Episode #548: Memorable Mentors — Fred Smith, Founder of Federal Express

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Ron and Ed explore the legacy and leadership lessons of Fred Smith, the visionary founder of Federal Express. From a bold undergraduate paper (legend has it that he only got a C+) to building one of the world’s most transformative logistics companies, Smith’s journey is a case study in perseverance, innovation, and strategic execution. We’ll unpack what made him not just a successful entrepreneur but a memorable mentor, both to his team and to an entire generation of business leaders. Tune in to discover the values, decisions, and mindset that helped shape the global economy, one overnight delivery at a time.

SHOW NOTES

Segment one:

  • Here is some background on Fred Smith and how he turned a term paper at Yale into a $90BN empire otherwise known as Federal Express https://en.wikipedia.org/wiki/Frederick_W._Smith 

  • Fred Smith, founder of FedEx, didn’t start from nowhere—his father was a successful businessman who built a fortune in hotels, restaurants, & even bus lines. Entrepreneurship ran in the family.

  • Fred Smith built FedEx on this simple chain: Take care of your people → they deliver amazing service → profits follow. Otherwise known as People, Service, Profit #FedEx #Leadership

  • FedEx was born as Federal Express. Fred Smith wanted a name that sounded official, trustworthy, and capable of delivering coast to coast.

  • By 1994, “Federal Express” felt too long for a company built on speed. The new name—FedEx—was meant to be sleek, memorable, and future‑ready.

Segment two:

  • After nearly 50 years at the helm, Fred Smith retired as CEO of FedEx in June 2022. A legendary run that transformed global logistics.

  • FedEx Express operates the world’s largest cargo airline fleet—over 650 jets and counting—making it the biggest air-cargo fleet globally.

  • At the height of the pandemic, FedEx moved over 1 billion masks, gloves, & test kits and became a key partner in Operation Warp Speed, delivering vaccines to every corner of the U.S.

  • COSMOS (Customer Operations & Services Master Online System) launched in 1979 as FedEx’s internal hub—centrally managing people, packages, vehicles. This led to an “excuse-less culture” that allowed customers to eventually see the exact same information as FedEx customer service reps.

  • The Hierarchy of Fours at FedEx: People, Service, Profit, Investment. Fred Smith taught that if you care for your people first, they’ll deliver great service, which drives profit—allowing you to reinvest.

Segment three:

  • Today I learned that Ron Baker took a personal tour of the FedEx operations facilities in Memphis in September, 2002.

  • Here are two great videos of the Memphis FedEx hub that Ron toured back in 2002. https://www.youtube.com/watch?v=Oz-o3Q5kyMA and also https://www.youtube.com/watch?v=b46xegiwOZA 

  • The sunset rule at FedEx, “The sun will not set on an unresolved customer or employee problem that is not dealt with in some way.”

  • Even for professional services firms as well as FedEx, from Ed on the show today, “You’ve gotta build capacity before you build revenue.”

Segment four:

  • Fred Smith isn’t just the FedEx founder—he was also a part‑owner of the Washington Commanders (formerly Redskins). He bought in back in 2003 alongside other investors.

  • Before launching into the Canadian Football League, Fred Smith tried to bring an NFL expansion team—the “Memphis Hound Dogs”—to town in 1993. That didn’t work so Fred became principal owner of the Memphis Mad Dogs, part of the CFL’s U.S. expansion in 1995. 

  • “FedEx has always emphasized great customer service. But now that we offer a broad array of services beyond just express delivery, we are seeking to differentiate ourselves through an outstanding customer experience. […] We want to make sure that the customer has a great experience at every touchpoint.” —Fred Smith, founder of FedEx

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