JMO to CEO
5 top business leaders credit their military experience for propelling them to the top of corporate America.
by Dan Fazio

Long before Bob McDonald became the leader of one of the world’s largest corporations, the Procter & Gamble president and chief executive was jumping out of airplanes with the U.S. Army’s 82nd Airborne Division.

Dollar General’s Bob Ravener, meanwhile, patrolled the depths of the North Atlantic and Mediterranean as a young Navy officer aboard a ballistic missile submarine before stepping into the business world, while fellow Navy veteran Steve Loranger preceded his top position at ITT Corporation by flying jets from the decks of aircraft carriers.

Likewise, Carl Liebert launched the career that would lead to his current post as CEO of 24 Hour Fitness with two years aboard a Navy vessel as supply officer, and 7-Eleven CEO Joe DePinto spent five years as an Army field artillery officer before embracing the corporate world.

Corporate America has long tapped the talent of leaders who began their careers in the U.S. military – a testament to how well the Armed Forces train future leaders. That attraction continues today. At the beginning of 2009, there were 39 CEOs of S&P 500 corporations who are military veterans. Countless others are leading smaller companies or serving in key senior executive positions throughout corporate America.

Former Paratrooper Takes Over P&G
In July Bob McDonald took the reins of Procter & Gamble (P&G) from A.G. Lafley, himself a military veteran who remains chairman of the corporate giant best known for its consumer brands. McDonald, who joined P&G in 1980 and worked on such prominent brands as Dawn, Cascade and Tide, said the military is an ideal training ground for corporate leaders.

“Putting others first, working as a team, and being ready to act are all foundational stones in leadership, not just in a military setting, but in business today,” McDonald said. “Today, we live in a VUCA world – volatile, uncertain, complex and ambiguous. That term was invented by the military but it applies more than ever to the global business world in which we now live.”

The Military Advantage
A study published by Korn/Ferry International in 2006 explored the link between military experience and the leaders of S&P 500 companies. Among other things, the study found:

• CEOs with a military background are more likely to deliver a strong performance.
• Companies led by veterans delivered higher average returns than the S&P Index.
• CEOs who served in the military tend to survive longer on the job – an average of 7.2 years, compared to 4½ years for all S&P 500 CEOs.
• Leadership skills learned in military training enhance success in corporate life.

Steve Loranger, CEO of ITT Corporation, a top defense contractor, credits his military training with setting him on the path to success in the business world. “The military provides very junior personnel with tremendous responsibility,” he said. “You are empowered quickly to make decisions and to lead individuals from all backgrounds, which is critical to success in a business environment.”

Born Leaders
In fact, the Korn/Ferry report identified six common leadership traits that serve veteran corporate leaders well in the boardroom:

1. Learning how to work as part of a team
2. Organizational skills, such as planning and effective use of resources
3. Good communication skills
4. The ability to define a goal and motivate others to achieve it
5. A highly developed sense of ethics
6. The ability to remain calm under pressure

Joe DePinto reinforces the data. “I give the Army and the military a lot of credit for the progress I’ve made in my career,” DePinto said. “A lot of it has to do with the leadership development that I learned. How to lead Soldiers, how to lead people, putting the organization ahead of yourself, having a can-do attitude, a focus on getting the job done regardless of what the job is. I really point to those as part of the reason why I think I have been successful in my career thus far.”

Bob Ravener, who served as a senior executive with Starbucks Coffee Company and The Home Depot on his way up the corporate ladder, also acknowledged the crucial role his service as a Navy officer played in his career. “I have to credit the military for giving me a start in life,” Ravener said. “I learned valuable skills such as self discipline, teamwork, leadership, service, relationships, commitment, calm in the face of adversity and delivering results. These skills have proven integral to success in business as well. In fact, I would call them life lessons that apply in any chosen endeavor.”

But Wait, There’s More!
Steve Loranger’s father was a Navy pilot, and growing up in the military lifestyle left him with a strong desire to follow in his father’s footsteps. One of the key lessons Loranger took with him when he left the Navy was the importance of being responsible for his actions.

“Accountability is the most important and directly transferable skill you learn in the military,” Loranger said. “A successful military operation typically comprises a number of interconnected missions, each accountable to the other. If there’s a mission failure, the entire operation – and the lives of men and women – are put at risk.”

For Carl Liebert, the key takeaway from his seagoing days is simple: “The right answer is still the right answer,” he said. “And one of the things that still works in the military is the ability to tell the truth, the ability to provide clear direction and the ability to communicate with people in a forthright way.”

It’s a style that serves him well in the corporate world. “It’s woven within the fabric of my team and how I lead, and it seems very basic, but in today’s difficult economic times it becomes even more imperative that leaders are decisive and they provide clear direction.”

Better Than Ever
The number of veteran CEOs leading S&P 500 companies has declined since the Korn/Ferry report. In September 2005, the report identified 59 S&P 500 companies that were led by military veterans. By January 2009, that number was down to 39. That may seem like a worrisome trend for transitioners who want to work for someone who understands what veterans have to offer. But McDonald sees no need for concern, in part because the decline has much to do with demographics.

“Despite the trend, we have witnessed a tremendous resurgence in patriotism over the last decade,” he said. “This has created a strong, positive feeling among the business community’s senior executives for hiring and retaining veterans. Further, we also recognize that today’s service members have stronger technical skills and are more highly educated than ever before. Many have proven leadership experience in strenuous situations. These things make veterans very appealing to the civilian business community.”