November 10, 2003
Confidence, Simplicity and Openness to Change: Keyes for Leadership
By Erica Grieder
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“No one’s going to help you with your career; no one’s going to give you that next promotion. You have to find some way to earn it,” said Jim Keyes, the President and CEO of 7-Eleven, speaking at the culmination of Business Week as part of the VIP Lecture Series.
Keyes, who was instated as the head of the world’s largest chain of retail stores in April of 2000, has certainly earned his title. He has presided over the company during a period of evolution. 7-Eleven, which was founded in 1927 by a University of Texas alumnus, Joe Thompson, has long been known as a house of beer, snacks and cigarettes. Now, the chain is attempting to shed that image and present a fresh new face to the public.
To do this, Keyes relies on three principles of leadership, which he discussed in his lecture.
1. Openness to change
Shortly after he was instated as the President and CEO of 7-Eleven, Keyes was faced with a difficult question.
“There was a student from Taiwan,” he recalled, “and she wanted to know why all the 7-Elevens around Dallas were dirty and their food was bad.”
Rather than take offense, Keyes acknowledged the validity of her question. His predecessors “had seen [7-Eleven] as a place for beer, jerky and cigarettes for 75 years, and suddenly, beer, jerky and cigarettes weren’t making much money.” In Asia, however, thousands of 7-Eleven stores were performing much better with fresh food and daily delivery. “The difference between 7-11 in the states and 7-11 in Taiwan is amazing,” Keyes said. “They created an infrastructure that allows them to have fresh, high-quality foods all day.”
Accordingly, Keyes devised a new strategy for stateside 7-Elevens. The creation of a national network of commissaries will help keep each store’s shelves stocked with fresh sandwiches, donuts and fruit. “We’re trying to change the image of 7-Eleven to make it more of a fresh-foods environment,” said Keyes.
Keyes acknowledged that getting the public to think of 7-Eleven as a healthier store would not be a slight task. However, he expressed faith that their development would be recognized. “Even the hot dogs are better,” he said. He added that they make a perfect low-carb snack.
2. Confidence
“I am not really good at very much,” Keyes assured the audience, “but I believe I can do anything.”
Keyes’ confidence was apparent throughout his lecture. He spoke, for example, of how he planned to partner with Budweiser to make sure that, on Valentine’s Day, 7-Eleven stores would be stocked with bottles of Budweiser with the “born on” date of February 14, 2004. “Fresh beer for your sweetheart!” he proclaimed. “Why not? It’s like roses!”
“No one else is going to be foolish enough to try to make fresh beer for Valentine’s Day,” Keyes said.
Confidence also enables Keyes to cast his company in a positive light. Over the years, he said, he had tired of seeing late-night comedians deride 7-Eleven for its number of new-American employees. Accordingly, Keyes brought out a commercial campaign that celebrated 7-Eleven’s diversity, presenting the chain as a breeding ground for “the American dream.”
3. Simplicity
Simplicity is a third component of leadership, Keyes said, and he emphasized that it does not preclude innovation. Last year, for example, 7-Eleven introduced a new flavor of Slurpees: Blue Shock Mountain Dew. This idea drove sales of Slurpees up 20% all summer, and was based on a very simple idea: “Our customers like blue stuff. I don’t know why; it doesn’t make sense to me.”
One of Keyes’ primary business strategies is also quite simple. People are the backbone of his company, and he wants every employee of 7-Eleven, from himself down to the cashier, to think like a leader. “The best strategy in the world doesn’t work unless it’s for people,” he said.
This concern for people also motivated Keyes to extend 7-Eleven’s efforts into the sphere of philanthropy. Reflecting that education is the great equalizing factor between people, he started the Education Is Freedom foundation, which provides scholarships to financially needy students.
“Social consciousness and shareholder value are not mutually exclusive,” said Keyes, encouraging the audience to ask themselves: “It’s okay to make money, but can I still do it and help society?”
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