Don Keough — The “Supreme Idiot” Who Grew Coke's market cap from $2B to $120B and Left a Masterclass on Failure.
I read Warren Buffett’s Thanksgiving letter over the weekend, and it sent me down a rabbit hole into the life and wisdom of Don Keough.
In 1985, when Don was President of Coca-Cola, the company made one of the biggest marketing blunders in history: replacing its iconic Coke with a new formula, “New Coke,” and then resisting the tidal wave of consumer outrage.
When the letters began pouring in—some addressed simply to the “Supreme Idiot” at Coca-Cola—they all landed on Don’s desk. Eventually, he delivered his famous withdrawal speech, apologising to the public and reinstating the original Coke. It’s a classic (and worth watching on YouTube).
His closing line captured his mix of humility and humour:
“Some critics will say Coca-Cola made a marketing mistake, and some cynics will say we planned the whole thing.
The truth is, we are not that dumb, and we are not that smart.”
He acknowledged something few leaders ever say out loud: the Coca-Cola product didn’t belong to the company—it belonged to the public.
KPIs and metrics can’t measure emotional attachment, no more than you can measure pride, patriotism, or love.
Sales soared after the reversal. Coke’s market cap went from $2 billion to $120 billion.
Don later distilled his lessons into Ten Commandments for Business Failure—a timeless guide on what not to do:
1. Quit Taking Risks: Avoid innovation and stay comfortable.
2. Be Inflexible: Stick to your original plan even when the world changes.
3. Assume Infallibility: Believe you’re always right. Never admit mistakes.
4. Put All Your Faith in Experts: Outsource thinking. Ignore internal judgment.
5. Be Afraid of the Future: Let fear paralyse progress.
6. Avoid Isolation: Build an “executive bubble” that filters out real feedback.
7. Don’t Take Time to Think: Decide impulsively instead of reflecting.
8. Send Mixed Messages: Create confusion by communicating contradictory information to your employees.
9. Streamline Bureaucracy: Add layers, committees, and processes until creativity dies.
10. Play the Game Close to the Foul Line: Foster a culture of self-interest over mutually beneficial relationships. Cut ethical corners, thinking no one will notice. Eventually, they do.
Take it easy until next time.
Blogging is something I enjoy, and I share my thoughts on my blog most weekends. Explore all my blogs at https://lnkd.in/ejq7CWaQ.
Views are my own.
Blogging is something I enjoy, and I share my thoughts on my blog most weekends.
Read all my “Notes to Self” at view all blogs.