Kevin O’Leary Says CEOs Don’t Know All About Their Companies — These People Do

Kevin O’Leary has a message for CEOs who think they are on top of everything that happens in their business: You don’t know everything. At an IT business conference in Miami Friday, O’Leary said that sales people are king. As reported by the Miami Herald, O’Leary’s keynote at the event hosted by Tiger Direct focused on the power of sales to drive a business.

“Sales people know more about the companies than CEOs all the time… when I am finished with [learning about the company from the head of sales], then I go have dinner with the CEO and if that man or woman knows less than I do I know who to fire.”

Not only that, O’Leary thinks the sales force should get the highest salaries.

“If you don’t have sales, you don’t have a business. I have 51 percent (of the company) … we change the entire grid on sales, with no lid on what they can make.”

Perhaps connected to his point about the power of sales to keep a business going, O’Leary discussed the primacy of customer service. Customers are not only a key part of business longevity; they will tolerate a little less money in their pockets if, in exchange, they are treated well.

“The customer always comes first and service always trumps price. If your customers are very happy with their service, you can raise your prices 15 percent without losing them — I’ve done this time after time. … Customer service is the whole deal.”

Kevin O’Leary, known as “Mr. Wonderful” on Shark Tank because of his often gruff reaction to entrepreneurs, told the Miami crowd that successful pitchers have three essential elements. They can articulate the business in 90 seconds, convince the panel they are the right team to execute the idea and they know their numbers.

One successful Shark Tank entrepreneur, Ashley Drake, impressed everyone with her presentation. Drake appeared on the November 7th episode that featured business owners who were also army veterans. Although O’Leary was out in terms of an investment, he was clearly on Drake’s side as she tried to secure funds for her company The Natural Grip. He said on air, “You’re not wasting your time on ‘Shark Tank,’ I must say that. Alright, somebody give this woman $100,000 and get her out of here!”

The pitch ended with a competition between Robert Herjavec and Daymond John, with Drake eventually opting to partner with Herjavec.

In addition to O’Leary’s speaking engagements such as those in Miami, he is a regular presence on television throughout North America. He recently signed a large deal with a media conglomerate in Canada.

[Kevin O’Leary Image: Greg Paupst/Chatelaine]