the pace that we are putting in the hardware into stores for customer centricity. But we are not slowing down centricity as an operating model that is going into stores. Centricity is the heart of all of our strategic work.

Q: Your company has said, in the past, that its "secret sauce" for success is it employees. But retail is known for high turnover. What is Best Buy doing to address that problem?

Dunn: Our turnover for managers and full-time workers is significantly lower than the industry average. (A company spokeswoman said that employee turnover in Best Buy stores has fallen from 81 percent a year ago to 69 percent now).

We recently introduced "Blue Crew Bucks," a profit-sharing program for all employees and will continue to focus on bringing up employee retention. That is essential because people are our most important asset.

Q: Recently, a lawsuit filed in California accused Best Buy of gender and racial job bias. Your company has denied the allegations. Nevertheless, is the company changing policies or practices related to hiring, review and promotion?

Dunn: I can't comment on ongoing litigation. But my mother worked for Best Buy 19 years as a single parent raising five kids. I began on the shop floor. I absolutely believe we are a place where everybody can come together to provide extraordinary things.

Scott Carlson covers retail and can be reached at 651-228-5470 or scarlson@pioneerpress.com.

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Copyright (c) 2006, Pioneer Press, St. Paul, Minn.

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Source: Saint Paul Pioneer Press (St. Paul, Minn.)

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