Background:

• Born in rural Indiana, worked his way through college by working on a farm during the day and attending Indiana University at night
• Earned a law degree from Harvard, joined Kimberly-Clark as in-house counsel
• Named CEO in 1971 — the board wasn't entirely sure about the choice
• Diagnosed with nose and throat cancer early in his tenure, told he had less than a year to live
• His response: he scheduled cancer treatments on Fridays and commuted from Wisconsin to Houston weekly so he wouldn't miss a day of work. He survived 20 more years.

The Audacious Move:

1. Kimberly-Clark's core business was coated paper mills — the legacy everyone identified with
2. Smith concluded the company could never be great in commodity paper. The economics were mediocre and they'd never be best in the world
3. He sold ALL the paper mills — including the original mill in Kimberly, Wisconsin (the company's namesake)
4. He invested everything into consumer paper products: Kleenex, Huggies, Scott Paper
5. Wall Street called it stupid. Business press mocked the decision
6. He was betting the entire company on competing directly against Procter & Gamble — one of the most formidable companies on Earth

The Result:

• Over 25 years, Kimberly-Clark generated cumulative stock returns 4.1x the general market
• Owned or beat P&G in 6 of 8 product categories
• Became THE dominant consumer paper products company globally

The Level 5 Signature:

• Smith never talked about himself or his role in the transformation
• He deflected all praise to his team and "lucky" circumstances
• When asked about his extraordinary performance, he'd stare awkwardly and say "I never stopped trying to become qualified for the job"
• He carried no ego into the office — only fierce, unwavering resolve for the company