Secret Of My Success -- Pursuing Rei's Mission In High Gear

Wally Smith, president REI Co-op

Accomplishment: A Seattle native, Wally Smith began working at Recreation Equipment Inc. as a mail-room clerk in 1965 while attending the University of Washington. Then, the cooperative had 33 employees and $1 million in sales a year.

When he graduated with a business degree in 1971, Smith became an assistant buyer. He rose to buyer; then managed REI's first store outside the Northwest, in Berkeley, Calif. Working his way through various operations functions, he was named president in 1983, when REI had 749 employees, sales of $80 million and stores as far east as Minnesota. He is also chief executive.

Now, the company - which sells outdoor and sporting-goods products - has stores on the East Coast and more than 2,900 employees. Sales last year were $231.6 million, up 12.2 percent, despite a retail slowdown in the second half. Four new stores will be opened this year, and plans are in the works for a store in every domestic market that can accommodate one eventually.

In 1985, REI was included in the book, "100 Best Companies to Work for in the U.S." It now has 906,000 members, including one-in-10 households in the Seattle area. Anyone can shop at REI, but members get a dividend at the end of the year.

Smith, 43, is an avid skier, who also enjoys river-rafting and biking.

Quote: "The company carries through with its purpose, which is to supply good, high- quality gear. We want to attract people who want a challenge, not only in their recreational areas, but in their work life. We attract more than our share of those people, because we have a healthy organization that can accommodate people's desire to grow."

Advice: "Learn how to work with people," is his main advice. Smith doesn't like to talk about himself, a trait that reflects his management style.

He believes in participatory and consensus-building management. He says he also believes in the company; in the mission statement to provide the best outdoors equipment, and he thinks everybody else at REI believes in the mission.

"You have to set yourself apart," he says. "You can have the best plans in the world, but the service and quality of merchandise is paramount. People are using our equipment to get away from civilization, and, if something fails them, at minimum, it cuts into their enjoyment. At the extreme, it becomes a hazard."

Setback: Smith is not one to dwell on setbacks. He can't even think of any. "Personally, I haven't had to pick up a self-help book," he says. But one thing bothers him. "I'm disappointed every time I'm presented with Nordstrom and L.L. Bean as a paragon for retail service," he says. "I think we're as good, if not better, than them . . . I think we need to be mentioned."

Reported by Times South bureau business reporter John H. Stevens. Send your nominations for this feature to the Times. We need your name, the name of your nominee, along with their company and phone number and a brief description of how or why they are successful.