Robert L. Johnson: A Business Titan Redefining Black Entrepreneurial Success
by Robert G. Miller
Robert L. Johnson
(right) is the essence of a big-time mover and shaker.
While exuding a quiet demeanor in person, he simply gets extraordinary
things accomplished behind the scenes in a high-profile way.
He's the founder, chairman and CEO of BET Holdings II, Inc., the parent
company of Black Entertainment Television and one of the leading Black-owned and
operated media-entertainment companies in America.
Although BET started on a frugal budget of thousands just two decades
ago, the Washington, D.C.-based corporation now enjoys astonishing financial and
strategic success since its inception in 1980. The company taps into the growing
African-American consumer marketplace using a variety of its media properties.
The company operates five major cable channels of which BET is the flagship
operation. Black Entertainment Television is a 24-hour programming service
targeting African-American consumers. It reaches over 61.4 million U.S. homes
and more than 90 percent of all Black cable households. The corporation has
leveraged its brand name outside the cable universe through its publishing arm,
Vanguard Media, of which BET owns a sizeable stake. Its roster of magazines,
include Heart & Soul, Honey, and Impact. BET.com is among the latest
ventures and is an interactive Web site formed through a joint venture with
Liberty Digital, News Corporation, USA Networks and Microsoft.
BET began by broadcasting music videos in 1980 as only a two-hour network
and 11 years later became the first Black-controlled company listed on the New
York Stock Exchange. The company has since gone private. It bought back all of
its publicly traded stock. Since then, the company has diversified its holdings
by moving into numerous industries including publishing, clothing, cosmetics,
fine dining restaurants, film productions, the Internet and even the lottery in
the Caribbean. With annual sales recently amounting to $170 million, this
conglomerate of over 500 employees has truly arrived with Johnson owning 63
percent of the company.
Robert Johnson graduated in political science from the University of
Illinois and then earned a master's degree in international affairs from
Princeton University. His main interest in communications came in the mid 70s
when he served as press secretary for then-District of Columbia Congressional
Delegate Walter Fauntroy and later as vice president of Government Relations for
the National Cable Television Association. He's a big believer in the value of
networking. Johnson is often asked how BET got started. He explained,
" I started it because I was a lobbyist for the cable industry. I realized
there was an opportunity to start a niche service for the Black community using
cable television technology {which was new and cutting-edge}. I convinced John
Malone, formerly the CEO at TCI {cable}, to invest half a million dollars in BET
and it has grown to what it is today. The Freeport, Illinois native often says
"all business is personal, so make your friends before you need them."
As a highly requested public speaker, Johnson speaks in a slow, deliberate
manner, but frequently loosens audiences up with jokes. He covets his available
time and his closest associates reveal Johnson's preoccupied with using every
moment of each day to get things done. His personal net worth is said to be in
excess of $100 million, making him one of the richest African Americans in the
nation.
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Preston
J. Edwards, Sr., publisher & CEO, THE BLACK COLLEGIAN Magazine; Robert
L. Johnson, CEO of BET; and Robert G. Miller, vice president and editor,
THE BLACK COLLEGIAN Magazine
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In a recent interview with THE BLACK COLLEGIAN Magazine at the BET
corporate headquarters in Washington, D.C., Robert Johnson discussed a myriad of
topics related to his company's success, as well as his personal philosophies of
life. " As an entrepreneur, sometimes you make it up as you go along. You
have to have an unshaken belief in yourself, work harder than the next guy, and
do whatever it takes with determination. You have to have an ability to engage
people to believe in you, while being lucky enough to be in the right place at
the right time," said Johnson. His
blueprint for success lies in enormous self-confidence and maintaining a vision
of what you can achieve. He commented, "you must be able to marshal the
resources to achieve that vision. That means you have to find good people,
support them and have the steadfastness to stay in there. I don't approach
anything as an obstacle. When you say there're obstacles, the implications are
they have power over you that you don't have. Obstacles are inanimate objects.
They have no ability to think, they can't do anything, and they're just
there." Johnson further remarked, "if you see obstacles, that means
you're not thinking. If it's standing still, you can go around it, if it's tall,
you can climb over it, if it's wide, you can dig under it. So, there's nothing
you can't achieve. I can't relate to obstacles only challenges. Growing up Black
and poor in America is clearly a challenge. But it's a challenge, which can be
overcome as many have already done."
Johnson is proud of the professional manner his company has been run down
through the years. Many of his employees have a vested interest in ensuring the
success of the corporation since some own stock and their wealth is tied into
BET's corporate performance. He assessed his high points as an entrepreneur.
" My top accomplishments have been in creating an environment where young
African Americans can become executives with tremendous responsibility and
who've been able to generate for themselves significant wealth. The real
question is have you created a sense of empowerment and I think that's what
we've done at BET." Growth opportunities for BET are significant, according
to Johnson. "We're a major media conglomerate with 500 employees. $2.5
billion of market cap, and 95 percent recognition of the BET brand in the
African-American market. It's a huge enterprise. What we try to do is reflect
that in our programming. You'll continue to see some of the best musical
entertainment, a daily news and public affairs block, our teen summit show,
Black college football, and more feature movies than we've ever had. We'll add a
New York hype and Harlem feel to our new music programming. The network will
soon look more high-tech in our images. We've established a $12 million
marketing budget to promote the network, so it will be a dramatically different
look for the new millennium."
As Robert Johnson was a pioneer in cable television programming for urban
audiences with the launch of BET in 1980, he recently recorded another historic
milestone with the planned creation of DC Air, a new regional airline serving 44
cities with 122 daily departures from Reagan National Airport in Washington.
This action is based in large part on the expected approval of the proposed
merger of domestic airline giants US Airways and United Airlines. Once launched,
DC Air will be the first major regional airline ever owned and operated by an
African American. Johnson outlined how the DC Air purchase came about and his
future plans for the airline. " DC Air came to me as a result of my service
on the board of U.S. Airways. When US Airways' CEO decided to sell it to United
Airlines, it was realized that both airlines had a significant number of flights
out of Reagan National Airport. They realized a lot of routes had to be sold to
avoid any problems with the Justice Department. Steve Wolf {of US Airways}
approached me to purchase the routes with the agreement those routes would
continue. I felt I could take on this challenge since BET is well managed."
He continued "by the time additional startup money is added, the purchase
price will be about a $200 million investment. This is a Bob Johnson venture.
I'll serve as CEO but I'll hire someone knowledgeable about airline operations
to manage it. The public is looking for clean, safe and reliable air service and
that's what they'll get. My motto for running this airline will be give me an
experienced crew and a healthy disrespect for traditional thinking. The
Transportation and Justice Departments must approve the deal and I project this
will happen this year."
Johnson is not through adding to his corporate empire. "We have
recently invested in and own 50 percent of Vanguard Media, a magazine publishing
company. We're now talking to Billy Hunter of the NBA Players Association about
a possible joint purchase of the CBA basketball league. We also have a 35
percent interest in the lottery business on about six Caribbean islands,"
Johnson remarked.
Tips for success and a lofty impression of the value of education are
high on Johnson's priority list for sharing his thoughts with young African
Americans. "You've got to start with a fundamental belief that you can do
just about anything you set your mind to. Second,
you have to know how to communicate with people whom you need to help you
achieve your goal. I don't just
mean speaking or writing. It's everything from how you carry yourself, to how
you arrange a meeting, to whether or not you show up on time. The way you dress,
speak to someone, your handshake, body language, and tone of voice are all
communication. If you're going to
speak to someone who's conservative, you have to come at them that way. If it's
a reasonable objective you feel is attainable, effective communications are
necessary," he stated. On the subject of education, Johnson maintained,
"Education is essential for anyone. It's not just degree-oriented. It's the
exposure of your mind to every idea and how to process information that you're
exposed too in validating whatever you're trying to accomplish. Going to college
is a statement of your determination to get engaged in being exposed to
information and how important knowledge is."
When questioned about the impact of racism on the lives of minorities and
his own feelings about future priorities for his life, Johnson was eloquent in
his philosophy. "Treat racism like rain. Racism exists, but put up an
{emotional} umbrella and go to work. Don't stand out there and get drenched in
it {racism}. Certainly protect yourself legally, if need be, but don't define
your life by filing a law suite every time someone says something racist. I
liken it to playing in the NFL. You know you're going to get hit, so get up and
keep on playing. Get on with your life and do what needs to be done. Despite the
personal accumulation of wealth, Johnson cites, "you never have it all.
Money isn't everything. You must have your own passion for things you enjoy
doing. Once you achieve a certain level of wealth in order to take care of your
family, you should look for things to excite you."
So, in the final analysis, what drives Robert L. Johnson? He'll tell you
it's "the desire to do what you feel you can accomplish in life. In my case
now, if that's running an airline, so be it, because it'll be exciting to
me."
Robert
G. Miller is the vice president of Editorial Administration for iMinorities,
Inc., and the editor of THE BLACK COLLEGIAN Magazine, New Orleans, LA.
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