At the end of March, Tom Reece, chairman of Dover Corporation, had dinner with eight students as part of the Paul M. Montrone Seminar Series on Ethics during Columbia Business School’s Leadership and Ethics Week. Mr. Reece served as CEO of Dover Corporation, a world-wide, diversified manufacturer of industrial products for eight years. He is currently the non-executive chairman.
Mr. Reece spoke about the importance of entrepreneurship even at a company as large as Dover Corporation. "Dover is run by more than 600 entrepreneurs," he said. He described how these leaders have a support structure in place, but also have significant autonomy to make their own decisions. In his own case, Mr. Reece was offered the role of president of his division when he was 28 and gradually rose through the ranks. In response to a question about executive compensation, Mr. Reece believed that gross misuses of corporate resources — like the private use of executive jets and unusually large stock option packages — did not reflect positively on the cultures of companies that create such incentives. He recounted instances when he interacted with CEOs of the same companies that have been recently indicted, including Kenneth Lay of Enron, who, at a conference, once remarked that if his company’s numbers hit target he would be able to afford a large jet that he had his eye on. Mr. Reece simply remarked that such comments revealed a value system that was not shared by the Dover culture. Corporate culture was clearly important to Mr. Reece, who spent his whole career from his mid-20s until his current role as non-executive chairman.
When asked what qualities he respected about himself as a leader, he said that he respected the fact that he cared about all of the people he worked with and who worked for him. He shared his perspective that all people have similar basic goals and needs and that it is important to always remember this. When asked for the most important piece of advice he could provide for business students, he responded, "Care about others more than you care about yourself."
On a personal note, he shared his view on the importance of matching personal time with time spent on business. Mr. Reece spent 60-70 percent of his time traveling, but he always made time to spend with his family. In addition, he highlighted the importance of corporate and personal philanthropy, and how research has shown that there are benefits to shareholders when a company is involved in charitable causes. Today, he is actively involved with local charities in New York City.
Mr. Reece also shared some practical wisdom. While manufacturing activities will continue to thrive in Asia and Europe, he believes manufacturing will make a significant shift back to the United States in the near future. Concerning unions, he recommended that if ever confronted with a union or unionizing movement, one should encourage managers not to treat the employees with disdain despite any negative sentiments towards unionization.
Overall, Mr. Reece was a wealth of wisdom and a true embodiment of ethical leadership. This event was time well spent for the students who attended.