Wednesday, June 3, 2015

Who The @!#$&% is John Legere?

"The fuckers hate you."
"I can’t wait to watch the peckers scream and cry."
"I’m bombing their factories."

Action-movie villains spit this kind of venom. Comedy writers hurl similarly foul tirades at one another. And as the Sony email hack revealed, business executives can speak this way too. In private. But in the open, CEOs—particularly those running multibillion-dollar, publicly traded companies—present a soothing stream of bromides, buzzwords, and nonanswers. All except John Legere, the man responsible for those quotes. At a downtown Manhattan loft this past March, the club music thumps as a crowd of telecom analysts and press wait expectantly for the CEO of T-Mobile to spew his gutter talk. He does not disappoint. Legere, 57, takes the stage at "Un-carrier 9.0," the latest in a series of T-Mobile news events, wearing a black leather jacket over a black T-shirt emblazoned with a hot pink T on the chest. On his feet: hot pink skater sneakers. With his wave of shoulder-length brown hair and mild paunch protruding from what was once an athletic physique, Legere looks like he might have been a member of Kiss rather than a lifelong telecom executive. Once he starts talking, he becomes the anthropomorphized embodiment of the tall can of Red Bull in his left hand.

He launches his opening salvo: "It’s safe to say that our friends in the cozy little duopoly have been shitting themselves more in the past two years than in history." Legere is going straight at T-Mobile’s much larger competitors, AT&T and Verizon. "Dumb and dumber," or "the pricks," as Legere usually refers to them, watched T-Mobile win 8.3 million new customers last year alone. A smile oozes from his asymmetrical mouth. "Yes, that’s in the first minute that I swore," he flirts with the crowd. He knows they’ll be tweeting his feistiest lines. In fact, he’s counting on it. "Those of you with the f-bomb pool will have to wait a little bit longer," he quips. (If you had bet that he’d drop one within the first four minutes, you won.)

This performance—to announce new terms for T-Mobile’s business customers—would get most CEOs fired or sued, especially in the buttoned-up telecom industry. Legere, though, gets an ovation when he takes the stage and another when he’s done.

Amid the applause, questions hover: Who the @#$% is John Legere? Why is he presenting himself as an amalgam of faith healer, social media stuntman, professional trash-talker, and drunken boardwalk pitchman? Is he a marketing genius? A bullshit artist? Or both? He has certainly anointed himself the Dr. House of telecom, jamming a syringe full of adrenaline into the heart of the wireless business. As one industry journalist, Dan O’Shea, tells me, "This guy is being treated like he just popped out of a spaceship from nowhere, but everybody has a history."

Perhaps the most important question is: Why have Legere’s antics worked? Since he first recast T-Mobile as the underdog anti-carrier in the spring of 2013, it has come back from near death. In addition to customer growth, revenues increased 13% year over year in the first quarter of 2015 (though the company continues to lose money), and it is now on par with the incumbent No. 3, Sprint. Virtually every time T-Mobile unleashes a new "un-carrier" move—abolishing contracts and international roaming fees; giving away streaming music; handing out unlimited upgrades for new iPhones; offering to pay off customers’ AT&T contracts if they switch—"the pricks" do their best to match it. Legere is singlehandedly dragging the industry into a new era. Even Verizon’s acquisition of AOL can be seen, in part, as a reaction to T-Mobile’s rising profile.

Camouflaged beneath Legere’s profane shtick and age-inappropriate wardrobe is the germ of an alternative, thoroughly modern model for corporate leadership. A generation ago, if a customer knew of a CEO, it was because he projected an avuncular gravitas on TV that helped to sell Chrysler cars or chocolate Frostys. The public today, inherently skeptical and weaned on social media bluntness, no longer trusts a canned talking head. Both customers and employees expect more, a CEO in the maelstrom just like them. Authenticity of the sort Legere projects is what moves merchandise. Even if it’s just an act. (...)

Legere’s official debut came four months into his tenure, at the annual Consumer Electronics Show in Las Vegas in January 2013. He had already started to loosen up his wardrobe now that his customers were millennials and not milquetoast CIOs. "Open coat, nice collared shirt" is how Legere’s longtime friend David Carey, T-Mobile’s EVP for corporate services, describes Legere’s first steps toward finding the clothes that would make the man. "It was very Silicon Valley–like," he says.

But Legere began to worry he still looked like too much of a suit. "We were up in the suite," Carey says, recalling the night before T-Mobile’s press event at CES, "and he said, ‘What should I wear?’ And I said, ‘I don’t know, look at me. What the hell are you asking me for?’ " The two fiftysomething dudes bantered for a bit, until Carey suggested "this cool hipster kind of sport coat that he had just gotten." Legere was receptive but still flummoxed. "What shirt?" he asked. Carey told him, "I’m not a fashion guy, but I think you’re supposed to wear one of those T-shirt kinda things to get that cool look going."

Legere came up with a twist. What if it was a magenta T-shirt with a giant T on it? Vegas, baby, Vegas. They had the T-shirt made overnight.

When he showed up at the Venetian hotel the next day for his first public introduction to the technology industry as T-Mobile’s new CEO, Legere had accessorized the hip sport-coat-over-a-T-shirt look with a dangling silver chain and a chunky white plastic watch. He donned a New York Yankees cap in a nod to a partnership with Major League Baseball.

Legere had a script, but something about his sartorial transformation encouraged him to scrap it. He had all those frustrations coursing through him from listening to those customer service calls, so he channeled that. "My head exploded," Legere says now, "and I just went on a rant about the wireless industry and how I didn’t get it." Like a preacher finding his groove, Legere hit upon a recurring bit, what in one conversation he calls his I-just-landed-from-Mars technique and in another the 5-year-old kid questions: Why, why, why? "People hate contracts. Let’s not have them! ‘You can’t,’ companies say. Why?" (...)

Legere’s performance at the Venetian, which alternated between attacking his competitors and presenting himself as the customer’s only friend in the business, was viewed as a tour de force as it was taking place. "T-Mobile CEO John Legere is killing it," tweeted one reporter from CNet. "Holy moley John Legere is the UnCarrierCEO," said another from PC Magazine. To the outside world, Legere had just dropped in from Mars. But for longtime industry observers who remembered Legere the suit, this irreverent channeling of consumer wrath was even more shocking. "It was obvious that he was going to be quite different in this new role," says analyst Jan Dawson, who covered Legere during his time at Global Crossing. "This was John Legere 2.0."

by Danielle Sacks, Fast Company | Read more:
Image: Jeff Lysgaard; Source Photo: Steve Sands, Getty Images