Tag Archives: change management

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The Uplifting Wisdom of Fred Smith

I recently enjoyed the privilege of participating in a small group online discussion with Frederick W, Smith, the founder and longtime CEO of Federal Express. Imagine being at the helm of a global disruptor like FedEx for an uncanny five decades. Think someone like that might have a few things to say about the life and times of business, society, and learning? You might be as surprised as I was about the big ideas he would most want us to embrace.

Legend has it that the initial business plan for FedEx emerged from an economics paper Smith wrote as an undergraduate at Yale University, describing the need for a reliable overnight delivery service. He best remembers receiving a grade of C on that composition. That idea grew out of his experiences as a young pilot, occasionally offering to deliver important packages for New England technology companies that he would carry in his personal travels.

Equally important in the formation of his character was a four-year stint in the U.S. Marine Corps commencing in 1966 where he received officer training and served in Vietnam. “Yale taught me to think, and the Marines taught me to do,” notes Smith in shaping his vision and leadership of FedEx, which he founded in 1971. The company began regular operations in 1973 and just celebrated its fiftieth anniversary. Smith has transitioned to executive chairman but is every bit as engaged in the company’s direction as he was at the outset.

Early market studies confirmed Smith’s thesis that there was an enormous opportunity for an integrated global delivery network that would be realized by harnessing the power of transportation machinery and sophisticated data systems. He took on the daunting task of merging the capabilities of technology with the mapping of logistics, bringing together physical assets and mathematical calculations on a vast scale. He knew that building this kind of network was a frontloaded bet, but that once established, the barriers to entry of challenging that network would create both a competitive advantage and a trusted brand among customers.

Today that network generates $90 billion in annual revenue, employs 550,000 people plus another 150,000 contractors, moves 16 million shipments each day, operates in 5000 locations in 220 countries, manages 650 planes, and coordinates 210,000 vehicles. FedEx accomplishes this through endless innovation, precision execution, and constant reinvention.

What can we learn from an incomparable entrepreneur, celebrated business leader, and caring philanthropist that might be even more exemplary than an indefatigable work ethic? My key takeaway from listening to his carefully chosen words is that humility is a choice, and Smith embraces humility not just as a core personal value, but as a motivating force that drives him to an always improving game. “The world does not begin with your birth,” he reminds us. “There is much to learn in studying the thinkers who came before you.”

Given the ceaseless advances in information technology, Smith believes it is the CEO’s job to stay immersed in the evolution of change management. In addition to the legally required standing committees of a public company’s board, he has found it essential to maintain a carefully identified technology advisory committee well versed in applied science beyond his company’s core competencies at any time to make sure those technical abilities become core competencies.

He also makes it a point to stay close to senior military leaders both formally and informally for their deep understanding of complex systems and human motivation in urgent circumstances. He has reciprocated over the years serving on key government panels and presidential commissions to help bridge the gap between private business and government, share emerging ideas, and offer his hard-won knowledge as a quiet contribution to public service.

Smith is now keenly focused on embracing the fast climb of artificial intelligence, yet another strategic inflection point both in the growth of his company and the world at large. The threat of cybersecurity has always loomed large on Smith’s short list of key concerns around systems risk, where he sees generative A.I. both exacerbating the problem and potentially forging a path to workable responses. “It will help remove the friction of international customs,” he suggests. He is also passionate about carbon capture, driving FedEx to a carbon-neutral future not just because it is the right thing to do for the environment, but because the companies that get there first will enjoy ongoing business advantages in proving models with measurable returns on investment.

The culture of FedEx remains focused on innovative practices as a competitive platform that is rooted in the company’s founding and ingrained in the necessity of proactive thought leadership. Not surprisingly, he is obsessed with teamwork and team accomplishment over individual ego and achievement. “You’re not the smartest person in the world, be humble,” he reminds us. His observations of multidisciplinary success in business, military, and government enterprises reinforce his championing of building and sustaining team dynamics.

Smith is concerned that people are now spending so much time behind video screens that their sense of reality is being distorted by inadequate forms of communication. “Thinking behind screens” does not bridge viewpoints or bring people together. He observes in social media that it creates “a place where outrage has found a business model.”

Now, about that lasting wisdom: Here’s where Smith brings down the house with his clarity of life’s lessons and unassuming purpose. Staying on the edge of technology and reinvention no matter one’s current success is more tactic than strategy for this highly accomplished individual. What is core to Smith is his embrace of mortality as a further reflection of humility. “Life is short and it ends, the clock is ticking,” he advises. “Don’t get all wrapped up in your personal self, that’s a very unhealthy thing to do.”

What is key to reminding us of our humanity in his worldview? “Maintain a sense of humor, because life in many ways is absurd, and you need to be able to laugh at yourself.” Smith clearly understands irony, has seen his share of farce, and with sporadic investments in the arts, knows a funny story when he hears one.

There you have it from one of the most successful innovators of our time: be humble, remember your mortality, and don’t lose your sense of humor. I would never have guessed that’s what I would take away from this conversation, but how delighted I am to have experienced such a treasure of actionable advice. Fred Smith understands leadership by example. Humility is evident in his journey, mortality is certainly at hand given these reflections, and if you listen at length he might just make you laugh.

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Photos: Pexels and FedEx.com

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The Root Word of Contemporary Is Temporary

Sometimes I wonder if the advancing of age and a leaning toward old-fashioned values are a hindrance to relevancy in our contemporary workplace. Then I remember who taught me the most about workplace navigation in the early years of my professional career. It was bosses and colleagues advancing in age and leaning toward old-fashioned values.

I don’t think a bit of traditional thinking about the nature of workplace relationships is incompatible with rapid innovation, agile thinking, evolving workplace paradigms, and aspiring to more meaningful jobs. I think a bit of grounding is precisely what the doctor ordered. We all can learn from each other if we choose to listen.

One of the simplest and most striking plain language aphorisms I learned from a writing teacher many decades ago has never failed to inform my internal litmus test of change management. His name was J.D. McClatchy and he was a renowned poet. To my knowledge, he had no interest in business, but these words he taught me about writing have guided much of my business thinking:

”The root word of contemporary is temporary.”

Why is this gnawing away at me this particular moment? I am seeing a lot of individuals make terrible decisions in real-time that I am reasonably certain they will regret. They are trading the tangible present for a fragile future, often believing their choices are well-considered when they are unintentionally impulsive.

Much has been written of late about the Great Resignation. There is no doubt that Covid madness has wreaked havoc on our psyches. It is likely we will never see our lives the same way again after two rollercoaster years of public policy and uneven human isolation.

Ostensibly as a result, we see people quitting their jobs in record numbers to explore new paths. If handled elegantly, the liberation of a life change can be an enormous expression of creativity and empowerment. I’ve personally done it no fewer than four times in four decades with no regrets.

What’s my secret weapon for not burning bridges to embers? I’ve hung onto some of those old-fashioned values I learned early in my career.

Do what you want, when you want, where you want, and how you want at your own peril. Do it with a bit of finesse, and the mentors who helped get you this far may hang on with your journey quietly in the background for the rest of your ride.

It’s always perfectly fine to change jobs if you’re doing it for reasons that make sense to you, but you’re best served to do it admirably with serious planning, polite accommodation, and decent respect.

How egregious can we get in justifying some of our more lamentable choices? Here are some behaviors I’ve observed of late that I don’t think will serve people well.

A presumed job candidate schedules an interview with a potential employer and simply does not show up for the meeting—no email, no call, just a cold no-show.

A disgruntled employee walks off the job in the middle of a shift, unannounced, without explanation, and never shows up again; not coming back from lunch or break is a slightly less dramatic version of this bizarre concoction.

An even more disgruntled employee takes the extraordinary risk of in-person rage quitting, often accompanied by a cacophony of phrases best not repeated in a mainstream publication.

Someone with direct access to a company’s customers elects to ignore or dismiss the inquiry or encounter of an unsatisfied customer, perhaps with equal drama that leads to rage quitting while soiling a company’s brand.

An individual spontaneously rejects the well-intentioned constructive feedback from a manager’s review, and rather than discuss it with improvement in mind, ceremoniously destroys the relationship with someone who cares about them.

Once-attentive teammates emotionally check out, dial in the least possible effort for as long as they can hide it, and wait for someone in authority to notice.

That’s a quick collection of less than proud moments, don’t you think?

What’s the common lesson in talking yourself out of those behaviors and actions?

Don’t stop caring. Never stop caring.

To my good fortune, I’ve also been observing a steady base of colleagues, co-workers, and friends who aren’t drawn to the opportunism of fickle times. They cared about their jobs and the customers they have been honored to serve in the past. They care equally or more so now. Circumstances may be in flux, but their values are constant. They maintain a North Star of personal expectation. They make promises and keep them without excuse or compromise because that matters to them.

If you haven’t already lived through multiple recessions, it is a certainty that you will. Our economy is cyclical almost by design. Sometimes jobs are plentiful and you have your choice. Sometimes they are scarce and you take what you can get to provide for yourself and your family. Sometimes your skills are in high demand. Just when you think your expert knowledge is unequaled, it can become wildly obviated.

There are four very scary words that pop up every few years that I caution you to approach with skepticism:

“This time is different.”

Of course things are different. We live in a high-stakes world of volatile change. That is the blessing and curse of igniting technologies. It is the very stuff of innovation and unlimited opportunity.

Yet some things are not different.

Integrity. Honesty. Trust. Commitment. Dedication. Dependability. Sacrifice. Selflessness. Caring. Grit.

You can easily convince yourself these are simply old-fashioned words, empty crossword puzzle entries that no longer matter in a world assuring you that personalization and independent reward are all that should matter. If your long-term reputation comes second to your immediate needs, you have made a choice that carries untoward risk.

I’d caution you before that cement hardens to remember what my writing teacher taught me:

The root word of contemporary is temporary.

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Image: Pixabay