Bandit Interviews Jeff Bleustein
The CEO on Corporate Business and 100 years
Photos by Nyla Ross
Jeffrey L. Bleustein is the
Chairman of the Board and Chief Executive Officer of
Harley-Davidson, Inc. Of late we look down our noses at big buck
CEO's and their bonuses, but the man at the top is responsible for
every aspect of the company and the fall-guy if something goes wrong.
He has primary responsibility for the company's strategy and performance.
Since joining Harley-Davidson in 1975 Bleustein has served in many
capacities including President and Chief Operating Officer, Executive
Vice President, Vice President of Parts and Accessories Division; and
Vice President of Engineering.
Prior to joining Harley-Davidson, Bleustein worked as a technical
consultant in mechanical engineering for American Machine & Foundry
Incorporated (AMF), which owned Harley-Davidson from 1969 to 1980.
In 1975 Bleustein moved from AMF to Harley-Davidson's engineering
division and provided leadership as the Vice President of Engineering
until 1984. Under Bleustein's guidance the Company's Engineering
Division developed technical innovations including the belt drive,
vibration-isolated powertrains and anti-dive suspension. New
motorcycle designs such as the Tourglide and Softail; and total
redesign of the V-Twin engine, which resulted in the critically
acclaimed Evolution engine, were all developed during his tenure.
The reorganization entailed re-staffing, modernizing engineering
practices and a major expansion and improvement of the Company's
testing and product development facilities. The primary challenge
was to preserve the distinctive styling of the motorcycles while
incorporating new technology. The results of this work contributed
significantly to the Company's survival and subsequent prosperity.
Bleustein then focused on strengthening the Company's Parts,
Accessories & Apparel Division. After overhauling operations to
eliminate excessive backorders and to generate more new product
introductions, the division began to grow profits. Bleustein's main
contribution was in conceiving and executing a plan to transform the
dealer-owned retail stores into modern retail establishments. The
resulting retail environments motivated both riders and aspiring
enthusiasts to buy motorcycles, accessories, apparel and memorabilia.
Jeff also managed to launch an aggressive licensing program that,
combined with tighter trademark control, reduced infringement and
improved the Company's image while establishing a new and successful
profit center.
In 1980 a group of 13 executives offered to buy Harley-Davidson
from AMF. As one of the 13 executive owners, Bleustein helped the
Company regain market share and by 1987 Harley-Davidson recaptured
its position as the leading heavyweight motorcycle manufacturer in
the United States. In 1988 Bleustein became Senior Vice President, in
1990 he was promoted to Executive Vice President, and in 1993 to
President and Chief Operating Officer. In 1997 he became President
and Chief Executive Officer and in 1998 he assumed his current role
as Chairman of the Board and Chief Executive Officer.
Prior to joining AMF, Bleustein was an Associate Professor of
Engineering and Applied Science at Yale University from 1966 through
1971.
JB holds Masters of Science and Ph.D. degrees in Engineering
Mechanics from Columbia University and a Bachelor of Science degree
in Mechanical Engineering from Cornell University.
He serves on the Board of Directors for the Milwaukee Florentine
Opera, the Milwaukee Jewish Federation, The Boys and Girls Clubs of
Greater Milwaukee, the Greater Milwaukee Committee and is a member of
the Board of Regents of the Milwaukee School of Engineering. He also
serves on the board of the Brunswick Corporation.
He also owns two Electra Glides and a Buell Blast motorcycle.
Jeff Bleustein is no slouch and responsible for thousands of jobs,
over 600 dealerships and all the motorcycles we ride. I asked him a
few business related questions at a Road Tour (celebrating the 100th
Anniversary) location:
Bikernet: What's your perception of the current stock
market and the crises which surrounds it?
JB: There's obviously a lot of volatility in the market,
with terrorism, the Middle East, and the economy environment. People
are very nervous to make long term investments.
Bikernet: As the boss of a public corporation, have these
actions changed what you do or how you do it from day to day?
JB: No, not really. I don't think the marketplace as a
whole effects how we run our business. The market will have good and
bad times. We need to run our business for the business. We feel if
we make our customers happy, make great products and continue to
enhance motorcycling that sooner or later the stock market will come
around.
Bikernet: Do you feel that there are more corporate laws
that should be passed in an effort to stave off criminal behavior?
JB: I'm from the school that says you can't legislate
honesty and values. You can make laws that punish if it's not there,
but the same people who would cook their books are the same guys who
would sign off and say that they're right. There is a movement toward
better governance which may encourage people to make positive
changes. Fundamentally there needs to be morality and ethics
within the company. It is the only way you will have honest
members.
Bikernet: Do you feel Harley-Davidson is blessed right now
to have their 100th Anniversary to help carry them through a tough
period of time economically?
JB: We're certainly blessed to have a 100th anniversary.
There have been many special times in the history of the company that
have made is a survivor through tough times. The 100th during
this period gives the people of America something positive to look
forward to. We've already witnessed a bump in sales of
motorcycles, motor clothes, and accessories, that indicate people are
enjoying the 100th celebration. We have been very active in the
new product development which has been a major driver for the
business to give our customers exciting new products and to develop
products for people who aren't into motorcycling or aren't into
Harley-Davidson yet.
Bikernet: Is there a new profit center started or one your
are considering for the future?
JB: Our business has a lot of different features to it.
Motorcycles are 80 percent of our revenue. Parts and accessories is
growing faster than any other aspect of our business. Our clothing
line grows every year and our financial services is growing very
nicely. We are always looking for new things to enhance the
Harley-Davidson experience. Not everything we do is profitable. Some
things you do because it's the right thing to do. If we had a new
notion and no one wasTools and Garage talking about it, I wouldn't be either. We
are always looking for new things to do, because our customers are
always looking for something new. We are always looking for something
that has a connection back to motorcycling.
Bikernet: What's your best tool for keeping a finger on all
the elements of the company, or is there a tool?
JB: Never sleep...We have good information systems so I'm
able, without a lot of hassle, to look at a lot of data and see how
the various networks keep the business going. Basically we run this
operation in a very participation oriented way. We delegated a lot of
authority to our heads who work together with teams of other people.
People are used to sharing information. I have a phenomenal
staff. People who are empowered to do things and if something is
going wrong they speak up about it and let us know what's happening.
No one gets beat up for making a mistake. You get talked to, if
you make it a second time. The third time is a real conversation. The
idea is that people are committed to take the business to the next
level, and if something is going wrong to speak up about it. That's
the way to move toward corrective action quickly. We really try
to eliminate the fear factor, and when you do that you find out that
information flows very easily through the business and makes it very
easy to see what's going on.
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