Lessons from Hubert Joly

ubert Joly, the former CEO of Best Buy and the architect of its remarkable turnaround, is a prominent voice advocating for a more human-centric and purpose-driven form of capitalism. His philosophy, detailed in his book "The Heart of Business" and numerous interviews, offers a wealth of wisdom for leaders in any industry.

On Purpose and Meaning

At the core of Joly's leadership is the belief in a "noble purpose" that transcends profit. He argues that when people are connected to a meaningful mission, they can achieve extraordinary results.

"At the heart of business… is the pursuit of a noble purpose, putting people at the center, embracing all stakeholders, and treating profit as an outcome, not the goal." [1]
"Purpose and human connections constitute the very heart of business." [2][3]
"A noble purpose has to be your North Star — in the case of Best Buy, we decided that our purpose is enriching people's lives through technology." [4]
"Work is a quest for meaning. Maximizing profit does not answer that quest, and it is not what drives people to give their very best." [5]
"Fulfillment from work comes from doing good things for others—and in so doing, contributing to the common good." [6]
He quotes Kahlil Gibran to emphasize his view on work: "Work is love made visible." [1][7]
"The refoundation of business starts with considering work as an answer to our quest for meaning and fulfillment." [6]
"You find Purpose at the intersection of four areas – what the world needs, what you are passionate about, what you are good at, and the economic value of what you create." [8]
"Business is fundamentally about purpose, people and human relationships—not profit, at least not primarily." [5]
"If you are looking for an alternative approach to help make business a genuine force for good, this book is for you." [6]

On People and "Human Magic"

Joly champions the idea of "unleashing human magic" by creating an environment where every employee can thrive. He believes that people are not resources to be managed, but the very source of creativity and success.

"Humans are not a resource, they are the creative engine of innovation and change that companies urgently need." [9]
"Human magic is when, at scale, you have employees who do things for each other and for customers that nobody has told them to do." [10]
"Our role as senior leaders is less about coming up with the right answers from a strategic standpoint, but more about engineering the right environment so we [can unleash 'human magic'] at scale." [11]
"Identifying individuals’ passions and motivations, and then freeing them up to pursue them, creates what Joly calls “human magic.”" [9]
"Your Company's Success Hinges on Effective Employee Input." [12]
"What we did is turn a large number of disengaged people into engaged employees, inspired to care for their customers." [6]
"It starts with figuring out what drives each individual, so you can connect their personal purpose with the purpose of the company." [4]
"Delegation and autonomy lead to human magic only when people are both skilled and motivated." [2]
"The architecture I am advocating has employees at the heart of business, creating and nurturing caring and authentic relationships." [6]
"Treating employees as human beings allows them to connect with their work, be the best version of themselves, and unleash “human magic” at scale." [11]

On Leadership

Joly advocates for a new model of leadership that is authentic, vulnerable, and focused on serving others. He rejects the "superhero" leader in favor of one who empowers their team.

"The old model of leadership portrayed a leader as a superhero here to save the day... This [type of leadership] doesn't work… [people] want to be part of the journey and the solution." [1]
"Today's leaders have to be purposeful, be clear about whom they serve, be conscious of what their true role is, be driven by values, and be authentic—the five “Be's” of the purposeful leader."
" [2]Admitting you don't have all the answers is a sign of strong leadership." [9]
"Be wary of adding too much value as a leader. It is destructive to try and be the most intelligent person in the room." [8]
"Our role as a leader is not to solve problems for our teams. It is to create an environment where they can be their best." [8]
"The most important decisions CEOs can make are choosing whom they put in positions of leadership." [10]
"A leader is like a gardener who knows that in order for seeds to grow they need to be sown in fertile ground." [13]
"Connecting leaders are 'leaders who lead with all of their body parts: their brain, their heart, their soul, and their gut.'" [14]
"Reflecting on the Covid crisis, Joly highlights the importance of leadership from within. He advises leaders to spend time introspecting, understanding their leadership style, desired legacy, and how they want to be remembered." [15]
"You can disagree on the strategy...The other is opposition to leadership expectations – how we will agree to lead a change. All must agree to that...Not onboard is fine, but you can't work for us." [8]

On Turnaround and Strategy

Joly's experience at Best Buy provides a masterclass in corporate turnarounds. His approach was counterintuitive, focusing on people and growth rather than just cost-cutting.

"When things are going well in a business, look at the front lines. When things are not going well, look within the Executive Suite." [8]
"Operational progress creates strategic freedom - Before focusing on strategy, focus on fixing what's broken for the customers and employees." [8]
"I spent my first week on the job working in stores and listening to the front liners. That's something I would recommend to any new CEO." [4]
"A lot of the advice I was getting at the time was cut, cut, cut...The essence of the turnaround was a very human-centric turnaround." [16]
"Focus first on growing the revenue. It's incredible what revenue growth can do. Then, focus on taking the costs out that have nothing to do with people." [8]
"The problems of the company were essentially self-inflicted. And that was great news, because if it's self-inflicted, then you can correct it." [4]
"We only have two problems at Best Buy: revenue has been going down and margins have been going down. Only two problems. How hard can it be to solve two problems?" [17]
"Strategy is not about beating the competition, it is about becoming the best version of yourself for the benefit of all stakeholders." [11]
"In a competition with Amazon, we neutralized that because same prices, similar experience, same speed of shipping. And then we were able to invest in our other assets." [16]
"Co-create the strategic plan with your organization and then get going. No one likes it when the CEO tells everyone what to do." [8]

On Profit and Capitalism

Joly argues for a re-foundation of capitalism where profit is not the sole objective but rather an outcome of a well-run, purposeful business.

"Treat profit as an outcome, not the goal." [18][19]
"Profit is seen as an outcome more than anything. It's like the temperature of someone – it's a symptom of someone's health, not a goal." [12]
"Pursuing a company's purpose is superior to Milton Friedman's dictate that 'the social responsibility of business is to increase its profits.'" [20][21]
"Making money is an imperative, but it's not the purpose of business." [7]
"We cannot run a company if the planet is on fire...it is up to companies to do their best to respond to what's going on in the world outside their four walls." [13]
"This is how we can reinvent capitalism, so it contributes to a sustainable future." [18]
"Capitalism as we have known it for the past few decades is in crisis. More and more people hold the system responsible for social fractures and environmental degradation." [2]
"The next era of capitalism...companies that place a high priority on sustainability, people, and purpose will be better able to adapt to the shifting demands of investors, employees, and customers." [22]
"Contrary to popular belief, the carrot and stick approach does not work – if you treat people like an ass they will behave like asses." [13]
"The world as it currently functions cannot continue." [13]

Learn more:

Lessons from Hubert Joly

On Purpose and Meaning

On People and "Human Magic"

On Leadership

On Turnaround and Strategy

On Profit and Capitalism

Written by Antoine Buteau

Lessons from Clayton Christensen

Lessons from Wes Bush