B-School > News > Alumni Profiles > Johnson

Alumni Profile: William Johnson

Food For Thought from Johnson's speeches On success in the food industry Woody Allen once said that "80 percent of success is showing up ... In the food business, the more appropriate perspective derives from the old saying that "success is laying a firm foundation with the bricks that others throw at you." At Heinz, the formula for success has rested for many years on a deceptively simple motto authored by our founder: "To do the common thing uncommonly well brings success." On planning for success It is true that you can score a touchdown with a heroic 100-yard kickoff return, but you'll be disappointed 99 times out of 100. But if you plan each play in your drive meticulously and execute it flawlessly, you can make one first down, then another, then another -- until you've taken the ball across the finish line. On involvement and teamwork Involvement means inspiring teamwork and promoting communication. You have to give people the opportunity to succeed. And to do that, you sometimes have to give them the opportunity to fail. That entails risk, but it's the only way individuals and teams can grow together. On integrity Ambition will take you nowhere without the trust and respect of your colleagues .... Integrity inspires confidence and supports credibility. Remember, the only things you take to your grave are your name and your integrity.

Editor's note: please contact us to nominate other alumni for working world columns.

(March 3, 1998) - In 1886, American entrepreneur Howard J. Heinz made his first overseas sales to England. Today, H.J. Heinz is an international food giant with annual revenues approaching $10 billion. Effective April 30, the company appoints UT alum William R. Johnson (MBA 74) as the sixth president and CEO in its 128-year history.

"The tradition of this company is a great one," says Johnson, who finds it both intimidating and exhilarating to take over the top job at Heinz. "It is a thrill and an honor."

By all measures, Johnson has earned that honor. In 1974, he started out as an assistant product manager for Behold furniture polish, making $13,000 a year. In 1982 he joined Heinz as general manager of marketing at the company's U.S.A. affiliate. By 1988 he was president and CEO of Heinz Pet Products, and four years later he took over one of the company's most visible divisions, StarKist Foods.

Pricing Pioneer

Johnson became a pioneer in "price-based costing," a 90s-style practice that he describes as simple in concept but excruciating in execution. In the looser markets of the 1980s, Johnson explains, companies could follow the traditional formula, cost + margin = price. "Pricing covered a lot of sins," he says. "Global competition was just heating up and you could still obfuscate problems with pricing." That changed by the early 90s, as customers became more enlightened and started to find more and more product choices. "Now, you have to start by determining what consumers are willing to pay, and then do whatever is necessary to be profitable at that price."

Johnson used this strategy to great effect, accomplishing dramatic turn-arounds in the pet food and tuna divisions during his tenure. By 1993, his success earned him a spot on Heinz's board and a senior vice-presidency, with responsibility for Heinz's burgeoning operations in Asia and the Pacific.

More than 57 Varieties

When most Americans think Heinz, they think ketchup. The company known for "Anticipation" is definitely the world leader in ketchup -- not to mention the globe's largest buyer of tomatoes. But outside the U.S., Heinz is just as well known for baked beans (U.K.) and baby cereals (China). Today, Heinz markets 3,000 brands in 200 countries. Over 70% of its sales come from products without the Heinz brand name.

Johnson says his experiences in Asia and the Pacific were invaluable for learning how to run the Heinz empire. "Working overseas, you have to learn to be flexible, to adjudicate issues in local terminology." Each of Heinz's foreign markets requires a unique approach. This can mean anything from selling bean pizzas in England to policing brand fraud in China, where copyright laws are notoriously lax. In developing countries, marketing techniques that are out-moded in the U.S. may still be the effective. Even as standard a practice as profit-seeking may have to be modified for individual markets.. Over much of Asia, for example, growth is more important than profit-seeking, at least until a brand is firmly entrenched.

Under Johnson and his predecessor, Tony O'Reilly, Heinz has pursued global strategies with local tactics. For Johnson, this further underscores the importance of working abroad. In the future, he says, "No one will get one of these top-line jobs without international experience."

Known as a down-to-earth executive, Johnson is not above a little humor in the workplace. At company functions he has done the Hula dance, been chased by a kangaroo, and he was once coerced into joining a group dressed as the Village People (he was the Chief). "If you laugh at yourself, it can give you credibility when you have to be terse in other areas." Johnson is also a firm believer in personal, involved leadership.

Johnson's family moved to California when he was a child, but his Texas roots run deep. William "Tiger" Johnson, his father, earned his degree at Stephen F. Austin and was a football star for Tyler Junior College. Tiger Johnson played for the San Francisco 49ers from 1949-56, then began an NFL coaching career that continues to this day. "He's been a major influence on my life," says Johnson.

Looking for an MBA program in the 1970s, Johnson selected UT in part because he wanted to settle in Texas. To date this is one of few things that William Johnson has not succeeded to accomplish. The Lone Star state -- and his MBA alma mater -- are always ready to welcome him home.

For general media information contact director of communications: JB Bird (512-471-3314).