David Novak: From the Trailer Park to the Corner Office

Why We’re Talking About Him

Here’s something you might not expect: some accomplished chefs apparently have a soft spot for Taco Bell.

A recent Wall Street Journal article explored the surprising affection that chefs have for the fast-food chain. That got us thinking about one of the people who helped build the company behind Taco Bell into a global restaurant powerhouse: former Yum! Brands Chairman and CEO David Novak. [wsj.com], [qsrmagazine.com]

Novak led Yum!, whose restaurant brands include Taco Bell, KFC and Pizza Hut, and in 2012 was named CEO of the Year by Chief Executive magazine, an honor selected by fellow corporate leaders. His emphasis on employee engagement, leadership development and especially recognition was specifically cited as part of what distinguished his leadership. [qsrmagazine.com], [prnewswire.com]

Fun Fact: 32 Trailer Parks in 23 States

Long before the corporate suites, Novak lived a remarkably nomadic childhood.

His father worked as a government surveyor, requiring the family to move frequently. By the time David was 12 years old, he had lived in 32 trailer parks across 23 states. Novak has credited that childhood experience with teaching him lessons that later influenced the way he approached leadership. [en.wikipedia.org]

That’s not the only unexpected chapter.

Novak graduated from the University of Missouri with a degree in journalism and a minor in advertising. His first job was as an advertising copywriter, hardly the conventional résumé for someone who would eventually become CEO of a major global restaurant company. [en.wikipedia.org]

And here’s another great piece of trivia: Novak is credited with the creation of Crystal Pepsi. It didn’t become the enduring success he hoped for, but Novak later described learning something important from the experience: sometimes the people questioning an idea may have a point. [en.wikipedia.org]

Why We Find It Interesting

One of the most distinctive aspects of David Novak’s story may be his belief in something remarkably simple: recognizing people matters.

At Yum!, Novak developed a culture centered around rewarding and recognizing employees and created a leadership program called“Taking People With You.” He personally trained thousands of managers and franchisees in the program, and his commitment to recognition was specifically noted when he received the 2012 CEO of the Year award. [qsrmagazine.com], [restaurantnews.com]

Maybe there’s a connection between that philosophy and those 32 trailer parks.

A child who constantly found himself in a new town, new school and new community eventually became a CEO who placed enormous importance on making people feel noticed.

That’s something worth ruminating about.

Disclosure

This material is provided for informational and educational purposes only and should not be considered investment advice or a recommendation to buy, sell or hold any security. References to companies, brands and individuals are for informational purposes only and do not constitute an endorsement. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results.