Well, the CEO we are talking about today is David E Smith. He was the CEO of Kimberly Clark from 1971 to 1991. The company has brands like Scott, Huggies under it.
The company was struggling very badly when Smith took over the firm. The company was struggling. The company had a core business of coated paper which was very mediocre. The economics were also very bad. This was life and also the poison for the company.
So, Smith was made the CEO by the board in 1971. He was himself not sure whether it was a right decision or not, and one of the board members said that he was not qualified enough for the job.
If this was not enough to break someone, he was diagnosed with Nose and Throat Cancer. The doctors said that he would die within a year.
Surrounded by problems and stresses from all over, but he showed his confidence in front of the board saying, I’m not dead yet and have no plans to die anytime soon.
He kept working full time and made Kimberley Clark into the leading paper based consumer products company in the world. The firm generated cumulative stock returns 4.1 times the general market beating P&G as well.
He remained the CEO for 20 years and Cancer could not do anything to him.
It is a lot of struggle but Smith was used to it. He was a farm boy in Indiana. Used to work in the day and attend University at night.
Once he even lost a finger at work, but went to college at night and came back to work the next day.
The same dedication and risk taking he showed here. He said, Sell The Mills. The mills running the core business of the firm, or coated paper, and instead focus on customer based products.
The people called it the gutsiest move. And it was a big decision. If could not do it then everyone was to blame him only. Even if something went wrong because of the economy or shrewd tactics of competition he needed to take blame for it.
But he didn’t fear and got into it completely and made it happen.
He was a humble and dedicated man. He didn’t care for his personal image and ego but for the firm’s success. He was not a superstar CEO brought from outside the firm and who changed everything. No outsiders really do it.
He was a guy with high self belief but no arrogance. The combo for great leadership.
You can be doing the same great things if you want to, and the ways are above. So, go do it and make it out. It’s because if you want to, you can make it out.
