Robert A. Eckert

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Robert A. Eckert

• Chairman and Chief Executive Officer,
• Mattel
• Horizon Institute of Technology
• Arkansas State University
• March 2004

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Lost Focus

• Girls related products declined from 45 to 41
  of sales
• Margins declined
• Cost of Selling, General, and Administration
  (SGA) creeping up
• International business decreased

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What happened?

• 20/20 Hindsight

Dot com craze, e.g, buying the Learning Company
(TLC), a software company
Expected 10 revenue growth in 2 growth in toy
industry
Stock fell 65 to 13
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100 Day Goals
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Mattel Taps Kraft Chief Robert Eckert to Succeed
Jill Barad as CEO
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Still true on Day 1,394
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August Month of Meetings

• Pre Toy Fair Analyst Meeting
• Board of Directors Meeting
• TLC Meetings

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September Pivotal

• Sold TLC for 0
• 250 million Financial Realignment Plan
• 10 Headcount Reduction
• Cut Dividend

Stock (MAT) 3
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Information Technology Strategy
Global Information Technology
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Strategic Issue
I.T. Capability
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Time
2002
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Todays Ugly Reality
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IT The Game Changer
Industries Using IT
4 X Greater
Productivity Growth
Industries Not Using IT
Source U.S. Presidents 2001 Economic Report for
FY 1995-1999
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I.T. Strategy
Four Key Focus Areas
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Business Transformation...
Business Process Change
BetterTechnology
Business Transformation
People/Culture
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What Weve Done

• Global Finance H.R. common system processes
• Shared Services lowered cost
• Upgrade Supply Chain improved customer service/
  lowered Cost
• Digitize D/D processes reduced cycle time
• Global Data Warehouse improved reporting
• Brand Websites dramatically increased web
  presence
• Barbie.com has grown 1,239 over 3 years
• Fisher-Price.com 1 parent directed website
• American Girl 40 on Web

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Summary

• Enable One Mattel Create a Common Vocabulary
• Reduce Complexity Eliminate Work
• Upgrade our Global Systems Improve Accuracy
• Create a Scaleable Infrastructure Improve
  Flexibility
• Leverage and Empower Our People Reduce Stress
• Optimize the Company Realize Cost Savings

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Lessons Learned

• Strong partnership between business I.T. goals
  have to be aligned and important to strategy of
  company
• Never take for granted how tough change can be
  market WIFM for stakeholders
• Measure results show them the money
• Its a People Game make sure your best and
  brightest are engaged
• It is never as easy as projected pay attention
  to the details
• Less is more fewer, higher impact projects
  flawlessly executed

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DecemberFingers Crossed
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February 1, 2001

• Announced Year-End Earnings
• Good News
• Renewed Momentum
• Delivered Results
• 9 month period 38

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Lessons Learned

• Call a Friend
• 1st 90 days
• Symbols
• Momentum
• Constituencies/Victims

• Stop Stupid Stuff
• Clean Sheet
• Follow the Cash
• Public Progress
• Storytelling

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Roadblocks

• Followers Want to Follow
• Post Purchase Dissonance
• Personal Due Diligence
• Underestimate Power of Listening

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Communication
Consistency
Commitment
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Thank You
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