Fred Smith is one of the most iconic businessmen of the modern era. He is best known as the founder of the package delivery service company, Federal Express or simply, FedEx. Today, FedEx is the premier international package delivery company that serves hundreds of countries around the globe. Smith’s visionary ideas helped make this brand an international behemoth.
Background of Fred Smith
Fred Smith was born on August 11, 1944 in Marks, Mississippi. At a young age Fred’s father Charles gave him the nickname “Juan”, which would stay with him for the rest of his life. Growing up in rural Mississippi, Fred was exposed to an entrepreneurial spirit from his father at an early age.
Smith studied economics at Yale University. He later joined the Marine Corps and served in the Vietnam conflict as a platoon leader. After his military service, he returned to Yale to complete his degree. Following his graduation, Smith worked as an analyst at Lehman Brothers and later joined the management consulting firm, McKinsey & Company.
Founding of FedEx
In 1971, Smith wrote a paper for an economics class at Yale in which he outlined his idea for an express delivery service that was appropriately named Federal Express. Smith pitched his idea at multiple investors but was rejected each time. He eventually borrowed funds from family and friends to cover the startup costs and in 1973, Federal Express was officially launched.
The company’s package delivery system was revolutionary as it offered a guaranteed overnight delivery time. The unique system involved a network of strategically located hubs and flights in order to ensure that packages would arrive at their destination in the promised time.
Initial Success & Difficulties of FedEx
The business initially caught on and demand for services rose. However, shortly after launch the business encountered a major financial crisis. By 1975 FedEx was nearly bankrupt and Smith was forced to take drastic measures. He downsized operations and cut the company’s costs drastically. Furthermore, he leveraged his flight privileges as a former Marine Corps pilot and flew cargo on his own when the company could no longer afford to pay certified pilots. He was even known to fly packages himself when there were slight delays in service.
Turnaround & Public Offering
By 1978, Smith’s efforts successfully turned the business’s financial fortunes around and the company was finally back in the black. Smith had published the company’s first manual two years prior laying out the framework of the FedEx culture and ethos during the turnaround.
In the 2000s Smith took the company public and oversaw its growth and expansion into the behemoth it is today. Over the years, FedEx has successfully maintained its commitment to quality service and innovation.
Famous Quotes from Fred Smith
Throughout his leadership at FedEx, Smith became known as an inspirational figure who promoted and encouraged innovation. Over the years Smith has shared many famous quotes on topics such as leadership and innovation. Some of his popular quotes include:
• “Leadership is a combination of strategy and character. If you must be without one, be without the strategy.”
• “If you worry about what it’s going to cost you to do something correctly, you march down the wrong path. Do it right, and then figure out how to make money at it.”
• “Growth comes from persistently pushing yourself beyond your current skill level.”
• “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”
• “Leadership is hard to define, and good leadership even harder. But if you can get people to follow you to the ends of the earth, you are a great leader.”
Awards & Achievements
Throughout his illustrious career, Smith went on to become one of the most influential captains of industry. He received numerous awards and honors for his work in package delivery services and innovation. Following are some of the most notable awards and accolades he received :
• In 1991, Smith was inducted into the Junior Achievement U.S. Business Hall of Fame.
• In 2003, he was awarded the Tony Jannus Award which is given “in recognition of distinguished contributions to commercial aviation.”
• In 2004, he was awarded the National Medal of Technology by the President of the United States.
• In 2007, he was inducted into the Logistics Hall of Fame.
• In 2014, he was inducted into the International Air & Space Hall of Fame.
Fred Smith is often credited as being one of the most successful entrepreneurs in modern times. His unique vision and relentless pursuit of innovation helped build the Federal Express brand into the powerhouse it is today. He enabled the company to remain synonymous with quality and revolutionized the way goods are shipped around the globe. His inspiration and words of wisdom continue to guide businesses and individuals alike and he remains an iconic figure in the business world.
