USOC CEO Norm Blake "has lived up to his reputation as
'Pink Slip' Norm," according to Heiman & Weiner, who profile
Blake in the current issue of BUSINESS WEEK. Blake said
that he has "no regrets" about firing numerous USOC
officials and employees because he "needed better people."
Hyman & Weiner: "Wherever Blake has gone, there has been
pain. ... The question now hanging in the thin Rocky
Mountain air: Can Blake's scorched-earth strategy succeed in
the politically charged, nonprofit world of the USOC?"
Those who have "complained about an unresponsive" USOC in
the past say they "welcome" Blake. John Hancock Financial
Services CEO David D'Alessandro, on Blake's treatment of
sponsors: "One thing that's evident since Blake has been
around is less of a noblesse oblige attitude. It used to be
you'd be made to feel, 'Consider it an honor to send us
checks.' Norm has recognized, as a businessperson does,
that people who send money actually should have a say in
what they get in return." Hyman & Weiner add that Blake
draws a "comparatively modest" base salary of $500,000 per
year for the three years "he has promised to stay. Yet at
the rate he's torching relationships, some privy to the
inner workings of the USOC wonder if he'll last even that
long." Blake: "My tenure here is three years. I'm willing
to take the abuse along the way." Hyman & Weiner report
that "within days" of his arrival in February, "the winds of
change began to howl." USOC board member Sandy Knapp: "He
was simply doing the job we hired him to do. When you bring
in a high-ranking, high-powered CEO and you tell him you
expect him to run the business ... he thought that meant he
was supposed to run the business. It was a huge departure
for us." Hyman & Weiner note that under Blake, the USOC
"theoretically will now hold wasteful spending in check," as
each NGB "will be required to submit a detailed business
plan explaining where their money will be spent and
outlining future medal objectives" (BUSINESS WEEK, 8/28).
BLAKE Q&A: Blake, on what "teams that rarely -- if ever
-- produce" medals can "expect" from the USOC: "A nominal
level of financial support that essentially assures them
they will stay in business." Blake notes the "minimal
level" of funding is higher than what the USOC is currently
giving seven "small-size" NGBs, which receive "less money
than we would provide as a guaranteed minimum." Blake, on
how he can "justify" the cut: "Nothing is free in life. If
we agree upon certain objectives and you meet those
objectives, we'll make greater investments as we gain
confidence" (BUSINESS WEEK, 8/28 issue).
WAS IT A BAD BET? A "bad bet" on the value of the
Australian dollar cost the USOC $500,000 "that would have
been used to fund the American delegation" in Sydney. The
loss came from the purchase of "several million" U.S.
dollars worth of Australian dollars in a "hedge bet" that
the Australian dollar "would be stronger by the time the
Olympics began" (USA TODAY, 8/15).