Lessons from David Duffield

David Duffield, a titan of the enterprise software industry and the visionary behind PeopleSoft and Workday, has long been revered for his people-centric leadership and his revolutionary approach to corporate culture. His philosophy, which places employees at the heart of a company's success, has inspired a generation of entrepreneurs and business leaders.

On People and Culture: The "Employees First" Doctrine

Duffield's most profound and consistent message is the paramount importance of a company's employees. He firmly believed that a happy and empowered workforce is the primary driver of innovation and customer satisfaction.

Quotes:

"The most important thing for us is our employees, hire the best, treat them well, expect a lot from them. They're the champions of the business." [1]
"Customers are a close second. Employees are number one." [1]
"I eat, sleep and breathe happy customers and happy employees." [2]
"It has to be part of the DNA of a company. You can say that you care and then show that actually you don't, or you can say that you care and do something about it. The whole company is going to operate according to what you care about." [2]
"Flame mails and offensive Internet activities are not classy. It doesn't fit with our culture here, where we respect the gender, race, opinions, ear-lobe apparel and choice of clothing of all employees." [3]
"I think a leader should be a likable person. Get (employees) to do things without telling them, and don't make it contrived." [4]
"I aspired to have a harmonious work environment and failed the first two or three times, and would have failed the fourth time had I not woken up and took this core values system and beliefs seriously." [1]
"It was a stunning accomplishment for the company [for] employees to last through some tumultuous periods, and I do attribute that to the core values and the culture of the organization." [1]
"Treat fellow employees, customers . . . and the bagel delivery people with the same respect and courtesy you'd offer the late Jerry Garcia." [3]
"It's mandatory we have fun here." [4]

Learnings:

Culture is Intentional: A positive and productive company culture doesn't happen by accident; it must be deliberately cultivated and woven into the very fabric of the organization. [2]
Core Values are Non-Negotiable: Duffield learned from early failures that a clearly defined and consistently practiced set of core values is essential for long-term success and a harmonious workplace. [1]
Hire for Cultural Fit: At Workday, Duffield and his co-founder Aneel Bhusri personally interviewed the first 500 employees to ensure they aligned with the company's culture, a practice they considered smarter than their hiring at PeopleSoft. [1]
Empowerment Breeds Ownership: By trusting and empowering employees, they become "champions of the business," taking initiative and driving success from the ground up. [1]
Fun is a Business Strategy: Duffield famously incorporated "fun" as a core value at PeopleSoft, fostering a positive and engaging environment with company bands like "The Raving Daves." [4]

On Leadership and Entrepreneurship: Lessons from a Serial Founder

Having founded multiple successful companies, Duffield's advice for entrepreneurs is born from decades of experience, including both triumphs and setbacks.

Quotes:

"Go find one of those [big companies] and count yourself lucky to be imbued with this culture, this values system that made this company successful. Then when you're ready, go out and do your own thing." [1]
"I didn't know how to keep bureaucracy or infighting or bad behavior out of a company. I either would start a new company, go off on my own and start again or bring somebody in to run it who had more management skills than I did." [1]
"You don't know this when you're young, but over time, you see that great companies are usually built at a special point in time." [3]
"I'll sweep the floors. I've picked up napkins in the men's room. I'm not above anything." [3]
"Being nice and competitive are two different things." [5]
"I'm sort of a foot-on-the-gas kind of guy." [3]
"I learned that if you located an interesting problem to solve, you solved it well, the customer was happy, said nice things. Well, you got to solve the next problem." [3]
"If you truly listen to what people are saying, you'll find out what's on their mind that they want to be comfortable with. And then you'll be more effective in addressing their concerns." [6]
"I hate to lose." [5]
"I don't consider myself a brilliant individual in technology, but I am attracted to people and I'm willing to take chances." [5]

Learnings:

Learn from the Greats: Duffield advised young entrepreneurs to start their careers at established companies like IBM to learn the fundamentals of a strong corporate culture and value system before venturing out on their own. [1]
Acknowledge Your Weaknesses: Duffield was candid about his early struggles with managing people and company politics, a self-awareness that ultimately led him to prioritize culture. [1]
Timing is Everything: He recognized that successful companies often emerge at a unique confluence of market need and technological advancement. [3]
Lead by Example: His willingness to do any job, no matter how menial, demonstrated his commitment to the company and his respect for all employees. [3]
Embrace a "Whatever it Takes" Mentality: Duffield's "foot-on-the-gas" approach signifies a relentless drive and a proactive stance in building and growing a business. [3]
The Power of Listening: He emphasized that truly understanding the needs and concerns of others is the key to effective leadership and problem-solving. [6]
Don't Be Afraid to Start Over: When faced with insurmountable challenges or a culture that had gone astray, Duffield wasn't afraid to start a new venture and apply the lessons he had learned. [1]
Recognize Market Needs: Each of his successful companies was founded on the principle of identifying and addressing a specific market need. [5]
From Founder to Operator: Duffield's journey highlights the critical transition an entrepreneur must make from the initial, instinct-driven phase to building scalable and repeatable processes for long-term growth. [7]
Over-invest in Early Customers: He advised entrepreneurs to prioritize the success of their first few customers, as their satisfaction builds a crucial foundation for reputation and future growth. [7]

On Business Philosophy and Values: The Cornerstones of Success

Duffield's business philosophy extended beyond just people and leadership to encompass a broader set of values that guided his companies.

Quotes:

"The really important thing is your core values and beliefs. You got to get it right. That's what I didn't do in the first three companies and what I had in spades at IBM and I didn't know it." [1]
"He wanted to create a great place to work that also took care of its customers. Now that's standard best practices." [1] (Quote about Duffield by Aneel Bhusri)
"Our prospects and customers will think more kindly of our products and services if our bathrooms are clean." [4] (From "Dave's Rules of Business Behavior")
"Do what you say you're going to do." [5]
"Be honest and treat everybody with respect." [5]
"I think I've done a good job in the industry from the standpoint of employee morale and customer satisfaction, and as an innovative thinker in tech." [3]

Learnings:

Integrity is Paramount: A commitment to honesty and doing the right thing for all stakeholders was a cornerstone of Duffield's approach to business. [8]
Innovation as a Constant: He consistently pushed for technological advancement, from embracing client-server architecture at PeopleSoft to pioneering cloud-based solutions at Workday. [8]
Customer Service as a Differentiator: Especially in the early days of new technology, Duffield understood that exceptional customer service was crucial for building trust and loyalty. [7]
The "Power of One": At Workday, the principle of having all customers on the same version of the software was a key differentiator, ensuring a consistent and up-to-date experience for everyone. [9]
Social Responsibility is a Business Imperative: Duffield believed that successful businesses have a responsibility to contribute positively to society. [8]

On Philanthropy and Giving Back: A Legacy of Compassion

Beyond the boardroom, David Duffield is a dedicated philanthropist, most notably through his work with Maddie's Fund, a foundation dedicated to animal welfare.

Quotes:

"What I want is the general betterment of pets. No-kill is a part of that." [4]
"Maddie was the lighthouse during the stormy period." [10] (Referring to his dog during the challenging early days of PeopleSoft)
"You get to the point in life where you sort of wake up to the world and look outside your little box." [4]
"If we ever did make any money...I would give it back to her [his dog Maddie]." [9]

David Duffield's legacy is a testament to the idea that a business can achieve tremendous success not in spite of, but because of, its commitment to its people and its values. His words and actions continue to provide a powerful blueprint for building companies that are not only profitable but also great places to work.

Learn more:

Lessons from David Duffield

On People and Culture: The "Employees First" Doctrine

On Leadership and Entrepreneurship: Lessons from a Serial Founder

On Business Philosophy and Values: The Cornerstones of Success

On Philanthropy and Giving Back: A Legacy of Compassion

Written by Antoine Buteau

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