Tom Schmitt Of Forward Air On The Five Things You Need To Be A Highly Effective Leader During Turbulent Times

An Interview With Sara Connell

The last two years of the pandemic impacted the foundation of critical roles and capabilities, which revealed the importance of listening and empathy. Empathy is a word that probably wasn’t used much in business until a few years ago, but it has a vital role to play. I often remember seeing a string of emails, one from a dissatisfied customer that detailed over four pages of their experience, and another from a teammate explaining that the job was completed correctly. In these situations, it is important to acknowledge that a situation isn’t ideal before diving into problem-solving. Sometimes it is best to take a moment to understand and acknowledge what someone else is experiencing.

When COVID first hit, it wasn’t the time to talk about making a record month financially. It was an opportunity to listen to what others needed. One of Forward’s leadership imperatives is that we communicate with two ears and with one mouth, and I take that to heart.

The essence of leadership, to me, is what I call leading counter-cyclically. What I mean by that is, when times are terrific, when you have lots of tailwind, I think it’s perfectly fine to, in a collaborative, constructive way to push and reach for incredible goals. But leading counter-cyclically means in tough times, knowing when to stop pushing. Knowing when to lead with empathy and make things lighter, not heavier.

As part of our series about the “Five Things You Need To Be A Highly Effective Leader During Turbulent Times”, we had the pleasure of interviewing Thomas Schmitt.

Thomas Schmitt is the Chairman, President and Chief Executive Officer. Prior to joining Forward Air, Mr. Schmitt served as Management Board Member and Chief Commercial Officer for DB Schenker, a $20 Billion Global Logistics Company since 2015. From 2013 until 2015, Mr. Schmitt was President, CEO and Director of Aqua Terra, Canada’s leading provider of natural spring water. From 2010 until 2012, Mr. Schmitt served as President, CEO and Director of Purolator, Canada’s top parcel and freight transportation company. Prior to joining Purolator, Mr. Schmitt spent 12 years at FedEx in Memphis, TN where he served as CEO of FedEx Supply Chain and SVP of FedEx Solutions. Prior to his time with FedEx, Mr. Schmitt held senior roles at McKinsey & Company. Mr. Schmitt has been a member of the Xynteo Leadership Board since 2018 and a Non-Executive Director of the Ferguson plc board since 2019. Mr. Schmitt also served on the Board of Directors of private and public companies such as Dicom Transportation Group, Zooplus AG, Univar, Inc. and Cyberport GmbH. His support of non-profit organizations such as Ballet Memphis and Shelby Farms Park is equally as important to Mr. Schmitt. Mr. Schmitt holds an MBA as a Baker Scholar from Harvard Business School and received his Bachelor of Arts in European Business Administration from Middlesex University. Together with Arnold Perl, Mr. Schmitt wrote “Simple Solutions,” a leadership book published by Wiley & Sons.

Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

When people ask me where I’m from, I tell them I’m from the deep south — which is true, but not in the traditional American sense. I’m originally from the deep south of Germany, and am now a proud U.S. citizen.

My brother and I grew up in a small town; my parents were simple and down-to-earth people. They taught my brother and me two important lessons that have directly contributed to who I am: the importance of strong values and having confidence in oneself.

Part of having strong parents meant they always made certain that we treated every person equally because everyone deserves kindness and respect. They never left their hometown, but they encouraged my brother and me to venture out and explore the world. They knew we needed the confidence to stand on our own and to go after what we wanted, and they worked hard to instill this within us. I carry their words in all aspects of my life, but today, as I reflect on my career, I know these two lessons have helped me tremendously on my journey.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lessons or ‘take aways’ you learned from that?

I made the “mistake” of almost not dreaming big enough when I was younger. In high school, in the mid-eighties in Germany, I was somewhat nerdy and book smart. I had high enough test scores to do anything I wanted to do, but I already knew in my heart that I wanted to become a teacher, and eventually move to the United States. During this time in my life, I frequently listened to Casey Casem’s America’s Top 40 on the radio, which taught me to keep my feet on the ground and reach for the stars. My mistake was not heeding that advice.

So, I attended the University of Heidelberg to carry out my dream of becoming a teacher. To my disappointment, a professor warned us against teaching. Worried about a shortage of jobs, I stumbled upon the field of International Business. Here I learned that I could attend two separate universities in two different countries and receive two degrees. I ended up majoring in International Business and attended Middlesex University, which helped me get one step closer to living in the United States.

Looking back, I recognize that I could’ve dreamed bigger sooner. Sometimes, we are the only ones holding ourselves back from achieving our goals.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?

I was completing an internship at British Petroleum (BP) in the UK before I finished my International Business degree. At the end of my internship, BP offered me a job. The head of all BP retail, Hugh Hanna, was an American. I somehow got the hunch while working under him that he was in Europe for only a limited time, so I made an appointment with him. I told Hugh that I was flattered to receive the job offer with BP, and would be happy to accept, but I had one condition — that he would consider taking me back to the United States when he relocated.

A year into my job at BP, Hugh stopped by my cubicle. He asked me if I remembered this conversation, and of course, I did. He said he was relocating to the United States, and asked if I wanted to join him. My life changed quickly, as I went from an entry-level job at a global headquarters to managing multiple BP gas stations across Cleveland, Ohio. Hugh Hanna taught me the importance of making commitments and even more importantly, keeping commitments.

Extensive research suggests that “purpose driven businesses” are more successful in many areas. When your organization started, what was its vision, what was its purpose?

Forward Air started with a very simple idea. Forty years ago, my predecessors watched commercial airlines like Delta, TWA, and Pan-Am move freight in the belly of their planes. This method saw significant delays depending on the amount of luggage also on the flights. Our founders realized that moving freight on the ground from one airport to another resulted in decreased costs and increased reliability.

So what do we really do at Forward Air? The easiest answer is we drive trucks, but life is rarely that simple.

The best example of this was when I was with FedEx for 12 years. One of our largest customers was Medtronic in Minneapolis. In the Medtronic atrium, there was this big clock that counted how long until the next pacemaker or stent was installed. Every few seconds, it marked another life made better or saved entirely.

Throughout my many visits to this customer, I came across the same janitor several times sweeping the floor in the atrium. After countless run-ins, I noticed again and again that he was always upbeat, cheerful, even whistling. I eventually asked him, “just what do you have for breakfast? Like what do you do that you’re always this upbeat and positive?”

His response will always stick with me; he said, “This is so easy. I work for Medtronic. We save a life every three seconds.” He could have said, “I’m just sweeping the floor.”

I could say, “We just drive trucks,” but it’s so much more than that. We make lives and livelihoods better. We make things lighter, not heavier, for people to live better.

Thank you for all that. Let’s now turn to the main focus of our discussion. Can you share with our readers a story from your own experience about how you lead your team during uncertain or difficult times?

Two years ago, when the pandemic hit, many of our transportation peers capitalized quickly on the opportunity to transform our economy into a home economy.

It hit us at Forward Air differently, as we did a lot of business in the event industry. We had to furlough more than 2,000 of our teammates. The single best thing we did as a team was creating leadership imperatives to deal with these unprecedented times in an innovative way. When our best and most profitable business went to sleep temporarily, and when thousands of our teammates didn’t have a job to go to the next day, we moved quickly to create a winning strategy for everyone.

The first priority was to double down on health. No matter what we do, we have to make sure we keep our people safe and healthy.

Second, we had to make very certain to keep our business healthy, and that we come out stronger. We want to get to the same volumes or more (zero plus) that we had before this crisis.

Lastly, we made a march for margins.

We had to be simple, clear, and compelling in making a strategy that was real for everyone. No buzzwords needed, only a very simple approach: double health, zero plus volume, and march for margins. This strategic approach got us back on track and made us stronger than we were before.

Did you ever consider giving up? Where did you get the motivation to continue through your challenges? What sustains your drive?

I have two ways to answer this question, so let me start with the mundane one.

If I’m not quite as motivated as I typically would or should be, for me, music works. Music is like a religion to me. I put it on, and I get into a headspace that does not allow me to give up on that day. It pushes me to show up and do what I need to do. This sort of lull happens to everyone, and I believe in choosing positive energy even when it seems easier to step away.

The second answer is a bit deeper. On a longer-term basis, whenever I stretched professionally, I was very fortunate that it was my choice to do so, except for one time. Ten years ago in Canada, I was leading a company called Purolator.

We just had a record year, but after our largest shareholder underwent a national strike, they asked us to do things very differently from the way we had always done them. I refused to compromise my business practices and it resulted in a pretty noisy departure.

I was on the sidelines for about six months, and I did, at that time, wonder if I just needed to do something entirely different professionally. Soon after, though, I had lots of people in my ecosystem telling me that I was not done yet. Fortunately, I did listen to those voices. I also found my wife back then and she clearly was the biggest cheerleader for me getting off the sidelines and back into business again.

So, I think these moments do happen, whether it’s on a daily basis, when you have to suck it up and stretch, or whether it’s on a bigger kind of interval of life perspective. The best thing you can do is rely on people that you’ve trusted who are part of your core, and find a way to keep going.

I’m an author and I believe that books have the power to change lives. Do you have a book in your life that impacted you and inspired you to be an effective leader? Can you share a story?

This one may sound a bit bizarre, but it’s the book I co-authored, Simple Solutions. I never had any intention of writing a book, but there were two very valuable lessons that I learned from the experience.

The first lesson is that you can make almost anything, including writing a book, into a team sport. We made this process into a two-year team sport between my co-author and the two wonderful professionals who helped us as mental ping pong partners. Everything is easier as a team for me, as opposed to a lonely exercise on my own.

I learned the second lesson by putting a pen to paper. In my mind, the clarity of articulation reflects clarity of thinking. If you have a clear thought, you should be able to articulate it, and writing a book does a wonderful job of forcing you to do just that. It was a great challenge merging the left and right sides of my brain to create a clear, concise, and interesting business perspective.

I bring the “simple solutions” message to my job every day — keep it clear and easy to understand. That’s when people deliver.

What would you say is the most critical role of a leader during challenging times?

The last two years of the pandemic impacted the foundation of critical roles and capabilities, which revealed the importance of listening and empathy. Empathy is a word that probably wasn’t used much in business until a few years ago, but it has a vital role to play. I often remember seeing a string of emails, one from a dissatisfied customer that detailed over four pages of their experience, and another from a teammate explaining that the job was completed correctly. In these situations, it is important to acknowledge that a situation isn’t ideal before diving into problem-solving. Sometimes it is best to take a moment to understand and acknowledge what someone else is experiencing.

When COVID first hit, it wasn’t the time to talk about making a record month financially. It was an opportunity to listen to what others needed. One of Forward’s leadership imperatives is that we communicate with two ears and with one mouth, and I take that to heart.

The essence of leadership, to me, is what I call leading counter-cyclically. What I mean by that is, when times are terrific, when you have lots of tailwind, I think it’s perfectly fine to, in a collaborative, constructive way to push and reach for incredible goals. But leading counter-cyclically means in tough times, knowing when to stop pushing. Knowing when to lead with empathy and make things lighter, not heavier.

When the future seems so uncertain, what is the best way to boost morale? What can a leader do to inspire, motivate and engage their team?

To boost morale, I consciously choose to radiate positivity and I show up for my team. It’s important to use energy positively, and it’s crucial as a leader to show up, literally and physically.

The times when I didn’t show up always come back to haunt me, like the time I missed the wedding of a good friend because I felt like I didn’t have time to go. Whether it’s on the job each day or in your personal life, I think it’s important to show up. If somebody needs you to be there, show up for them. There are always reasons why you can’t be there, but the right thing to do is to show up.

What is the best way to communicate difficult news to one’s team and customers?

The best way to communicate difficult news is to be straightforward. There will always be tough decisions, like when you walk away from a business deal that somebody expects to happen, or when you have people in roles that are not the best place for them. I think it’s important that you’re proactive about it, recognizing flaws and points of inefficiency early. Things get longer, not better. Be straightforward and empathetic from the start.

How can a leader make plans when the future is so unpredictable?

As a leader, you can only control what you can control. A previous boss of mine always said, “Luck is when preparedness meets opportunity.” You can’t always plan when an opportunity will arise, and sometimes you don’t even recognize that it’s an opportunity at that moment. The pandemic, in a sense, was an opportunity. Forward was not prepared for COVID-19, but we forged a new path that we didn’t even know existed, and it ultimately made us stronger as a company.

Is there a “number one principle” that can help guide a company through the ups and downs of turbulent times?

I have three. The first one I picked up while working at FedEx. They have a mantra called ‘PSP’, or people, service, profit. PSP is in the order of priority, and it places value on helping people succeed. When employees notice that you value their success, which is Forward’s priority, they will go above and beyond to deliver outstanding service. Profit naturally follows. That principle will always stick with me.

Second, do the right thing, even when no one is watching. It’s one thing to stand in front of a big crowd and do something that comes across as generous or humble, but it’s another thing to truly be generous and humble when no one’s watching.

Lastly, be tough on issues, not on people. I can have higher expectations and be constructively impatient. I can be tough on those expectations, but not on other people personally.

These three principles stay with me always.

Can you share 3 or 4 of the most common mistakes you have seen other businesses make during difficult times? What should one keep in mind to avoid that?

There’s only one that I see as the most important: Never take your position for granted.

I still use a Blackberry. Many of my younger teammates don’t even know what a Blackberry is, but we all had one 20 years ago. Blackberry is a great example of a company not looking left and right, not maintaining an awareness of the environment and opportunities around them. They did not communicate with two ears and one mouth, instead assuming they had earned a permanent place on top. To continue dominating the industry, all Blackberry had to do was open themselves up to the rest of the world. Instead, they saw businesses from Samsung to Apple bypass them.

As a company, you always need to keep looking left and right. There’s no room at the top to rest, and companies that lost their place on top probably thought they had this opportunity to pause or sit back and cruise.

Here is the primary question of our discussion. Based on your experience and success, what are the five most important things a business leader should do to lead effectively during uncertain and turbulent times? Please share a story or an example for each.

First, I strive to tap into 100% of the talent pool. The trucking industry is traditionally white male-dominated; it’s great for us to not only remember, but actively hire, across every demographic and skill set. We are better overall when we tap into the entire pool of talent, as diversity helps us achieve remarkable results.

Second, do not wait. I learned the value of decisiveness during the pandemic, as I previously mentioned. We did not wait to act on those leadership imperatives, and if we had chosen to wait, you would now be speaking to my successor — and not by my choice.

The third lesson I learned was very early on in my career while working with British Petroleum. I learned that someone’s value is not stated on their business card, as it does not lie within their corporate title. I learned that you should ask yourself: how can I add value to the things people are relying on me to provide?

The fourth is to visualize victory. The victory, through dedication and hard work, will follow. A good way of doing this is to write the Wall Street Journal article you would want to read three years from now.

The fifth is another question, and it’s the best question that I know to ask in businesses: what would have to be true for “blank” to happen? Finish the sentence with what it is that you’re looking to solve, and you will find your answer.

I have a number six, which is the brain. I challenge myself to find ways to make all of my brain come alive. I am left-brained, very book smart and fact-oriented. I strive to connect with people or organizational leaders that tend to operate differently. I enjoy collaborating with organizations whose leaders are right-brained, creative-minded people. I find out how they achieved their goals, which typically are very different from my own experience, and I try to implement those lessons.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

“Leave a place better than you found it,” is my favorite quote, but I can’t take credit for it. Oftentimes at funerals, you hear speeches about how the person who passed left people and places better than they found them. I think that’s super important, and I believe you can have that aspiration, not just on a lifetime basis, but a daily basis as well. We all have 50 emails, five phone calls, 10 in-person interactions, and meetings daily. It’s important to remember that you can strive to leave every single one of those people a bit better than they were before, through your conversations. You don’t have to wait a lifetime for someone to observe that.

How can our readers further follow your work?

Our efforts at Forward are reflected on our website with examples and stories of who we are, the work that we do and our support of Veterans at forwardair.com and on our LinkedIn.

Thank you so much for sharing these important insights. We wish you continued success and good health!