TheFiresideCEO 241stead is “an infinite series of openings, of possibilities.” He empha-
sized that what uncertainty calls for, especially in difficult economic
environments, is what the Greeks called practical intelligence. This
world view “forces adaptability and teaches constant preparedness.”
Pragmatism
Practical intelligence also “acknowledges that nothing quite suc-
ceeds as planned” and that what is crucial is “pragmatic adaptability”
to what is new. And new always comes—change is inevitable. The
sharp business focus at Coke is what best prepared the company to
meet change. Indeed, as Goizueta suggested, few large companies
are as focused as Coke or as “tightly riveted” to a particular business
as Coke is to soft drinks.
Animating Goizueta’s letters was an overarching dominant
theme: The company’s shareholders own it. All other themes—build-
ing brand strength through the AAAs or PPPs, differentiating the
brand as special and better, fiscal prudence, and focus—serve the
ultimate principle that the investors are the owners.
Success at Coke, Goizueta emphasized to all the troops, was
“creating value for the people who have entrusted their assets to us.”
That is the reason why the company (and any other business) exists.
All the other social benefits Coke or any other company generates
by “serving customers and consumers, creating jobs, positively im-
pacting society, supporting communities—happen only as long as we
fulfill our mission of creating value for [shareholders],” Goizueta
said.
Shortly before his death Goizueta quoted for his management
team the words of the German poet and playwright Goethe: “What-
ever you can do or dream you can, begin it. Boldness has genius,
power and magic in it. Begin it now.”
Goizueta believed that boldness sustains growth. He expressed
gratitude to all the participants in the Coke venture—associates,
customers, bottling partners, board members, and most of all, he
said, his fellow shareowners—for their trust and confidence in his
team’s ability to create value.
Well-earned trust indeed, and indispensable when markets, num-
bers, and governance tell only part of the story in business analysis.