Podchaser Logo
Home
Leading From "We," Not "I" -- David Novak (Yum! Brands)

Leading From "We," Not "I" -- David Novak (Yum! Brands)

Released Wednesday, 15th May 2024
Good episode? Give it some love!
Leading From "We," Not "I" -- David Novak (Yum! Brands)

Leading From "We," Not "I" -- David Novak (Yum! Brands)

Leading From "We," Not "I" -- David Novak (Yum! Brands)

Leading From "We," Not "I" -- David Novak (Yum! Brands)

Wednesday, 15th May 2024
Good episode? Give it some love!
Rate Episode

Episode Transcript

Transcripts are displayed as originally observed. Some content, including advertisements may have changed.

Use Ctrl + F to search

0:01

From luminary and viltet productions,

0:04

it's wisdom from the top. Stories

0:08

of crisis, failure, turnaround and

0:10

triumph from some of the greatest

0:12

leaders in the world. I'm

0:17

Guy Roz and I'm the show today why being a

0:19

singular leader means involving

0:21

everyone. There's a real

0:24

difference between a leader that constantly says

0:26

I versus a leader who says we.

0:30

And I really believe in the

0:32

we part of the equation. David

0:34

Novak and leading by bringing everyone

0:36

along. Hi,

0:48

this is Janice Torres from Yoquiero Dineiro.

0:51

From a local business to

0:53

a global corporation, partnering

0:55

with Bank of America gives your

0:57

operation access to exclusive digital tools, award-winning

1:00

insights and business solutions so powerful

1:03

you'll make every move matter. Visit

1:05

bankofamerica.com/banking for business to learn more.

1:07

What would you like the power

1:10

to do? Bank

1:12

of America, N.A. Copyright 2024. Hiring

1:16

for your small business? If you're not looking

1:19

for professionals on LinkedIn, you're looking in the

1:21

wrong place. That's like looking for your car

1:23

keys in a fish tank. LinkedIn

1:26

helps you hire professionals you can't find anywhere else,

1:28

even those who aren't actively searching for a new

1:30

job but might be open to the perfect role.

1:32

In a given month, over 70% of LinkedIn

1:35

users don't even visit other leading job

1:37

sites. So start looking in the right

1:39

place. With LinkedIn, you can hire professionals

1:41

like a professional. Post your

1:43

free job on linkedin.com/spoken

1:45

today. Generative

1:49

AI is not a one-size-fits-all.

1:52

If you're powering a customer chat experience,

1:55

you need instant speed at low cost.

1:58

If you're doing complex R&D, you can use LinkedIn. or

2:00

advanced analysis, you need Frontier

2:02

Intelligence. The Clod3 model

2:05

family from Anthropic offers a model

2:07

for every task and budget. Clod3

2:10

Opus sets new industry benchmarks

2:12

for intelligence. Sonnet

2:14

strikes the perfect balance between speed

2:17

and skill. And Haiku

2:19

is the fastest and most cost-effective

2:21

model on the market. Join

2:24

the thousands of enterprises who trust

2:26

Anthropic to power their AI solutions.

2:29

Visit anthropic.com/Clod

2:31

today. David

2:36

Novak's been a driving force behind

2:39

some of the most ubiquitous brands

2:41

in fast food, Pizza Hut, Taco

2:43

Bell, and KFC among them. He's

2:46

a co-founder and former CEO of Yum!

2:48

Brands, one of the biggest

2:50

players in the quick service restaurant industry.

2:53

On top of all that, David's taken

2:55

the lessons he's learned over the course

2:58

of his career and built it into

3:00

programs taught through his company, David Novak

3:02

Leadership, and at the University of Missouri.

3:05

David's also written massive best sellers in

3:08

the business and leadership category, including

3:10

taking people with you, the education

3:13

of an accidental CEO, oh,

3:15

great one, and his very latest,

3:17

co-authored with Jason Goldsmith, Take

3:19

Charge of You, how self-coaching

3:22

can transform your life and

3:24

career. One of David's

3:26

secret weapons as a leader in places

3:28

like Pepsi and KFC was his ability

3:31

to quickly get the lay of the

3:33

land and connect with the people who

3:35

work for and with him. It's

3:38

something he started learning to do as a kid.

3:40

By the time David was in seventh grade, his

3:43

family had lived in 32 trailer parks across 23

3:45

states. His

3:48

dad was a government surveyor. He worked

3:50

on the longitude and latitude marks that

3:52

formed the foundation of the GPS system.

3:55

And his surveying work took the family

3:57

all over the middle of the United

3:59

States. Actually,

4:01

I think it was the greatest upbringing

4:03

anybody could ever have. Why

4:06

is that? Well, you

4:08

know, my mom would check me into

4:10

these schools. And by the

4:12

way, my mom just turned 92 years old today,

4:14

but she would check me into these schools and

4:16

she'd say, David, you better make

4:19

friends because we're leaving. And

4:22

she was right. I had three months to

4:24

basically make friends and get settled and then

4:26

do it all over again. So it really

4:28

gave me a great learning experience. It was

4:30

really able to scope out the situation, look

4:32

at the people in the class that I

4:34

really wanted to become friends with. And you

4:36

know, one of the things I learned is

4:39

you're only one good friend away from happiness.

4:41

And if I could just find one good

4:43

friend and you named the town,

4:45

it could be Chama, New Mexico or, or,

4:47

uh, to come carry or, or

4:50

pre-mont Texas or Kimball, Nebraska. If I

4:52

could just find that one person and

4:54

make a friend with him, uh, you know, my life

4:57

all of a sudden became a lot better and I

4:59

was happy. Wow. But

5:01

you know, people always ask me, well, how could you,

5:03

how could you grow up like that? You

5:06

know, uh, I lived in a trailer, uh, it was eight feet

5:08

wide by 46 feet long and you know,

5:11

I just thought everybody did it. And you

5:13

know, I don't think I succeeded in spite

5:15

of my upbringing. I think I succeeded because

5:17

of it. And it's really kind of funny,

5:19

no matter where I am with my family,

5:21

when I get together with my two sisters

5:23

and my mom and dad, no matter how

5:25

big the house might be, we always

5:28

end up sitting on top of each other. You

5:30

know, cause you know, we just, you know,

5:33

we had that close, we were truly a

5:35

close knit family in every respect. When

5:38

you, I know you went to college at the university

5:40

of Missouri, um, to study journalism

5:43

and also a bit of

5:45

advertising, but was that your, was

5:48

that your intention? Did you think that you wanted to go

5:50

out and become a reporter? Well,

5:52

you know, uh, when I was

5:54

in high school, I was editor of my high

5:56

school newspaper, a sports editor, and you know, I

5:58

knew I had writing skills. And I

6:00

thought that that might be my

6:03

career vocation. But what really

6:05

happened is I took some advertising courses and

6:07

absolutely fell in love with them. And once

6:09

that happened, I knew that what I wanted

6:11

to do was get into marketing and advertising.

6:13

Because I really loved getting

6:16

inside the heads of consumers and

6:18

understanding how they think. And

6:21

I think it's my orientation from traveling around

6:23

that really made me intuitively

6:26

become a halfway decent marketer. Because

6:28

I had to gauge situations

6:30

and understand how people think. And

6:33

I realized that's what you have to

6:35

do in marketing and advertising. And that

6:37

became the real path for me. And

6:40

I think this was the mid-70s when you

6:42

embarked on your career in advertising. And I

6:45

guess you worked for agencies in Washington, DC,

6:48

and Pittsburgh, and then in New York

6:50

before you moved to Dallas to

6:53

work for the agency, Tracy Lock BBDO, where

6:55

I guess you've worked on some pretty big

6:58

accounts like Free LA and Pepsi. And

7:01

it sounds like your work there wasn't strictly

7:03

advertising, but also on branding and

7:07

things like that. Yeah, I worked

7:09

on creative branding and ideas. And

7:11

my job was to basically provide

7:13

the strategy for all of that

7:15

work. And then work

7:17

with the advertising creative people to come up

7:20

with the right solutions and then sell it

7:22

to the client. But I always viewed myself

7:24

to be a total business

7:26

person. One of the things

7:28

I'm most proud of that I was able to do at Free

7:30

LA was their sales had started to

7:32

stall. And they needed

7:34

to have some product news. And I was

7:36

working on the Doritos account. And Nacho Cheese

7:39

Doritos was the big, big

7:41

mother lode for Doritos. And

7:44

I said, we need a new flavor. So I

7:46

took my team, and we went to the grocery

7:48

store. And we looked at all the different items

7:50

in the grocery store. And we stumbled on the

7:52

salad dressing aisle. And we

7:54

saw all these facings of ranch

7:57

flavored dressing. And

7:59

I love it. learned from that trip that

8:01

ranch dressing was the fastest growing flavor

8:04

in the salad dressing industry. So

8:08

I said, what if we put some

8:10

ranch flavoring on a Dorito?

8:12

So I went and met with Dennis

8:15

Hurd, the head of R&D at Frito-Lay,

8:17

and we created ranch flavored

8:19

Doritos. And then we said, okay, we need

8:21

to put a unique image on a known

8:23

quantity, the known quantity being Doritos in ranch,

8:26

and we called it Cool Ranch Doritos. And

8:29

that is one of the largest and most

8:31

successful and profitable products in the grocery store

8:33

today. Yeah, it's amazing. I

8:35

mean, I remember as a kid when those came out. I

8:37

can remember that because, you know, it's such an iconic product.

8:41

I mean, it is amazing. I

8:43

mean, you know, it's one of the ways

8:46

to come up with ideas is to just look

8:48

around, just kind of be in the world and

8:51

look around you. And

8:54

that is ultimately how some

8:56

of these products emerge. Yeah,

8:59

I think I call it pattern thinking. You know,

9:01

I always believed in doing best practice visits and

9:04

looking to see what other people are doing in

9:06

other categories and then say, hey, if

9:08

they're doing it there, how could

9:10

we do it here in

9:12

a way that works for us? You know, another

9:15

good example of this is when

9:17

I was running marketing for Pizza Hut, you

9:19

know, one of the hot new concepts in

9:21

the pizza industry at the time was California

9:24

Pizza Kitchen. And

9:26

you've probably been there, but you can get all

9:28

kinds of different pizzas. So I

9:30

took my team out to Los Angeles and

9:32

we went in and we ordered Thai chicken

9:34

pizza and barbecue chicken pizza and all these

9:36

exotic toppings. And we're really excited by the

9:38

concept. And I came back and I said,

9:40

okay, we don't have all these kinds of

9:42

toppings in a pizza, but what do we

9:44

have that we could do where we could

9:46

create our own line of specialty pizzas? We

9:50

decided we just doubled the number of pepperonis

9:52

on the pizza and

9:54

we created pepperoni lovers. And by the

9:56

way, it was the most successful new

9:59

product launch. at Pizza Hut and canned

10:01

pizza. And then we said,

10:03

okay, what about, we have a lot of meat. Well

10:05

we created beet lovers. Then we did

10:08

cheese lovers. Then we did veggie lovers.

10:10

And the lovers line of pizza is

10:12

the biggest line of pizza in the

10:14

pizza category today. So

10:16

you, this is

10:19

a good segue into your time at Pizza

10:21

Hut, you move into a management position and

10:24

marketing at Pizza Hut, I think around 1986. And

10:29

this sort of really, I mean

10:31

I think earlier as an advertising person

10:34

working with Frito Lay that was really

10:36

your entry point into food. But going

10:38

to work for Pizza Hut, really you

10:40

begin your journey into the

10:42

quick service restaurants category.

10:45

Tell me a little bit about where Pizza Hut

10:47

was at the time. I mean I remember,

10:50

I mean it's an iconic brand, it's everywhere.

10:52

But was it the leading pizza brand in

10:54

the US in the late 80s? Yes,

10:58

it was the leading pizza brand in the US in the

11:00

late 80s and still is today as the most

11:03

units of any pizza brand.

11:07

And at the time, Pizza Hut was

11:09

known for being a dine-in restaurant. Many

11:12

people had their first dates at a Pizza

11:14

Hut and it was primarily a brand that

11:16

was located and heavily concentrated in the Midwest

11:18

and small town America. And

11:22

the brand was really struggling when

11:24

I went to Pizza Hut. The same store

11:26

sales were negative because Domino's had

11:28

come in and was building

11:31

this whole new category called delivery.

11:34

And Pizza Hut was not in the

11:36

delivery business. And so

11:38

when I went there, Pizza Hut had

11:40

just gotten into the delivery businesses and

11:42

was failing miserably at it. But

11:45

I worked with our team and

11:47

we figured out how to grow the

11:49

delivery business. In fact, we more

11:51

than doubled the sales rather

11:54

quickly and really turned the Pizza

11:56

Hut business around. But we

11:58

had to get into the delivery business. because

12:00

that's really where the growth was. And by the

12:02

way, that's where the growth is today. So

12:05

presumably that was a significant challenge.

12:07

I mean, certainly in the late 80s when,

12:11

obviously we didn't have smartphones and apps and

12:13

a bigger deal, and Domino's, right, they had

12:15

this 30 minute guarantee

12:17

at the time. So I have to imagine

12:20

that put some pressure on Pizza Hut. Yeah.

12:23

Well, Domino's was 100% focused on delivery and

12:28

Pizza Hut was, we called them Red

12:30

Roofs, was focused on the dining business.

12:32

So you had to totally transform the

12:34

attitude of the company to

12:36

say, hey, I've got to get into delivery business.

12:38

And you needed to get into delivery business in

12:40

the same trade area where you had a dine-in

12:44

restaurant. So that means you had to

12:46

cannibalize yourself. So it

12:48

was very challenging to get the franchisees

12:50

and even the company people to get

12:53

on board and say, hey, we really have to change to

12:55

make sure that we grow for the future.

12:58

How did you, you

13:00

were still, ostensibly, in marketing? I

13:03

mean, this wasn't your role.

13:05

You were your self-images as a marketer.

13:08

You eventually would go to

13:10

PepsiCo as a marketing executive.

13:13

Was that sort of the image that others

13:15

had of you? And was

13:17

that kind of where people saw you as

13:19

a, he's the marketing guy? Oh,

13:22

that's really a great question because it

13:25

really kind of brings me to one of the pivot points of

13:27

my career. Yeah, I was

13:29

definitely a marketing person and creative. And I

13:31

was different. You know, I

13:33

like to have a lot of fun.

13:36

And I was very outspoken in terms

13:38

of what things need to be done.

13:40

And the chairman of PepsiCo was Wayne

13:42

Callaway. And I got

13:44

promoted to be the executive VP of marketing

13:46

sales for the Pepsi-Cola company. So every quarter,

13:48

I would go over and see Wayne. And

13:51

one time he asked me, he said, David, he

13:54

says, what do you want to do with your career? And

13:56

I said, well, I would like to become a division

13:58

president. And,

14:00

you know, PepsiCo had pizza, KFC, Taco Bell,

14:02

Frito-Lay, and Pepsi, and I didn't care which

14:05

one of the divisions I got to run,

14:07

but I wanted to become a division president.

14:09

He says, David, you're a really good marketing

14:11

guy. And I said, but Wayne, I

14:14

want to be a division president. He said, David,

14:16

you're a really good marketing guy. And I said,

14:18

well, I really want to run the whole show.

14:20

I want to run a division. He says, David,

14:22

I'll make you president of marketing. We don't have

14:24

the marketers that we need to have in this

14:26

company, and you can build that function. And

14:28

I said, well, what is the marketing for PepsiCo? Well,

14:31

that was a great meeting because when I walked out

14:34

of that office, I knew Wayne thought a lot of

14:36

me, but I knew he saw me only as a

14:38

marketing person. And that I, if

14:40

I was going to become a general manager,

14:42

I was going to have to demonstrate that I

14:44

could really have empathy for operations and the

14:46

total business. So I went

14:49

back and I begged my boss at

14:51

the time for the chief operating officer

14:53

role of PepsiCola when that one opened

14:55

up. And he gave

14:57

me a shot at that, and I

14:59

was able to do a halfway decent job at that. And

15:02

that opened up the door for me

15:04

ultimately to become president of KFC. You

15:07

essentially had to make that pivot into

15:09

operations to sort of demonstrate that and

15:11

change the perceptions around you that you

15:14

were more than the

15:17

marketing guy. I mean, the great place

15:19

to be, right, because it's a creative position,

15:21

but sometimes the operators

15:23

don't think of the marketers as

15:27

people who could lead companies. Yeah.

15:29

By the way, I was not just a marketing

15:32

person. I was an advertising, I was a

15:34

marketing person with an advertising background and I

15:36

didn't have an MBA. Right. So,

15:39

you know, that was, you know, I think that made

15:41

it harder for people to see me as a

15:44

general business person. So

15:46

I did have to get out of my comfort zone. But

15:49

you know, I found when I went into the operating

15:51

role that I was

15:54

just very open and honest with all the

15:56

operating people. And I said, listen, I don't

15:58

know operations like you do. I don't

16:00

know my way around a bottling plant like you

16:02

do, but I know you know this business cold

16:04

and I need you and

16:06

together we can figure out what needs to

16:09

be done and really improve

16:11

our operations and You could

16:13

really help me do that, but I can't do it

16:15

without you So and so I

16:17

brought in all the top operators at Pepsi

16:19

Cola company ask them what was working what

16:21

wasn't working and we developed

16:24

new processes and new ways to

16:26

distribute our products because we work

16:28

together and I learned

16:30

a big lesson there is that you know if

16:32

you're vulnerable and you tell people I need you

16:34

guess what? They'll get behind you yeah If you

16:36

go in and you try to fake it and

16:38

act like you knew more than them and that

16:40

you're the person that's at The top they'll stiff

16:42

arm you in their own way Yeah,

16:45

it reminds me of something that that another guest

16:47

we've held in the show Mark King who you

16:49

may know that the current CEO of Taco

16:52

Bell Said he said

16:54

your job as a CEO is not to have the answers,

16:57

but to find the people who do have the answers I

17:00

Couldn't agree more and I'm so glad that he

17:02

he said that and that's one

17:05

of the reasons why when I was doing the

17:07

operating job I left on you know

17:09

Monday morning came back on Saturday But

17:11

every morning I would do these roundtables

17:14

in the bottling plants with the people on the front

17:16

line and I had

17:19

two experiences that were really seminal

17:21

The first was I went into this

17:24

Baltimore plant and it was our toughest

17:26

plant and I went into this

17:28

place and everybody was Bitching about how bad

17:30

things were at the plant and you

17:32

know This wasn't happening that

17:34

wasn't happening and so I brought them all the

17:36

top leaders in this was Union plant I brought

17:39

them in and I said okay. Let's

17:41

let's list all the things that are going on

17:43

wrong here, okay, and you know We

17:46

listen a lot and I said I'm gonna bring in

17:48

Rod Gordon and he's the plant manager We're gonna talk

17:50

to him about this Okay And so we brought him

17:52

in and they talked about all the things are going

17:54

wrong and and then this one kind of coy guy

17:56

Goes hey listen you sound like you're a pretty good

17:59

guy guy, he says, but what are you going to

18:01

do about all this? And

18:03

I said, absolutely nothing. I said, the only

18:05

thing I'm going to do is I'm going

18:08

to come back in six months and see

18:10

what you guys have done to fix all

18:12

these problems. And you know, when

18:15

I came back six months later, that

18:17

team was waiting for me, and they couldn't

18:19

wait to show me all the great things

18:21

that they'd done. You know, but

18:23

I think you really have to shift accountability and

18:25

ownership to the people who can really make it

18:27

happen. And then another thing

18:29

that happened to me in one of these

18:31

roundtables I had is I was in St.

18:33

Louis, Missouri. And I think

18:36

this actually is the most

18:38

seminal moment in my career. I

18:40

was talking to a group of route salesmen about

18:43

what was working and merchandising and what

18:45

wasn't. And there's

18:47

like 10 people sitting around this

18:50

table and everybody started talking about Bob

18:52

who was sitting directly across from me.

18:55

They were saying, boy, if you want to learn about

18:57

merchandising, go with Bob into a store. He'll show you

19:00

how to get the facings. He'll show you how to

19:02

do the point of purchase. He'll show

19:04

you how to talk to customers and build

19:06

relationships. One guy said, I learned more from

19:08

Bob in, you know, one day than I

19:11

learned my first two years on the job.

19:13

And everybody was saying Bob was amazing. So

19:15

I look across the table and there's

19:17

Bob and he's crying. He

19:20

literally had tears in his eyes. And I go,

19:22

Bob, these people are heaping all this praise on

19:24

you. Why are you crying? And

19:26

he said, you know what? He said, I've been

19:29

in this company for 47 years. I'm retiring

19:31

in two weeks and I didn't know people

19:33

felt this way about me. And

19:36

that hit me in the gut like you can't

19:38

believe. And I said to myself

19:41

from this day forward, I'm

19:43

going to do everything I can to make

19:45

sure that the Bobs of the world are

19:47

recognized and valued for what they do. The

19:51

thought of somebody being that good

19:54

and not feeling appreciated for so

19:56

long really just it's

19:58

sickened me. And the other thing was is this. This guy was

20:00

so good at what he did, if people

20:02

really would have had their eyes open towards

20:05

that, he could have maybe taken on even

20:07

more responsibility and spread his talents. We're

20:11

going to take a quick break, but when

20:13

we come back, how that moment with Bob

20:15

in St. Louis changed the course of David

20:17

Novak's career. Stay with us. I'm

20:20

Guy Roz, and you're listening to Wisdom from the

20:22

Top. Many

20:35

of us have those stubborn pounds that

20:37

seem impossible to lose, no matter how

20:39

good we eat or how hard we

20:41

work out. My solution is plush care.

20:44

Plush care is a leading telehealth provider

20:46

with doctors who are there for you

20:48

day and night to partner with you

20:50

in your weight loss journey. They can

20:52

prescribe FDA approved weight loss medications like

20:54

Wagovi and Zeppond for those who qualify.

20:57

Plus, they accept most insurance plans. To

21:00

get started, visit plushcare.com/weight loss. That's

21:03

plushcare.com/weight loss. Why

21:08

don't more infant formula companies use organic grass fed home milk instead of schools?

21:11

Why don't more infant formula companies use the latest

21:13

breast milk science? Why don't

21:15

more infant formula companies run their own clinical

21:17

trains? Why

21:19

don't more infant formula companies use more of the proteins found

21:21

in breast milk? Why don't more

21:24

infant formula companies have their own factories

21:26

instead of outsourcing their manufacturing? Yes, we

21:28

wondered the same thing. So, we made

21:30

By Heart. A better formula for formula.

21:33

Learn more at byheart.com. Hiring

21:35

for your small business? If you're not looking for

21:38

professionals on LinkedIn, you're looking in the wrong place.

21:41

That's like looking for your car keys in a

21:43

fish tank. LinkedIn helps

21:45

you hire professionals you can't find anywhere else,

21:47

even those who aren't actively searching for a

21:49

new job but might be open to the

21:51

perfect role. In a given month, over 70%

21:54

of LinkedIn users don't even visit other leading

21:56

job sites. So start looking in the right

21:58

place. With LinkedIn, you can hire... professionals like

22:00

a professional, post your free

22:03

job on linkedin.com/people today. Generative

22:08

AI is not a one size fits

22:10

all. If you're powering a

22:12

customer chat experience, you need instant speed

22:15

at low cost. If

22:17

you're doing complex R&D or

22:19

advanced analysis, you need Frontier

22:21

Intelligence. The Claude 3

22:23

model family from Anthropic offers a

22:25

model for every task and budget.

22:28

Claude 3 Opus sets new

22:30

industry benchmarks for intelligence. Sonnet

22:33

strikes the perfect balance between speed

22:35

and skill. And Haiku is

22:38

the fastest and most cost effective model

22:40

on the market. Join

22:42

the thousands of enterprises who trust

22:45

Anthropic to power their AI solutions.

22:47

Visit anthropic.com/Claude

22:49

today. Hey,

22:55

welcome back to wisdom from the top.

22:57

I'm Guy Roz. Before the break, David

22:59

Novak was talking about how he learned

23:02

the simple lesson that making employees feel

23:04

appreciated and valued was one

23:06

of the most important things a

23:08

leader could do. So

23:10

that experience, and you've written about this in your

23:13

books, actually was a

23:15

seminal moment as you describe it because at

23:17

that point you decided to make that your

23:19

North Star, your priority as a leader, that

23:21

you would focus on recognition,

23:23

which seems like a no brainer, right? That

23:26

every leader should do that, but

23:28

actually it takes a lot of work

23:31

and focus and effort to do

23:33

that because as a leader, you

23:35

have thousands of things coming

23:38

across your desk. But to focus

23:40

on recognizing good

23:42

work always constantly, consistently

23:45

is really hard. You

23:47

know, it really is, but nothing

23:49

will have a bigger payout. And I

23:51

was blessed because I got the opportunity

23:53

to go become the president of KFC

23:55

shortly after that experience. And

23:57

When I went to KFC, KFC was sort of a.

24:00

The Ugly Duckling of the Pepsico families.

24:02

It had been acquired but it hadn't

24:04

had for sales growth for a number

24:06

years. The prophets were were stagnant and

24:09

I was brought into turn around the

24:11

business and at the time the franchisees

24:13

hated the company and the company. A

24:15

To the franchisees though the work environment

24:18

was terrible so. I knew I

24:20

needed to do something to change the

24:22

game and I wanted to show people

24:24

that I was a different kind of

24:26

leader and that we're gonna have really

24:28

changed your attitude as it relates to

24:30

working together. And I thought recognition could

24:32

be the big key driver. So I

24:34

wanted to have a really great and

24:37

fun way to recognize people because you

24:39

know when I went to Tear See

24:41

I was coming in from Pensacola and

24:43

all the franchisees hated the people from

24:45

Pepsi. they songs blue suit, wide yards

24:47

read ties very stiff. But I

24:49

was not that way. And I wanted to

24:51

demonstrate to them the hate. I'm not just

24:53

another Pepsi got. So I wanted to have

24:56

a fun way to recognize people. I found

24:58

out that this guy and I t it's

25:00

was given way these rubber floppy chicken said

25:02

that monthly meeting that he had. So

25:05

I went to my said you know I

25:07

want to make recognition a big deal. It

25:09

would be all right with you if I

25:11

took your floppy check it and made that

25:13

the recognition award for the President of day.

25:16

As he said he said sure you could

25:18

do it it out and so I took

25:20

these rubber chickens and when I went into

25:22

a store I would you know Ceo our

25:24

Oc, our original recipe cook in The quality

25:26

was great and I would whip out my

25:28

rubber chicken and I'd number it and it

25:31

I'd ride on and say you know yeah

25:33

Ralph your original recipe is critically. important qualities

25:35

the most important thing we do thanks for

25:37

be in a great original recipe chef for

25:39

the last eighteen years i appreciate what you

25:42

do i would sign it a case i'd

25:44

take a picture of him as i say

25:46

amen to send you this picture frames you

25:48

could draw the trash if you are but

25:50

your pictures gonna go on my wall a

25:53

game because i'm going to fill my office

25:55

walls up with people who are making a

25:57

half an hour for our customers and you

25:59

know Well, it was amazing the

26:01

power of this rubber chicken. I

26:03

mean, people would laugh, cry, but

26:05

they love getting this rubber chicken.

26:08

And I have to tell you, it was

26:10

the thing that I think really helped me

26:13

turn around KFC because people saw that I

26:15

was going to be different and I valued

26:17

recognition. And then what happened

26:19

is people saw the power of recognition and

26:21

then everybody else came up with their own

26:24

individual recognition awards. And they

26:26

started giving them out and recognition

26:28

became the big behavioral driver that

26:30

we had in the company. And

26:33

people always ask me, how did you turn around

26:35

KFC? And the finance

26:37

people would tell you, well, it

26:39

was, you had baked chicken, crispy

26:41

strips, pot pie, all these new

26:43

products. And I'd say, yeah, that's true. But

26:46

I think what turned around KFC

26:48

was unleashing the human spirit of

26:50

people. One

26:52

of the things that few people realize, especially

26:54

at a company like KFC, is that to

26:56

be the head of KFC, you

26:59

are leading employees who work for

27:01

the corporate entity, right? But you're

27:03

also essentially running a trade association

27:05

of hundreds of franchise owners because

27:08

those employees who work at the KFC are

27:10

working for that franchise owner, essentially. They're not

27:12

working for the CEO of KFC. And

27:15

so it's a lot of people management. It's a

27:17

lot of ego management. A lot of the franchise

27:20

owners are small business owners. They're very proud.

27:23

They don't like corporate meddling in their

27:25

affairs, rightfully so. And

27:27

there are a lot of competing views on

27:30

how the corporate entity

27:32

should operate. And you're getting all

27:34

that incoming as the head

27:36

of the division. How

27:39

did you kind of deal

27:41

with competing egos and folks

27:44

who were sort of trying to tell you how

27:47

to do your job? Was it a little bit

27:49

about ego management? Well, I Guess

27:51

to a certain extent it was. What I

27:53

Looked at was a situation that I was

27:55

walking into. I was walking into a situation

27:57

where nobody was working together and people... That

28:00

are all kinds. The animosity against each

28:02

other and in the company had failed

28:04

because it hadn't worked with franchisees. So

28:06

I knew I had to change the

28:08

tone. So I sold my leadership team.

28:10

I said, let me tell you something.

28:13

I love franchisees. You're going to work with

28:15

franchisees, it's gonna be key to us turn

28:17

him around if you have any issues with

28:20

the franchisees com thought to be and will

28:22

figure it out. But together we've gotta turn

28:24

this business around and we gotta get our

28:26

franchisees make it had happened with us because

28:29

of we don't get them to go with

28:31

us. will be in the same position next

28:33

year. And you're right

28:35

about franchisees. They have real trust issues with

28:37

corporate owners. A lot of times they don't

28:40

feel like they're listen to you know? So

28:42

what I did is I went around the

28:44

country p A C had nine regional associations

28:46

and I had a meeting, said every one

28:49

of those associations and said okay we've got

28:51

a challenge here We go to turn his

28:53

business around. I want you guys to get

28:56

together in groups of eight and come back

28:58

to me and tell me what you would

29:00

do if you were me and in a

29:02

what you would do if. You were with

29:05

the the Ceo of Kfc and you know

29:07

I got their input and then I said

29:09

okay this is what she told me this

29:11

is what we're going to do and I

29:13

played it back to mouth. By the way,

29:15

various sites were basically the same as mine.

29:19

You know that N N in fact

29:21

probably more grounded and more facts them

29:23

what I could at a relatively short

29:25

period of time and then I would

29:27

just singh from the mountain tops what they've

29:29

done to help us grow the business.

29:31

You know, like we had a franchisee

29:33

developed crispy strips. And you know

29:35

it was it. A franchisee who was

29:37

doing it and a test market on

29:40

his own without tell anybody down Arkansas.

29:42

Well I had my marketing guy come

29:44

into mean sex. can you believe those

29:46

guys did a test market without telling

29:48

us and I said how's it doing

29:50

a civil The sales are up nine

29:52

percent. I saw a get your been

29:54

here over your we're going to Arkansas

29:56

right now and we were down Arkansas.

29:59

We learned about the product, what they

30:01

were do with it, how the builder

30:03

supply chain around on a national basis.

30:05

We roll that thing out or sales

30:07

went up eight percent. Okay in in

30:09

the old days that franchisee would have

30:11

been just chastising silver innovating coming out

30:13

with his new products. Also created a

30:15

chef kitchen. I got the franchisees that

30:17

were most passionate about food and I

30:20

got them to come into law. will

30:22

add with their recipes and we would

30:24

try all kinds of new products with

30:26

are already teams. We did so much

30:28

food guys I would have. To go

30:30

home and take a nap at his best

30:32

for thirty every all this foods but you

30:35

know what? We develop our chicken pot pie

30:37

from that which was very successful still in

30:39

the marketplace but it came from this a

30:41

chef council and you know once people see

30:44

how much you care about the business and

30:46

how much you care about what they have

30:48

to offer, they're gonna give you their heart

30:50

and soul. Yeah. I'm one

30:53

of the back to something that that happened

30:55

a few years earlier and it's about risk

30:57

taking. I'm in a minute sound that risky

30:59

to be policy but it it was hugely

31:02

risky because it in and it's million hundred

31:04

million dollars are involved in unveiling any product

31:06

and you were. Your.

31:08

Credited with actually inventing a product that

31:10

I think I'm one of the see

31:12

people who really loved actually Crystal Pepsi.

31:15

I like this. I remember. it's it.

31:17

I liked Crystal Pepsi. I'm

31:19

but it was a failure. For.

31:22

A variety of reasons and and and

31:25

may be some this recent aren't clear

31:27

but why using that product didn't work.

31:30

Well first I have to give you

31:32

a little backdrop on it. He'd I

31:34

got just moved into the Marty marking

31:36

roll from Pizza Hut or to the

31:38

to head Pepsi Cola marketing and you

31:40

know the first thing you gotta do

31:42

is assess what's going on the category

31:44

and I saw all these clear products

31:47

were growing rapidly you know clearly Canadian

31:49

was really a he had yeah lot

31:51

of the water products were taken off

31:53

flavored waters and so I just for

31:55

hidden in my office one day look

31:57

now and I said so what else

31:59

What. We came up with a clear Pepsi.

32:02

And. I thought gosh, that would

32:04

be so shocking And then I called up

32:07

the Chairman of Pepsico Roger recurrence of what

32:09

if we did a clear passes unilaterally good

32:11

idea. go out and talk to customers and

32:13

see what they think so we go out

32:15

and to share with customers and consumers as

32:18

a lot easier to yeah. They. Absolutely

32:20

loved it. It was unbelievable. In

32:22

fact we quickly developed the product

32:24

okay and we put it into

32:26

test market and in in Boulder

32:28

Colorado In the day the product

32:30

came off the boggling line it

32:32

was the feature story on the

32:34

Cbs Evening News with the and

32:36

rather he said today in Boulder

32:38

Colorado classical or launched a Crystal

32:40

Pepsi. Now let me tell you

32:43

something at that point guy I

32:45

thought I was a team has

32:47

the biggest winner in America Yeah

32:49

I had. The biggest winner, the biggest

32:51

idea of ever ads people worship and

32:53

Crystal Pepsi from Colorado to different states

32:55

just like they did Coors beer. At

32:57

one point in time this was a

32:59

home run. So now what is what

33:01

happens if Pepsi? It's he got a

33:03

big idea what he had a the

33:05

league Geico big you gotta go begging

33:07

Guess where you go? The biggest super

33:09

now. I developed this product with my

33:11

team back in in in the summer

33:14

so I reading in six months I

33:16

got to get this product a test

33:18

market and then get it to. National

33:20

by time you have the Superbowl so

33:22

I'm like a seat seeking missile. This

33:24

product is great and so are now.

33:26

I gotta get the Pepsi bombers together

33:28

Now these are the franchise owners again.

33:30

Here's where I learned my lesson that

33:32

I that help me a lot will

33:34

have a President gave seats. I went

33:36

to these guys and I subs. Here's

33:38

this products he had a taste or

33:40

they taste of privacy David this is

33:42

a great idea. There's only one problem.

33:45

And. I said was that they said

33:47

doesn't taste enough like Patsy and I

33:49

say. Well we're calling and you know

33:51

Crystal Pepsi at but we wanted to

33:53

be a lighter color of flavor. We

33:56

don't want to taste exactly like Pensacola

33:58

because because assist you know it's. It's

34:00

get it'll just cannibalize or businesses bring

34:02

in a new user group Nato yeah,

34:04

David's which are call it does. He

34:06

doesn't have enough test score flavor notes

34:08

and I said yes but we want

34:10

to get incremental users and I just

34:12

totally blew him off and I totally

34:14

didn't really look hard enough and what

34:16

they're real issue was. So.

34:19

Anyway, we end up the good old watching

34:21

this product on the Superbowl. Okay and it's

34:24

the first product in the history of Pensacola

34:26

that was ever introduced at a premium price.

34:28

Now this really made me mad is I

34:31

want to get a lot of. Thrones is

34:33

probably going to have lower pricing but the

34:35

bombers they charge more for us a why

34:37

are you charging a premium prices and he

34:40

said look David this is a really good

34:42

idea people are gonna try but they're not

34:44

gonna come back and bias. Yeah so we

34:46

my as will make a profit. Always put

34:49

it. In the store? How to him? So

34:51

he launches. And he we launch

34:53

it on the Superbowl. And. It

34:55

got a massive trial. But

34:57

the read repurchase of the product

35:00

was extremely low. Guess why guy?

35:03

Because. It didn't is a Pepsi. Didn't.

35:05

Taste enough myself says okay so I

35:07

said near with the greatest idea I've

35:10

ever had. I didn't listen. people who

35:12

knew more about the business than I

35:14

did. And. Their gut instincts and franchisees

35:16

have great gut instincts. Can I force this

35:19

product in? I not only forced to product

35:21

in but our head of our and d

35:23

I we would. We worked at night and

35:25

day to get this thing done but we

35:27

didn't do enough quality control testing. Okay,

35:30

So in some parts the country the

35:32

product didn't have the clarity that it

35:34

needed have as little cloudy. Okay, so

35:36

Saturday Night Live did a parody of

35:38

it. Where. They basically suit poured

35:40

the crystal Pepsi on mashed potatoes

35:42

or case if it was like

35:44

it was horrifying. I'm sidner watch

35:46

and saturday like lot of people

35:49

who lost his yeah nobody does

35:51

now but anyway it was like

35:53

oh my gosh you know but

35:55

this product when we developed it

35:57

was listed as one the top

35:59

ten. Innovations of the Year okay

36:01

and then in two thousand Time Magazine

36:03

look back on all the market enough

36:05

products and in as he was a

36:07

top ten list of failures as the

36:09

last century for caped. so I went

36:11

from being a genius to real dummy

36:13

in a hurry. When

36:16

we come back in just a moment,

36:18

Steve Novak recovers from the Crystal Pepsi

36:21

hangover and rises to the leadership and

36:23

young foods they would us and Guy

36:25

rise. And you're listening to wisdom from

36:27

the top. Generative,

36:36

A I is not a one size

36:38

fits all. If. You're powering a

36:40

customer chat experience. You need instant

36:42

speed at low cost. If

36:45

you're doing complex are and D

36:47

or advance analysis, you need frontier

36:49

intelligence. The Claude Three model

36:51

family from and Fra Pick offers a

36:54

model for every task and budget. Claude

36:57

Three Opus set new industry

36:59

benchmarks for intelligence. Son.

37:01

Strikes the perfect balance between speed

37:03

and skill. And. Haiku is

37:06

the fastest and most cost effective

37:08

model on the market. Joined

37:10

the thousands of enterprises

37:13

who trust Anthropic the

37:15

power their A Solutions

37:17

Visit anthropic.com/claude today. Hi

37:22

this is Denise tourists from Joke you know the

37:24

nettle. From a local

37:27

business for Global Corporation

37:29

partnering. With Think America, give your

37:31

operation access to exclusive digital. Tools.

37:34

Award winning insights and business

37:36

solutions. So powerful will make every

37:39

movement or visit bank. Of

37:41

america.com/thinking for Business. To

37:43

learn more, What would you like? The

37:45

Power To Do Bank Of America? Any

37:47

Copyright Twenty Twenty Four. Why

37:51

don't more ensign formula companies use organic

37:53

grass? That whole milk. Formula

37:57

companies use the latest. Breastmilk Science.

38:00

Why don't mind in formula companies run

38:02

their own clinical term, I know more

38:04

infant formula companies, he is more of

38:06

the proteins. Why

38:08

don't more in formula companies have their own

38:11

factories? Wondered

38:14

the same thing. We need I

38:16

wrote a letter. Formula for formula. Learn

38:19

more by her.com. Need. New

38:21

glasses or one of fresh you sail,

38:23

War Be Parker has you covered. Blesses

38:25

started just ninety five bucks including anti

38:28

reflective, scratch resistant prescription lenses that block

38:30

one hundred percent of Uva rays. Every

38:32

frames designed in house with a huge

38:34

selection of styles for every say, shape

38:36

and with or be Parker's free home

38:39

say on program you can order size

38:41

peers to try and home for free.

38:43

Shipping is free both ways. To go

38:45

to War Be parker.com/covered to try side

38:48

pairs of frames at home for free

38:50

or be parker.com/covered. He

38:56

will come back to wisdom from the

38:58

top I'm Garage So in eighty ninety

39:01

seven Pepsico spun off it's booed brands

39:03

chief among them Kfc, Taco Bell and

39:05

pizza it into a company that is

39:07

today known as Yum Brands and David

39:09

O. Back became that company's president, working

39:12

closely with his friend and mentor and

39:14

be Pearson and we were spun off

39:16

for reasons we're seeing sort of the

39:18

you know that we are a drag

39:20

on Pepsico as earnings by Wall Street

39:23

because he had put a lot of

39:25

capital in the restaurant. race their way

39:27

said you need to focus on packaged

39:29

goods does the restaurant business should be

39:31

spun off of the they could focus

39:33

solely on the restaurants and that was

39:35

the that the thinking behind the business

39:37

and the restaurants have been very underperforming

39:40

poor same store sales poor return on

39:42

investment capital so you know i had

39:44

the opportunity to do with my daughter

39:46

that time would a call be no

39:48

a gigantic do over you know we

39:50

had this great company three gray brands

39:52

twenty two thousand restaurants eighty percent of

39:54

our business was in the united states

39:57

and i had the chance to say

39:59

that company, create a total new culture,

40:01

get focused on what really matters in

40:03

the restaurant industry, and really build a

40:05

world-class company. And boy, did we have

40:07

a lot of fun doing it.

40:09

You, this was also a chance for you, as you

40:11

say, to really kind of put in

40:13

practice all of these things that you'd learned over

40:16

the course of your career and the practices that

40:18

you had used in other places, but to do

40:20

it at a much bigger scale

40:22

at YAM. And you wrote a book about it based

40:24

on this management course that

40:27

you integrated into YAM and into

40:29

the training programs there. I think

40:31

it was called Taking People With You. Was it the name of

40:33

the program? Yes, that was it.

40:36

One of the things that Andy Pearson did for

40:38

me was he opened up all kinds of doors.

40:40

And just as we were getting ready to take

40:42

our company public, he set up a meeting with

40:45

he and I and Jack Welch. And

40:47

so I was so excited about this. Yeah, Jack

40:50

Welch of GE, the biggest CEO in the world.

40:52

Yeah. And so I took my notepad in there,

40:54

and I'm asking him all kinds of questions. And

40:56

the last question I asked him, I said, what

40:59

would you do if you were me going

41:01

out and starting this new company? How would

41:04

you spend your time? He said, you know,

41:06

David, when I became CEO of GE, I

41:08

immediately started cutting costs because I knew we

41:10

had to have fewer, better jobs. I knew

41:12

we had to get our cost structure right.

41:15

But I quickly got this nickname that

41:17

I'm not too proud of, which was

41:19

Neutron Jack. It's because I was

41:21

blowing up everything. And worse yet, people didn't know

41:23

why I was doing everything. The people in the

41:25

company just thought I was sort of a loose

41:27

cannon. He said, so what

41:30

I would do is if I were you is

41:32

find a way to get out and to talk

41:34

about what kind of company you want to build,

41:36

what your culture is going to be, let people

41:38

know who you are and what you're all about.

41:42

And so that

41:44

really was a powerful learning

41:46

for me, because just

41:48

before we were spun off, Roger and Rico

41:50

had asked me to develop a training program

41:52

for high potential Pepsi executives. And I had

41:55

finished it off. It's called taking people with

41:57

you. And I was about ready to give

41:59

it one. I heard about the spin-off and

42:01

so I canceled the program and I just kind

42:03

of put the program in my drawer. But after

42:05

I heard Jack's advice, I

42:08

went back pulled out that training program, tailored

42:10

it towards the restaurant industry and began my

42:12

journey to start teaching it around the world.

42:14

And I had my first Taking People With

42:17

You program with eight general managers

42:19

in Europe and guess what? Everything Jack Wells

42:21

said was right. People wondered, you know, what

42:23

our culture was going to be, you know,

42:25

what I'm like, what our strategy is going

42:27

to be. And I was able to talk

42:30

about that and also get to know each one of

42:32

them. And the other

42:34

thing I had people do was come to the

42:36

program with the single biggest thing that they're working

42:38

on that could grow our company and improve our

42:41

stock performance. And so I

42:43

learned what the big projects were when

42:45

I had these leadership seminars. So the

42:47

only problem was is that

42:49

I spent three days and I only reached

42:51

eight people. So I decided to scale the program

42:53

and started doing with 50 people. And

42:55

I ended up doing it to over 4,000 people

42:57

at Yum! Brands. And the last one I

42:59

did was in China with 100 leaders in China.

43:02

And it was so powerful.

43:06

And people say, gee, David, how could

43:08

you spend so much time teaching leadership

43:10

and focusing on that? I said, it's

43:12

the most efficient thing I do. I

43:14

get to know all of our people. This is

43:16

a people business. You got to get your people

43:18

capability right. If you're ever going to satisfy customers

43:21

and make money, I get to understand

43:23

what the biggest projects are that people are working

43:25

on. I get to help them develop a plan

43:27

on how to make it happen by taking people

43:29

with you. I couldn't spend my

43:31

time more efficiently. One of

43:33

the things that you emphasize in this training

43:35

program in the book was the idea that

43:38

a leader has to know how to motivate

43:40

and build teams. You've talked about recognition

43:42

as a key part of that,

43:44

recognizing good work. But

43:46

how did you help leaders figure out

43:49

how to do that? Well,

43:52

the first thing I talked about was getting

43:54

your mindset right. You have

43:56

to be an avid learner. You Have

43:58

to believe that things can get done. Gets.

44:00

Reminds her right. But the big premise

44:03

that that I had in terms of

44:05

taking people with you is you have

44:07

to apply a marketing approach. To.

44:09

Taking people with you us understand your

44:12

people just like you would want to

44:14

understand your customers. So I always ask

44:16

the question what perceptions, habits and beliefs

44:19

do need to build, change or reinforce

44:21

to grow the business. So asset same

44:23

question in terms of what perceptions have

44:26

us believe city to change bill or

44:28

in forced to take people with you

44:30

and Islam help you understand what the

44:33

barriers are, what the challenges are. So

44:35

that's when you're developing an initiative. You

44:37

can attack those barriers head on. The.

44:39

Other thing that I really believe. And.

44:42

It's a law. Leadership is no

44:44

involvement, no commitment. If

44:47

you don't get people involved. And

44:49

ask him what they say they won't be

44:51

committee had an ownership they have to have

44:53

that ownership. And

44:56

will ask you about. Your.

44:59

New your newest book because you you

45:01

will Leadership Institute and you've got your

45:03

own Leadership Podcast and and you've written

45:05

other books around this topic of leadership

45:07

and with a focus on the idea

45:09

of almost like serving the people that

45:11

you work for. In other words, what

45:14

I took from from your book so

45:16

far is that I don't think you

45:18

saw yourself as the boss of all

45:20

of these people, but rather that they

45:22

were your boss in a sense. I

45:26

really believe that when you're the leader,

45:28

it's a privilege. I was talk about

45:31

the privilege of leadership. You ultimately have

45:33

to make the final decision, but. There's.

45:36

A real difference between a weird

45:38

that constantly says i versus leader

45:40

who says we. And.

45:43

I really believe in the we part

45:45

of the equation and what I try

45:47

to really show people how to do

45:49

is to go for me to week.

45:52

And. In of that's the key

45:54

to leadership. That's how you get

45:56

people fired up. That's how our

45:58

people are motivated and and they

46:00

want to be all they can

46:02

be. And part of this is

46:04

taking a actually the interest in

46:07

other people's development. It's

46:09

one thing to have your own success,

46:11

but I think the most successful people

46:13

help other people succeed. And I'm passionate

46:16

about this because our world is in

46:18

dire need of better leadership. Young, eighty

46:20

percent of people aren't against when they

46:23

go to work. He's.

46:26

Seen all the numbers about people who

46:28

are who would like to change their

46:30

job and go to a different job

46:32

and you're not happy. I think this

46:34

is just an absolute problem of leadership.

46:40

Suit, let's dive into the city itself coaching. And

46:42

because I think that the the book comes from

46:45

the side the earth, the premises at in so

46:47

many people know so much research, runners are not

46:49

happy at work and one of the things that

46:51

you begin with in the book is. Is

46:54

the idea that we all need to

46:57

ask ourselves questions to begin this? This

46:59

process of self coaching that we need

47:01

to ask ourselves. For example, what is

47:03

getting in the way of my joy

47:05

should walk me through how you begin

47:07

to become your own coach. Well,

47:10

I think it's so important to begin

47:12

to become your own coach because your

47:14

life and curse too important to delegated

47:17

to somebody else. And if you look

47:19

at what's going on today with everybody

47:21

work and virtually there's less coaching going

47:23

on than ever before. So you gotta

47:25

take ownership on this and you can't

47:28

delegated. So the thing is critical. Is

47:30

you have to bill self awareness?

47:34

And one way to do that

47:36

it is to really understand. What's

47:39

your joy? Blockers are what your joy

47:41

builders are. Okay We have all kinds

47:44

exercises in this book. One of the

47:46

things we as people do is to

47:48

write down. The. Joy Blockers in their

47:50

life? What happens in their worst day? What

47:52

are the thing said? You do or people

47:54

do to you that absolutely sap you and

47:57

take your joy away. And

47:59

then. Write. Down your Joy

48:01

Builders what are your best days?

48:03

When do you have the most

48:05

fun? Windy sealed, most gratified, what

48:07

are you do and when years

48:09

the happiest I came. And.

48:13

I think that begins to help

48:15

you really have a better understanding

48:17

of who you are and what

48:19

makes you tick. And then. Is

48:22

really important to them say okay

48:24

when I think about my future.

48:26

What's. A single biggest thing that I can

48:28

do. This. Going to give

48:30

me joy. Wouldn't you like to be

48:32

like Warren Buffett where you say you

48:35

tap dance to work every day? Why

48:37

is that? He loves business? He loves

48:39

everything he does Emily's He just said

48:41

tax work every day and as because

48:43

he found his joy. I found my

48:45

joy and in marketing and consumers and

48:47

food. But I think every person nice

48:49

to find that joy. And and if

48:52

you're living a lie for your joys

48:54

being blocked, you know you've got enough

48:56

pain you're gonna chase. You actually do

48:58

some simple things every day. It

49:00

is part of your practice because I think

49:02

reading between the lines you use dollars that

49:05

like everybody, Nina, we all have a tendency

49:07

to be negative to be pessimistic, but there

49:09

are things you do on a day to

49:12

day basis to remind yourself. To.

49:14

Sink in a positive way? What are some of the things

49:16

you do? Hear what?

49:18

You're absolutely right that you know your brain

49:20

will retain a negative saw three times more

49:22

the deposit thought. So

49:25

what I do every morning as

49:27

I wake up and I do

49:29

a gratitude journal. It

49:31

on I write down. You know three

49:34

to ten things that make me grateful.

49:36

In Saw based on this concept that

49:38

I learned from Larry Sin his really

49:40

the father of culture and it's a

49:42

concept called the Mood Elevator you know.

49:44

We. Make our worst decisions When we're

49:46

angry, Ridge prevents full and frustrated.

49:48

We make our best decisions when

49:51

we're in a state of gratitude.

49:53

So each day what I try to do

49:56

is get myself moving up the mood elevator

49:58

so I can get to his clothes. The

50:00

grateful as I can before I embark on

50:02

my my day and at least get above

50:04

the line which is curious and interested. Okay

50:06

and eat Obs but I find that to

50:09

be important. The other thing and I think

50:11

is very important is I think your physical

50:13

well being is important so I make sure

50:15

I work out every day. And.

50:18

Do in the morning So I'm not wondering

50:20

when I'm gonna work out. I get the

50:22

work out out of the way. So you

50:24

know when when I go to work on

50:26

feeling grateful on feeling fit and I'm ready

50:28

to go on? Not you know I'm not

50:30

stumble into the coffee pot. Do

50:33

you do you believe that leadership is a

50:35

servant and friends a trade? Or do you

50:37

think that everyone has the capacity to learn

50:39

how to become a leader? I

50:42

think that. Everyone can lead

50:44

in their specific job. Could.

50:47

Not everybody's gonna be Ceo, but if

50:49

you're an administrative assistant, you can be

50:51

pro active. You can do things before

50:53

people ask you to do it and

50:55

that's what leadership is being. proactive. Taken

50:57

the leads, you know how to do

50:59

your job better than anybody else. Do

51:01

it. Don't wait for somebody to tell

51:03

you what to do. Ah

51:06

in I think that's that's what leadership is

51:08

all about. I believe Lear's can be developed.

51:10

You're not a born leader, he go through

51:12

a lot of hard knocks and live in

51:14

and you know which. The first thing you

51:17

gotta do is you gotta be the really

51:19

good at what you do. You have to

51:21

dig good at what you've chosen to do.

51:23

Be good at doing that job haven't a

51:25

skill that everybody sees you doing well and

51:28

then when you can do that skill extremely

51:30

well, you get to teach other people how

51:32

to do the skill. And that's when you

51:34

take on managerial skills. And then stats when

51:36

you gotta learn how to lead and and take

51:39

people with you and I say that can be

51:41

developed over time. i

51:45

know one thing am i imagine had a

51:47

huge impact on cheating said that he jim

51:49

hansen your life one was the birth of

51:51

your daughter she was she was born ten

51:53

weeks premature and that was concerned that for

51:56

her entire life would be affected by it

51:58

and and the other was your your

52:01

cancer diagnosis, which you beat, and

52:03

today you are healthy and strong.

52:07

But I have to imagine that those two

52:09

experiences really kind of

52:11

help to frame in your mind what

52:14

matters, what's important. I

52:17

think, you know, my wife is

52:19

a type 1 diabetic. So

52:22

she told me when we got married that we would

52:24

never have children. And then after nine years, she came

52:26

to me and said, David, I want to have a

52:29

child. And I said, you told me we couldn't have it.

52:31

I don't want to risk you. And she said, I've been

52:33

to the doctor. They think I can have the baby. So

52:37

she goes through a very

52:39

tough pregnancy, had toxemia, bed

52:42

rest, and then has, Ashley,

52:45

10 weeks premature. I mean, you

52:48

know, when I first met with the

52:50

doctor, he said she could have brain

52:52

problems, lung problems, kidney problems, heart problems.

52:54

It was amazing. She had three IVs

52:56

at her and I

52:59

looked at her and I thought she was the most

53:01

beautiful thing I've ever seen in my life. I

53:03

gave her my finger and she squeezed my finger and

53:05

I told everybody in the room that she was going

53:08

to make it. Okay. I

53:10

was told that kids will stay alive if they know

53:12

you're there. And

53:14

so I did audio tapes in those

53:16

old cassettes, you know, and when I

53:18

wasn't there and I was getting a

53:20

little sleep, I had the neonatal nurses

53:22

play the audio tapes. I found out

53:24

the first color that a baby sees

53:27

is red. So I got her a

53:29

red happy apple that she gives to

53:31

her kids today. Okay. And,

53:33

you know, she made it and we took her

53:35

home in doll clothes after 23 days. But

53:39

my wife, she had diabetes

53:41

retinopathy. She couldn't see. It

53:43

was like looking through wax paper and she's

53:46

had all kinds of struggles as

53:48

a diabetic. And you

53:51

never get a day off as

53:53

a diabetic and you don't have a child

53:55

easily as diabetic and you never get a day off

53:57

in your life. Right now my wife is, you know.

54:00

working through a minor stroke, just

54:03

fell and broke her arm and

54:05

had a seizure. I just got her out of the hospital.

54:08

But man, all of it puts

54:10

things into perspective. And

54:13

then, I guess five years ago,

54:15

I got diagnosed for cancer. And

54:19

it was an amazing story. I

54:21

met with this pizza franchisee who knew I

54:23

was about to retire and he came

54:26

to me and wanted me to take this restaurant

54:28

company public and I told him I didn't want to do

54:30

it. I wanted to get out of the restaurant business and

54:32

focus on leadership. And I said, what have

54:34

you been doing? The last couple

54:37

of years. And he had founded

54:39

Lone Star Steakhouse and Del Frisco's.

54:41

And he said, well, I survived

54:43

stage four breast cancer. And

54:45

I said, what? I didn't know

54:47

men could get breast cancer. He said, yeah,

54:49

I had a double mastectomy. So

54:52

I go home and tell my wife that. And

54:55

she tells me I didn't know that. And I said,

54:57

I know. So as I mentioned

54:59

earlier, I work out every day. So I go, I'm

55:01

working out. I always take my shirt off and I

55:03

work out because my wife doesn't want me to come

55:05

up in a sweaty t-shirt when I sit in the

55:07

kitchen chairs. And then I

55:09

put the shirt back on. But I'm aware of

55:11

my body. And one day

55:13

I feel underneath my left nipple a pea.

55:15

It's almost like a marble. But

55:18

it's a tiny little marble the size of a pea.

55:22

And I go to the doctor and

55:24

I tell the doctor about the story

55:26

with Jamie Coulter how he had the

55:28

breast cancer. And he's laughed. He said,

55:30

you don't have breast cancer, David. That's

55:33

a sebaceous cyst. Don't worry about it. And

55:35

so I did myself a little self coaching.

55:38

I said, I'm going to find out for

55:41

myself. And then I went and had a

55:43

mammogram and an ultrasound. And the nurse told

55:45

me they get back to me in 24

55:47

hours after I did this. And

55:50

I go out the next day and I

55:52

go to my mailbox and guess what? I

55:55

get a letter from Jamie Coulter, the guy

55:57

who had told me about his breast cancer.

56:00

Okay. He congratulates me on my career

56:02

and is wishing you all kinds of

56:04

success. And I come back and

56:06

I tell my wife, Wendy, I say, Wendy,

56:09

I'm a very positive person, you'd know this, but

56:12

I know I have breast cancer. And I found out

56:14

the next day I had breast cancer. Wow. I

56:17

had a stage three a tumor. I

56:19

had an 11 lymph nodes. I

56:22

had to have partial mastectomy

56:24

and I went through radiation

56:26

and chemo, but

56:28

that's probably a pretty good example of self

56:30

coaching and falling in your gut. Okay. But

56:33

it's also an example

56:35

of, you never know what life's going to do you.

56:38

But I think that, that, you know, I

56:40

never ever once thought about dying. I

56:44

always felt like I would live and I

56:46

was going to attack this and do everything

56:48

I could to be successful. I developed my

56:50

action plan and went about doing it. And,

56:53

uh, and maybe I

56:55

was in denial, but you know, if they got

56:57

it worked out. And I think that, that your

56:59

daughter who was born 10 weeks premature now

57:02

runs a business with you, right? Yeah.

57:05

We have a, what we call the lift a

57:07

life foundation and it's, uh,

57:09

she's the executive director, CEO of

57:11

that foundation. We've got the Wendy

57:13

Novak diabetes center. I focus on

57:15

leadership development. And then we also

57:18

focus on, uh, hunger, early childhood

57:20

education and veteran support. So

57:22

Ashley is, you know, really, you know, running

57:24

this like a business, making sure that we

57:26

use the blessings that we have to help

57:28

other people. And I think it

57:30

gives us a tremendous joy to know that

57:32

we can help people. And, uh, you

57:35

know, I've read a lot lately. I'm

57:37

sure you have that the happiest people in the world

57:39

are other directed. And I

57:41

could tell you for sure. You know,

57:43

I'm always happier when I know I'm

57:45

doing things for other people. It's

57:51

been a long journey from moving from trailer

57:53

to trailer, um, 32 times. Well,

57:57

it sure. but

58:00

it has been a journey

58:03

of a lifetime, no pun intended. It's

58:05

just been, to me, I can't believe I

58:08

get to do what I do. And I'm

58:10

focused on my joy

58:12

builders. I'm focused on

58:14

leadership development, I'm focused on my family, and I'm

58:16

focused on my golf game. And

58:19

those are the three things that I really have a lot

58:21

of fun with. And anything that gets in the way of

58:23

that, I basically say no to. And

58:27

it's a lot of fun to be able to be in

58:30

that kind of position. That's

58:37

David Novak, co-founder and former

58:39

CEO of Yum! Brands. By

58:42

the way, next time you're out on

58:44

a hike, look for the little metallic

58:46

plates hammered into the rocks. They're ordinance

58:48

survey plates, the kind of work

58:51

that David Novak's dad used to do. Also,

58:53

if you want to hear more of

58:56

David's advice and his conversations with some

58:58

incredible leaders, check out his

59:00

podcast. It's called How Leaders Lead

59:03

with David Novak, and it's

59:05

available everywhere. Hey,

59:12

thanks for listening to the show this week. The

59:14

music for this episode was composed and performed

59:16

by Drop Electric. I'm Guy

59:18

Roz, and you've been listening to Wisdom From the

59:21

Top, Luminary, the

Unlock more with Podchaser Pro

  • Audience Insights
  • Contact Information
  • Demographics
  • Charts
  • Sponsor History
  • and More!
Pro Features