9/27/2019 Abdul Razak Dawood – A Story of Thought Leadership followed by Action Leadership | Entrepreneurship 3.

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Abdul Razak Dawood – A Story of Thought Leadership

followed by Action Leadership

Humans are the greatest source of inspirations; at times ordinary, at times extra-ordinary. They are
all around us, only if we can pick up or learn from them. Inspirations, ideally, are like chain reactions.
You get inspired and you inspire others and the reaction goes on. But then again, inspirations start
from somewhere. As noted by someone, “There never was a great soul that did not have some divine
inspiration”. Surely, those are the few who actually kick start the chain reaction.

Observing people have remained a great way of learning that I have thoroughly enjoyed. One of
those learning aid is the Founder and Chairman of Descon Engineering (h p://www.descon.com)
Group, Mr. Abdul Razak Dawood. In case you are one of those who never heard about Descon
Group, it’s the largest construction and engineering company from Pakistan positioning itself rapidly
in the global markets.

(h ps://jamilgoheer.files.wordpress.com/2010/07/ard-1.jpg)

Descon Quick Recap: In less than 3 decades, Abdul Razak Dawood transformed DESCON from a
1977 startup with 4 engineers to more than 1600 engineers and professionals (employee strength
reaching 40,000) globally competitive engineering company based out of Pakistan. Today, Descon has

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15 businesses in engineering, chemicals and power under their portfolio with 0.9 million man
hours/year of engineering capacity and 72 million man hours/year of construction capacity. Some call
this a vision, but there is someone definitely more than a visionary over here.

Portfolio in brief: Abdul Razak Dawood served as the former Federal Minister for Commerce,
Industries and Production, Government of Pakistan for four years. He is the Chairman Pakistan
Business Council and Managing Director of Descon Engineering Limited and six other private
companies. His former corporate positions included, CEO Dawood Hercules Chemicals and
Managing Director Lawrencepur Woolen & Textile. He has been on the board of various corporate
giants such as ICI Pakistan, KSB Pumps, United Refrigeration Ltd, PIA, & State Bank of Pakistan. He
taught at Department of Business Administration, University of Punjab and is the Member Syndicate,
the University of Punjab as well as member Senate, University of Punjab. Mr. Abdul Razak Dawood
has been an active philanthropist and at present he is the Rector, Lahore University of Management
Sciences to which his family has donated generously; Vice Chairman, Board of Governors National
Management Foundation; Member, Board of Directors Shaukat Khanum Cancer Hospital and
Research Centre, Trustee CARE Foundation and Member, Board of Directors NUML College. Mr.
Dawood is a BSc. Mining Engineering from England and MBA from Columbia University, USA.

I heard about him for the first time when I applied to LUMS and met him for the first time at my
convocation while he handed me over my degree. Li le did I know that in the years to come I will be
lucky enough to be directly mentored by him and have him on our board of advisors for Kualitatem
(h p://www.kualitatem.com). Though I have got a chance multiple times to hear random briefs from
his valuable experiences but never got a chance to hear his life story, until recently at a TIE gathering.
Abdul Razak Dawood has no doubt transformed his thought leadership into action leadership and
has institutionalized it to a greater extent producing stream of future leaders. There is a lot one can
learn from him and his experiences. Here are some important notes I managed to jot down during
his talk and thought to share and contribute in that chain reaction.

Abdul Razak Dawood [1]: “Ladies and gentle men, assalam-o-alykum. Today I have been asked to
give my story about my experiences in business, of being involved in education and basically being
an entrepreneur. But I must say that usually I feel a li le uncomfortable talking about myself and
what I have done. In today’s talk I will spend some time talking about my career, but a li le bit more
time on strategic decisions, visions, values and qualities required for being an entrepreneur.”

[2] “I graduated from Columbia University and landed back in Pakistan in October 1968 after 18
years. Got married within 3 weeks and then issue came within the family; where should they park
this young lad who just came back from America. Lawrencepur, district A ock was decided for me
and I gathered my dreams, passion and commitment and went to Lawrencepur where I simply fell in
love with the place. I loved the community life, loved the people, I loved the opportunities. It was
magnificent. Not because it was easy, but it was challenging and here I was ready to face them while
being in the trenches. I was welcomed by a strike le er on my first day on my desk. As I struggled to
set things straight over the months, I introduced a new brand for ladies called “Layla”. While it was
rejected by big brands like HKB, Bombay Cloth House etc. we ran a TV commercial and bang; it was
a hit. Next, we advertised Layla for PKR 80,000/- budget over 4 months despite the strong resistance
from my father. The results changed the world and the next time around it was my father who urged
to raise the budget for advertisement.

Take away from Lawrencepur experience: Marketing was not understood properly and there was no
market segmentation or product differentiation done ever at Lawrencepur. In order to sell, one needs
to understand the pulse of the market first. I used to walk down Anarkali with my father for hours
and used to listen to the shopkeepers, the customers, their demands, likes and dislikes in order to set
our strategy. And an entrepreneur’s job is exactly the same.

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[3] “I loved the job and Lawrencepure and gelled in the environment quickly. But “Man Plans, God
commands”. 1972. Time for change came out of the blue. Family had a massive problem pu ing up
Dawood Hercules as a merger where Dawoods and Hercules were fighting and couldn’t solve the
problem. Senior members of Dawood family forced me to a end the board meeting and there and
then made me the resident director of Dawood Hercules. From rural I moved to the urban. From the
large canvas that I was working on and loving every minute of it, I moved to the narrow canvas
inside Dawood Hercules.

Here it was different; learning about corporate struggle, board structure, articles of association and
lot of agreements. Dawood Hercules had no problems of marketing, no problems of production and
no problems of cash flow. It was a problem of different mindsets. Dawood and Hercules could not
match cultures of local company with an American multinational. This ugly problem took 1.5 years to
be solved by winning the hearts of Americans (Hercules) and maintaining confidence of family
members (Dawoods).

I became the CEO. There were no problems in Dawood Hercules unlike Lawrencepur, so I got
opportunity to learn engineering. Being 29 years old among the old and experienced engineers
working in the plant I started learning the machinery as well as plant operations. I had no idea what
was in store for me but I kept learning. An important day came when a Siemens machine busted and
we called an engineer from Germany. He said the machine cannot be fixed and we need to get a new
one which may take upto six months to be delivered. That was hard, shu ing the plant for 6 months.
We called the local champions, who understood the machine, commi ed to make a fix without
shu ing the plant and they did it. For the next six months the plant ran beautifully.”

Take away from Dawood Hercules: “That was the day when I said, I have faith in my Pakistani
engineers. It’s about the judgment call that few can take and few cant. Pakistani engineers did it
clearly indicating their competency.”

[4] “Winds of change in the family started and the family could not stay as it was. I could see it
coming and about to break. On 21st April 1981 I was finally asked to go, so I packed up my bags and
moved out of Dawood Hercules.

[5] “1981: I joined Descon Engineering (whose foundations were laid in Dec 1977), with 4 engineers,
5000 sq feet of office space, high level of energy and commitment and the promise of tomorrow to
fight it. The starting point for any entrepreneur is your own inner most desire to do something, desire
to go unknown paths and desire to take risks. That’s what we did. At that time what we formed was
Descon Engineering Services & CONstruction Limited abbreviated DESCON.

Take away from early days at DESCON: “Do entrepreneurs have a fair idea about their ideas,
company or their future when they start? NO WAY. It’s way too vague. You don’t need a brilliant idea
or a brilliant product to start it. Did Mr. Hewle and Mr. Packard did it? They didn’t. Look at the
founder of SONY, his first product was a rice cooker; GE, P &G, Motorola, read any of the stories and
in their early days they hardly knew what they wanted. And neither did DESCON. We just had a
vague idea. Whole thing we did had was a searching mind, a desire to be different, a heart full of
hope, a passion to do something and commitment to rope the extra mile.”

[6] “We kept on fishing for the first few years. Some call it the garage stage, I call it fishing. Nothing is
too small. Our first job came at Havellian for electrical wiring and we took it to open up our electrical
department. Soon we realized, consultancy is not the way to go and we left. And the two senior most
engineers left the company as we left the consultancy business; it was a setback. As we started to
se le down, the issue came for how do you want to dream about the company. ‘What type of policies
you want to adopt, short term or long term? You want to go local or global?’ We were very clear that
we will follow the long term strategy and take Descon Engineering, Power and Chemicals all global.
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And this is one of my issues with the Pakistani entrepreneurs as well. They simply don’t seem to
understand the real benefit of a long term strategy. In the long term you gain more. If you look at the
50’s and 60’s old business models of textile, ghee and rice; they stand nowhere now”

Take away: “1) Don’t go for short term strategies, go for long term. 2) Don’t think local go Pakistan
Plus Plus. ”

[7] “Dreams and Aspirations: How do you dream is how you want to play it. That’s another problem
with Pakistanis. We don’t dream enough; we day dream a lot. We don’t dream greatness. If you can’t
dream it you can’t do it. Nobody is ever poor because he doesn’t have the capital. He is very poor
who doesn’t have the vision. Another thing, do you have to be a charismatic leader to be an
entrepreneur? No. Research has shown that you don’t need to be charismatic, high profile and strong
personality to be a successful entrepreneur. In fact when you reach the final stages of
entrepreneurship, being strong personality becomes a liability, being charismatic becomes a liability.
In the start of the business, charisma and personality plays a role. Things get done because of the
persona. But organizations built to last needs systems (processes and procedures). They need not to
be driven by entrepreneurs as they grow.

Take Away: “1) Dream and Dream A LOT. 2) Fast Forward 20 years into your business, if the
entrepreneur is still on the driving seat there is something wrong. Very much wrong.”

[8] “In September 1981 we landed a fantastic job in National Refinery Karachi. Descon went after it
and Alhamdulillah we won the job. People said, don’t do it, friends said don’t do it, mentors said
don’t do it as it’s too big for a company of 8 engineers. We had the passion, we had the drive, we took
it and Alhamdulillah we did it.

Take Away: “People later commented and said we were smart. But infact, I would say the hand of
God was with us. I have a strong Faith in it.”

[9] We hunted a maintenance job in Saudi Arabia at SAFCO managed by a great Pakistan Ahmad
Kidwai. I went on to take Descon International. Next we went to Abu Dhabi; we made a bid against a
Spanish company. And we bid very vey low, infact 30 % below the next bidder. When I went to meet
the Arab whose name was Hasan Salman …,

Hasan Salman: ‘I know why you are here. You made a bid that is very low and now you want to exit.’

Me: ‘I don’t know if I have bid that low, but I am here to ask you to give this job to us.’

Hasan Salamn: Surprised. ‘Will you be able to make money’

Me: ‘NO’

Hasan Salman: Further surprised, “You still want a job’

Me: ‘Yes, I want the job’

He gave it to us and we did a good job for 16 days. Went back to Hasan Salman …,

Hasan Salman: Appraised. ‘Now you are prequalified for every single job that comes up at ADNOC’

Me: ‘Thank you. That’s what I wanted.’

Hasan Salman: ‘Did you make money out of that job.’

Me: ‘Well in the start I told you we won’t, but actually we broke even.’

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Hasan Salman: ‘But why did you want to lose money in the first place.’

Me: ‘Hassan Salman, we believe in long term. I was actually buying my entrance fee to get into
ADNOC.’

Asan Salman: Smiled. ‘OK. You are In now.’

Take Away: “Believe in long term. One job after another and we kept rolling fast. 1987 into Oman,
1990 into Iraq.1999 into Qatar. 2000 into Japan. 2001 into Canada, 2008 into Kuawait”

[10] “When you think about it from the lowest stages of the family to the highest stages of the long
term. There is no right answer; it’s your own individual wish, your desire how you feel at the bo om
of your heart. It is YOUR answer that why you are on God’s good earth. There are many many
wealthy families around the world. But there are very few who created institutions to built the last.
You need to ask yourself a fundamental question, “Do you want to be the time teller or a clock
builder”. A time teller announces his position frequently but a clock builder works silently and
persistently repairing and improving his creations. At Descon, we were very clear. We wanted to be
the clock builders. Our purpose is to give returns to our shareholders but also helping our society in
shape of LUMS, NUML College and CARE Foundation. Our purpose is that the people outside
should know that a Pakistani company can operate professionally. Our purpose is to uphold the
name of corporate Pakistan. We want to build the institution built to last from generation to
generation. We all have a date with destiny, and at DESCON our destiny is to build that institution.
And I hope before I leave this world, inshAllah I will go on that date.”

Take Away: “I conclude by saying that entrepreneurship is not a trip, it’s a journey. But more
important, make it a life time adventure, an adventure of greatness for the benefit of your family and
this wonderful country of ours. When people tell you are successful, my reply is, ‘I don’t know’. I am
right now in the middle of the ba le, cannons firing, infantry moving and the heat of the ba lefield
still ON. Then there is a question about success. How do you define success? Is it the size of your
balance sheet? Is it the quality of your heart or the goodness you brought to society? Is success being
a good husband or a good father? I would say it’s much more than all this. For me it includes 1) being
a responsible member of society. 2) Living the way Almighty Allah Tala wanted us to live as defined
in his code of conduct. Because ultimately we will all judged by HIS standards, not by our standards.
3) In 2075, if the organization is still flourishing and executives are still worried about challenges
coming up in next 100 years. To me, the size of balance sheet is No criteria for determining success. It
hardly ma ers when you talk about success. I thank you all for listening to my story so patiently. If
as a result of this address, the spirit of entrepreneurship kindles in one heart or if the entrepreneur
moves up the value chain to decide to create the institution built to last then all the time we have
spent today, together, will all be well worth it.”

Some more interesting collection of facts about Abdul Razak Dawood

Childhood: He migrated from India to Pakistan with his family. He was six years old at that time
with memories of tents and sea of people at where Quaid-e-Azam’s mazaar is right now. He just had
a one year of schooling from Pakistan before he was sent to England with his brother and cousin. He
enrolled in a public school called Eshton Hall in Yorkshire Dales in 1950. England was slowly coming
out of the war. The life was tough and sports were a part of everyday life. Independence and strength
is what he got out of the tough time spent in early childhood in England.

Life Changing Experience: First life changing experience was in an English Public School. He was
not so good in academics due to his love for sports. But then there was a paradigm shift when he
changed the way he used to think. It was when his O-Levels results were not so good. While traveling
in a bus, he had a flash in his mind. That flash made him decide to take studies seriously and since
then he had been meticulous about work and learning. Though sports still remained an essential part
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Abdul Razak Dawood – A Story of Thought Leadership g bypAction Leadership | Entrepreneurship 3.0
followed p
of his life. His second life changer was when he went to US for MBA. With a wealth of knowledge,
people passionate about business, where ideas and concepts galore, it was a whole new and exciting
world that shaped up his desire for business.

Personalities Who Inspired: Historic – Napolean, Salahuddin Ayubi, Taimur Lang. Contemporary –
Jack Welch, E.I. DuPont and Lou Gerstner.

Creating Lahore University of Management Sciences (h p://www.lums.edu.pk): In 1984, the idea of

LUMS was conceived when Syed Babar Ali at a meeting discussed about the need for high quality
business graduates required to support and grow Pakistani Economy. Razak Dawood had taught
MBA for 8 years in IBA – Punjab University, was fully responsible for the curriculum and the course
and aware of the need for a high quality platform producing business graduates. He matched PKR
2.5 million contributed by Syed Babar Ali and developed the charter in March 1985 for an institution
built to last. First batch started in September 1985.

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34 Responses to Abdul Razak Dawood – A Story of Thought

Leadership followed by Action Leadership

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Manzoor Ahmad says:

August 30, 2010 at 12:18
Very impressive reading. I worked with Mr. Razzak Dawood when he was the Federal Minister
for Commerce and Industries. One of his great qualities was that he looked at the details as well as
the bigger picture. He did not like to take credit but it was due to his initiatives that Pakistan’s
international trade and economy moved into a new gear. It was his policies which resulted in our
exports doubling in five years. Mr. Dawood greatly cared about meritocracy, was always
approachable and did not mind working directly with his junior colleagues. I think he is a great
role model and so long we have people like him, we have hopes that Pakistan can once again turn
around.

Reply
Muhammad Danyal Siddiqui says:
September 12, 2010 at 22:27
Abdul Razzak dawood is very intellectual, hard working, passionate and patient person. His
foresightness is so excellent he think bigger and deeper into the ma er to go through the bo om
line of the ma er. He is well qualified and well to do man. My Father is working in DESCON
since oct 2005 at Mangla dam raising project. Since that i know him ” May Allah give him long
healthy life” Ameen

Reply
Danish Ghafoor says:
September 17, 2010 at 22:22
Mr. Dawood has the real leadership capabilities. We need people like him to lead our country .
May Allah SWT bless us leader honest and commi ed like ARD. Ameen

Reply
Ishtiaq Ahmad says:
October 19, 2010 at 20:21
He is a good entrepreneur who innovated many ideas keeping aside fear and let the
hopes/mission come true. He proved that competency is not bounded with geography. He took
more responsibilities and risks, and get more credibility in response. May he live long.

Reply
Sarfaraz says:
January 27, 2011 at 11:19
Mr. Abdul Razzaq Dawood is Good human, Professional, and lovely person

Reply
shafinnali says:
May 1, 2011 at 14:31
Sir, Thanks for sharing such precious information.

Reply
Saeed Ansari says:
May 26, 2011 at 15:08
Mr.Dawood Seems to be an intellectual who is a hardworking person as it seems with a broad
vision and he utilizes his hardwaork in the right direction.

Reply
Usman Ahmad says:
May 29, 2011 at 02:59
A True Entrepreneur with real leadership qualities. May God bless him.

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I feel proud that i started my professional career with Descon.

Reply
Noshi says:
May 30, 2011 at 09:33
I also feel proud that I started my professional career with Descon.

Reply
Nabeel Ahmed says:
July 1, 2011 at 23:26
He is great man i feel proud that i am part of Descon team….

Reply
Munir Baig says:
October 13, 2011 at 01:12
it is pleasure for me that i was serving with descon and proud that my father was (late) Major
Mirza Farzand Baig had been working with Dawood family in 1970 as Security officer my pray
and wish for the company and only say Mr Dawood Razak is state forward and really have pain
for others i will pray for his long life and good health.

Reply
Munir Baig says:
October 14, 2011 at 00:10
i was separated due to my family problems and pray for company and Mr. Dawood Razak is very
kind and good leadership love lot for him.

Reply
richard says:
February 3, 2012 at 02:49
he is a nice and gentlman having knowledge education and business.

Reply
Kamran Ahmed says:
February 7, 2012 at 10:39
I am proud of myself as i was also the part of DESCON Engineering, I was always inspired by his
vision and motivational speeches. I fully endorse his dedication towards the company and
employee benefits. MAY ALLAH BLESS HIM WITH A LONG HEALTHY LIFE

Reply
karim shah says:
March 27, 2012 at 16:04
no doubt He is great clock bulider as per his own words

Reply
imtiaz alik says:
April 30, 2012 at 20:57
No doubt about the great personality of this man of honor——
such like people can lift Pakistan from nowadays problems.May Allah bless him with a long a
healthy life-

Reply
Aameem Nawaz says:
May 1, 2012 at 00:08

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it is my pleasure that i started my career with Descon, Mr Razak Dawood is not only a Intelligent
and talented but also a simple, a honest and a kind person. in last 30 years ,after Dr. A.Q.Khan if
some one has given a well known publicity to Pakistan and given a trade mark ” PROUD TO BE
A PAKISTANI” , then this is the only Mr. Razak Dawood. in other words simply i can say that he
is the Muhateer Muhammad for Pakistan. i am sure that more than 75 % of Pakistanis technical
job holders in gulf had worked with Descon before making an entery in gulf. May god bless him
with a long and healthy life.

Reply
tayyab raza says:
May 1, 2012 at 00:28
I never see him but I always saying a Salyut to him being a leader of a grate organization he
always prove himself.I have no words in his greatness.ALLAH give him a easy and healthy life.

AMEEN

Reply
Rukhsana Sultan says:
July 11, 2012 at 23:38
I take pride that I have worked for this legend of Pakistan. Working closely with him found him
very humble and dedicated to his work with firm commitment and different approach towards
life and making sure that he will be winner and have seen in surrounding and observed how he
has developed leaders who are successfully running the show under his guide lines. Its an honor
for me that Abdul Razak Dawood was my immediate boss and Allah Subhanu Talah gave me
chance to learn and make few rules in my life to be successful, infact its goodluck of Pakistan to
have such a Pakistani legend..May Allah Subhanu Talah give him healthy life

Reply
Agha Hasan Askari says:
August 17, 2012 at 20:44
So simple and graced with blessings of God Almighty.

Reply
Agha Hasan Askari says:
August 17, 2012 at 20:50
In 1995 while serving at Lucky Cement Project honored with Certificate of Appreciation from Mr
A.Razzaq Dawood against completion of 1,30,000Cu.Mtr Concrete with obsolete equipment in
record time.

Reply
Zubair says:
November 14, 2012 at 18:56
I never met or worked with Mr. Razak Dawood but he was the first boss of my uncle Fazil Khan at
Lawrence pur Mills and is always mentioned in the family as a very intelligent and good human
being. I guess, being a good human being is a pre-requisite to walk on the path of greatness. His
message about dreaming for greatness is motivating. Hope we’ll have more people like him
walking on the same path to make Pakistan a great country. Aameen.

Reply
Fazil Khan says:
November 17, 2012 at 01:29

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I still remember when RAZZAK Dawood interviewed me in Manchester England for Textile
technologist position at Lawrencepur Woollen Mills. I just completed my textile degree and was
ready to take challenges in Textile industry. I was interviewed among several others and offered a
job at Lawencepur Woollen Mill. RAZZAK Dawood employed three young foreign qualified
people. His vision was to build a young talented team at Lawrencepur. His vision was to develop
fabrics for both women and menswear suiting fabric using finest merino wool. He was my first
boss and the best may I say always encouraging to work hard and innovative. Unfortunately he
had to leave Lawrencepur and joined Dawood Hercules in Lahore after two years in 1972. His
departure was crucial for us three young technologist. We all left one by one. I moved to New
Zealand in 1974 and never looked
back. It was RAZZAK Dawood vision that I took with me and was so successful that todayI hold a
Technical Director ‘s position in New Zealand at the largest woollen spinner “woolyarns
Limited”. RAZZAK Dawood is most intelllectual and a great leader. Pakistan need people like
him. The two years I worked for him taught me to be creative always look for innovation and
have vision to be er yourself. I salute this man he is a great person.

Reply
AMEER MOAVIA says:
December 13, 2012 at 00:33
He is great man i feel

Reply
Zaheer Abbas says:
February 15, 2013 at 22:26
He is great man i feel proud that i am part of Descon team….

Reply
javed says:
February 22, 2013 at 16:20
when in descon i always feel the free working environment, unlike other private companies. it
was obviously due to his policies.

Reply
Shahid Nawaz says:
March 9, 2013 at 01:39
really he is very nice great personality

Reply
Riaz ashraf says:
March 17, 2013 at 00:45
He is very great man .I like it ..i am part of descon

Reply
ABDUL RAZZAQ says:
March 28, 2013 at 12:53
my first job was in DESCON! i have worked in administration department but as i was computer
degree holder so i switched to DESCON IT24 as an internee in QA section.

So during my time in DESCON ferozpur road i met MR RAZZAQ sahab he is very polite and
simple .

May ALLAH give him a long healthy life.

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Zahid Hussain says:

August 6, 2013 at 21:53
He is very Great man. I like it God Bless you

Reply
Raza Alvi says:
August 25, 2013 at 13:43
I had an honor to meet him during a management training at PC lahore (Aug 2013). As i had read
his motivating interview before so when i found him there siting close to me, it prompted me to
have a word with him. Most truely a “Humble Man” and with his achievements one can easily
judge that Allah likes and bestows the humble people. May Allah raise his ranks both in this
world and hereafter.

Thanks to the writer of this article who has done a great service by spreading this motivating
story.

Reply
akhtar says:
September 1, 2013 at 10:10
why i read this coz i read his name in imran khan,s book that he contributed alot and helped
alot……….for skmh GOD bless u sir

Reply
Ghulam Fareed says:
October 5, 2013 at 16:56
Abdul Razzaq Dawood sb is very great man.our all blesssing for him.May ALLAH give him a
long healthy life.

Reply
SHAHZAIB says:
October 11, 2013 at 15:04
HE IS SUCH A GREAT MAN……………

Reply

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