Episode #265: Clay Mathile – Self Made Billionaire Shares His Keys To Success

The Learning Leader Show – Video of this conversation:

“I bought the business with borrowed money. I was scared to death. I didn’t know how to run a business.  I had to learn.” — Clay Mathile describes his feelings after buying Iams

Show Notes:

• Sustaining excellence:
  • Vision of what they want to do and where they want to go
  • A good idea of how to get there
  • Committed to their vision and idea
  • Clay’s 4 things he wanted
    • Own his own business
    • Have that business be something that was excellent and stood for something
    • To help entrepreneurs grow
    • To use technology learned to help develop food for indigenous people
• Was hired at Iams in 1970 as the 7th employee
  • It took five years to figure out the problems and five more years to fix it
  • Convinced Paul Iams to sell Iams to him in 1975 (half) and the rest in 1981
  • Borrowed money to buy it
  • Why Clay?  “Paul had seen me work and seen me make an impact on the business.  I spent a lot of time on the sales and marketing strategy.”
    • Focused on the breeders and vets. The people who influence the actual user.  Clay was ahead of his time.
• Went to President’s Course in 1982 at American Management Association
  • “I’m scared to death, I don’t know how to run a business.  I needed to learn.”
  • The key was hiring a President and super charging their growth
  • What went in the decision to sell the company?
    • Sat down with his family to decide what each child wanted to do – “They all wanted to chase their own dreams, their own passions. They didn’t want to own Iams.”
  • The CEO of Procter & Gamble called…
    • Clay takes us inside the room to negotiate the deal: “We told them what our number was… And they exceeded it. It ended up with $2.3 billion.”
• Starting the family office in anticipation of the sale of his business — To build a new organization for the future.
• Aileron started as the center for entrepreneur organizations in 1994
• Aileron – “We give lift and guidance to the business owner.”
• “How can I possibly repay you?” — Clay said to his mentors.  They said, “Don’t pay me… Just pass it on to others.”
• “People are looking for immediate help for a problem they are having right now.  And we’ve designed this place to help them solve those problems.”
• Been married for 55 years, have raised a successful family… How?
  • “When I was home, I was home. I was present. I wasn’t playing golf or out with the boys.”
  • Keys: “Trust… You have to like the person too.  Like hanging out with them.”
• Why everyone should have a board?
  • “They see things that you don’t see. A strategic overview. It’s something you can’t do yourself.”
  • “After you’ve been in business for 10 years, 75% of all problems are because of you.”
• Having a “Personal Board of Advisors”
  • “I recommend all senior executives have mentors.  All you have to do is ask. I’ve never had anyone turn me down when I’ve asked them.”
  • “Build trust and mutual respect.”
• Culture
  • “I built it so I could work in it.”
  • “I had strange things in my management style. I was promoting empowerment before it was popular.”
  • “Most people do the right things for the right reasons if you put them in the right environment.”
  • “The value of the individual is so important. Treat them with respect.  They feel important and special. I saw every single employee at least once per year all over the world.”
  • “People are inherently good.”
• Bad leaders = “Big egos, not trusting of others, insecure people.”
• “When you push people outside of their comfort zone, you can’t beat on them when they fail. You have to let them make mistakes.”
• Individual contributor to manager jump… Advice:
  • “You have to accept the fact that management is a profession as anything else is a profession.”
  • “Just because you’re the best sales person doesn’t mean you’ll be the best sales person.”
• “As a manager, you’re job is to develop others.”
• “You need to manage spontaneity, responsiveness.  Don’t react, be proactive.”
• A good example of a proactive leader is a fire chief: They analyze the situation prior to making decisions. Manage in crisis
• “In 1984, we built Iams University to help people learn…”
• Most passionate about? “Teaching people, focus on the dreams of the people.  Read the book Dream Manager. That’s what we’re all about.”
• Example of a typical day: “I do about anything I want to do.”
• One dream for Aileron — “It will survive forever.”
• Learning Leader = You have to be a continuous learner
• How much of his success is luck?
  • “60% luck. Be in the right place at the right time.”
• “Your listeners need to think about passing it on. To help others.”
• Use the “Get To Know You Document“

“We give lift and guidance to the business owner.”

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More Learning:

Episode 078: Kat Cole – From Hooters Waitress To President of Cinnabon

Episode 216: Jim Collins — How To Go From Good To Great

Episode 179: How To Sustain Excellence – The Best Answers From 178 Questions

Episode 234: Jocko Willink — Why Discipline Equals Freedom