After an illustrious 31-year career with FedEx, including nearly 25 years as CIO, Rob Carter retired in June 2024, leaving behind a legacy of transformation and innovation. I caught up with Carter in his final week with the company, and he reflected on his career and shared his insights on leadership, board service, and the evolution of technology. Carter’s journey, marked by rapid career progression, a passion for innovation, and a dedication to connecting people and commerce, offers great lessons for aspiring CIOs and those whose tenure has not quite hit the quarter century mark alike.
From Newcomer to CIO: A Rapid Ascent
Carter joined FedEx in 1993 as a director at the company’s Colorado Springs development center. His trajectory to leadership was swift and unexpected. He recalled his first weeks at FedEx and a spontaneous decision that would shape his future. “I just got it in my head that I was going to introduce myself to Dennis Jones, the CIO at the time,” Carter recounted. What started as an informal introduction turned into a pivotal moment. “We had a wonderful conversation, and two weeks later, one of his VPs resigned, and Dennis asked me to put my name in the hat for the job,” he said. Despite his short tenure at the company, Carter was chosen for the role, marking a significant turning point in his career.
Within a few years, Carter transitioned to FedEx’s corporate offices, becoming CTO in the late 1990s. Reflecting on his rapid ascent, he emphasized the importance of building connections and being intentional about networking. “You have to reach outside of comfort zones in a way where people will know who you are. It’s not self-promoting,” he emphasized. “It’s just business.”
Navigating the E-Commerce Boom and Scaling FedEx’s Growth
Carter’s tenure as CIO coincided with a transformative period in the world of commerce. As the internet age dawned, e-commerce was exploding, and FedEx was at the forefront of this global shift. Carter was tasked with leading the company’s technology strategy through this period of rapid expansion. “We were connecting the entire world of commerce at that point in time, which is still absolutely true today,” Carter shared, describing the sense of purpose that came with connecting people, businesses and communities.
One of the key challenges Carter faced was managing the growing complexity of FedEx’s operations, which were becoming increasingly information-intensive. “The information intensity was growing much faster than even the package intensity at that point in time,” he said. “People were becoming much more accustomed to being able to retrieve their own information, create their own shipments, do their own rating, manage their bills and everything else.” Carter’s vision for a connected, information-rich environment not only helped FedEx scale its operations but also cemented the company’s role as a leader in the global supply chain.
Innovating Through Autonomy and a Hybrid Approach
One of Carter’s guiding philosophies as CIO was the value of autonomy within FedEx’s various business segments. In the early days, FedEx operated with a federated approach, allowing each of its businesses—whether Air-Express, Ground, Freight, or FedEx Office—to innovate independently. “When you leave business segments to innovate and grow, and scale, and focus inside of the very specific tasks that they need to perform, it is an engine for growth for the business,” Carter explained. This strategy allowed FedEx to grow rapidly and capture significant market share.
However, Carter was also pragmatic, recognizing the importance of balance. “I’ve always believed that hybrids always win. It’s never all of one, or all of the other,” he underscored. While FedEx maintained a degree of autonomy in its operating companies, Carter worked to create common enterprise services, especially in areas like data management. “We were doing a lot of things to bring the data into a common core and have what we called Enterprise Foundational Services that would represent who the customer is, or what a package was, or what tracking looked like in shipment detail.”
A Shift to One FedEx
As FedEx continued to grow, Carter recognized that the company’s federated model was approaching diminishing returns. Over time, the synergies between FedEx’s different business segments began to outweigh the benefits of independence. “The value of synergies across those networks began to increase to where it ultimately became clear that the synergies now were more valuable than the focus and scale that we saw in independent operating companies.”
This realization led to the decision to consolidate FedEx’s operations under a unified “One FedEx” model, a transition that was fully implemented by the time of Carter’s retirement. The driving force behind this shift was data. “We pulled all of that data into central places, and we were no longer dealing with parochial systems and parochial views of those businesses. We had a holistic view of the data that created a digital twin for the entire business,” Carter said. This data-driven approach enabled FedEx to optimize its operations, eliminate redundancies, and create a more efficient, integrated network.
The Value of Board Service and Lessons for Technology Leaders
In addition to his role at FedEx, Carter has been an active board member, serving on the boards of companies such as Saks Fifth Avenue, First Horizon Bank, New York Life, and Quest Diagnostics. His first board position, at Saks Fifth Avenue in the early 2000s, came about through a personal connection with Brad Martin, the CEO of Saks at the time. “We were at an event together, and he started talking to me. He said, ‘How would you feel about joining our board at Saks?’ I was greatly flattered, but also really intrigued by it.”
Carter’s experience on various boards has enriched his understanding of different business models and industries, allowing him to bring fresh insights back to FedEx. “Understanding other management structures and business models is a great way to gain insights into how business works and how customers work,” Carter said. He believes that technology leaders who sit on boards should not position themselves solely as technology experts. “I don’t show up as the expert in technology. I think that’s a huge mistake on a board. What I do is I bring expertise to the board, but the whole board and the management team have to work together.”
Carter’s advice to aspiring technology leaders is rooted in his belief that standing still is the greatest risk. “What I think that I would offer as advice to anyone out there is make sure that you understand that standing still is more dangerous than you think it is, and moving ahead is less dangerous than you think it is.” For Carter, the future belongs to those who embrace change and remain agile in the face of relentless technological evolution.
A Legacy of Leadership and Innovation
Carter’s retirement marks the end of an era at FedEx, but his influence will be felt for years to come. From his rapid rise to leadership to his visionary approach to e-commerce and data-driven operations, Carter’s career is a testament to the power of innovation, adaptability and collaboration. In his words, “Moving ahead is critical to the future of your business, your enterprise and probably your life too.”
Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.
