Until 2011, Terry Leahy was the Chief Executive Officer (CEO) of Tesco, one of Europe’s largest grocery stores, and he was considered to be a good leader.
Terry Leahy served as the CEO of Tesco from 1997 to 2011. During his tenure, he is credited with transforming the supermarket giant into the UK’s largest retailer and the third-largest globally by revenue. He is especially known for introducing the Tesco Clubcard loyalty program and expanding the company internationally. Tesco has over 350,000 employees in 2,000 stores in 13 countries worldwide.
His definition of a good leader is ‘someone who takes you further than you would go on your own’.
What makes a good leader?
Terry Leahy has shared his insights on leadership through various sources, including his book ‘Management in Ten Words’ and interviews.
Leahy’s views on what makes a good leader include the following:
- Communicate important things simply – avoid management jargon as it is a barrier to understanding.
- Ensure that people in the company know what is expected of them and how they can contribute to the company.
- As leader, the most important thing is what you cause other people to do rather than what you do yourself.
- Believe in people. I believe in the potential of staff. So, I have never lost the belief that people are capable of incredible things if you give them the confidence and opportunity.
1. Focus on people:
- Empowerment: Leahy believes in empowering employees and trusting them to make decisions. He viewed his role as CEO as being in the background, listening, and allowing the customer to be the leader.
- Developing talent: He stressed the importance of investing in talent and creating a culture where people can learn and grow.
- Communication: Clear and frequent communication with all levels of the organization is crucial for building trust and engagement.
2. Vision and strategy:
- Clarity and simplicity: A good leader has a clear vision for the future, articulated in simple terms that everyone can understand.
- Adaptability: Being able to adapt to changing markets and customer needs is essential for success.
- Focus on the customer: Ultimately, everything a leader does should be focused on serving the customer better.
3. Personal qualities:
- Authenticity: Leahy values authenticity and genuineness in leaders.
- Humility: He believes that the best leaders are humble and willing to learn from others.
- Passion: Leaders need to be passionate about their work and the organization they lead.
Terry Leahy spent a week of each year in a Tesco store doing the work that store workers perform. ‘I am reminded how hard people work and how well they work. It’s good work and I learn a lot and I bring ideas back here to the office’.
