The teachings of Fred Smith.

We're very pleased that Fred Smith, who pursued an idea and transformed it into a $25-billion-a-year company called FedEx, is our 2004 CEO of the Year. He joins a group of extraordinary leaders. (See list, page 8.)

Just as I learned from Sandy Weill and Hank Greenberg, so too am I absorbing lessons from Fred Smith. One of the first things Smith did in accepting this distinction was to insist that his top executives, the members of his Strategy Management Committee, be spotlighted along with him, which we have done in the story beginning on page 28.

Some CEOs, I suspect, are only giving lip service when they talk about their teams, secretly believing that most top managers can be "swapped out" in a heartbeat. But Smith is really serious about allowing those around him to make decisions and share in the rewards. His passion for doing that helps shape the whole company's culture. That's Lesson No. 1.

The second lesson is the importance of learning. I've known some CEOs who have a passion for constant learning, but Smith is in a class by himself. In our interview, he mentioned Alfred Sloan, General Custer and Alexander the Great. He is a history nut. And he reads outside of his industry. That's key. When a CEO understands something about the sweep of history and is able to understand how his or her company fits into the broader society and economy, it's hugely powerful.

The third lesson is that it's okay for a CEO to admit that he or she may not be perfect. Smith acknowledges that he can read a balance sheet, but not as well as Chief Financial Officer Alan Graf. He understands many things about technology, but not as much as Chief Information Officer Rob Carter does. Smith says a CEO should play to his strengths and build bench strength in areas where he may not be as strong as others. The CEO doesn't have to be superhuman and do all things.

But ultimately, what I found most interesting was what Smith said about leadership. "The art of leadership," he said, "is being ready and able to subordinate one's self interest often to the greater good of the unit or the organization." I think that's a priceless insight. If you want to build and lead an organization, you have to demonstrate a certain humility and sense of sacrifice.

Add it all up and the best CEOs are passionate about working with people who know more than they do about some subjects and letting them share in the glory.

They engage in constant learning and put the interests of others above their own personal needs. They are, in fact, downright human. That's a far cry from the caricature of the pompous, arrogant CEO we see so often these days. I hope that during Fred Smith's tenure as CEO of the Year, we can work together to challenge those stereotypes. For the full interview with Smith, go to www.chiefexecutive.net.

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