Barnes and Noble 1997 Annual Report Download - page 6

I
t is fashionable these
days to ask entrepre-
neurs the“vision” question.
“What do you see on the dis-
tant horizon,” they ask, and
“What is your vision for the
future of the company?”
The questions are intuited
by the assumption that busi-
ness leaders are locked into
the future by some sort of divine metaphysical
connection: the size, color and calculus of their
enterprises always measurable “within the mar-
gins”. The present condition of their business is
viewed as a temporary aberration; articulation of a
business plan becomes the raison d’être of the com-
pany. Profit models replace profits, and planning
for the present is viewed as an ill-conceived notion.
I respectfully disagree. Let me give you an
example of what I mean.
Recently, a journalist asked me the vision
question, “What does the future hold for Barnes &
Noble, now that it has done practically everything
possible in bookselling? Will you be opening a
chain of music stores (—No—) or perhaps pioneering
some innovation in the world of specialty retailing?”
My answer was simple: “We are barely half
way through our rollout,” I said, “so we’ve got at
least 500 more stores to open. I mean, is a six-,
seven-, even eight-billion dollar business something
to shake a stick at these days?”
Unsatisfied, the journalist said, “Yes, I realize
that’s a lot of business, but what else will you do to
occupy your time?”
To which I replied, “Well, there is also the
matter of BarnesandNoble.com, a venture which is
as challenging and as promising as anything we’ve
ever attempted.”
Frowning, she said, “You must have some-
thing up your sleeve that you’re not willing to tell
me about.”
On the pages of this report, we will address
some of the information which is “up our sleeve,”
and some which is right out on the table. For the
first time since the “super”
store rollout began, we have
achieved positive cash
flow as a result of strong
comparable store sales
and the excellent execu-
tion of our business plan.
We have also lengthened
our lead as the world’s
largest bookseller and
have emerged as a power-
ful global brand. For good
measure, we have launched an incredibly effective
Web site, while at the same time managing to
achieve earnings growth of 26 percent.
All of this is a result of keeping an eye on the
ball as well as foreseeing the future. There is, after
all, a distinction between vision and focus.
Let me conclude by saying that the successful
entrepreneurs of the next millennium will be dedi-
cated to both. By definition they will be leading, not
following, in every aspect of their enterprise. But at
day’s end, their success will be a function of their
focus as much as it is of their vision.
Barnes & Noble and BarnesandNoble.com
are picking up momentum just as the world of com-
merce promises to be as vast and as breathtaking as
the distant horizon. We couldn’t think of a better
place to be at this moment in time.
LEONARD RIGGIO
Chairman and Chief Executive Officer
CLOCKWISE: LEONARD RIGGIO Chairman and Chief Executive
Officer MARIE J. TOULANTIS Executive Vice President, Finance
STEPHEN RIGGIO Vice Chairman MITCHELL S. KLIPPER President,
Barnes & Noble Development
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