King of Day and Earth: Paul Walsh

LONDON, England (CNN) -- Johnny Walker whisky, Smirnoff vodka, Guinness beer, Captain Morgan rum and Jose Cuervo tequila are among the brands of the world's biggest alcoholic drinks maker Diageo.

And it has much to toast. Under the leadership of Paul Walsh, it has posted its strongest annual profits in its 10 year history.

CNN's Todd Benjamin caught up with him in Diageo's London headquarters, and began by asking him about how he answers the critics who say alcohol kills.

Walsh: In the hands of certain people, our product can be abused. If you start from that premise, it actually frames how you market your product, and puts huge responsibility on the company and the individuals within the company.

Benjamin: How do you describe your own management style?

Walsh: I think I am a very approachable individual, at least I think I am. I think I'm quite empowering -- I set the parameters. I think I'm pretty clear in what the parameters are, I hope my team feel very empowered to operate within those parameters. I think I'm a good communicator. I think I'm a loyal leader, and I think loyalty engenders loyalty back. And therefore you can build that team spirit.

Benjamin: Biggest mistake most CEOs make?

Walsh: Not trusting their intuition. In this world where analysis and IT is all around us, I think we become, sometimes, over-dependent on the data, and in so being, we neglect that inner voice, that voice of intuition. Yes, you need data, you need analysis, you also need that inner voice.

Benjamin: What do you think makes the most effective CEO?

Walsh: I think the most effective CEO has to have a very clear view of where he wants to take this business. They have to have a very good eye for talent, not only the direct reports, but throughout the organization. And I believe they have to have a passion to truly develop that talent.

Benjamin: How do you know whether someone has a talent?

Walsh: That's a very good question. I think by seeing how they perform. One of the things that I look for in our managers, at a variety of different levels, is what has been their performance footprint? What have they left behind? What has been the legacy? Have they developed good people? Do they have a reputation of actually exporting great people from their department or organization? Or, do they not have that? In a world where I definitely want to foster teamwork, I also want to observe individual talent and flair, do they have that? And, do they have all that on top of a very good set of values?

Benjamin: You once wanted to be a pilot. Your first love was airplanes. But you didn't become one. Why not?

Walsh: I did originally want to join the Royal Air Force. I was not offered a flying commission because my eyesight was not up to scratch. I was mortally disappointed with that at the time, but pursued a civil license.

Benjamin: That was your first lesson in adversity?

Walsh: I think it was my first lesson in bitter disappointment.

Benjamin: And what did it teach you?

Walsh: It taught me that life can deal these blows, and therefore you better have a plan B. And I think that's true in business: Always have a plan B.