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Duck Tales

November/December 1998

Wisdom from the Masters

In his book Drucker on Asia, Peter Drucker gives us many valuable insights and anecdotes. One thing that stands out is his advice to ask yourself what you want to be remembered for. What is important to you? What kind of legacy do you want to leave behind?

The great economist Joseph Schumpeter taught Drucker that one of the most important things you can be remembered for is the difference you make in other people´s lives. And that´s what this issue of Duck Tales is all about. Making a difference in others´ lives. If we lead our lives honestly and with integrity, we are bound to make a positive impact on others.

In this issue of Duck Tales, I´d like to pay tribute to those who have been instrumental in influencing my life. This Duck® has been privileged enough to meet and learn from some of this century´s giants in the business world, and I want to share their wisdom with you in the hopes it will inspire you to learn even more about these remarkable leaders.

People Come First
When I was seven years old, I heard my father speaking about the man he worked for at American Greetings, Irving Stone. My father loved Mr. Stone and told many stories about this compassionate and visionary leader. Through these stories I first learned that good leaders look out for their employees. They work to create a family atmosphere at the company -- where respect, trust, and camaraderie thrive -- and they help employees meet their professional and personal aspirations.
My father eventually left American Greetings and became a successful real-estate salesman, practicing many of the lessons that Irving Stone taught him about caring for others. When my father would sell a house, for example, he would send a card every year to the new homeowners on the anniversary of their purchase. This simple act helped my father build a network of referrals, which greatly contributed to his success. It also inspired me to publish Duck Tales as a way to stay in touch with Manco´s own customers and friends.
Today Irving Stone, Chairman of American Greetings, is 89 years old and in his 80th year of employment at the nation´s second-largest greeting card company. His life continues to be an inspiration to this humble Duck®. He has been a leader for a lifetime, and I treasure his friendship and the lessons he has taught me.
No-Nonsense Advice
I had the good fortune of meeting Peter Drucker at Columbia University during a three-day seminar in 1980. The lessons learned from him after three days, culminating in a private luncheon on the final day, left an indelible impression. Mr. Drucker shared two things with me that I will never forget. First, he taught me what it takes to run a successful business: (1) Buy cheap (meaning quality at a price), (2) package well, and (3) sell dear (obviously at a fair profit). Such simple advice, but at times so profoundly complex to execute.
The second thing Mr. Drucker taught me was the value of time, delegating, and attention to detail. He explained that he had two firm principles that determined whether he would work as a consultant for an organization. First, if the executive he was visiting was interrupted more than twice during their initial meeting, Mr. Drucker would simply feign illness, excuse himself, and leave. It was clear to Mr. Drucker that no matter what he tried to teach this person, he would never be able to delegate work to others; Mr. Drucker did not want to waste his time or the other person´s money. From this I learned the importance of hiring good people, giving them clear responsibilities, and staying out of their way.
Also during that first visit to a company, Mr. Drucker would ask to use the men´s room. If the restroom was not immaculately maintained, he would turn down the consulting job, since he believed that a company that does not take care of its own people cannot take care of its customers. Clean restrooms are the mark of good customer service. Thank you, Peter Drucker, for the dozens of inspirational books you´ve written and for your profound advice that I have incorporated into my life.
Investing Wisely
Thanks to my good friend Ralph Schey, CEO of the multibillion dollar company Scott Fetzer, I´ve had the privilege of meeting Warren Buffett on several occasions. Scott Fetzer is a holding of Berkshire Hathaway Inc. and, therefore, Mr. Schey has a close working relationship with its renowned Chairman, Warren Buffett. Mr. Buffett has been gracious enough to share with me his ideas about business.
One question I asked him is whether he has any final criteria on making an acquisition. "Yes, Mr. Kahl, that is a very good question," he said. "I have two final criteria. Number one: Most companies are looking for five years of consistent earnings. I´m looking for a track record of double that -- consistent earnings over a 10-year span, indicating a manager can take the company through the toughest of times with a steady heartbeat at the bottom line. And number two: I´m looking for a fanatic to run it." At this point, Mr. Buffett explained what he meant by "fanatic." Someone so dedicated to the company that he will get out of bed sick to go to work -- not to make money, but because he truly loves his job. That´s a fanatic.
I´ve collected and read every book ever written by or about Warren Buffett. And of all these wonderfully wise and witty books, I strongly recommend that Duck Tales readers pick up the Berkshire Hathaway Letters to the Shareholders. Mr. Buffett´s principles of business are solid and his humor is unrivaled. This thoughtful man has much to teach us and I encourage all my friends to learn from Mr. Buffett´s insights and wisdom.

The Midas Touch
The legendary Stanley Gault launched his career at General Electric, where he worked for 32 successful years and came within a hair of being named CEO (the job went to Jack Welch, whom I´ll talk about next). Mr. Gault surprised the business world in 1980 by accepting the position of CEO at a small company called Rubbermaid. That´s when I first heard about Mr. Gault. During his 11-year leadership there, Rubbermaid´s total return to shareholders averaged 25 percent each year, annual sales grew from $300 million to $1.5 billion, and Rubbermaid earned the title of most admired company in America.
Five weeks after retiring from Rubbermaid, Mr. Gault was asked to rejuvenate the biggest company in our area, the Goodyear Tire & Rubber Company. Again, Mr. Gault succeeded beyond anyone´s hopes, taking the company´s stock value from under $20 to over $80. Stanley Gault´s career is marked by his open-door management style. Everyone he worked with called him Stan, and he listened closely to employees and customers alike. I learned that Stan has two principles that have helped him achieve his status as one of America´s great leaders:
"A well-defined problem is half solved." This entails the willingness to face reality, look for problems, define them, and then come up with solutions. It´s Mr. Gault´s pragmatic realism and his open communication with employees that have made him great.
"If you´re not thinking about your future, you don´t have one." Such an exciting thought and such a challenging one -- it makes us all want to be students, constantly looking forward and learning. It´s no wonder that Stan keeps that twinkle in his eye and bounce in his step. He is forever a student and forever a teacher, willing to share his knowledge with others.
A Passion for Excellence
The first thing you notice about General Electric´s CEO Jack Welch is his intensity and passion. He is focused, energetic, and fun. He is a man in motion, always looking for a challenge -- whether it is comparing your golf handicap or breaking down a problem and turning it into an opportunity. For anyone who hasn´t read articles or books about Jack Welch, you´re missing a great chance at learning. He was 10 years ahead of everyone when he saw the need to turn GE from 17 layers of management into four, making it fast, flexible, low cost, and customer oriented. The name Neutron Jack came about because this visionary saw well in advance of the rest of the business world what needed to be done and he did it with a passion seldom seen. Mr. Welch´s enthusiasm transfers to his troops, and the pride of the name GE is restored as one of the leading business names in the world. I love his style of leadership and his openness and straightforwardness with his people. And while he´s been acknowledged worldwide for his innovative management ideas, his ability to develop new leaders is unparalleled. He was once quoted as saying, "My most important job is to choose and develop business leaders who are bright enough to grasp the elements of their game, creative enough to develop a simple vision, and self-confident enough to liberate and inspire people." Mr. Welch has made leadership development the most important element of his work, and we can all learn from his example. We all owe Mr. Jack Welch a thank you, because his passion for excellence has inspired quality improvement at many levels in American industry.
The Best for Last
And now the best for last, my friends. I was fortunate enough to know this man as a friend, teacher, partner, and motivator since 1976. No one person in the business world has ever had a more profoundly positive effect on yours truly than Mr. Sam Walton. He gave this Duck® the wings of an eagle and the confidence to soar. By watching Mr. Sam run his business, I witnessed first-hand the power created simply by listening to others, by communicating openly, and by helping others grow.
I´ve thought long and hard about the one word that would best describe Mr. Sam. I thought about Motivator. I thought about Entrepreneur. And I settled on the word that encompassed everything -- Student. I have never met a man with a greater curiosity to learn from all aspects of life´s experiences -- from friends, competitors, associates, advisors, board of directors, books, magazines, journals, world travel, and every new encounter. Sam Walton had the gift to weave all his diverse knowledge and principles into a plan that he could communicate and execute at a level that will soon make Wal-Mart the largest company that ever existed.
At the base of this was a simple servant who loved bringing value to customers. A ferocious competitor, yes. A wonderful humanitarian, yes. A great motivator, yes. And a one-of-a-kind entrepreneur, yes. But most of all Sam was a Student. If you haven´t already done so, study this man and learn the many lessons he has to offer. What Paul Brown was to football, Sam Walton was to retailing. Just as Mr. Brown set the standards in football, Mr. Walton set them in retailing. His vision has catapulted Wal-Mart to an unprecedented level and the vision will carry his company far into the 21st century. Thanks, Mr. Sam, for the most exciting business career any of us could ever imagine. You´ve raised the bar and made the customer´s life better by doing so.

Sincerely, Your Friend
Manco T. Duck