Ted Clark: Five Things I Wish Someone Told Me Before I Became A CEO - Interview with Charlie Katz at Authority Magazine 3/24/2022
Culture is easy when things are good, but essential when things are hard.
Asa part of our series ‘Five Things I Wish Someone Told Me Before I Became A CEO’ we had the pleasure of interviewing Ted Clark.
Theodore (Ted) Clark is a businessman, entrepreneur and investor with more than 40 years’ experience as a senior executive in both public and private equity owned specialty chemical companies. He now consults with business managers on acquisitions and growth strategies. His book, Shipping Clerk to CEO: The Power of Curiosity, Will and Self-Directed Learning, chronicles his journey from an inexperienced high school graduate starting as an entry-level shipping clerk to his rise at 42 years old to CEO, and the lessons he learned along the way.
Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you a bit more. Can you tell us a bit about your backstory? What led you to this career path?
Iwas 19 years old and just looking for a job when I found one as a shipping clerk in a manufacturing company related to the adhesives, sealants and coatings industry. I fell in love with it, worked hard, learned on the job and 22 years later I was appointed CEO. Since then I’ve been CEO of two other private equity backed companies and COO of a global NYSE listed company — all without the benefit of a college degree.
Can you share the most interesting story that happened to you since you began leading your company?
There are many, but one that stands out is a period when Desoto, the UK-based parent of the company where I was CEO, PRC, was taken over by a large Dutch company and because of antitrust issues the European Union wouldn’t let them close the deal without agreeing to sell my company. The EU gave them one year to do it. During this period the Dutch company was not allowed to oversee us, so for an extended period I had no board of directors and I had complete control over the direction and operations of the company. It was fun while it lasted.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
Not long after I was appointed to my first CEO job, we had an earthquake in southern California, and while it didn’t damage out factories, it did cause the fire sprinklers to go off at our corporate headquarters creating a mess and very wet carpets. I decided that instead of replacing the carpets we should try to dry them. We arranged for large fans to be brought in to save costs. I realized I’d made a mistake the first day when the fans created a windstorm scattering everything not nailed down. Faced with a brewing insurrection I quickly backed down and had the carpets replaced. My lesson: When you make a mistake own it, apologize with humility and self-deprecating humor and move on.
None of us can achieve success without some help along the way. Is there a person who you are grateful towards who helped get you to where you are? Can you share a story about that?
Not having a college degree, mentors were especially important to me. My most important mentor, Dick Cude, who was corporate vice president and general manager of SEMCO, passed away recently. When I talked to his wife, she told me how proud he was of me as he watched my career develop. When we first met, he told me that he’d heard a lot about me and that he was going to help develop me so that I would be worth more than the company could pay me. It meant a lot to me that he wanted to develop me as a person and not just to improve the company’s performance as the sole goal. In the end, he did both. He was like having a personal management and leadership tutor and I owe much of my success to him.
As you know, the United States is currently facing a very important self-reckoning about race, diversity, equality and inclusion. This may be obvious to you, but it will be helpful to spell this out. Can you articulate to our readers a few reasons why it is so important for a business or organization to have a diverse executive team?
First and foremost, it’s good business. Diversity of thought, experience, culture and custom is at the core of getting the widest and best perspectives, and in developing a shared vision and common objectives. Inclusion is the strategy at the heart of it and mentorship is a key tactic. Equity should be the result of an intentional process.
As a business leader, can you please share a few steps we must take to truly create an inclusive, representative, and equitable society? Kindly share a story or example for each.
Recently our executive committee and our Black Employee Network (BEN) leaders attended a dinner together where Emmanuel Acho, the author of Uncomfortable Conversations with a Black Man, was the speaker. This was followed by workshops set up by the BEN leadership along with other activities. While the conversations were sometimes difficult they were honest, positive, uplifting and instrumental in helping us develop a shared vision with clear objectives and strategies to make progress. It starts with the simple act of social and business inclusion where all perspectives are heard and respected and relationships are built.
Ok, thank you for that. Let’s now jump to the primary focus of our interview. Most of our readers — in fact, most people — think they have a pretty good idea of what a CEO or executive does. But in just a few words can you explain what an executive does that’s different from the responsibilities of the other leaders?
The CEO is responsible for defining the vison for the company, its objectives, strategies and tactics, of course, but more important the CEO sets and promotes the culture for how the company will operate, what it stands for and how it fits in the world.
What are the “myths” that you would like to dispel about being a CEO or executive. Can you explain what you mean?
A particular myth to dispel is that the CEO is always the smartest person in the room. The reality is that a great CEO is a leader who attracts smart experienced people, delegates to them and then rallies them around a shared vision.
What’s the most striking difference between your actual job and how you thought the job would be?
When I first became a CEO, I thought I’d need to make a lot of decisions, but I found that the better the CEO you are, the less decisions you need to make. If you have the right vision and strategy and the right team that you trust, this allows time to think, coach and keep an eye on the future. For a good CEO, trust is the coin of the realm.
Do you think everyone is cut out to be an executive? In your opinion, which specific traits increase the likelihood that a person will be a successful executive and what type of person should avoid aspiring to be an executive? Can you explain what you mean?
No, not everyone, but that’s a good thing as we sometimes undervalue individual performers in sales, operations and the lab who are on the front lines of creating value for a manufacturing business. I once had a boss tell me that the most important people in a manufacturing business are the people that sell, and who make and develop the products. All other functions, including the CEO and the executive team, are in place to support them and thus the customer. I’ve believed this. I think the best executives practice servant leadership and help others shine.
What advice would you give to other business leaders to help create a fantastic work culture? Can you share a story or an example?
Culture starts from the top and should be lived by the leadership team. It reflects the values upon which you want to operate the company. I once joined a company as CEO that needed a turnaround. We decided to seek bankruptcy protection to allow time and space to restructure. Before we took that step I called the management team together and told them what the problems were, why a bankruptcy filing made sense and that I didn’t know what the outcome would be. I told them I could make no promises on how long their jobs would last. I then told them they were free to look for other jobs, but if they decided to stay we’d all need to work harder than ever. All but two stayed. Culture is easy when things are good, but essential when things are hard.
How have you used your success to make the world a better place?
I think good companies follow economic and societal macro trends and, in my case, this meant developing products for mobility, alternative energy, energy conservation and sustainability. The companies I’ve led have certainly done that — it’s just good business.
Fantastic. Here is the primary question of our interview. What are your “5 Things I Wish Someone Told Me Before I Started” and why? (Please share a story or example for each.)
I was fortunate because I was mentored by a CEO for about five years before becoming a CEO. I was about as well prepared as you can be. But, if I was asked by someone what they should know, I’d recommend:
Make sure you have a vision that’s clear and that you’ve included your team in the development of it so that it’s a shared vision. Communicate it often. Command and control doesn’t work well these days.
Try not to micromanage. Keep an eye on the horizon and also keep tabs on how things are running. Touch base with the team regularly to ensure you’re all working toward your objectives.
Internal and external events will invariably buffet your plans. Be prepared to adjust or change tactics, but keep moving one way or the other toward your goal.
Get to know as many of your employees as you can and get their take on things. They’re closer to the action than you are and want to see and be heard by their leaders.
Make sure you’re having fun and have positive energy in the face of challenges. It’s contagious and more important than you think.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good for the greatest number of people, what would that be? You never know what your idea can trigger.
If I could inspire a movement it would be to invest in the untapped potential of the 65 percent of working-age adults without a college degree. This would mean investing in industrial arts and construction trades training in high school and junior colleges; more company-sponsored on-the-job training; skilled work apprenticeships; and self-directed internet-based business and management learning that all could lead to various levels of certifications. Companies are learning that not every great job or leadership position requires a four-year degree, and labor shortages due to demographic changes will require new and innovative solutions to fill the job gap. Creating opportunities for growth and development of the workforce is a win-win.
Can you please give us your favorite ”Life Lesson Quote?” Can you share how it was relevant to you in your life?
Winston Churchill once said, “It’s not enough to have lived. We should be determined to live for something.” Having lost someone very close to me at a young age, this quote has always resonated with me.
We are very blessed that some very prominent names in Business, VC funding, Sports and Entertainment read this column. Is there a person in the world, or in the U.S., with whom you would love to have a private breakfast or lunch with and why? He or she might just see this if we tag them.
Mary Barra, CEO of GM. I think I could learn a lot from her.
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.