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Top 7 Lessons from Carol Tomé, CEO of UPS in 2025: HOW TO Optimize Leadership Strategy

In 2025, the world of business is more volatile than ever, driven by rapid advancements in technology, global economic shifts, and the still-evolving impact of pandemic-era innovations. For leaders navigating this tumultuous landscape, Carol Tomé, CEO of UPS, has emerged as one of the most proven innovators in leadership strategy. With her unique expertise and bold decisions, Tomé has positioned UPS as a global powerhouse in logistics - continuing to grow despite economic uncertainties and industry challenges.

This article explores the top 7 lessons entrepreneurs, startup founders, and business owners can learn from Carol Tomé’s leadership at UPS, diving into insights, strategies, and even common mistakes to avoid in building your own thriving business.

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Introduction: The UPS Transformation Under Carol Tomé

Carol Tomé took over the reins as CEO of UPS in June 2020, becoming the first woman in the company's history to hold the position. Her tenure has been marked by impressive transformations, including improved operational efficiency, a focus on sustainability, and bold strategic shifts in serving small-to-medium businesses (SMBs).

Prior to her role at UPS, Tomé spent 18 years as CFO of Home Depot, where she gained recognition for her expertise in financial management, cost optimization, and sustainable growth strategies.

If you want deeper insights into Carol Tomé’s background, check out her Wikipedia page for a complete overview of her career achievements.

Carol Tomé’s Top 7 Leadership Lessons

1. Leverage Technology to Optimize Efficiency

Under Carol Tomé’s leadership, UPS made significant investments in technology to streamline operations - from AI-powered demand forecasting to automation in sorting facilities. Entrepreneurs can learn the importance of adopting next-gen tools to boost efficiency and minimize operational inefficiencies.

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2. Balance Cost Optimization with Growth Strategy

One of Tomé’s first initiatives after becoming CEO was “Better, Not Bigger”, signaling a focus on cost optimization while maintaining delivery excellence. Through strategic streamlining, UPS prioritized profitable growth over sheer scale.

Entrepreneurs can embrace this mindset by critically assessing their operations to fix inefficiencies and allocate resources toward profitable, high-impact areas.

3. Prioritize Sustainability to Differentiate Your Brand

Carol Tomé established bold sustainability targets for UPS, including efforts to transition to more energy-efficient delivery fleets. UPS is actively working toward cutting emissions and solidifying its reputation as a socially responsible enterprise.

As sustainability becomes a must-have for businesses, consider setting clear sustainability goals for your startup or company. Customers and partners increasingly align with brands that prioritize environmental responsibility.

4. Focus on Small and Medium Businesses (SMBs)

UPS under Tomé shifted its focus toward serving SMBs, aiming to become their go-to logistics partner. This involved rethinking services to better meet the needs of smaller enterprises - a move that resonated strongly in the evolving global economy.

Lesson: Entrepreneurs should explore niche markets that are often underserved by large competitors. By building tailored solutions for SMBs, you create massive opportunities while fostering trust within these communities.

5. Be Bold During Industry Changes

The logistics industry faced significant challenges due to disruptions caused by COVID, e-commerce surges, and labor shortages. Carol Tomé’s approach was rooted in boldness and clarity, making decisive adjustments to UPS’s operations to handle these industry-wide changes head-on.

Take inspiration from Tomé’s proactive mindset - when confronted with change, don’t hesitate to pivot your strategy and make necessary upgrades.

6. Improve Financial Transparency

Carol Tomé introduced greater transparency in UPS’s financial results, regularly communicating with stakeholders and explaining why certain investments were prioritized. This helped win confidence from investors while fostering internal trust within the company.

Build transparency into your leadership strategy by clearly outlining your goals, challenges, and decision-making processes to your team or partners.

7. Never Ignore the Power of Data

UPS handles more than 25 million packages a day, with each package producing massive amounts of data on delivery times, customer behavior, and operational efficiency. Through Carol Tomé’s leadership, UPS has optimized data analytics to make informed decisions that keep operations running smoothly.

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How to Apply Carol Tomé’s Leadership Lessons

Step-by-Step Guide

Evaluate Your Growth Strategy: Ask yourself whether you’re pursuing growth for the sake of scale or focusing on profitability, as Carol Tomé suggests with her “Better, Not Bigger” philosophy.

Adopt the Right Technology: Take advantage of AI-driven tools, such as transcript generators or SEO analysis platforms, to optimize efficiency in your operations.

Set Clear Sustainability Goals: Identify one actionable area in your operations - perhaps reducing waste or switching suppliers - to begin your journey toward eco-conscious leadership.

Build Transparency: Share your growth priorities and challenges openly with team members and key stakeholders to foster trust.

Common Mistakes to Avoid

Ignoring Sustainability Trends: Neglecting environmental goals can alienate modern customers and investors.
Underestimating Niche Markets: SMBs represent enormous potential, but many startups fail to cater specifically to their needs.
Failing to Embrace Industry Shifts: Adaptability is crucial, especially during periods of significant change.

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Conclusion

Carol Tomé’s leadership provides invaluable lessons for entrepreneurs, freelancers, and business owners looking to navigate complex markets in 2025 and beyond. Her strategies in sustainability, tech adoption, niche focus, and financial transparency offer a proven blueprint for optimizing leadership in any business environment.

Whether you're launching a startup, scaling operations, or fine-tuning your business strategy, Carol Tomé’s example as CEO of UPS is a treasure trove of insights waiting to be applied to entrepreneurial success.

Start today, and make these lessons part of your business journey!

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FAQ on Leadership Lessons from Carol Tomé, CEO of UPS

1. Who is Carol Tomé, and why is she influential in leadership?

Carol Tomé became CEO of UPS in June 2020, marking a significant shift in leadership by being the first woman to hold the position in UPS’s 100-year history. Her focus on operational excellence, sustainability, and SMB partnerships has established her as a transformative leader in logistics. Learn more about Carol Tomé’s leadership

2. What does “Better, Not Bigger” mean, and how did Carol Tomé apply it?

“Better, Not Bigger” is a strategic initiative that emphasizes profitability and operational efficiency rather than simply scaling up in size. Tomé prioritized streamlining operations and focusing on high-impact areas rather than pursuing rapid expansion. Explore UPS’s transformative strategies

3. How has Carol Tomé leveraged technology at UPS?

Under her leadership, UPS has integrated AI and automation technologies for package sorting, demand forecasting, and optimizing delivery times. This use of technology has enhanced efficiency and reduced operational delays. Read more about UPS’s tech innovations

4. What sustainability initiatives has Carol Tomé implemented at UPS?

UPS under Tomé has committed to reducing its carbon footprint by transitioning to energy-efficient delivery fleets and adopting renewable energy solutions in operations. These environmental goals are helping UPS set industry standards. Discover UPS’s sustainability efforts

5. Why is SMB focus a critical lesson from Carol Tomé’s leadership?

Tomé shifted UPS’s focus to small and medium businesses (SMBs), recognizing that these enterprises require tailored logistics solutions. This strategic move has created new growth opportunities for UPS by tapping into an underserved market. Learn how UPS caters to SMBs

6. How does Carol Tomé promote financial transparency in leadership?

Carol Tomé has implemented practices to improve stakeholder communication, including clear explanations of financial results and the reasoning behind business investments. Her transparency fosters both investor confidence and internal trust. View UPS’s Investor Relations page

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8. How does Carol Tomé use data to optimize decision-making?

UPS handles millions of packages daily, generating a wealth of data. Tomé has prioritized using analytics to make informed decisions, improving delivery times and overall business operations. Learn more about UPS’s data-driven strategies

9. What lessons can entrepreneurs learn from Carol Tomé’s bold leadership during industry changes?

Her proactive adjustments to UPS’s operations in response to challenges like e-commerce surges and labor shortages demonstrate the importance of flexibility and bold decision-making during volatile times. Explore Carol Tomé’s leadership style

10. What specific mistakes should leaders avoid based on Tomé’s strategies?

Key mistakes to avoid include ignoring sustainability trends, underestimating the potential of niche markets like SMBs, and failing to adapt to industry changes. These pitfalls can hinder growth and damage trust. Check out insights on Carol Tomé’s strategic impact

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.

Violetta Bonenkamp

2025-04-22 14:30 Top Female Entrepreneurs