INTERVIEW

VIEW Interview

INTER Leadership Lessons

An Interview with Donald R. Keough, Chairman of the Board, Allen & Company Incorporated

I had the opportunity to visit with Jeff Bezos continue to create ways to build the middle (founder and CEO, Amazon.com) in Sun Valley class and provide ladders for people willing to last year. Early on, he bet the farm and came out work hard to climb into that middle class, creat- with Amazon that delivered books by mail. This ing new business in this country and around the caused a great stir and it began to affect what world. publishers were doing, and it affected bookstores You have always been bullish on Donald R. Keough and the whole retail business. But that didn’t sat- America. Do you feel that America may be isfy him. He decided to do what he could to put losing its competitive edge? EDITORS’ NOTE Donald Keough was elected to that business out of business – so he digitized the Competitors all take their turn. Years ago, his current position in April 1993, when he re- book and created the Kindle. He is still delivering the key emerging market was Japan. China is a tired as President, Chief Operating Offi cer, and books by mail and for Kindle. Yet, he wanted remarkable country but, at a billion-plus people, a director of The Coca-Cola Company, posi- to go beyond that. So he decided to ship other it is within an area of about 400 million where all tions he held since early 1981. His tenure with things. the action is taking place. China has huge prob- the company dates back to 1950. Additionally, In a recent television interview, he said lems on its hands. They are building cities and from 1986 to 1993 he served as Chairman of the that he thought, down the road, Amazon can be- many of them have few businesses going into Board of Coca-Cola Enterprises, Inc. From 1985 gin to deliver merchandise to consumers with them. In the cities where they have strong busi- to 1989, he served as Chairman of Columbia drones. ness, there is not much room for more people. Pictures, Inc., before it was sold to , Inc. There is much discussion about how I believe that 40 or 50 years from now, America Keough currently serves on the Boards of IAC/ technology is replacing jobs. For example, will still be the leader of the world. InterActiveCorp, Yankee Global Enterprises LLC, as with Amazon, if you’re delivering with Does one need to be born with cer- and . Further, he has served drones, won’t those jobs for delivery people tain traits to become an entrepreneur? for many years as a member of the boards of The be lost? I believe there was a professor at Columbia Coca-Cola Company, McDonald’s Corporation, who, years ago, studied 5,000 students and con- The Washington Post Company, H. J. cluded that if you really want to fi nd somebody Company, Convera Corporation, and The Home who has leadership qualities, look behind the Depot. He is Chairman Emeritus of the Board of person to see if anyone is following him or her. Trustees and a Life Trustee of the University of There is probably something deep in the Notre Dame. Keough was elected a fellow of the genes but, to be an entrepreneur, one must al- American Academy of Arts & Sciences in 2002 ways “stay nervous.” The last words I imparted and was inducted into the Junior Achievement The world when I retired from Coke was, “stay nervous National Business Hall of Fame in 2003. and never be satisfi ed,” because everlasting dis- satisfaction is the springboard to success. The COMPANY BRIEF Allen & Company is an in- belongs to the world belongs to the discontented. vestment banking fi rm based in New York City. Being a CEO can be isolating. How were discontented. you able to overcome that throughout your What is the secret to your success? career? It’s the tendency of very successful opera- All business is built on relationships. You tions to get trapped in their own “success,” can’t build relationships by just sending e-mails. and I never allowed that word to be used in You can’t be tucked away in a corner offi ce. my presence. I see success as a journey, not a What advice do you give young people on destination. building a successful career? The trick for leaders is not to perceive be- Become an interesting person, which hap- ing an entrepreneur or an innovator as a little Sure, but on the other hand, with his de- pens by doing interesting things. Take advan- something extra – it’s absolutely essential. If velopment of the merchandise business, Bezos tage of the opportunities that are given to you. you’re not in the business of trying to put your- is building literally dozens of huge plants scat- If those going through college don’t spend some self out of business, it’s going to happen – only tered across America and a whole new employee time outside the U.S., they’re making a big mis- somebody else will do it. group will emerge as a result. take. You want to have as broad a view of life Many CEOs say that, as the entity they Do you worry that there won’t be ad- as possible. I still believe relationships are enor- lead grows, it is more diffi cult to keep the equate jobs for young people in the future? mously important as you move up the ladder entrepreneurial edge and innovative cul- No, I’m an absolute believer in this coun- because the higher you go, the more you must ture. Do you agree? try – we won the lottery when we were born depend on other people. It’s an attitude. Once you get to that point, here. We’re such an innovative people that When you get a job, treat it like it’s the last you believe that you have the formula and it’s you’re going to fi nd that, through the years, our one you’re ever going to have instead of worry- going to go on forever. smart business and government leaders will ing about your next job.• 20 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2014 LEADERS MAGAZINE, INC. VOLUME 37, NUMBER 3