Modern Architect · 1959 — Present

Hubert Joly

Hubert Joly is a transformative leader renowned for orchestrating the turnaround of Best Buy and pioneering a human-centered business model.

Country

France

Continent

Europe

Industry

Retail, Consulting, Hospitality, Technology

Role

CEO, Chairman, Strategist

Hubert Joly is a French business executive, former chairman and CEO of Best Buy. He is credited with leading the 'Renew Blue' transformation, revitalizing the electronics retailer from the brink of bankruptcy. His career spans leadership roles at Carlson Wagonlit Travel, Vivendi, and McKinsey & Company, establishing him as a prominent figure in corporate turnarounds and stakeholder-centric management.

Biography

Hubert Joly's career commenced at McKinsey & Company, where he spent 13 years, becoming a partner in Paris and Chicago, specializing in the technology and media sectors. In 1996, he joined Electronic Data Systems (EDS) as head of their French operations. He then moved to Vivendi, serving as president of Vivendi Universal Games (now Activision Blizzard) and later as executive vice president for Vivendi Universal in North America. From 2004 to 2008, Joly was president and CEO of Cendant's Hospitality Services division, which spun off into Wyndham Worldwide. He led Wyndham as president and CEO until 2008, overseeing brands like Days Inn and Ramada. Following this, he became president and CEO of Carlson, a global hospitality and travel company, where he streamlined operations and spun off Carlson Wagonlit Travel. His most notable tenure began in 2012 when he was appointed CEO of Best Buy. Facing severe competitive pressures and a struggling stock price, Joly launched the 'Renew Blue' strategy, focusing on price competitiveness, enhanced customer service, store improvements, and employee engagement. This strategy successfully reversed Best Buy's decline, leading to significant market share gains and profitability. After stepping down as CEO in 2019, he served as Executive Chairman until 2020. Joly is now a senior lecturer at Harvard Business School and an author, advocating for a human-centered approach to business.

Accomplishments

01Led the 'Renew Blue' turnaround at Best Buy (2012-2019), reversing its decline and significantly boosting stock value and profitability.
02Successfully spun off Carlson Wagonlit Travel from Carlson (2008-2012), optimizing the parent company's focus.
03Oversaw the spin-off of Wyndham Worldwide from Cendant (2004-2008), creating an independent, publicly traded hospitality giant.
04Increased Best Buy's market capitalization from approximately $6 billion in 2012 to over $20 billion by 2018.
05Implemented a price-matching strategy at Best Buy, neutralizing the 'showrooming' effect from online competitors like Amazon.
06Revolutionized Best Buy's employee engagement, reducing turnover and fostering a culture of customer-centricity and expertise.
07Author of 'The Heart of Business: Leadership Principles for the Next Era of Capitalism,' advocating for purpose-driven business.
08Served as a senior partner at McKinsey & Company for 13 years, advising major corporations on strategy and operations.

Lessons for Operators

**Embrace Humanity in Business:** Treat employees not as costs but as assets. Best Buy's turnaround involved paying employees better, increasing training, and giving them more autonomy, which directly improved customer service and sales.

**Define a Noble Purpose:** Articulate a purpose beyond profit. Best Buy's purpose became 'enriching lives through technology,' inspiring employees and creating a deeper connection with customers.

**Prioritize Customer Experience:** Obsess over the customer journey. Joly's strategy included improving online presence, offering in-home consultations ('Geek Squad' expansion), and enhancing store layouts for better service.

**Confront Reality Directly:** Acknowledge and address existential threats head-on, such as Best Buy's price disadvantage against Amazon. Implement bold, decisive actions like price matching, even if initially controversial.

**Empower Front-Line Employees:** Decentralize decision-making where appropriate. Best Buy empowered store managers and associates to solve customer problems locally, fostering agility and responsiveness.

**Balance Short-Term Survival with Long-Term Vision:** Execute immediate fixes (e.g., cost cuts, price matching) while simultaneously investing in future growth areas (e.g., services, online capabilities).

**Lead with Authenticity and Vulnerability:** Joly was transparent about the challenges Best Buy faced and his belief in the company's potential, building trust and rallying support internally and externally.

**Foster a Culture of Learning and Experimentation:** Encourage trying new things and learning from failures. The 'Renew Blue' strategy involved continuous adaptation and refinement based on market feedback and operational results.

The Operator's Playbook

Key Takeaways

Practical lessons distilled for operators, investors, C-levels, and capital allocators.

Lesson 01

Purpose-Driven Transformation

A compelling, human-centered purpose can serve as the ultimate competitive advantage, aligning all stakeholders and driving sustainable performance.

Lesson 02

The Power of Human Capital

Investing in and empowering employees, from fair wages to extensive training and autonomy, directly translates to superior customer experience and financial results.

Lesson 03

Strategic Pragmatism

Successful turnarounds require a blend of aggressive, immediate actions to stabilize the business (e.g., price matching) and a clear, long-term strategic vision for growth and differentiation.

Lesson 04

Retail Resilience

Even in an era dominated by e-commerce, physical retail can thrive by prioritizing human connection, expert advice, and integrated omnichannel experiences that online-only competitors struggle to replicate.

Lesson 05

Leadership Beyond Management

True leadership involves inspiring rather than just managing, fostering a shared vision, and leading with empathy, courage, and authenticity to unlock potential.

Lesson 06

Holistic Stakeholder Value

Sustainable business success stems from creating value for all stakeholders – customers, employees, shareholders, and the community – rather than solely maximizing shareholder returns.

Lesson 07

Competitive Differentiation through Service

In price-sensitive markets, superior, personalized service and expert advice can be a powerful differentiator, converting shoppers into loyal customers.

Lesson 08

The Art of the Turnaround

Turnarounds demand decisive action, clear communication, a focus on fundamentals, and the ability to rally an entire organization around a shared mission against steep odds.

Mental Models

Frameworks & Principles

Named frameworks and strategic principles they popularized or embodied.

Renew Blue Strategy

A comprehensive turnaround strategy implemented at Best Buy focusing on improving core retail execution, enhancing customer experience, reducing costs, and reigniting innovation. Key pillars included price matching, employee training, supply chain optimization, and online integration.

When to useApplicable for companies facing intense competitive pressure, declining market share, or an outdated business model, requiring a holistic operational and strategic overhaul.

Human-Centered Business Model

A philosophy and operational framework emphasizing that the purpose of a business is to serve humanity, not merely to maximize profit. It involves prioritizing employee well-being, customer satisfaction, and a positive societal impact, believing profit will naturally follow.

When to useRelevant for leaders seeking to build resilient, purpose-driven organizations, improve employee engagement, foster customer loyalty, and ensure long-term sustainable growth by aligning business with broader human values.

Noble Purpose Definition

A strategic exercise to articulate a company's reason for existence beyond financial metrics. It involves identifying how the organization contributes positively to the lives of its customers, employees, and society, providing a guiding star for all decisions.

When to useUseful for organizations undergoing strategic realignment, cultural transformation, or seeking to inspire employees, attract talent, and differentiate their brand in a crowded market by communicating a deeper value proposition.

Omnichannel Retail Integration

A strategic approach that seamlessly blends online and offline customer experiences, ensuring consistency in branding, pricing, and service across all touchpoints (physical stores, website, mobile apps, customer service).

When to useEssential for retailers seeking to compete effectively in the digital age, leverage their physical footprint as a competitive advantage, and provide a convenient, personalized shopping experience across all channels.

Last 6 Months

Recent Appearances

Latest interviews, keynotes, and press from the past half year.