Executive Q & A: Sally Jewell, President and CEO of REI

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EXERCISE: I always start the day with a workout. When things get busy, I have to get outside. On [a recent] Saturday, with my husband and dog, I climbed Grand Prospect [on Rattlesnake Mountain]. It feels so nice to get a little mud on your feet, a little mist in your face.

YOUTH: My father was a doctor who came over from England in 1959 when I was 3 to take a teaching fellowship at the UW Medical School. My father asked what people did here. They said, “You join REI, you buy a tent and you go camping.” So that’s what we did. Our first trip was to Mount Rainier National Park.

EDUCATION: It was a different era for women when I graduated from high school in 1973. My college [aptitude] test showed high scores in mechanical reasoning and spatial ability, but my recommended professions were nursing and teaching—the same as all my female friends. At UW, I was going to be a dental hygienist, but my roommate said, “You’re smart enough to be a dentist,” so I did pre-dental. When I started dating Warren, now my husband, his engineering homework looked a lot more fun than mine, so I transferred to engineering. Turns out I’m a natural engineer in terms of how my brain is wired.

CAREER: In engineering school, I worked for General Electric for a total of 18 months over a period of three years. It was a good time for engineers. I had 15 offers for jobs coming out of school and ended up working for Mobil. I came back in 1981 to work for Rainier Bank as an oil and gas expert because I loved Seattle. Oil and gas isn’t found in the most pleasant places in the world and, being a woman, there were things I had to put up with that would be considered illegal now, and it just became tiresome. I also wanted to raise my children around grandparents.

REI: When I began as COO, our growth was stagnating. We invested in the internet, but we underinvested in our retail stores, the core of the business. We were good at colder climates but not so good at southern climates. We developed great, innovative products, but I felt we had an enormous opportunity to analyze our member data better to understand what our customers wanted. We’ve since relocated a lot of our stores to more convenient places where people could find us. Now we’re learning how to reach younger customers. We’re also seeking racial and geographic diversity.

NEW CUSTOMERS: We love it when an outdoor product becomes a hot thing for people who otherwise wouldn’t be coming in our door. We’ve been quite successful in selling jogging strollers after mommy blogs said, “This is the best jogging stroller and REI is the best place to get it.” That probably brought families in that wouldn’t otherwise have been there. Once you walk into an REI, it’s hard not to get a touch of inspiration about going out and playing in the great outdoors.

GETTING PEOPLE OUTDOORS: Studies show children are spending more time in front of a screen. Children have an affinity for playing outdoors, but it’s up to us as adults to help facilitate that. What are the critical points of entry to introduce someone to outdoor activity? College is one point. School groups, YMCAs, and Boys and Girls Clubs are others. We had a store catch on fire a year ago in Eugene, Oregon. A lot of the merchandize was smoke damaged but serviceable. Our insurance carrier agreed to allow us to donate it all to YMCAs in the L.A. area to help get kids there into the outdoors.

CHALLENGES: You don’t want people to use your stores just as showrooms [and then buy online]. How do you compete with that? You have to think about the value you add when someone shops at REI. There are benefits to being a member. Our stores are staffed by incredible colleagues who know the products. And we have to look at how we are doing in terms of price, service, breadth of assortment and convenience relative to our competitors if we want to be in business for the long term.

TAXES: One thing that’s frustrating is to be providing employment in a state and then be penalized with a 5 to 10 percent sales tax that the online retailer is not collecting but that the consumer still owes. The state of Washington estimates there’s about $438 million a year in uncollected sales taxes from out-of-state direct purchases.

DESIGN: In a world where product is ubiquitous, REI apparel is unique. We have invested in our own designs continuously over the time I have been here. We have a top tent designer. We have taken more design in house to make sure we have a compelling value proposition. If you take the top brands in the industry, we want REI products to represent equivalent quality for a lower price or a better product for the same price.

CIVIC ENGAGEMENT: Community service has been very important to me for decades. Whether it’s board work or volunteer work, you learn to lead through influence and not through power. I try to help share that ethos with my colleagues here. In a job like mine, you have a title that commands a certain amount of power, but when you are on a nonprofit board or you are volunteering, your title doesn’t really mean anything other than perhaps your ability to have influence.

INITIATIVE FOR GLOBAL DEVELOPMENT: The initiative was launched after 9/11. As we looked at the attacks on the United States, we thought, “Why does the world hate us?” We saw an opportunity to bring a business voice to the issues of global poverty, the idea that you are never going to solve global poverty if you don’t create economic opportunity in those communities. I was the first chair of the board. We’ve become a pretty effective national organization with people like George Mitchell, Madeleine Albright and Colin Powell involved. I’ve met with CEOs of African companies with sales of more than $100 million. One company produced retroviral drugs in Uganda while another had a seed and vegetable oil business in Zimbabwe. One of our group, the CEO of Cummins Engines, is investing $75 million in Africa. He wouldn’t have done that without those relationships. We would like to go beyond Africa to Latin America and South Asia.

EDUCATION: As a regent at the University of Washington, I’ve seen the university do some amazing things in a difficult environment. It has prioritized cuts in administration first and has worked hard to make sure that access is high regardless of socioeconomic background. Twenty-five percent of our students pay no tuition. The state wants us to create more graduates in high-demand fields like engineering and computer science, but that’s hard when the budget keeps getting cut. One possibility is to charge higher tuition in fields like engineering where you have high potential for earnings and it costs more to educate you.

ENVIRONMENT: Last year, we made $4.2 million in direct donations to nonprofits. We’ve facilitated over 3 million hours of volunteer work on public lands. And that’s not just picking up garbage. That’s swinging a Pulaski and an ax and building trails.

Executive Q+A: Cougar Goals

Executive Q+A: Cougar Goals

The dean of WSU’s Carson College of Business is intent on creating new undergraduate opportunities.
| FROM THE PRINT EDITION |
 
 
 
Larry W. “Chip” Hunter, a scholar of human resource management and industrial relations, became dean of Washington State University’s Carson College of Business in March 2015. He aims to make Carson College the premier place in the Northwest for an undergraduate business education.
 
EARLY YEARS: I was born in Kansas, lived in Minnesota during grade school and moved west to Moscow, Idaho, when I was 12. My father was an administrator at the University of Idaho. My mother opened a children’s clothing store. My first paying job was washing dishes at Allino’s Hoagie Shop in Moscow. The place has been remodeled and is now called Gambino’s and is owned by Nancy Swanger, the director of our School for Hospitality Business Management! 
 
WHY BUSINESS: I was curious about workplace conditions and how money creates opportunity. As a professor, I began to wonder if we could get students thinking about how they, as managers and leaders, can create opportunities for others.
 
EDUCATION: I got my master’s at Oxford University, where I worked for legendary professors of economics, politics and philosophy. I also learned to play cricket. While working on my doctorate at MIT, advisers encouraged me to get out from behind my desk and understand the world, focusing on questions that matter. 
 
U.S. BUSINESS EDUCATION: We are very good at training students in technical business skills, and by encouraging them to take courses in liberal arts and sciences, we help them develop critical thinking and communication skills. At research universities, professors also do research and inspire rigorous ways of thinking about problems. That said, we don’t always do the best job of training students to translate their technical skills and abstract thinking into defining and solving real problems. We also don’t do a good job of teaching them to confront their mistakes and learn from failure. 
 
CARSON COLLEGE: Employers want students who have all the required technical skills in things like finance and accounting and who are analytical, but they also want students who can communicate, collaborate, take initiative and be entrepreneurial. There isn’t enough time to teach all that separately, so one idea is to infuse a lot of that thinking into existing courses. Accounting students, for example, might use online “adaptive learning” technology to learn technical skills, but then work in groups in class explaining the concepts to each other and working on issues they don’t understand. That encourages collaboration. We have a task force looking at these kinds of approaches and how to diffuse it into the faculty. 
 
WORKFORCE READINESS: We need students with strong entry-level skills, but we also need to shape their ability to learn. One approach is to work closely with employers to structure great internship opportunities, and encourage students to engage in global experiences, networking events and business-plan competitions. The best predictor of getting a job is having an internship. All studentst should have an internship as part of their education. 
 
PULLMAN: Having our main campus in Pullman can make it difficult to bring in experts and attract a diverse group of students. But we are creating diverse campuses across the state. Our Tri-Cities campus has a deep expertise in wine business management, our Everett campus works with experts in senior living management, and in Vancouver, our students do hands-on consulting with a local business in their senior year. We’d love to work with alumni to raise a fund to invest in innovative ways of teaching business.  
 
ONLINE EDUCATION: We are learning more and more about how to work in the online environment. I’d like to use more “adaptive learning” technologies to guide students through their more technically oriented courses, identify areas they have trouble with, and have facilitators and instructors there to help students get through challenging bits. 
 
DEVELOPING LEADERSHIP: There’s interesting recent work that shows introverts and extroverts are equally likely to be effective leaders. Self-awareness is a common theme among successful leaders. How do you play to your strengths? How do you compensate for your weaknesses? And how do you discover what those strengths and weaknesses are? Many leaders are really good listeners who know how to strike the balance between listening and acquiring information and not waiting too long to make a decision.
 
FIVE-YEAR GOALS: We want to make our online programs the best in the Northwest for the price. We also want to provide a lot more business education to non-business students, including courses in financial literacy so they know what to ask if they’re buying insurance or taking out a loan. When I was [associate dean] at the University of Wisconsin-Madison, we offered a one-week immersion course in entrepreneurship for scientists.
 
TEN-YEAR GOALS: To be among the top 25 public undergraduate business programs in the country — the first place students choose for an undergraduate business education in the Northwest. We also want to become the place that the business and policy community goes to for critical thinking about the Northwest. 
 

TAKE 5
Get to Know Chip Hunter

  1. DIVERSIONS: “I’m a trivia nut and went on Jeopardy! in the ’90s. I lost.”
  2. BOOK SHELF: “David Allen’s Getting Things Done is a great guide to personal productivity and effectiveness at work. Between the World and Me [by Ta-Nehisi Coates] is a deeply moving book about the reality of black experience in America. I just started reading Doris Kearns Goodwin’s Team of Rivals.” 
  3. FAVORITE DRIVE: “From Seattle to Pullman, with its changing geography, over the Cascades, into the high desert, and then finally into the Palouse.” 
  4. ADMIRED LEADER: “I am in awe of Lincoln — an amazing combination of steel spine and flexibility in approaching problems, of deep unwavering principles combined with pragmatism.” 
  5. DREAM VACATION: “A golf trip to St. Andrews, Scotland, with a group of my buddies.”

EXECUTIVE Q+A RESPONSES HAVE BEEN EDITED AND CONDENSED.