Jim Kavanaugh, the CEO and co-founder of World Wide Technology, is the guest speaker on this edition of Fortune’s Leadership Next podcast, hosted by Diane Brady. Kavanaugh, who played on the U.S. men’s Olympic soccer team in 1984, attributes many of the leadership qualities he exemplifies at WWT to his upbringing and his parents. “Some teams had a distinct feel and were more free-flowing, while others were more structured in their play. Kavanaugh adds, “And you had to learn how to compete against those different teams.”
Brady and Kavanaugh also explore WWT’s position in the tech industry, the rise of AI, and where the CEO developed his strong work ethic.
Diane Brady: Leadership Next is brought to you by the team at Deloitte, who, like me, are examining the evolving roles of business leaders and how CEOs are steering through these changes.
Welcome to Leadership Next, the podcast focused on the shifting landscape of business leadership. I’m Diane Brady, and today I’m sitting down with Jim Kavanaugh, co-founder and CEO of World Wide Technology. You may not have heard of it, but it’s a $20 billion tech powerhouse based in St. Louis, and there’s a reason for that—St. Louis is Jim’s hometown. In addition to his tech achievements, he was an Olympic-level soccer player and now owns the soccer team in St. Louis. Jim is an avid reader and is at the forefront of AI and emerging tech trends. Here’s my conversation with him.
So, Jim, you’re the co-founder and CEO of World Wide Technology. Can we start with the basics—why St. Louis? Great to see you, by the way. And just so you know, I used to call it St. Louie when I was living in Canada, but I was corrected, and now it’s permanently etched in my mind as St. Louis—a wonderful city. What makes it a great place to base your company?
Jim Kavanaugh: I’d say it definitely is. St. Louis has been a great place to grow up, and I’ve lived here my entire life. Honestly, there wasn’t any grand strategic reason for choosing St. Louis other than the fact that it’s my hometown. Looking back, it’s worked out well. There are incredible people here who have been the foundation of the company. World Wide Technology has grown to be a significant part of the community, employing many locals and contributing to the area’s development. St. Louis means a lot to me, and I’m glad you’ve had the chance to experience it [laughs]—or, as you once said, “St. Louie.”
Brady: And of course, now there’s the soccer team. We’ll get to that, but first, for those who may not know, WWT is often described as a $20 billion tech giant and systems integrator. Do you like the term “systems integrator”? You do so much more, including strategy. Could you tell us more about World Wide Technology and where the company stands today?
Kavanaugh: Being referred to as a systems integrator is fine, but I’d say people tend to describe us in various ways since we cover so much ground.
Brady: Yeah.
Kavanaugh: “On one hand, we started as a value-added reseller of technology equipment. We’ve had a long-standing partnership with Cisco, dating back nearly 30 years. Initially, we worked with John Chambers when he was CEO, and now we continue our collaboration under Chuck Robbins. Over the years, World Wide has evolved significantly. What began as a straightforward value-added reseller has grown into a multifaceted organization. We’ve expanded our presence beyond St. Louis to a broader domestic and global scale. We initially added networking services, but our portfolio has since expanded considerably. We now offer a wide range of services, including voice, video, networking, compute, storage, cybersecurity, software development, consulting, and advisory services. Additionally, we are heavily involved in AI and digital transformation, which are crucial for virtually every company today.”
Brady: Well, I guarantee we won’t wrap up this conversation without diving into AI. And just for our listeners, I co-wrote a book with John Chambers, where we explored his role in transforming Cisco into a powerhouse. You founded World Wide Technology, or WWT—giving it a bit of a wrestling vibe too—in 1990. Take us back to that time. Also, the fact that you were a soccer star is intriguing to me. Share a bit about how Jim Kavanaugh went from soccer to co-founding this company.
Kavanaugh: Yeah. Well, as you mentioned, I played soccer growing up, continued through college, and had the opportunity to play with the ’83 Pan Am team and the ’84 Olympic team. After that, I spent a couple of years playing professionally. Unfortunately, the soccer league back then wasn’t as stable as it is today, and while soccer was growing, it didn’t have the same foundation it has now. After a couple of years, I decided it was time to move on and pursue a “real job,” even though I loved the game. I wanted to enter the tech space, so I joined a privately held computer components company called Future Electronics, based in Montreal, Canada. It was an excellent place to learn. After about a year and a half there, the person I was working with and for started discussing the idea of building a business, and that’s how World Wide Technology came to be.
Kavanaugh: We were also friends with Dave Steward, who is now my co-owner and co-founder of World Wide Technology. But back then, even for young people today, the one thing I did right was deciding I wanted to be in the tech space. I gained some education while working at Future Electronics on board-level components. When you think about where we are now with AI, a lot of that comes back to chips, diodes, capacitors, and motherboards. It was a good foundation. From there, we launched World Wide Technology in 1990 as a value-added reseller, though we really had no idea what we were doing at the time.
Brady: I want to dive into that, but you quickly glossed over the fact that you were an Olympian and played professional soccer for a few years. Let’s take a moment to appreciate that. Competing at that level must have required incredible discipline. This is an Olympic year, and I’m speaking with a former Olympian. What was it like to compete at that level?
Kavanaugh: The competition was eye-opening. As you advance through different levels and play against higher-caliber athletes, it’s such a valuable experience. I grew up in a modest household—my dad was a bricklayer, and my mom stayed at home for most of my upbringing. Making the Pan Am and Olympic teams in ’83 was a huge step, and I traveled with the team for almost 15 months, participating in around 30 tournaments worldwide.
Competing with other U.S. players to make the team was tough, but the international competition was even more incredible. Coming from St. Louis, where I had never really traveled outside, I suddenly found myself in places like Seoul, Korea, for the President’s Cup, and in Beijing for the Great Wall Cup in China. We also played all over Europe, Central America, and the Pan Am Games in Caracas. It was a fantastic experience, not just meeting the people on our team but also competing against world-class players from around the globe.
Brady: What position did you play?
Kavanaugh: I played as both a defender and midfielder.
Brady: Oh, that’s great! An all-rounder. When competing at such a high level, you must have had moments where you faced teams that really made you think, “Wow, they are exceptional.” I’m guessing maybe it was Brazil, though the U.S. was certainly strong too. But soccer is one of those sports where the rest of the world truly excels. Was there a particular team that stood out for you?
Kavanaugh: Absolutely. There were some eye-opening games, especially during the Pan Am Games, where we played Brazil. When you play with and against superior players, your own game naturally improves. You may not feel it in the moment, but that’s how it works. What was equally fascinating was observing the different cultures, how they approached the game, and realizing how fortunate we are in the U.S. Different teams had distinct styles. Some were more disciplined, while others played with a freer, more flowing style. You had to adjust to those styles. The African teams, for example, were very athletic and free-flowing, while other teams were more structured. It was a learning experience, and those lessons translate well into business, where you encounter diverse teams and approaches.
Brady: Definitely. In business, you’re partnering with companies that constantly evolve, whether through acquisitions or other changes. Being adaptable is key. I don’t want to overdo the soccer analogy, but let’s step back a bit. I’m curious about your background. Your dad being a bricklayer is quite modest, just like how my father was a carpet salesman. There’s a lot to be learned from such backgrounds. What did you pick up from that? I’m guessing your dad had you involved in some capacity. How has that influenced your leadership and worldview as you built your business?
Kavanaugh: It had a significant impact on me, both from my dad and my mom. My dad was a man of few words, but you always knew where he stood—it was very clear. I grew up with two sisters, one older and one younger, and we had responsibilities around the house. There were expectations of how we should act, and if we didn’t, there were consequences.
My dad instilled certain values in us, and there was a balance between him and my mom. My mom was tough when necessary but also brought a lot of love and compassion. My dad, on the other hand, emphasized discipline, rigor, and hard work. You had to be willing to grind. If you didn’t understand the importance of work ethic, you’d struggle in our household. He also taught us loyalty, humility, and the mindset that we were no better than anyone else but just as good as anyone.
These values—work ethic, teamwork, running toward work rather than avoiding it, and loyalty to family and friends—became foundational for me. My mom’s compassion balanced it all out. These lessons have stayed with me and shaped the way I lead and manage today.
Brady: Many Fortune 500 companies are committed to achieving net zero emissions to combat climate change. The real challenge lies in how to reach this goal. We spoke with Jason Girzadas, the CEO of Deloitte US and the sponsor of this podcast, about this pressing issue. Here’s his perspective.
Jason Girzadas: There is widespread acknowledgment that the financial impact of climate change far outweighs the cost of investing in solutions. Organizations will increasingly leverage technology to advance towards a decarbonized future and a more circular economy. We’re already witnessing the advantages of technology, such as the rise in alternative energy sources and significant improvements in battery and storage technology. The performance and affordability of electric vehicles are also improving. The influence and value of technology are becoming evident, and this trend will continue. Climate change demands innovations that we don’t yet have, but we believe new opportunities for innovation will emerge as ecosystems around emerging technologies develop. The urgency and call to action regarding climate change are undeniable, and the path to sustainability is becoming clearer. The narrative is shifting from viewing decarbonization as a cost and inconvenience to recognizing it as a significant opportunity. Our client organizations are actively forging their own paths toward a sustainable future.
Brady: Reflecting on the tech landscape, it’s interesting to note that in 1990, Silicon Valley wasn’t the epicenter of technology that it is today. Instead, much of the technological innovation was centered around the Boston area. Considering your company’s growth and the evolving tech scene, what were some key moments that you view as pivotal turning points for World Wide Technology?
Kavanaugh: One major turning point was our relationship with Cisco. Back in the mid-to late-’90s, Cisco emerged as a leader in networking and various technologies. Building a strong relationship with Cisco was crucial. Additionally, during the dot-com boom, I was unfamiliar with concepts like IPOs, investment banking, or venture capital. However, I quickly learned. We considered taking part in the worldwide public amidst the dot-com frenzy and managed to secure a $27.5 million investment from two Boston-based VCs, Summit Partners and Highland Capital. This experience gave me valuable insights into the market, venture capital, and IPOs. Unfortunately, just as we were preparing to go public in March 2000, the market crashed.
Brady: Cisco was once the world’s most valuable company by market cap and then saw a dramatic decrease in value. What did you learn from that experience, considering we often discuss bubbles and their potential to reoccur?
Kavanaugh: That period taught me resilience. Throughout my career, I’ve faced tough times and learned to adapt. Even in prosperous times, it’s crucial to prepare for challenges. Not all issues are within our control, and market upheavals, like the dot-com bubble, can create significant turbulence. It’s important to be ready to pivot and endure. Learning from these experiences is invaluable. Ensuring the company is prepared for various scenarios and avoiding excessive risk is essential for long-term survival.
Brady: Where does World Wide Technology stand now in its lifecycle? Given the size of your company, the presence of major competitors, and the rapid pace of innovation, how do you perceive your current position in the market?
Kavanaugh: It’s an exciting time. While World Wide Technology has grown significantly and offers substantial value, I still see myself as an entrepreneur. The IT market is vast, estimated at around $5 trillion globally. Our focus, however, is a segment worth approximately $1.5 to $1.6 trillion. Despite our size, we capture only a small share of this market. There’s fierce competition, and it’s important to recognize both the vast opportunities and the challenges we face in delivering unique value.
Brady: With such a significant market presence, who are your ideal customers?
Brady: Today, large, complex enterprise companies are a primary focus for World Wide Technology. This includes major federal organizations like the Air Force, Army, and Marines, as well as significant players in sectors such as hyperscalers, service providers, global banks, healthcare, and manufacturing. Although we’re present in many Fortune 500 companies, we’ve only scratched the surface of the opportunities with our existing clients and the broader market. Currently, 80% of our business is in North America, and we’re just beginning to explore international markets. Additionally, the mid-market sector remains a largely untapped area for us.
Brady: AI is a significant growth area for your company. With your access to advanced technology and unique insights, what are some of the most exciting use cases you’re seeing?
Kavanaugh: AI presents several exciting opportunities. One major area is the infrastructure needed for AI. Companies like Nvidia are at the forefront, driving advancements in GPU-based AI data centers. These data centers require specialized skills in design, power, cooling, and environmental factors, which differ from traditional data centers.
On the enterprise level, organizations are evaluating whether to build AI platforms on-premises, in the cloud, or through a hybrid approach. Our role involves advising on the best solutions for their specific needs and goals. We use our advanced technology center to help clients navigate these complex decisions.
The second phase involves AI inferencing and its outcomes. Organizations are looking to AI to enhance customer and patient experiences, improve internal efficiencies, and create proprietary AI platforms similar to ChatGPT to boost organizational efficiency.
Brady: Given the evolving nature of technology, how do you lead your company today compared to when you started? What aspects of your role bring you the most joy?
Kavanaugh: Effective leadership requires both a deep understanding of the business and the ability to step back and set the overall vision. As a leader, it’s crucial to grasp the details of operations but also to rise above them to provide direction and inspiration. The real joy comes from seeing passionate, ambitious teams come together to achieve great things. Observing how teams handle mistakes and customer issues and how they strive to improve is particularly rewarding. Witnessing the growth and development of employees—such as those who started as interns and are now senior leaders—adds to the fulfillment of my role.
Brady: Before diving into your leadership approach, let’s zoom out a bit. Given your comprehensive vision for the company, where do you see us now? Many leaders today experience a mix of urgency and paralysis due to rapid technological changes and the vast array of choices available. What insights can you provide on navigating this environment, especially with significant investments pouring into areas like AI? How can organizations make wise decisions in this fast-evolving landscape?
Kavanaugh: As a leader, it’s essential to grasp the big picture while recognizing that you can’t analyze every detail. Instead, focus on gathering sufficient information to make informed decisions and act decisively. Waiting for perfection can lead to missed opportunities, especially in areas like digital transformation, AI, cyber security, and cloud technologies, where the pace of change is relentless.
Today, IT has transitioned from a back-office function to a driving force behind business strategy. Every CEO and executive team must consider their digital transformation plans, AI integration, and cybersecurity strategies. Staying informed and adaptable is crucial. Continuously learning and keeping your ears and eyes open will help you make sound decisions. If mistakes occur, be ready to adjust and move forward. Waiting too long for complete information can result in being left behind.
Brady: Your instincts must be sharp by now. You mentioned that a leader’s role involves setting vision and strategy, but there’s also the challenge of nurturing future leaders and considering succession. As a co-founder who’s been in a top role for a long time, how do you approach leadership development and succession planning, especially when you’re deeply engaged in your role?
Kavanaugh: I take immense pride in my role and never take it for granted. I value the leaders within our organization and am confident in their ability to step into my position if needed. It’s crucial for a CEO to develop and nurture talent capable of filling key roles. I’ve worked hard to ensure that several individuals within the company are well-prepared to take on significant responsibilities.
Succession planning involves more than just identifying potential leaders; it’s about providing them with challenging opportunities that inspire and motivate them. Our mission to be a profitable and growth-oriented company helps create opportunities for ambitious employees. Ensuring that we grow and reinvest in the business not only drives innovation but also provides a supportive environment for employee development. I’m committed to fostering a culture where talented individuals can thrive and see a clear path for advancement.
Brady: And now you have a soccer club, am I right?
Kavanaugh: Yes.
Brady: As we wrap up, I’m curious about the passion and vision behind that venture.
Kavanaugh: Soccer has always been close to my heart. I might not have gone to college if I hadn’t received a soccer scholarship, so the sport has had a significant impact on my life. After I stopped playing, I coached soccer for my kids and stayed involved with various clubs. When the chance to bring a Major League Soccer team to St. Louis came up, it was a perfect opportunity for me. Soccer, and sports in general, often have values beyond just financial metrics, focusing on future potential and community impact.
Brady: It sounds like a passion project.
Kavanaugh: Exactly. Partnering with the Taylor family, known for their philanthropy and success with Enterprise Rent-A-Car, has been fantastic. Bringing the soccer team to St. Louis and building a downtown stadium has been incredibly rewarding. It’s been amazing to see the positive economic and community impact, with every game sold out and enthusiastic fans. It’s great to witness the effect it has on the city.
Brady: That sounds fantastic. I hear you’re also a reader. Any books or reads you’d recommend?
Kavanaugh: I’m currently jumping around with various interests. I’ve been exploring podcasts on AI, leadership, and longevity. I’m fascinated by how AI and large language models might advance science, such as curing cancer or implementing stem cell technology. The advancements in wearables and health tracking, like continuous glucose monitors, are also intriguing.
Brady: Do you have an Oura ring on?
Kavanaugh: Yes, I do. I’m tracking various health metrics and interested in how technologies like these will evolve. The future of health technology, with continuous monitoring and data sharing with doctors, is fascinating.
Brady: It’s about living well, not just living longer. Thanks for sharing, Jim. It’s been great talking with you. Best of luck with World Wide Technology and your soccer club.
Kavanaugh: Thank you, and I’d love for you to join us for a soccer game. Thanks for your time, and all the best in your new role.
Brady: I look forward to it. Thanks again.
Kavanaugh: Thank you.