Bob Davids: The Rarest Commodity is Leadership Without Ego at TEDxESCP (Transcript)

Here is the full transcript of entrepreneur Bob Davids’ TEDx Talk presentation: The Rarest Commodity is Leadership Without Ego at TEDxESCP conference. For more details about the speaker, read the bio here.

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Bob David – Entrepreneur and writer

Hello, my name is Bob. I am a designer and an entrepreneur, businessman and today I want to talk about management and leadership.

The reason I’m here today is because I met Bob Townsend in 1980. Some of you may have heard of Bob Townsend; most of you probably haven’t. He was the CEO that built Avis Rent a Car and he wrote a breakthrough book in the 1960s, called Up the Organization. Up the Organization is still the number one book at the Wharton Business School on the must-read list, that’s 50 years of being number one. So I suggest you take a look at it.

It’s really a book about leadership, culture building, without ego. Bob Townsend walked into my office in 1980 and he asked me if I had 15 minutes. I said of course. He said, “I’m interviewing the management team because I’m going to join the Board of Directors at this company and I always want to speak with the management before I do.”

“Oh please come in and sit.”

I looked at my watch: 15 minutes, not a problem. Five hours later he left my office. I was stunned. I had never been in the presence of that much energy. He told me about his book Up the Organization; I hadn’t heard of it. At five o’clock that night, I ran out to the nearest bookstore and I got it. I read it from cover to cover that night; it changed my life.

I had always had the same ideologies, that same thoughts about leading people. But his book gave me a structure of framework that I could hang it on and I used it as a guideline for the rest of my life and I’m still using it.

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The same year I was overlooked for a promotion to be the CEO of the company. I was in my 30s, I thought I was ready; the company didn’t. Bob Townsend suggested that I further my education; that was a good idea. I said, “Well, maybe I’ll go do an MBA.” He says, “No, never do an MBA.” There’s too many managers already. The world is short of leaders; we don’t need any more managers. Managers, leadership I thought that was same.

I would hear people say “I manage six people”, “I lead a team of six people” must be the same. 32 years later, I’m here tonight to tell you it’s not the same. Management is control; in business we call it the Triple Constraint of management. There’s three things and only three things that you could control. You can control quality, time and money. Whichever one of those three takes precedent, the other two will suffer. If quality drives your organization or your product or your service, the other two will suffer. It takes more time and more money to create the quality.

If price determines your product or service, then you will have to give up the quality and do what’s much cheaper. If time — you have to do it in time, to do it quickly it will cost you more money and the faster you go the less quality you will have. So control is the management, the interplay of time, quality, and money.

So where are people? Well, people are come under leadership. There’s a big difference. In World War II, Dwight Eisenhower was the Allied supreme commander of all the forces. He would train his generals. He would take a chain and stack it up on the table. And then he would ask the generals if I push that chain, which way will it go? And he would hear a lot of answers. The correct answer is you really don’t know.

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But he said that if I took the chain and I picked it up by the end, and I pull the chain which way will it go? The answer is it will follow you. And there is the essence of leadership: if you push the people, down deep inside you really do not know which way they’ll go or which way what they’re really thinking. But if you can lead them and get them to follow you, then you have the skill that everybody should have, to be a leader.

I went to China, lived there for 13 years. I built a company, started with handful of people and we ended up with 8,000 people. We had to build a factory to house 8000 people. On occasion I would go to Guangzhou and walk around and inspect the site. I have a technical background, so I felt I had a little bit of expertise in construction. And one monsoon rainy afternoon we’re walking along by the foundation and I look down in the ditch and I see five or six men working and they’re installing a sewer pipe. And they had a level and I’m looking down and I see that they’re making the pipes level, while I have enough technical background to know that a level pipe’s not going to flow. And it’s going to get buried under the foundation, so we’re going to have lifetime problems, because we’ll never get to this to fix it.

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