Eli Lilly CEO Sidney Taurel Stresses Importance of Ethics in Great Leadership
On March 14th Sidney Taurel, Chief Executive Officer of Eli Lilly and Company, delivered a lively lecture titled "Leading an Organization: The Skills that Matter Most,” to a diverse audience of students, professors, and community members at the Fletcher School. Taurel’s lecture was part of the International Business Program’s Global Speaker Series.
After being introduced by Tufts Provost Jamshed Barucha, Taurel began his talk by speaking of his connection to and admiration of The Fletcher School and Tufts University.
“I have a special relationship with Tufts not just because of my son Alex [MALD 2007], but also because Tufts has made a tremendous contribution to the field of drug development,” citing Tufts graduate and 2003 Nobel Prize Winner Roderick MacKinnon’s contribution to the field of chemistry.
Born in Morocco, schooled in France, with a career that included stints in Brazil and the US, Taurel recognizes the importance of the global perspective of the Fletcher education.
“I’m a strong believer of an international perspective in one’s career” said Taurel. “This is the perfect environment for you to grapple with the complex issues that you will face.”
Taurel shared his thoughts on leadership principles that are applicable to a wide range of career prospects. Admitting that that he did not have a magic formula, Taurel said, “I would happily offer the secrets of success….if only I knew them.” He further added, “Your ability to advance to higher levels in an organization will depend on your ability to manage change. That is the one constant you can truly depend on.”
According to Taurel, the two interwoven skills common among top managers are stewardship and leadership. He described stewardship as the essential technical skills aspect of a business that assist a leader in “creating and maintaining order in a disorderly world.” In addition, great leaders excel at creating and directing change.
There are three main qualities Taurel looks for in filling top positions at Lilly. The most important quality is the ability to maintain a strong sense of ethics and values in the face of adversity. He cautioned against taking shortcuts in management, because he believes that an ethical compass is the crucial foundation for true leadership.
“Even as they create change, great leaders maintain ethical consistency,” said Taurel. “Trust is earned by saying what you mean, meaning what you say, and proving both by what you do day-in and day-out.”
Although the actions of several unethical leaders in recent times have tarnished the public’s opinion of business, Taurel chooses to focus on the positive. “For me the most important lessons arise not from the few leaders who have lost their ethical compass, but from the majority who have not,” he said. “These people teach us that a sense of ethics is not something you can run out and acquire when you get in trouble. It is inside you, and it is something you bring with you on your first day.”
He credited his father for instilling ethical values in him, which he identified as playing a key role in his successes.
Taurel mentioned that strategic thinking is the second key attribute critical for leaders in setting the direction for their organizations. “The question is how,” said Taurel. “How does anyone guide others where they have never been -- into the future?”
Taurel asserted that strategy is too often set by looking backwards, and that leaders who are strategic thinkers do not blindly extrapolate into the future. They are not only students of their fields but of the environment around them, which they actively scan for threats and opportunities.
“Typically those who have achieved a great transformation have known where they want to go,” he said.
He described a strong desire and aptitude for lifelong learning as the final, and rarest of the three key attributes. Taurel described it as having “relentless curiosity and dose of humility.” As a CEO with a marketing background, Taurel has had the opportunity to learn about very diverse topics like research and development, Wall St. expectations of his company, and legislative regulation of the pharmaceutical industry.
He was also adamant that great leaders see failure as an opportunity to learn. “Facing failure is one of the most difficult things to do, because no one wants to admit that they have been wrong,” said Taurel. “A key psychological feature of organizations is to face reality, and not see things the way you’d like them to be.”
Sidney Taurel became Lilly’s chief executive officer in 1998 and chairman of the board of directors the next year. Born a Spanish citizen in Casablanca, Morocco, Taurel became an American citizen in November 1995. After graduating from École des Hautes Études Commerciales, in Paris, France, in 1969, he received a Master of Business Administration degree from Columbia University in 1971.
Taurel joined the Lilly subsidiary Eli Lilly International Corporation in 1971 as a marketing associate. He became general manager of the company's affiliate in Brazil in 1981 and was appointed to the London-based position of vice president of Lilly European operations in 1983. He was named executive vice president of Eli Lilly and Company and president of its pharmaceutical division in 1993. Three years later, he was promoted to president and chief operating officer.
Taurel is past chairman and a member of the executive committee of the board of directors of Pharmaceutical Research and Manufacturers of America (PhRMA). He is also a member of the boards of IBM Corporation; McGraw-Hill Companies, Inc.; and the RCA Tennis Championships. Taurel also holds membership of the Business Council, the Business Roundtable and the board of overseers of the Columbia Business School. He is also a trustee at the Indianapolis Museum of Art. In early 2003, he was appointed to the President's Export Council to provide advice on international trade issues. He is an officer of the French Legion of Honor.