From Bankruptcy to Global Leadership: Hubert Joly’s ‘Human Magic’

Taking Over Best Buy in 2012: Madness?

When Hubert Joly took over Best Buy in 2012, the situation was catastrophic: Amazon largely dominated the industry, Circuit City had filed for bankruptcy, RadioShack was struggling, and major suppliers were setting up their own stores. Yet, Hubert saw two essential things: the world needed Best Buy to see, touch, and try products, and suppliers needed Best Buy to showcase their innovations.

All problems were in fact self-inflicted: uncompetitive prices, deplorable customer experience, poor delivery times. The good news? These are problems that can be solved.

Personal Transformation: From Problem to Human Magic

Hubert shares his personal transformation: from a leader focused on problem-solving, convinced that leading means being the smartest and telling others what to do, to a leader who deeply believes in human magic, whose role is not to impose, but to liberate.

This evolution was built around several key moments: a philosophical reflection on the meaning of work, the realization that profit is an imperative but not the ultimate goal, and a mid-life crisis that led him to revisit his calling.

Listening to Employees: The First Week in a Store

His first week as CEO, Hubert Joly spent in a Saint Cloud store, dressed like the employees, to listen. He asked three simple questions: What works? What doesn’t work? What do you need?

His role was clear: listen, take notes, then do what was promised. This approach improves business and re-energizes, because teams feel recognized. As Jean-Marie Descarpentries said: when it works, the credit goes to the field; when it doesn’t work, the problem is often at the top.

Managing Layoffs as a Last Resort

A fundamental principle guides his decisions: layoffs must be a last resort. A turnaround begins with revenue growth, then with the reduction of non-salary costs, which represent the majority of expenses.

At Best Buy, damaged televisions cost $200 million per year. By halving this figure, the company improved both its results and customer satisfaction. Of the two billion dollars in cost reductions, more than two-thirds concerned non-salary costs.

Creating Energy: The True Role of the Leader

The leader’s role is not to find all the answers, but to create a context in which everyone can give their best. Unlike the laws of physics, human energy can be created and multiplied.

This involves co-creating plans, team engagement, celebrating early victories, and full transparency, even when things don’t go as planned.

Defining Purpose: Enriching People’s Lives Through Technology

In a second phase, the team defined a strong purpose: enriching people’s lives through technology. To achieve this, everyone shared a childhood photo and told their life story, not their resume.

Two observations emerged: leaders are first and foremost human beings, and almost all share a deep aspiration: to do good for others. This golden rule is universal.

Breaking the Ice: Getting Vulnerable

To create an authentic relationship, Hubert changed his approach: he was less interested in expertise than in who the person truly is. He asked questions like: “What kind of leader do you want to be? How would you like to be remembered?”

The leader must speak first, share their vulnerabilities, show that vulnerability is a strength. Because ultimately, what truly matters are human relationships.

Intrinsic Motivation vs. Financial Incentives

Radical decision: at Best Buy, all commissions were abolished. Why? Because financial incentives degrade performance when the work requires creativity and collective intelligence.

Modern organizations must rely on intrinsic motivation: purpose, authentic relationships, autonomy, recognition, personal growth, and psychological safety.

Finding Purpose: The Intersection of Four Circles

Purpose lies at the intersection of four dimensions: the needs of the world, the unique capabilities of the company, what it is deeply passionate about, and economic viability.

It is at this precise point that the company can become a true force for good, beyond merely describing what it does today.

In a nutshell

Key takeaways from this Masterclass with Hubert Joly:

• Listen to employees by spending time in the field

• Managing Layoffs as a Last Resort

• Create energy rather than imposing solutions

• Define a strong and sincere purpose

• Rely on intrinsic motivation

As Khalil Gibran says: Work is love made visible. This is the whole meaning of Hubert Joly’s book: The Heart of Business.

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