story by Kim Souza
ksouza@thecitywire.com
Donnie Smith, who assumed the role of CEO for Tyson Foods in January 2009, candidly told hundreds of business professionals Thursday (Feb. 28) that by the end of 2008 the meat giant had dug a $1.8 billion hole and struggled to emerge.
That seems a long way back for a meat giant whose credit rating and share price has fully recovered from historic lows hit five years ago.
Smith was the keynote speaker at the weekly Business Summit held at Cross Church in Rogers on Thursday and made no bones about what it took to get Tyson Foods back on track.
“You have to begin with the end in mind, spend a lot more time looking out of your windshield and way less time staring through the rearview mirror. That’s why the windshield is way bigger,” he said with a laugh.
“People wanted to talk about how we got there and how this could happen to Tyson Foods,” Smith said. “Who cares how we got there. We couldn’t just keep looking through the rearview mirror, we had to focus on where we needed to be.”
Smith shared his insight on the unconventional decisions made to get Tyson back on track. He said the company didn’t necessarily follow traditional wisdom, but like the Biblical David, looked for its own way to slew the giant it was facing.
He said Tyson subscribed to MTMTTMT -- making the main thing, the main thing, Smith said the company focused on three big rocks – culture, clarity and communication.
While he admitted Tyson needed to restore customer relations, improve operational efficiencies and improve its credit ratings, Smith said the company first looked at itself, much like the dreaded way an overweight person knows they need to get on the scale.
“We got real honest with ourselves and decided to focus on our team first, instilling trust and the permission to fail in a climate that had previously allowed fear and intimidation to rule. Leaders have to trust their people,” Smith said.
Though Smith heads up a global workforce of more than 115,000 people, he doesn’t see himself at the top of a business pyramid.
“Our business structure is more like a peach tree. I am the roots and it’s those folks making and selling our products who are real the stars. Management leadership is there to facilitate and serve,” Smith said humbly.
He spent more than two years visiting Tyson plants in a pick-up truck making sure every last employee had complete clarity about three core tenants with respect to Tyson’s corporate culture: What we do, What we believe and How we behave.
Today Tyson Foods’ balance sheet is strong, its share price is just off historic highs and the company is back in favor with its customers, growing marketshare in chicken, beef and pork.
Smith said with the cyclical nature of the meat protein business there’s always potential for catastrophic events on the horizon, but managing distractions and focusing on those few big rocks day in and day out are key in any turnaround situation.
He puts the success of Tyson’s turnaround clearly on the shoulders of everyone employed. Smith said the company got very clear with every last employee about why their job is important, how it is to be done and how that performance will be measured.
These messages are revisited regularly in multiple communication channels and Smith says “every team member knows it’s okay to goof up but not goof off.”
Smith knows the only way Tyson’s success can perpetuate is if there's a well tailored succession plan in place at all times.
“We subscribe to 3D 3V,” he said.
That’s three levels below every management job there has to be three viable candidates in various stages of training to assume each management job if needed.
“Think about that. It ranges from my job down to a shift manager in a plant. That’s takes a lot of work, training and focus but we are committed to it because we believe in three to five years that will bring forth a wealth of quality leaders to perpetuate Tyson’s continued growth,” Smith said.
Lastly, Smith said believing in your team and making sure every member is intimately connected to the game plan is crucial to finding success on the field, even when someone upstairs calls an audible.