Sir Terry Leahy on the spot

Ahead of his appearance at our ‘Creativity for Commerce’ Annual Conference, on 21 November, Elen Lewis interviews Sir Terry Leahy, former chief executive of Tesco.

What’s the smartest business idea you’ve had?
Clubcard – it transformed the prospects for Tesco and introduced a new way of managing our relationship with customers.

What’s the best advice you’ve ever been given?
My first boss at the Co-op once said: 'It’s what you don’t know that seems difficult.' He meant that what’s new and unfamiliar can be daunting, but once you study and get familiar with things, they don’t seem half as difficult or threatening. Most problems, once you’ve got to grips with them, are a way of improving things.

Is a business leader born or made?
It’s probably a combination. Everybody is born with a different mix of skills. There must be some continuum of skills about leadership and people will be at different points on that continuum. Whatever you are, you can improve. What you learn and how you apply the talent you have is probably more important than innate talent to begin with.

Who or what has inspired you most profoundly in your career?
I was inspired by a desire to get on. It’s normal for people from poor backgrounds to want to achieve something. I always felt I could make things better. I never lost heart and I was inspired by the belief that I could find a solution. Bosses and colleagues have also helped me out. The people I worked with at Tesco were so loyal, dedicated and enthusiastic that I gained a lot of inspiration from them.

What does bold marketing leadership look like?
Marketing professionals must give strategic leadership in the organisation. It’s about looking outside the business, principally to customers, bringing their voice into the organisation and leading the voice of the customer. That’s about changing your whole way of going to market and whole competitive model, and in some way changing the game. It’s less about the tactics and machinery of marketing and more about the opportunity for strategic leadership from a customer point of view.

What lessons from leading Tesco can be translated to newer businesses, such as Black Circles?
Business is universal. It’s about creativity and finding new ways of doing things. It’s about finding growth. You mainly find growth by creating new benefit for customers. Those lessons are universal. Then it’s about management so you don’t waste growth and the sales that come. Finally, it’s about thinking long-term. Most small businesses think short-term. Imagine how big an opportunity you can create over a long period of time if you stick at it and make the right long-term investment choices.

What does creative marketing look like, and how do leaders nurture it within their teams?
Creative marketing begins by looking outside the organisation and encouraging people to be curious about the world in terms of how society is changing and the implications of these changes. It’s about getting people to look up, not down. It’s about encouraging them to change things – products and information – based on what they see. It’s also about encouraging and trusting them to take risks – to let people have the power to change things. If they feel empowered and trusted, an environment develops that nurtures creativity. It’s hard to be creative in a straitjacket.

What’s your guilty pleasure?
I relax with football [Leahy supports Everton]. I like thinking like a fan, rather than a rational business leader.

What would you say to your 17-year-old self?
I’d probably say start a business at some point. I’d also say do not be daunted by the big world and that you have something to contribute.

Tell us a secret.
I’m not sure I can answer that.

Our Annual Conference is a day of three parts: helping you become more creative as an individual, more creative at work and more creative in the world at large. Led by our cast of inspirational speakers, from inventors to entrepreneurs, investors, brand guardians, business leaders and creative thinkers, this is an intensive one-day toolkit to boost your creativity.