Former CEO of Mattel brings ‘human capital’ focus to FFL

1. You recently joined FFL after working the bulk of your career as a corporate executive. What factors led you to join the team?

I’ve known FFL co-founders Tully Friedman and Spencer Fleischer for 15 years and I’m an investor in FFL.

They’ve been successful in the past. I’ve enjoyed working with them. This is an opportunity for me to bring my involvement to the next logical level. FFL has a very collaborative environment, whether it’s on the financial side or the human resources side or the operational side. It’s a team effort, and I’m excited to be a part of the team.

2. Outside of your role as an investor how had you worked together with them in the past? Have they tapped you for advice before?

They have. They may have just received a deck from a prospect and wanted my point of view as an outsider reading the deck. I’ve also been involved in companies as they’ve made investments and are looking for some operational support. I’ve been to management meetings. But this has all been on a part-time basis, and what I’m looking to do now is become more involved, get more active and, frankly, have a lot more fun.

I like to think of myself as a utility player. I’ve got 20 years of experience in general management, much of which is transferrable to every business. So if it’s about meeting prospects, which I’m doing today in the Upper Midwest, or whether it’s helping a management team that’s already in place and performing, I want to be involved wherever I can add the most value.

Tomorrow, I know I’m meeting with some of the other operating partners, and we’re going to be going through some of the portfolio companies and some of the opportunities. It’ll be an opportunity to talk about what’s going on, or what advice we have for management teams.

3. You’re coming from a very successful run as CEO of Mattel. After 11 years with that company, 2000-2011, what lessons would you bring to bear for anyone working in a similar, consumer goods business?

I read recently an article that I’m going to use in a speech this coming Thursday down in Houston, about the keys for the top 10 percent of managers, which it identifies as those who do a particularly good job of engaging employees.

The first thing is the ability to motivate people, to see a compelling vision of the future, which I think we created at Mattel with a vision statement called: “World’s premier toy brands: today and tomorrow.”

Second, successful leaders are assertive. They drive outcomes not just activities. They demand good performance.

Third, they create a culture of accountability, not just on an individual level, but for teams.

Fourth, they build trust through relationships. And that’s one of the things that’s been most rewarding in my career; working with some really talented people and giving them the opportunity to perform to their best level.

Finally, what the article went on to say is that, those top-ten-percent leaders are decisive in a way that’s about improving productivity, and improving business results, and not politics.

So when I read that article I thought, ‘That’s how I’d like to be described some day,’ and I think that rings true with top managers. Whether it was at Mattel, or prior to that at Kraft, or at other endeavors I undertake on behalf of FFL, I’d like to bring that human capital focus to the table. I think it’s a big deal, and FFL recognizes that.

4. The key word that stuck out to me there was decisiveness. How do you deal with managers who are decisive, but may not be open to the operational suggestions being offered by you or the team at FFL?

We’re all motivated to find the right answer, to whatever the situation calls for. So it’s not a popularity contest. My approach is to work with an individual, to find common ground, to find the right solution.

I’ve been wrong in the past, I’ve made mistakes in the past. We all do. Ray Kroc, the founder of McDonalds, when I think he was in his fifties, he said, “None of us is as good as all of us.”

My view is you have to engage people, view the situation objectively, analyze the facts and the opportunities, and then make a decision. And my experience suggests that, when we all go into a situation with an open mind, we can all work collaboratively to find a right answer. I just don’t anticipate that many situations where smart people look at the same situation and come up with totally different solutions.

5. You had a pretty smooth transition out of the CEO role at Mattel a few years ago. Is helping companies with transition planning something you’re going to be focusing on at all? That’s something that comes up quite a bit with a lot of mid-market businesses.

It really is. I think beyond operational support, FFL has demonstrated expertise in human capital resources, in getting the right people in place, in building teams and creating collaborative, high-performing work environments and then transitioning the team and leadership to the next generation.

I’ve done that throughout my career. It’s something that FFL brings to its portfolio companies and it’s an area of interest to me.

Edited for clarity