Leadership Backbone

Lessons from Bill McDermott, a True Leader of Consequence

After decades in the tech industry, one develops an instinct for distinguishing truly exceptional leaders from those who merely occupy leadership positions, what separate leaders of consequence from leaders of circumstance.

As I reflected on this quarter's tech earnings season, one leader's interventions stood out with particular resonance, compelling me to share these observations.

Bill McDermott's recent appearances and communications brought into sharp focus what I've learned about authentic leadership over my years as a tech executive.

This article isn't meant to be an exhaustive study of leadership theory, but rather a personal reflection on recognizing extraordinary leadership when you see it.

First Impressions and Cultural Clash

When Bill McDermott first became CEO of SAP in 2010, his visits to Europe, particularly to the French market, were nothing short of a cultural shock for many of us. European professionals probably steeped in a more reserved, understated business ethos, were initially taken aback by McDermott's brash, high-energy American leadership style.

The most sarcastic ones went as far as describing him more akin a U.S. senator on the campaign trail or a salesman with ready-made, clichéd marketing expressions than a seasoned technology executive. His intense charisma and unapologetic enthusiastic sales dynamo rubbed many the wrong way. There was a pervasive sense that his aw-shucks charm and relentless positivity could be exaggerated and masking a purely self-centered agenda.

And yet, as I came to know Bill McDermott more over his years of leadership, I realized that these initial impressions could not have been more wrong. Behind the bluster and bravado layed a genuinely thoughtful, principled leader who was deeply committed to his customers, his people, and his company's mission. A true leader with a backbone.

Yes, McDermott is undoubtedly ambitious and ego-driven. Yes, he likes to behave like a rock star—he looks like the Bon Jovi of the tech industry, to borrow from one of his friends in the music star system. But he is also remarkably mature, emotionally intelligent, and intentional in how he sought to mobilize thousands of employees towards transformative goals.

Beyond the Surface: A Leader of Consequence

I heard him very often use the expression "leaders of consequence"—and clearly, that’s because he is one : someone who leaves an indelible mark through principled, purpose-driven action.

A "leader of consequence" is someone who has a significant and meaningful impact on their organization, people, and the broader community. Especially in times of uncertainty, such leaders thrive by creating new approaches, adapting to challenges, and inspiring their teams to excel. They balance empathy with directness, ensuring they communicate hard truths while also providing hope. They prioritize serving others over themselves, turning threats into opportunities, and driving overall change. McDermott embodies all of these traits—he not only sets ambitious goals but also leads with empathy, embraces accountability, and motivates others towards achieving transformational impact.

Proven Track Record

Bill McDermott's track record speaks for itself.

At SAP, He led through a critical transformation, turning around the company from a period of slumping sales, depressed stock price, and disenchanted workforce. He transformed the company's market value from $39 billion to $163 billion, showcasing his ability to drive measurable, positive change. He famously rallied the global sales team with his "I will not let anyone—ANYONE!—steal your dreams!" speech, transforming a moment of derision into a strong bond with the sales team. He?groomed young leaders, including Jen Morgan and Christian Klein, who later became co-CEOs.?It is him who transformed SAP's culture to become more customer-obsessed and embrace the cloud revolution. Not to mention how?he responsed to the accident that cost him an eye : he taught us a lesson of positivity and resilience, turned it into an opportunity to embrace a new perspective on life and work, emphasizing how it reinforced his gratitude and optimism. His quick return to work and continued leadership at SAP demonstrated his commitment to the company and his role as CEO.

Under his leadership, ServiceNow doubled its full-year revenues and joined the Fortune 500 list. He united all 22,000+ employees under the aspiration to become "the Defining Enterprise Software Company of the 21st century", nothing less. These achievements demonstrate his capacity for impact, not just in terms of business metrics but in rallying people around a shared vision.

The Trust Factor

Howard Schultz recently interviewed Bill about his tremendous achievements and the culture he has built, and how he was able to created an environment where innovation and personal growth both thrive. The answer Bill gave is : Trust.?

"Trust among everyone at a company is essential to scale in the right way—one that is authentic and brings everyone along", Bill told him. Howard, who founded Starbuck almost 40 years ago, acknowledged that "trust is fundamental to building the right culture, and success is born from culture".

Leadership in Action

McDermott is known for setting audacious goals and inspiring his teams to achieve them, even under challenging circumstances. When he took over SAP America in 2002 and later during the COVID-19 pandemic at ServiceNow, he demonstrated his capability to thrive in uncertainty—balancing vision with adaptability, and executing effectively under pressure. His leadership during these times exemplified the qualities of a leader of consequence: resilience, clarity, and the courage to make tough decisions. ServiceNow's annual revenue was $3.46 billion in 2019 when Bill took the lead. He is aiming for $30 billion and the trend says he could well succeed.

I had the chance to be picked among a handful of top performers to have dinner with him during one of his visits to Paris. I was humbled by the invitation but not going there just to enjoy the haute gastronomy and Bill's company : I had a plan to convince Bill to invest in my strategy to penetrate one of our biggest prospects, a global leader in the tire industry and notable Oracle customer; I needed top level sponsorship to rally people behind my plan... And a little money too. I waited for the right moment and asked him "How much would you be willing to invest to penetrate company X?". He told me I gave him?goosebumps and wanted to know more: talking about winning big, was always exciting for him. Taking on ambitious challenges, even those seemingly unattainable in the eyes of the majority, was not only commendable for him but our very reason for being within a sales organization. Others might have gently put me in my place, or simply smiled while making me understand that I was a hopeless dreamer and naive (want names? MP!). Only him and Franck Cohen, the President of SAP in Europe at the time, backed me in my strategy - Bill followed up, supported me. And we won our first multi-million deal at this leading tire manufacturer. BIll is never condescending. He is always respectful, caring, and motivating.

His willingness to show vulnerability and treat others with genuine care sets him apart as a leader who values human connection. This commitment to empathy, coupled with his transformative ambition, makes him the quintessential "leader of consequence".

Trust me, I have seen leaders on different continents. In an era where "strategic authenticity" has become a common corporate thing—to reference my article on the topic—McDermott displays a level of genuine, unwavering commitment to his people that sets him apart.

The Human Touch

Moreover, McDermott's empathy is evident in his leadership style. Anyone who went to the SAP Winners Circle in Hawaii under his leadership has experience it. Attention to each and everyone. Attention to your partner if you came with one.

Company culture is everything in the long run, and it's admirable when leaders truly live up to their professed values. However, I've noticed a concerning trend where some executives give 'lip service' to ideals like accessibility, diversity, and employee safety, without consistently demonstrating those behaviors in reality.

There can often be a disconnect between the public rhetoric of leaders claiming to have an 'open door policy' and the actual experiences of their employees. The gap between professed values and real-world actions can come across as dismissive or neglectful towards the specific situations and concerns of the workforce.

McDermott recognized that true, lasting change could only be driven by motivated, empowered employees—not top-down dictates. Whether you are a journalist, a customer, a partner, an employee, in presence of Bill you can feel it's always about the people.

And crucially, this ethos of people-centric leadership manifested not just in words, but in tangible, measurable actions. Under McDermott's stewardship, SAP saw dramatic improvements in employee engagement, talent retention, and customer satisfaction.

Of course, no leader is perfect, and McDermott is certainly not immune to the occasional misstep or moment of hubris. But even when confronted with criticism or setbacks, his responses have consistently demonstrated a level of self-awareness, humility, and accountability that is all too rare among today's executive class.

Reflection and Call to Action

In a world that often feels increasingly cynical, disconnected, and transactional, leaders like Bill McDermott offer a refreshing antidote. Thanks god, leaders with a backbone do exist! They remind us that business can be a force for genuine, transformative good—but only when it is guided by a steadfast moral compass and a deep, abiding commitment to those who make the magic happen. Reflecting on McDermott's journey prompts us to examine our own experiences with leadership. Have we encountered leaders who genuinely prioritize their people, who balance ambition with empathy, and who inspire us to achieve more than we thought possible? If not, what can we do to seek out or cultivate such leadership in our organizations?

I encourage you to actively look for "leaders of consequence" in your professional circles—those who not only set bold visions but also empower their teams to bring these visions to life. Consider how you can support and learn from them, and how you might develop these qualities within yourself.

So, let's commit to seeking out and becoming leaders with a backbone— and the next time you encounter a leader who claims to put people first, look behind the appearance and ask yourself: are they merely paying lip service, or are they truly walking the talk?