‘Passion
for technology’ leads Krasny to fortune
Entrepreneurial
CDW founder makes business personal in Kellogg speech
By
Matt Golosinski
If Michael
Krasny hadn’t become the head of CDW Inc., a $5.3 billion
technology company, he might have been a used car salesman.
In fact, for a time, he did enter the family business and
sell Toyotas.
But the
self-described “propellerhead” and “geek”
couldn’t resist his passion for the high-tech world
of the late 1970s. As he recalled during a speech at the Kellogg
School on Jan. 18, he used to “hang out in computer
stores” and he bought one of the early IBM PCs in 1977.
“Things
never came easy for me,” admitted Krasny in an address
that was part of the Kellogg Distinguished Entrepreneur Speaker
series, sponsored by the Larry and Carol Levy Institute for
Entrepreneurial Practice. The chairman emeritus and founder
of CDW said that he would have preferred attending trade school
rather than college, but his parents insisted on the latter.
“Computer
Science was the only class I really enjoyed,” said Krasny.
The education
must have proved sufficient, since in 1984 he went on to found
a company — in his kitchen — that has since landed
at No. 376 on the Fortune 500 and has recently ranked
No. 14 on Fortune’s list of the 100 best companies to
work for.
The plainspoken
executive recounted how he began his business by selling that
first IBM system for $200, using a Chicago Tribune
classified ad to find a buyer. He parlayed these funds into
$400, and then more, by continuing to buy computers and resell
them. Soon, he was selling 50-100 systems a week out of his
car trunk, serving as de facto sales, repair delivery and
tech support chief.
“I
never had a business plan for CDW, just the passion for technology,”
said Krasny. “I knew that I wanted to control my own
destiny, and the firm evolved from that.”
Today,
the Vernon Hills, Il-based firm boasts some 3,700 employees
and subscribes to the philosophy “success means never
being satisfied.” Among other distinctions, Krasny was
named CEO of the Year by Financial World in 1996 and
was recognized by Inc. magazine and Ernst and Young
in 1993 as Entrepreneur of the Year.
During
his lecture, Krasny accented the importance of cultivating
a healthy working environment for colleagues, putting them
first to ensure that the business thrives. “Shareholder
value is not my primary concern, and customers are not my
primary concern,” he said. “Put your co-workers
first and all else follows.”
Krasny
articulated several “keys to success” at CDW,
including the value of mentorship and humility. “I’ve
tried to lead with humbleness,” he said. “A good
manager puts others’ needs first.” He also highlighted
the importance of cultivating shared valued among team members
and creating a work environment that is “fun, but not
a country club.” Recognizing that “the customer
is the ultimate employer” and implementing highly automated
systems were also vital to CDW’s success, he said.
Budding
entrepreneurs will improve their chances by throwing themselves
passionately into their work, Krasny noted.
“Make
your work personal and make it more than just a business.”
Responding
to a question about CDW’s growth strategy in a highly
competitive market, Krasny explained that the firm is now
pursuing more government contracts and looking into target
markets, such as healthcare. Stating that current growth in
the technology sector is pegged at 5 to 7 percent, Krasny
added that he believes CDW can achieve 15-percent growth,
possibly more.
Looking
back over his years as CDW chairman, Krasny, who stepped aside
in 2001 and now remains a “very active” board
member, recalled the firm’s commitment to trying new
approaches.
“Innovation
was our middle name, and not everything worked,” he
said. “But our people knew it was better to ask for
forgiveness than to ask for permission.” |