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Scott Mcnealy
Chairman of Wayin, Wayin

E183 - Sales Tips from a Legend featuring Scott McNealy, Co-Founder of Curriki

🎥 Dec 14, 2024 📺 Sales Community ⏱ 52m 👁 51 views
In this episode of Tech Sales Insights, Randy Seidl is joined by Scott McNealy, former CEO of Sun Microsystems, unfolds his vast ...
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About Scott Mcnealy

Scott McNealy, co-founder and former CEO of Sun Microsystems, has been active as chairman of Wayin and as co-founder of the non-profit educational platform Curriki. In a 2025 appearance, McNealy drew a parallel between the early days of Java and the current state of artificial intelligence, stating that "Compact's goal of running efficient and accurate AI on a vast majority of CPUs is not just a technical feat but a potential catalyst for democratizing AI development." He described the current period as a stage in AI that "has just started," with new architectures and hardware emerging. McNealy has continued to speak on sales, leadership, and parenting. In a 2024 interview, he described sales as "a contact sport" and argued that "you can't zoom your way to B2B success." He also discussed his approach to raising his four sons, stating that they were not given phones until age 12 or 13 and did not receive social media until they were accepted to college. McNealy has also commented on the PGA Tour, describing its scope as having "gotten way out over its skis" and suggesting that the tour's 413 card-carrying members should vote on major issues.

Source: AI-verified profile updated from Scott Mcnealy's recent appearances. Browse all interviews →

Transcript (59 segments)
H
Host0:10
Hey, welcome everybody. Scott, how you doing?
S
Scott McNealy0:11
Living the dream.
H
Host0:13
Excellent. Well, definitely excited. Had a lot of fun preparing for this one for sure. Everybody, we have the legend Scott McNeely on for today. The title topic is sales tips from a legend, but truth be told, we'll be meandering through a whole bunch of different topics. For those that are members of Sales Community, thanks. For those that are not, Tucker will throw up a free link. Feel free to go ahead and join. We're sponsored by Sandler today, who's the sales training sponsor of Sales Community. They've been around forever and have some fantastic new age ways to help with sales training, individual contributors, all on up. A lot of what we're seeing these days and talking to C-level friends about Sandler is really those first-line sales managers. A lot of times they got promoted up through COVID, really didn't deserve it. It was kind of a retention thing. I always feel, and I know Scott did too, it's really those kind of first-line managers that really run the go-to-market engine. So thank you, Sandler. So by way of introduction, Scott lives in Vegas, has happily married to Susan, who I remember meeting several times back in the Sundays. Four awesome sons. Oldest is Maverick, who people probably know is a pro golfer, pilot, husband. I think you had recently given Maverick an interesting birthday present.
S
Scott McNealy1:39
Yeah, you know, I'm getting up there in age and he's the first one to get married. So at his birthday party with all the family and in-laws around, I gave him an envelope with a condom with the tip cut off and two Viagra. Very clear message: pull the goalie, buddy. Pull the goalie. Can't make it up.
H
Host1:57
And then Dakota, who works at Ford, running a bunch of the factory business areas, and he has also notably bought and sold six trucks for a good profit.
S
Scott McNealy2:11
Yeah, he's the factory-to-car network guru there.
H
Host2:14
Awesome. And then Colt, who I've had the pleasure of meeting and talking to, is the founder of The Little Horse. Graduated Stanford in three years while also working at Rex and being an amateur golfer. You've been a bit involved, to say the least, with The Little Horse.
S
Scott McNealy2:35
Yeah, I'm kind of the chief funner and chairman of Meritus, and I'm the psych couch for the boy as he learns how to be a CEO. He's already better than me. I'm pretty amazed, actually.
H
Host2:49
Awesome. And then youngest is Scout, who kind of was in the house flipping market, making a lot of money, and now he is the caddy for Maverick.
S
Scott McNealy3:01
Yeah, Maverick said, 'I need you, buddy.' He wants to go hunt down his first win with Scout on the bag. I think they can do it.
H
Host3:09
Awesome. That'd be great. And then you're certainly have always been an avid golfer and ex-hockey player, and now becoming a rancher with your cow and back.
S
Scott McNealy3:17
Yeah, this is my cow. We've got, I don't know if you can see the brand there, but there it is: J Bar V. It's a Jack Valley Ranch, and we're going to be coming out with some designer beef and some lifestyle products around the J Bar V brand. So I'm now B2C. I've never done B2C, so this is my new deal. I'm gonna have a thousand cattle on 1800 acres and just living a dream, really.
H
Host3:49
High-tech. Awesome. I don't know if you remember John Henshaw, he has a vineyard, Blackbird Vineyard. So you may need to kind of tag team on that. Get a little pairing of your designer beef and the wine.
S
Scott McNealy3:57
Yeah, good pairing there.
H
Host4:00
So anyway, we first met. I knew you kind of more as a competitor probably when I was at Sun and StorageTek. I'm sorry, when I was at StorageTek and EMC, and then through the Sun acquisitions of StorageTek, came on to Sun summer of 2006. My job there was basically running the financial services vertical from '06 to '09. Certainly was a tough time, but in spite of the financial headwinds, we managed to grow. I love that you're always very direct, you're always there especially with face-to-face sales calls. I would be the executive face-to-face with all these different CIOs and C-suite people, and you'd have Ruckers, Tucci, Chambers, everybody else coming through. You were fortunately always there for me to come on and help with those executive touch points. So thanks so much for that. Customers always loved you, and in a nice way, always found your dry sense of humor worked then and still works now. You always wanted feedback on everything, especially if it was about your direct reports, which we want to talk about here. Several times it would be late night, you being a San Jose Sharks fan, we'd have to find a bar that was open late enough to still have the game on. Several times we'd be in the bar just kind of hanging out, and all these kids had no clue that they're watching the hockey game with Scott McNeely, and you're in your element. We just kind of hung out and had a good time, and then of course always got up early the next day to answer the bell to go on sales calls. One of the best things of sales calls with you was the private jets always made it much easier to bounce around to various cities. In my book, which Tucker will throw up a link for, my testimony to you was: thanks to Scott McNeely for reminding me that in spite of the headquarters crap, the customer and your sales teams are what count. So show up and do the right thing. So appreciate you for that. Also to help me with the introductions, Tucker, as we go here, you can just kind of pull in some of the great comments. Glad you like my shirt. It's a Sun Microsystems bowling shirt, so this is proof I still have it, still nice and pressed, a little big, but anyway. Rich Napalitano, who ran the US go-to-market in sales, says: 'Scott's deep understanding of technology and his ability to see major transitions in the industry, like the big freaking Webtone switch as a precursor to cloud, his ability to inspire teams, and his commitment to mentoring others.' He said personally he appreciates you taking him as a former engineer, a repeat startup guy, and handing him the US to rebuild from a sales perspective. He definitely appreciates what you've done to make him an exceptional leader. Greg Papadopoulos, who was CTO and ran R&D, is a partner now at NEA, said: 'More than any other CEO in the valley, Scott deeply understood that sustained innovation wasn't top-down; it bubbled up from the creativity of individual engineers, marketers, and everyone in the field. Sun was a singular culture in this way, and everybody misses it. He was also an expert at punching above his weight with his legendary biting commentary. It made customers think, it made the markets pay attention, and competitors see simply masterful. I miss that too.' Bill Boss, who was CIO, CISO, ran president of Fed, a bunch of different areas: 'Scott has always had amazing vision for where technology is going. The network is the computer, define the future of client-server and the evolution of the web. He also mentions a big freaking Webtone switch. Unfortunately, he also predicted the future we are all in with social media: you have no privacy, get over it. Sun under Scott was also a place that created incredible leaders that went on to lead amazing Silicon Valley companies like Google and many others.' Billy Scannel, who was a longtime competitor at EMC, now president at Dell, runs go-to-market. Actually talked to him this morning. He says: 'Scott is one of the most competitive executives I've ever met. Early in my career when traveling to see customers all over the world when EMC competed against Sun, it seemed every customer I visited had either just met Scott or planned to see him in a day or two. I often wondered, were there five Scotts running around? Then he was on the board of Greenplum, who EMC acquired. He created the Greenplum Challenge, which was held at Pebble Beach, and it was match play format with top sales reps from both companies. Scott and his family created a video of how Team McNeely was gonna crush Team Scannel. It even featured his young son at the time, Maverick, who now plays professional golf. Scott always prepared to win and leave it on the field.' Do you remember that?
S
Scott McNealy9:26
I do, like it was yesterday.
H
Host9:28
He also said in the sidebar, he said anytime they played there, they would leave a few EMC golf balls in your backyard there at Pebble. He says a true competitor and absolute legend in our industry, and a pretty good stick in his day. Colt says on behalf of all the boys: 'Wow, introducing my dad is quite a challenge. But what people don't know about him is that even though he was in charge of the company that brought amazing technology and innovations to the world, he was an even better dad.' So I mean, you can't get better than that. So anyway, I will send these to you so you can put them up on the fridge and show Susan and anybody that comes by. So jumping into the question: you went to school in Boston, across the river from BC.
S
Scott McNealy10:18
I couldn't get into BC, so I went to Harvard.
H
Host10:22
There you go. Interesting summer job that you had was washing cars and other odds and ends for Roger Penske.
S
Scott McNealy10:31
Yeah, he's one of my great idols, maybe Jack Welch being another one, Ken Ashman. I had a chance to see a lot of really great CEOs. My first job was washing cars for a buck 75 an hour, and I also opened up the car dealership in the summers. I had to make sure that there was not one cigarette butt on property. Roger came into the office, I got this push sweeper out, and I'd spend the first hour of the day pushing this sweeper and making sure. Roger never found a cigarette butt, I'm proud to say.
H
Host11:11
Nice. And then fast forward, you both end up on the board of GE.
S
Scott McNealy11:15
Yeah, I walked in on the first day of the board meeting, and I'm wearing blue jeans and a dress shirt. Jack Welch goes, 'Are you gonna go to the GE board meeting in blue jeans?' I said, 'Yeah, am I the first one?' He said, 'Well, yeah.' I go, 'Great,' and I walk away, and he's shaking his head like he can't believe it. But I walk in and there's Roger Penske, who's also on the board. So it's kind of a circle of life thing, going from a buck 75 an hour to helping run General Electric. It was quite a fun moment.
H
Host11:44
Awesome. And then for those that don't know, Scott was co-founder of Sun Microsystems and CEO from '84 to '06. Started Kicki in five as a co-founder and board member, and really on a fantastic global education mission there.
S
Scott McNealy12:01
Yeah, it's a tough one. There's a lot of ex-CEOs trying to fix the education problem, and we're kind of on our fourth wave and effort and strategy with Kicki. My oldest son, you can donate through www.birdiesforeducation.com. Every time he gets a birdie, people are donating a dollar or $5 or $10 or whatever for every one of his birdies. He's raised millions of dollars for the effort, and we're trying to do a great job of investing that in better ways to do education.
H
Host12:38
Awesome. So Tucker, maybe post that. Birdies for education.com. Yes, great. So Tucker, maybe throw that up there. I've got an annual ID I do every year to Kicki. And then you did Wayin from 2010 to '17, Flume Ventures the past couple years, and then you're mentioned before with The Little Horse. So that's got to be a lot of fun.
S
Scott McNealy13:09
It is, it is an absolute kick. I can't help Maverick in golf anymore because at the age of 12, he thumped me. Dakota is doing deep R&D technology right in software, and I can't help him a lot. But Colt being a CEO, I can help him a lot. I can help Scout on caddying. I love caddying. The caddies are all sitting in the caddy room going, 'Boy, we went out, me and my guy, we got a birdie and a birdie and a birdie and a birdie, and then he doubled, and then we got another birdie, and then he doubled again.' So that's kind of he's learning the caddie speak: 'We did great, he screwed up.'
H
Host13:52
Exactly. And then now getting into some more questions here. I was talking to Rick Scurfield this morning, and he had a great question: how could you be a CEO and a great golfer?
S
Scott McNealy14:04
That's a good question. You know what, I didn't care much about my golf game at the time. So I'd go out and swing away and swing easy and have a good time with it. I got better as a CEO because my net worth, my personal self-respect, wasn't built on my golf game. As soon as I retired, my game went to heck, and I was trying too hard. To this day, I can't play like I did when I was CEO because now I'm supposed to play well.
H
Host14:38
Gotcha. And especially in Vegas, all those courses. But what a lot of people may not know that Colt alluded to, but you're very passionate on the parenting side. Any thoughts to share there based on what you experienced with your parents and then what you and Susan did well?
S
Scott McNealy14:53
Actually, you know, I'm here to talk about sales, and I was known as a pretty good sales guy. But I would love to do an hour-long podcast on my views on parenting and the responsibility that both parents have. If you're going to bring a child into this world, you ought to take full responsibility until they're out of the nest. We had some very, very tough rules on the boys. You're all going to play golf and hockey because I like those sports, and I'm not going to watch you play ZOO soccer or magnet ball or stand around in right field playing baseball. I wanted to be part of that process, and I thought those were two good sports. They were very, very different: one's team, one's personal; one's physical, one's emotional. There's a lot of things the kids learned about. They all slept in the same room, we had four beds lined up barrack style. No electronics were allowed in the room. They had set bedtimes. They ate the same food. They went to the same school. They played the same sports. They lived by the same rules. They slept in the same room. They had a little study that they all worked in. If you didn't eat dinner, we wrapped it up and that was breakfast. There was no negotiation. They had a wonderful, loving tiger mom that we made sure we were always on the same page. You couldn't divide and conquer the two of us. No electronics in the bedroom. We had one game machine that lasted for about two weeks, and then somebody kicked a wire out of it and broke it, and we never fixed it. We told them no games and no social until you were into college. We had their passwords on all their electronics. We didn't allow them to do sleepovers. We got them out of government schools because they just weren't focused. We put them in a school called Challenger. Most parents didn't want to put their kids in because the kids were so academic. I thought, let's let them swim with the sharks and the real aggressive learners. All of that was well-spent energy and time. Finally, I had an advantage. When the boys were two, four, six, and eight, I had been running Sun for decades and I'd been through it. I got married at a late age, 39. Susan and I just celebrated our 30th at The Little White Chapel in Las Vegas with Elvis. We had Dolly Parton and a couple of showgirls and all my buddies and her buddies there. It was a blast. Anyway, I got a chance to step down as CEO from the best job in the world because I didn't want to leave Susan with two, four, six, eight-year-old boys. I spent a lot more time at home. I didn't stop working, but I spent a lot more time at home rather than traveling around because I wanted to be there for my boys.
H
Host17:59
Awesome. Really good. Well, I'm totally up to do that podcast with you for sure. Lots of great wisdom for sure. So early days of Sun, I know Andy made the product, but then you had Vinod, Eric, Bill, and you. How did you figure out who's gonna do what?
S
Scott McNealy18:10
Well, Andy's like one of the maybe the greatest commercial hardware engineer ever. Bill Joy was the best Unix and OS guy in his era, I think by far. Vinod was an IIT from India engineer and had been doing engineering workstations before. I was building tanks and had a golf major from Harvard. So it was pretty clear who was going to do what. Vinod ran the joint. Bill and Andy did the hardware and software. I just did manufacturing. I built the rack, I ordered the parts, I gave them part numbers. I did my first ERP system on vi for those of you who know Unix. I was the sales guy, the original sales guy. I kind of did any and everything that I could. Eventually, two years into it, Vinod left, and they asked me to take over temporarily. Unfortunately, that temporarily turned into decades. But it was quite a ride and a lot of fun.
H
Host19:31
Awesome. And by chance, I was at a Stanford MBA program probably 20 years ago, and we had a case study on Sun Microsystems, and Vinod came in and told us a ComputerVision story. Can you briefly tell that?
S
Scott McNealy19:42
Yeah. So there was Autotrol, ComputerVision, Mentor Graphics. There were about four major CAD companies at the time, and Apollo had locked up three of them. They were about to bid against us at ComputerVision, who was the largest. If ComputerVision went to Apollo, Apollo would have had 95% of the market, and Sun is gone. There's just nowhere to sell engineering workstations if 95% of the market is with your competitor. So we had to win it. We were doing everything we could to win it. We were sitting in Vinod's office about 2:30, 3:00. Phone rings, Vinod picks it up. Vinod's not a very light complexion guy, but he said, 'Yeah, yeah, yeah,' and then he went absolutely pale white. He hung up, and I said, 'What happened?' He said, 'That was ComputerVision. They called and said we have decided to go a different direction. We're not going to go with you. We're all done. We do not want to communicate with you at all anymore. Click.' Vinod went pale. What do we do? He said, 'Let's make a proposal.' So we got the engineers in and we designed a new workstation with unbelievable statistics and capabilities, priced it at below cost, said we'd give them manufacturing rights, which was unheard of in those days, said we would do joint manufacturing, whatever. We put everything we could think of that would make a difference, put it in a proposal, and then we made seven FedEx packages. We had to get it done by 4:30 when the FedEx truck came. So we FedExed to seven people that we knew inside ComputerVision this outlandish proposal. I think we even offered them stock options in the company. Vinod and an engineer got in an airplane and flew a red-eye, and they went to the lobby and sat in the lobby all morning. They were calling people saying, 'Did you get it?' Nobody would want to talk to them. Finally, at lunchtime, somebody came down and said, 'Get out of here before people walk through the lobby at lunch. We got your proposal. We understand it. You're not going to do any good here. You got to get out of here.' So Vinod came home. Then about three days later on a Thursday, we got a phone call and they said, 'Meet us at Chicago O'Hare Saturday morning. Bring a printer and a contract lawyer. And if we hear peep one about this, the deal's off.' So we flew out there, negotiated the deal, announced it Monday. That was sort of the end of Apollo. The message there is: deals are never lost, they're only postponed. You can never get arrogant and tough when you think you have the deal until you have it signed. It ain't signed till it's signed. You can change the course of history in some pretty interesting ways. I give Vinod huge credit for being the guy who said we're just not going to lose this. My reaction was, if we lost that deal, we lose everything anyhow. So throw in the kitchen sink: throw in source code, throw in manufacturing rights, throw in some equity. What do you got to lose? Nothing at that stage. So the Hail Mary did work in that case.
H
Host22:58
Awesome. Never give up. For those earlier in career, maybe inappropriate these days, but certainly a lot to be said for showing up, waiting, seeing people. I think to a certain degree, people really admire what I'd say would be kind of polite aggressiveness. Because if you're going to do that with them, they know that you're going to be there 24/7 if the hits the fan or they need help or issues going on.
S
Scott McNealy23:23
Here's the lost art today with the young kids who've been learning blue screen, self-paced, on-demand learning. Sales is a contact sport. You've got to be there. You can't zoom your way to B2B success. You might be able to do B2C success on the screen and zooming and all the rest of it, but B2B, you better be there. You better take him to lunch. You don't have to buy a fancy lunch, but you got to be there. They got to see you. I went to Japan 15 times where I sat there. I remember sitting down with the Fujitsu executive team the first time. There's all the board, the CEO, and they just sat there and they grunted. They just looked at me, and they were waiting to see if I was patient enough to let them talk first. Fortunately, I had good coaching and schooling, and I just sat there and politely bowed and all the rest. After about 15 times and a bunch of dinners, I'll never forget when I got engaged to Susan, the CEO of Fujitsu said, 'What's new with you?' I said, 'Well, I just got engaged.' He leans back and goes, 'I understand you go from open systems to proprietary systems.' The whole place cracked up. That's when I knew we were gonna have a big relationship. When they're finally cracking jokes and having fun with you, you know you're gonna have a great relationship. Fujitsu, I think, was our largest customer along with maybe AT&T and Kodak and a couple of others. You just got to go spend the time. You got to accept the culture. You got to accept the management and personalities of the people you're working with and compliment them. You still got to be you, but you got to be very... they gotta like you, they gotta trust you to do these big deals.
H
Host25:19
Absolutely. Know me, like me, trust me. Absolutely. And it was also great about the Vinod story. It wasn't just the rep and then the leadership going on to call in Vinod. He was there with that. How many times these days I see it where hey, the rep's there, and okay, where's the leadership? Where's anybody from management? Rep's coming to me, 'Hey, Randy, can you help?' I'm like, 'Where the hell's your leadership?' 'Well, they can't really get here. They don't want to. They're busy or they got a QBR.' I'm like, 'Yeah, be freaking kidding me.' What's more important than leadership also showing up to show that support to help the sales team?
S
Scott McNealy25:48
Exactly. And what Sun did aggressively was we had, I think, two tech support engineers for every sales rep. The sales rep could go and make a call and drop off a tech support engineer and leave them there to help and do the work. Sales reps thought they were important, but our TSEs were far more important. In fact, our Unix capability in our tech support engineering was the second best Unix development team in the world behind our own development team. That's how you have to build a really great sales force. If I'm a sales rep, I would take care of the TSEs. I would take them to lunch because you want them on your side and wanting to help your customers.
H
Host26:38
Absolutely. And I think Hal Stern, if I remember right, was kind of the ringleader of that group.
S
Scott McNealy26:43
He was, he was awesome.
H
Host26:45
So great. All right. And then for those that have chimed in, Tucker, if you want, feel free just to kind of pop them so others can see. But thanks to John, Colt, Ruthanne, and Ryan, who just went from LinkedIn to Indeed to now I think Salesforce, Ryan, and Dimitri, and Helen, John, Dimitri again. If anybody wants, feel free to ask a question. We have Tucker behind the scenes as always helping us. So thank you, Tucker. So Sun spawned a lot of unicorn CEOs, a lot of great leaders. Any tips for how you develop people?
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Scott McNealy27:28
Yeah, it was just survival because I didn't want to be CEO. I never did. My dad was vice chairman of American Motors, president of AMF, and ran an ad agency, and I never saw him. I didn't want to do that with my boys. So I never wanted to be CEO. I always wanted to be number two. I talked Vinod into being CEO, and we started the company. But two years later, all of a sudden I'm CEO. I handed the board a resignation letter the day I took over, and I said, 'Anytime you guys want me to step down, I will help you find a real leader.' There's a lot of stories about how that went. But I spent my whole time trying to develop my replacement. As a result, Carol Bartz, Eric Schmidt, Saan Adel at Microsoft, Bill Coleman at BEA. We added it up, and there were over 200 former Sun folks who became CEOs in tech and the valley and all the rest of it. So I was successful in developing, but I never was smart enough to make them take over. Eventually, I just said, 'All right, I've had enough, and it's time to step aside.' But that development was always to ask us to seek denial was part of this thing. We delegated, we architected, and then distributed the responsibility. So I spent a lot of time architecting the company and then telling people, 'Oh, you go get it done.' To ask us to seek denial was a really important part of it. Go do it and don't screw it up. If you screw it up, come back, apologize, and then fix it, and everything will be fine. Don't you dare cheat. We had a dress code. You must kick butt, have fun. It's your responsibility to stay skills current, not the company's. We had a lot of big rules to help us run the company. Joe Robach helped us in sales where there's a wallet, there's a way. I would always say that no deals ever lost, it's only postponed. The customer comes first. I also got trained well in sales by a lot of very senior sales guys. They looked at me and go, 'Look at this kid, he's not even shaving yet, and I got to take him in.' So they would kind of slap me around a little bit before we go in. What I learned first was you don't go in and talk the first thing. You say, 'Hey, how are we doing?' If they're a current customer, don't you dare try and sell something new. You say, 'How are we doing? Are we taking care of you? Is everything okay?' The last thing you want to do is step on the landmine without letting them explain to you where the landmines are. Then you say, 'All right, we're gonna get those fixed.' Then I would do this, and the thing I would say always on the out the door, and I probably did that to you more than once, I would say to the customer, 'Thanks for your time. I appreciate it. If Randy isn't getting it done, here's my phone number. You call me the second he's not getting what you need done.' The customer appreciated that, and the sales rep would go, 'Oh my God, I don't want them calling Scott.' So I kind of put them on notice. It's your job to keep these guys happy. But making the customer talk first. If they weren't a customer, I would say, 'All right, who are your current suppliers and what are your big pain points?' I would make sure they talked. After they talked, I would go, 'Wow, that's exactly what I'm here to solve,' no matter what they said. So it really made your sale. I don't know whether they believed it or not, but you could craft a story that would explain how what you're doing will help them with their pain points. That was the key to success. Too many salespeople want to hear themselves talk.
H
Host31:12
Yep, absolutely. And then when you're hiring top talent, any traits in particular that you look for?
S
Scott McNealy31:22
You know, I really hired really great sales managers who didn't mind letting people go who didn't fit the culture. I think that's the hardest part. I know with Colt, he's sort of like me. My biggest fault was always at the board when they would do my reviews: you don't fire the people you come in and you complain about them, but you don't fire them quickly enough. That's not a Steve Jobs trait, that's not an Elon Musk trait, that's not a Larry Ellison trait. That's a McNeely trait. I just had a hard time. If I hired somebody, it's because I liked them. That's a key component. I think that's why almost everybody, 99.9% of the people who are former Sun, said that was the best place they've ever worked. Because we all got along. We were good people, we were nice people, hardworking, all the rest of it. But sometimes people just are misplaced or we mishired. The good sales managers will let the people who aren't getting it done go and not think about it. Joe Robach, Darl Barb, all these guys that helped build our company, they said sometimes I made a mistake, and they would address them quickly. I think that's important for sales management. Some people aren't cut out for sales. Some people just don't have the knack. Some people just don't have the constitution to take no and to respond from it. Some people take no and crumple. Other people take no and go, 'Watch this, hold my beer.' So you got to get the right crew in there.
H
Host32:55
Yep, absolutely. So from Rick Diana, we have a note here: 'Thank you, Scott. 25 years ago when one terabyte filled the data center, I learned a competitive sales lesson. EMC and Sun both had share of a particular Fortune 500 auto manufacturer. It was in my account, but it woke me up nevertheless not to take a competitor for granted. Apparently, the EMC account team was proud of its four terabytes in the data center until they learned that Sun had 10x that with 40 terabytes on the edge. And yes, Scott, sales pros cannot zoom themselves to sales prominence. Would love to hear another parenting story. I did love playing right field in college but wish I concentrated more on golf.' You gave lots of parenting tips there. Anything else briefly you want to add?
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Scott McNealy33:50
You know, you're not your kid's friend, you're their parent. Too many parents want to have sleepovers and go water skiing with their kid and do all these other things, or let them play their sport they want to. If the boys didn't want to play golf, when we went to the driving range, one would all in, very B, 'I want to play.' I said, 'We sit in the car, no problem. Then we get ice cream and we go hit golf balls at the ball picker upper, and everybody be laughing having fun, and the kid will come out and play.' Or, 'I don't want to play hockey, I want to quit.' 'All right, go in and tell your coach. I'm not telling them.' You got to be their parent, not their friend. If you do that, they'll be your best friend for life when they're out on their own. I hear from all four boys every day. There's nothing that makes a life more fulfilling than having your kids call you every day to tell you what's going on, to ask you a question, ask for advice about something, or complain about something. There's nothing better. I don't understand the new generation not wanting to have kids. I wish I had 12 kids. My role model was Fred Smith, who never missed dinner and built FedEx. He had lots of kids. He's more impressive to me than Elon Musk, who's at least having the kids. I'm not saying he's not a great dad, but Fred Smith is a super dad while still doing unbelievable things. It can be done if you're effective. Jack Welch taught me that. It's good in parenting too. Deal with things as they are, not as you wish they were, and deal with them quickly. Once you've established reality, step into it and be consistent with that. Those are all parts of parenting and decision-making and living. By the way, my boys didn't want me to be home all the time. They wanted to see me working. They need a role model. They don't need a role model of somebody who's tailgating and watching sports all the time. They want to see somebody who's actually trying to move the capitalist ball forward.
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Host36:20
Absolutely. And from Joe Schu, I thought it was Jonathan for a minute. The picture. Thanks for great Sun years, Scott. Many of us learned from the culture that you built that sales is very much a contact sport, and getting in the trenches in person with customers, especially in hard times, means absolutely everything. I mean, you're always... we'd have times when things would break, and we'd get in there, you'd come out. Most CEOs and leaders would kind of run away, and you'd kind of jump in the fire.
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Scott McNealy36:55
There's no problem that you can't overcome. In the early days, when I took over two years into it, two years to the day I took over, we had two million in sales and we were losing half a million a month. I went out to the factory floor, and every third workstation had a red hat on it, which meant it was broken and it failed diagnostics. We would ship the workstations to the customer, and within 10 seconds, about 25% of them, the monitor would just go off like a flash bulb and die because some phosphorus would break off the screen during shipment and go back to the high voltage arc. The MOSFET transistor, I remember all of this to this day, and it would zap and blow up, not literally, but the screen would go out and go dead. So it looked like the computer died. We couldn't stop shipping because then they would go to a follow. So we kept shipping them. All we did was we said, 'All right, let's send a whole bunch of extra monitors to the sales office.' So when the customer would call the sales rep, I remember a sales rep telling me a story. The customer called, 'Hi, I just got my shipment, and the monitor...' 'How many? I'll be right there.' Boom, we were there within minutes with seven extra monitors to turn them on. The guy would go, 'IBM doesn't have this kind of service.' We were able to turn lemons into lemonade in a very, very powerful way, even though we had an engineering problem. So you sometimes have to spend the money, but we totally solidified customers. You'd almost do that on purpose: have your stuff blow up and then go in and fix it right away. 'Look at this service on these guys.' I'm not recommending that.
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Host38:46
There you go. So great. So you kind of were or are admittedly shy, but yet you seem to be an extrovert in business. How did you kind of get over that hump?
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Scott McNealy38:58
Yeah, nobody believes that. But if you go find my Cranbrook High School yearbook, it says, 'Scott's shy and unassuming. Man, are one of my wealth of friends.' I was. I did. I got because I didn't want to get embarrassed. I just didn't want to get called out. I just wanted to kind of sneak through life without doing my thing. All of a sudden, I became CEO. The first annual shareholders meeting speech, John Doerr's in the back row, one of our board members and major investors. I put up slide one, and I turned my back to the audience and read the first slide. Then I clicked and I read the second. I never turned around and even looked at the audience. I went click, click, click, click, and said, 'Any questions? Please, no questions.' At the end, John Doerr hauls me aside and said, 'I'm sending you to New York, and I am going to send you to a three-day speech therapy class. You're going to learn how to give public speaking.' He sent me out there. Stanford MBA, I was not a good public speaker. That's just ridiculous. They taught me nothing about sales, just absolutely ridiculous. Anyway, that taught me that I'm just going to have to be an extrovert. If I'm going to be on stage, I can remember the first two, three years I gave speeches. I would have to wear a jacket because I was sweating under my arms, nervous about speeches. I would be nervous the night before. Pretty soon after a while, I got into it where I would just, the only thing I'd prepare for was my top 10 list: top 10 reasons Bill Gates is a monopolist, or the top 10 signs you're going... whatever. I would always come up with something and have the place laughing and being a wise guy. Then I'd tell my stories. I learned to have slides that had one word or just a picture up, and then I'd talk, tell stories. I was a storyteller up there. Then I learned, I'm going to walk into a customer and I'm going to look them in the eye, shake their hand, and forget their name immediately. I still do that. But I learned if I'm going to represent, we had 235,000 employees roll through Sun Microsystems. I was going to represent them. I couldn't be a hermit. We couldn't advertise. We couldn't out advertise IBM, DEC, Hewlett-Packard, Intel, Microsoft, all these other companies. I had to get the press. I had to be a quote machine. I would be a quote machine for 'Dumber and Butthead' and 'big hat, no cattle' and all those other things. I used to be 'big hat, no cattle.' Now I'm 'big hat, lots of cattle' with the ranch I just bought. But I digress. I learned to use the power of the press. I would say to the WSJ or the reporter after every talk, 'I gave you a lot of good content. Treat me right, treat me fairly, and I'll give you more.' Even still, my... it was Scott the... what was the word they always used for me? The outrageous, controversial. They would always have some adjective about me. Brash. That was the one. 'Scott the brash CEO of Sun Microsystems says...' I'm not brash. Actually, if you come to dinner with me, I'll be kind of quiet. But I learned that I had to have a persona that cut through. We didn't have the advertising dollar, so I got a lot of free advertising, lots of free PR.
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Host42:50
There for sure. As Greg Papadopoulos mentioned, I think you called it the biting commentary. So how about the Marriott meeting story?
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Scott McNealy43:01
Yeah, so this is the sales persona. I learned, you know, one of my first jobs before I even went back to business school, I sold plastic for Rockwell International. So I knew what it was like and how hard it was, and how it could be a problem. So we wanted to reward the sales guys, we wanted to motivate them. Sales Club was a thing. This was an '80s thing. It's too bad that it's gone because there was nothing harmful about it, nothing toxic about it, nothing exclusionary about it. But it was outrageous, and people drank. Anyway, we rented the Marriott Desert Springs one year. We rented the whole thing. There were about 3,000 rooms. Sales reps were allowed to bring their significant other. I brought my mom most of the time because I was single through all those years. Joe Robach would have a theatrical play, and he always had to be the center of attention. People loved it and laughed about it. They would do things, have fun. I tended to stay away because I wanted to have fun, and I didn't want them to think the boss was watching. They were there with their significant other. So I was checking out after three days. I could see the light flashing on the checkout screen of the gal, and she goes, 'Are you Scott McNeely, Sun Microsystems CEO?' I go, 'Yeah, yeah, yeah.' She goes, 'Don't move. I'm getting my manager.' She ran and got her manager. The manager came around the thing and got toe to toe and she go, 'You come here, Mr. McNeely.' The manager wasn't gonna thank you for your business. No, she wasn't. She said, 'I don't ever want your company back at my hotel again.' That's when I knew we were gonna make our numbers the next year. I tried not to laugh. I said, 'Well, what seems to be the problem?' I'm trying to be serious. She says, 'Well, your place was out of control. Everybody was drunk. They were up all night. They were loud and screaming. We had a couple other guests who weren't yours, and they were all complaining about the noise. Then you gave out all those neon necklaces, and they're all up in the trees. It all looks like Christmas everywhere. It's littered everywhere. It's just amazing. Then you had that... what was it called? The Knights and King Arthur kind of dinner where you eat with your hands. She said there were at least 45 Cornish game hens in the air at any single moment in time. There was just this absolute food fight.' I'm just like, 'I wish I'd been there.' She said, 'What the final straw that broke the camel's back was when your team pushed the live cow into the pool.' At that point, I'm really sorry we won't come back. But let me tell you, our sales meetings were absolutely epic. The spouses, the significant others, on the flight home would say, 'Don't you come back into the house until you've qualified for Club the next year.' That's one of the reasons the team was so motivated and so focused and worked so hard to make our numbers. They wanted to go to Club. Plus, they had a lot of other people that they knew. I made it very explicit. I said, 'You guys don't sell, we're laying off people in this company.' I would also go to a chip company and a chip team and I would say, 'You don't get this chip on time, we're gonna have to lay people off.' I wasn't that direct with it, but I explained that there were a lot of your friends, compatriots, who are not going to fare well.
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Host46:53
Absolutely. And Ruthanne chimes in on the sales culture. So with the sales meetings, the directness, leading by example, you are very deliberate in really shaping that great sales culture.
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Scott McNealy47:04
Absolutely. I mean, it doesn't happen automatically. Yet at the same time, you have to put constraints on. You got to tell them, 'You sell what's on the price list. If you're going to move off the price list, you better get management to agree to go do that. You can offer service and time, but don't make the company do something that it wasn't designed to go do.' Unless... so it was always a balance. Joe Robach was famous in the budgeting process for yelling, 'All right, if you're not going to do this, close Chicago. Let's just shut it down. No reason to have Chicago.' So that became kind of a fun tagline during budgeting time: 'Just close Chicago.' I did have Java hacked out of the budget while James Gosling was developing it at least four times where my COO had cut it out of the budget, and I had to go back and put it back in. So again, it is sort of the boss's problems. I made the mistakes and I made the good decisions both. I had to take responsibility. I don't want to go into all the mistakes I made, but there were a lot. In retrospect, it's really amazing how screwed up I was. But we did better than most.
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Host48:36
That's great. So in conclusion here, Jack says, 'Sorry, join late. Did I miss the top 10 list?' No, but I should have done a top 10 list. I'll do that next time. We can come back with that. So yeah, lots of great sales tips that you shared. Anything else relative to sales wise if you're talking to a sales team today?
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Scott McNealy48:56
Yeah, I'll tell you the best thing we ever did for our sales team. People can go back and search. There were no scandals. There were no issues of ethics at Sun. That's the thing I'm most proud of. We were a good company. We shared our technologies. We shared in the success of the company enormously. It's why I'm a rancher instead of building a prepper thing in Hawaii right now. I didn't care to win the dollar race. I cared to win happy customers, fulfilled employees, and doing it in an ethical way. I sort of wish a lot more of the leaders in all aspects and all institutions of America would take a little stronger focus on that. Because I think we've lost the commonality of purpose and the commitment to the rule of law and ethics and personal responsibility in a horrible way. I hate to leave on a downer, but I'm very, very proud of the team and all 235,000 former employees that make, just including you, the best network of family that you could ever have. Like all the people that are helping Colt with The Little Horse, it's just so heartwarming for me. To see the Sun employees cheering Maverick and Scout along on the sidelines everywhere I go, the old people still remember me.
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Host50:45
So awesome. Well, they've been amazing for sure. Thank you so much. Coming up actually next week on Monday, we have Greg Brown, who's the CEO of Motorola Solutions now. I don't know if you remember, I remember an interesting Wall Street Journal quote that Ed Zander, who I think was Greg's predecessor, said that really wasn't too sales-friendly. Do you remember?
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Scott McNealy51:09
Yeah, it was on the cover. I don't think he meant it that way, but it came across that way. He said, 'I love my job. It's a great job. I love Motorola. The only bad part of it is the customers.' I didn't think that was exactly the message you want to put on the front page about being customer-centric.
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Host51:27
Little misquote. Yes. But I can vouch, known personally very well, Greg is wired like you: customers first, sales, kind of everything else. And then after that, we have Denise Mard, who's a channel chief at Dell, Matt Herer, who runs a big piece of WWT. They were probably an early channel partner of yours as well. Lots of other great guests as well. So for everybody watching, thank you so much. Thanks to Sandler for sponsoring again. For those that are members of Sales Community, thanks. For those that are not, you can go to salescommunity.com and join for free. Tucker, thanks for your help behind the scenes. And Scott, personal thanks for all you did for me and my family and my career and my life. Just leading by example always professionally and personally. Thank you so much.