What makes chief executives of the nation’s largest black-owned businesses great? When I wrote my book, Titans of the B.E. 100s, I found a largely self-made lot that conquered obstacles–lack of capital, diminished access, and outright racism–to seize opportunities, break barriers, forge institutions, and, in many cases, change the course of commerce and society.
There are those, however, who are a cut above, elevated to rare air. There’s the late John H. Johnson of be 100s mainstay Johnson Publishing Co. Inc., who presented a diverse, multidimensional black America to the world through his publications and introduced the value of the African American consumer market to corporate advertisers. Another trailblazer, the late Reginald F. Lewis, demonstrated that African American entrepreneurs can deftly structure complex financial deals after he orchestrated the $985 million leveraged buyout that created TLC Beatrice International Holdings Inc., the first black corporation to gross more than $1 billion. Then there’s baseball legend Henry “Hank†Aaron, who not only beat Babe Ruth’s home run record but hit grand slams in the automotive and food industries. Billionaire dealmaker Bob Johnson, founder of BET, took the company public on the New York Stock Exchange–an African American first in 1991–then private again and sold it for approximately $3 billion; he would go on to buy and sell other groundbreaking companies in professional sports, real estate, automotive, and finance. And there’s Oprah Winfrey, who acquired the rights to her talk show almost 25 years ago and leveraged her brand into a multimedia empire.
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That’s just a few. In identifying 10 CEO icons who have appeared on the pages of Black Enterprise over the past four decades, we found they shared common traits–vision, order, focus, strategy, and passion–as well as the need to bring along the next generation of black entrepreneurs, progeny or not. Here we’ve culled from our archives personal reflections and timeless advice that offers a glimpse into their formula for success and the means to help position your company to achieve greatness.
Reginald F. Lewis
Late CEO, TLC Beatrice International Holdings Inc.
On strategic alliances:
Probably all of our deals will involve forming alliances with key operating people, combining our strengths, which are primarily strategy- and finance-oriented and involve a certain level of creative positioning in the marketplace with the knowledge of people who have grown up in … whatever industry it is. That combination, that marriage, if you will, is what the marketplace is looking for because in today’s world you need all of these elements.
John H. Johnson
Late Chairman & CEO, Johnson Publishing Co. Inc.
On management:
I run scared every business day and use every legal
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Berry Gordy Jr.
Former Chairman, Motown Industries
On the importance of focus:
Our general philosophy is just to make a better product. It has to do with our general reputation in doing business and with understanding ourselves and our motives, and understanding other people and their motives. We try to avoid pettiness of any kind. We try to avoid sidetracking. And we have balls enough to believe in our convictions and try to get results.
Earl G. Graves Sr.
Chairman & Publisher, Black Enterprise
On gaining access:
Because they live, work, and play together, white businesspeople generally aren’t forced to use their ingenuity as much as we are. Most of them don’t have to storm the castle. If I want to get to the CEO of a company and I can’t do it by going in the front door, I’ll sit down and examine the individual. What corporate or charitable boards does the CEO sit on? Whom do I know that may get me inside?
Don Barden
Late Chairman & CEO, Barden Cos.
On business investment:
I have learned to look for businesses that make money while I sleep. I like to acquire any business that doesn’t require an exorbitant amount of time and capital to turn it around. Yet, I want to be able to expand the core business. So own businesses that don’t require 100% of your attention and time so you’re always available to spot and pursue your next opportunity.
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A.G. Gaston
Late Chairman, Booker T. Washington Insurance
On rules of success:
Save a part of all you earn. Money doesn’t spoil; it keeps.Take no chances with your money. A man who has no money to lose has no business gambling. Never borrow anything that, if forced to, you can’t pay back. Find a need and fill it. Successful businesses are founded on the needs of people. Once you have money, or develop a reputation for having money, people will give you money.
Bob Johnson
Founder and Chairman, RLJ Cos.
On leveraging your assets:
Try to align yourself with a strategic partner [that] can bring something to the deal you don’t. Don’t worry about 100% ownership. If you generate value, nobody is going to take you off the field. Do not miss the chance to leverage whatever assets you have, in addition to your ability and skill. Leverage your
political clout. Leverage your demand that companies address opportunities for minorities in [a given] sector. Don’t be afraid you’re going to be blackballed. If you’re good, you won’t be blackballed.
Hank Aaron
Former CEO, Hank Aaron BMW
On making the transition to an entrepreneur:
I always had my eye on the bigger picture. I believed that if I could just get into something and keep it growing, I could do well. That’s when I looked at myself and said I was a businessman. I tell all athletes to make valuable contacts when you’re playing baseball. The people I made contact with eventually came back to me to get into business…You have to prepare yourself by looking at someone who is not in the same picture with you, not playing sports.
Oprah Winfrey
Chairman, Harpo Inc.
On managing growth:
For too long I operated this business like a family. After a while you can’t see everybody, you can’t talk to everybody. And you have people manage people who were never managers before. I’m getting to the point of understanding how strategic planning, creating an infrastructure, and having a vision can be helpful. And as I move forward in creating other companies, I’m operating more as a businesswoman.