241: Hubert Joly on Turning Around Best Buy

Hubert Joly is a Harvard Business School lecturer and globally recognized leadership thinker focused on re-founding business around purpose and people. A former Chairman and CEO of Best Buy, he led one of the most celebrated corporate turnarounds of the past decade by rejecting cost-cutting playbooks in favor of purpose-driven strategy. At Harvard Business School, he co-leads flagship CEO programs and advises organizations on developing next-generation leaders. Hubert serves on the boards of Johnson & Johnson and S&P Global, is a trustee of the New York Public Library, has been named among the world’s top CEOs and management thinkers by HBR, Barron’s, Glassdoor, and Thinkers50, and is the bestselling author of The Heart of Business.

In this episode we discuss the following:

• When Hubert became CEO of Best Buy, he resisted the instinct to cut, cut, cut. Instead, as a first-time CEO, he chose to be a learn-it-all rather than a know-it-all—constantly asking, What’s working? What’s not? And what do you need? He then held himself to a strong “say-do” ratio, making sure his actions matched his words.
• I was also struck by the hierarchy he emphasized at Best Buy: people, business, finance. Of course a company has to make money. But when meetings start with finance or strategy, the implicit message is that people come second. Best Buy ultimately clarified this by defining its purpose as enriching lives through technology by addressing human needs.
• Another powerful idea was Hubert’s reminder that culture changes faster than we think—if behavior changes first. If you want to be customer-centric, don’t just talk about customers. Spend time with them. Behavior shapes culture surprisingly fast.
• Give a name or brand to our behavior change goals.