Amityville—the Long Island town where young Bill McDermott spent his chiood, attended school, and made his first entrepreneurial venture.
Now, he holds the role of chairman and CEO at ServiceNow, having previously been the head of SAP. Maybe it’s the subtly softened yet still recognizable “Lawn Guyland, New Yawk” inflection in McDermott’s voice, or the genuine passion with which he engages in dialogue, but when he shares his core business tenets—Provide what the customer desires. Treat individuals with dignity. Focus on the intricacies.—gleaned from small exchanges during his formative years, you find it credible. The earnest youth is evident in the seasoned executive; these principles have always been the most authentic truths he carries.
Bill McDermott’s foundational business insights
McDermott embodies the American Dream, which perhaps explains why his memoir from 2014, Winners Dream, captivates readers. Raised by working-class parents who frequently strained to provide for their family, young McDermott soon found himself entering the workforce. He took on roles as an underage paper carrier, a young supermarket employee, and even a high school student who owned a delicatessen. Labor was consistently challenging, yet rarely felt like mere toil. He found joy in identifying customer needs and fulfilling them.
The added gratuities he received from recalling what each client preferred—the paper on their doorstep versus the mailbox—meant more than just extra spending cash; those tips served as a form of acknowledgment, a form of validation. Often during his time running the deli, he declined to accept tips; he recognized repeat customers as his true reward.
His early experiences in jobs equipped him with essential lessons. In McDermott’s journey, one can trace a direct path from meticulously delivering newspapers to marketing copy machines at Xerox and ultimately to the software innovations created by SAP for its clientele.
“Customer service has always been at the forefront,” McDermott notes. “While I lacked the terminology as a child, that’s the crux of it. Every customer I engage with aims to achieve something novel and exciting. By grasping their objectives and actively listening on how best to assist them, you can pinpoint the catalyst that facilitates winning their business.”
Bill McDermott prioritized customer service
After finishing college, McDermott left the deli, yet managing a business bestowed upon him a unique self-assurance that is rarely seen in someone his age; this confidence is rooted not in arrogance but in a realistic understanding of possibilities. He approached opportunities not by promising the highest salaries but by pledging unparalleled commitment—and naturally, remuneration followed.
Already a thriving Xerox salesperson in his early 20s (his secret was sacrificing his lunch breaks to catch crucial decision-makers at their desks), McDermott was sent by the company to Puerto Rico when he turned 29 to “revitalize its struggling operations,” according to an article in Harvard Business Review penned by him. He arrived not to impose strict rules but to enhance “customer service in the region and uplift morale.”
The critical nature of trust, communication, and a clear vision
“Authority doesn’t stem from a title,” he clarifies. “It’s granted to you by the people. Much of my time was spent absorbing insights from employees on why processes were flawed, and they had valuable perspectives.” During that time, there was a Puerto Rican political figure whose campaign slogan was “The people speak, and I obey,” which McDermott embraced as his own guiding principle and strives to uphold.
“I am genuinely a Doctor Yes. Many managers take on the role of Doctor No. When team members present ideas or proposals, their first instinct is often skepticism. I strive to approach discussions with a willingness to say yes. This doesn’t guarantee agreement, but starting with an open attitude fosters trust, and in business, trust is the ultimate currency and the essential key to success.”
Fostering connections between management and employees, as well as company and clients, was central to McDermott’s responsibilities at SAP. “Effective leadership begins with sharing a vision, a purpose. At SAP, our mission is to enhance the functioning of the world and elevate quality of life. A well-defined vision clarifies objectives. If we’re not progressing in that direction, then we are likely misaligned and must adjust,” McDermott asserts. After all, leaders “can overlook many faults, but they cannot be forgiven for lacking authenticity,” he contends.
A major portion of his attention is dedicated to effective communication. “In a globalized market, competing requires a collective effort,” he states. “The era of autocratic and controlling leaders is behind us. Success today demands leaders who communicate consistently—with the board, with their management teams, their employees, and their clients.”
Bill McDermott’s strategies for success
McDermott’s communications extended beyond mere business updates. “We consistently report on how we are aligning with our vision. Inspiring people cannot solely depend on financial incentives; while important, it’s even more vital to resonate with their sense of pride—to excel, to contribute, to pursue meaningful endeavors. This drives me, and I believe it drives most individuals,” he explains.
In Winners Dream, McDermott illustrates how, during pivotal moments in his journey, individuals responded positively to his innate qualities: his confidence, optimistic outlook, and commitment to mutually beneficial solutions. What qualities does he value in potential hires? “If someone possesses ambition and motivation, they can be taught quite a lot,” he remarks. “I tend to be less impressed with individuals who boast impressive resumes and the correct answers but lack the initiative and passion. I cannot provide that inspiration.”
And what advice does McDermott offer to those already tasting success? “Avoid complacency. It’s a trap anyone can fall into. Everyone must remain grounded,” he warns. Then, recalling his roots on Long Island, he adds one last piece of advice: “Prioritize what truly matters—both to you and those you cherish.”
For instance, SAP hosts an annual holiday gathering at its North America headquarters, and every employee is expected to attend in formal wear. McDermott once flew in from Barcelona just to be there. “I wouldn’t miss it for anything,” he states. “If the night revolves around taking pictures with employees and hearing them share their aspirations, then I’ll be exactly where I need to be.”
