Golden business touch would give Romney added lustre

By Rebecca Knight

Published: December 29 2006 02:00 | Last updated: December 29 2006 02:00

Before he was elected governor of Massachusetts, and even before he rescued the 2002 Salt Lake City Olympic Games, Mitt Romney was known in business circles as the venture capitalist with the golden touch.

During his 14 years at the helm of Bain Capital, the Boston-based private equity firm, Mr Romney earned a reputation for an owlish knack for appraising opportunities - spotting start-ups with lucrative potential and taking troubled, undervalued companies and retooling their business models.

Mr Romney, who worked as a consultant for Bain & Co before he founded the spin-off venture capital firm with $37m, helped launch some 180 companies including Staples, The Sports Authority, and Domino's Pizza. He also he made his investors a lot of money: during his reign at Bain the firm's annual rate of return on realised investments exceeded 100 per cent.

As Mr Romney eyes a possible bid for the 2008 Republican nomination, some observers note that his limited experience in public office would be a big liability in the greater Republican party contest. He has only one term as governor under his belt and he managed to court controversy during that tenure - for instance, opposing gay marriage. However, even Mr Romney's detractors concede that his successful record in the private sector has left mostly a string of admirers.

Described by former colleagues as "tough-minded", "analytical" and bearing "Reagan-like leadership" qualities, Mr Romney - who holds degrees from Harvard Law School and Harvard Business School - became well known in the world of venture capital for his ability to parse a lot of information in a short time, his sharp attention to detail and his penchant for poring through facts and figures.

Tom Stemberg was hawking around his business plan to start a chain of office supply stores when he first met Mr Romney in 1985. "It was a long business plan and the only group that had thoughtfully read it and taken it apart was Mitt and his team," he recalls. "There was one firm that laughed and said, 'Who in the world cares about how much they spend on pencils and erasers?' But Mitt paid a tremendous amount of attention to details like that."

Mr Stemberg remembers that, at one point, Mr Romney questioned his calculation that the amount that small businesses spent annually on office supplies was more than $1,000 per employee. Mr Romney said that he had surveyed businesses in Boston and they claimed to spend only about $250 a head. "So I told him that one of the big problems is that companies don't know what they spend. You have to look at the invoices," says Mr Stemberg.

That is exactly what Mr Romney and his Bain colleagues did - a tedious task. Mr Romney discovered that Mr Stemberg's figures were correct and Bain Capital made an initial investment of about $600,000 to start a little company called Staples. Today it has 69,000 employees and a market capitalisation of about $19.5bn (€14.5bn, £9.9bn).

During Mr Romney's career as a buyout specialist he sometimes had to make unpopular decisions - including trimming costs and slashing jobs - and not all of Bain's companies were resounding winners. But that was part of the job. "He is a decision maker and the buck stops with him," said one former colleague.

Bob White, a partner at Bain Capital and a friend of the out-going governor, says that Mr Romney's strength lies in his ability to surround himself with smart, passionate people - and, crucially, people with divergent views. "He believes it's very important to have people that don't all see everything the same way."

Mr White says that one of Mr Romney's finest hours in business came in the late 1980s. Bain & Co had embarked on an employee stock ownership plan by borrowing money to pay founders for shares that the company would then sell to new partners. But the estimated worth of the company was too much and Bain could not meet its debts.

In 1990 the partners asked Mr Romney to return from Bain Capital to oversee a restructuring of the company that entailed complicated negotiations with banks, as well as the company's former partners, to get significant portions of the debts forgiven.

Mr Romney managed to convince all but one of the top partners in the Boston office to go along with him, according to Mr White. "It was exactly the right thing to do," he says.

"The company was potentially weeks away from financial ruin, but he was able to turn it around and today it has done extraordinarily well." The company is today worth about $36bn.

Then came the Olympics. When Mr Romney arrived as its chief executive officer in 1999, the Salt Lake City Winter Games had a $379m fiscal shortfall and had been hit by bribery allegations. "In walks Mitt and the place brightened immediately," recalls Frazier Bullock, who was chief operating officer of the games and also worked with Mr Romney at Bain.

"He understood the big picture right from the beginning and had a road map for how to rebuild."

Mr Romney reworked the organisation's policies, cut budgets and increased fundraising. The games ended in surplus and Mr Romney won national praise for turning them into a resounding commercial success. "Not only is he drop dead smart," says Mr Bullock, who now works at Sorenson Capital, "but he has a leadership quality that you can see and feel."

I recieved this e-mail

I received the following e-mail from an anonymous online person, on one of my blogs. It reads;

"He is wrong on the issue of gay marriage and civil unions. He can't have it both ways. You either support gay rights in every aspect from equal employment opportunities to equal marriage rights or he doesn't. How can people defend marriage like it's some Godly thing when you have people like Kevin Federline and Britney Spears, or the high divorce rate? Just because you are straight doesn't mean you will be a good parent. In any case, just because a country allows gay marriage or civil unions , does not mean that country will have a flood gate of gays marrying. Just look at the statistics of countries like Canada or Holland. I stand by the notion that if you are against gay rights and under that umbrella is gay marriage, then you are inherently prejudice. Doesn't mean you will use a homophobic slur, but inside you have hateful feelings. I have a strong feeling he would go ballistic if he found out any of his kids were gay."

The following is my response to the e-mail. I am posting it hear, as I believe this is the way many people feel, and because this individual did not give me an e-mail address…

"He is wrong on the issue of gay marriage and civil unions. He can't have it both ways. You either support gay rights in every aspect from equal employment opportunities to equal marriage rights or he doesn't."

This totally ignores Mitt Romney's argument, that yes you would come to that conclusion if you looked at Marriage as an institution that is created for the happiness of adults. Marriage was not created so that couples can show their love for each other for everyone to see, and feel good. Marriage is not a way for couples to love each other better, and as a public way for couples to tell each other how much they love each other.

Marriage was created as a legal contract to insure that children have a mother and father. Because marriage does not reform two complete idiots like Britney spears Kevin F into Ward and Judy Cleaver does not mean that it does no good. The institution of marriage provides many children with loving fathers and mothers. Because some fathers are stupid, does not mean that children do not need a father. Because some mothers are stupid, does not mean that children do not need a mother. If Kevin F or Britney Spears ever grow up to be complete individuals, it will probably be because the feel that their children need a good role model.

I think Marriage was created so that fathers and mothers could not easily abandon their children. How can you say that Mitt Romney is wrong and totally ignore any of his arguments? Please explain to me how Romney's arguments are not valid. I need to hear the reasons that Romney is wrong, not just your conclusion.

For those who know nothing (or choose to ignore) what Romney has said about Marriage click here:

http://myclob.pbwiki.com/Marriage

"How can people defend marriage like it's some Godly thing when you have people like Kevin Federline and Britney Spears, or the high divorce rate?"

Sure, most gay couples probably make better parents than Britney spears and Kevin Federline, but does the exception prove the rule? There is a book called the death of common sense. It says that Americans have tried to guarantee that the world is fair, but we don't do very good cost benefit analysis, and that our good effort of trying to make the world fair, often back fires and makes the world a better place. You really have to read the book. It is awesome. But it says that we should stop making the rule by the exception, but that we should use common sesnce and make policies that result in the most good for the most amount of people. Liberals are good hearted. They are motivated by trying to re-work the world and forcing it to be fair. But the world can not be forced, and we often to more good when we don't do a wise cost benefit analysis.

If you want to be simplistic you could look at just the adults and say that if straight couples should be allowed to marry, than gay couples should be allowed to marry. But the world is not simple. There are also the need of children.

In trying to give equality to homosexual parents, you take equality away from children. You create a situation were more children have difficulty relating to one of the sexes. You have more children that will either have deformed, or icomplete relationships with one of the sexes.

There is a problem with not enough male teachers for boys in the public school system. There are a lot of books written about it, that say that wemon teachers do not understand and relate well to the male students.

The ideal is to have both a mother and a father in the home. Because the ideal is never met, does not mean that we should not try.

"Just because you are straight doesn't mean you will be a good parent."

I never said that all straight people are good parents and all gay people are bad parents. I do believe that a child is more likely to grow up with understanding of both sexes if they grow up with both a mother and a father.

"In any case, just because a country allows gay marriage or civil unions, does not mean that country will have a flood gate of gays marrying. Just look at the statistics of countries like Canada or Holland. I stand by the notion that if you are against gay rights and under that umbrella is gay marriage, then you are inherently prejudice."

OK. If everyone who disagrees with you is prejudice, then I can play the same game. You are prejudice, because you disagree with me. Most children want both a mother and a father. If you are advocating that less children get to have both a mother and a father, you must be prejudice against children. Why else would you discriminate against them, and not give them what the majority of them want? You are a child-phobic prejudiced, red-neck, and I'm going to win this argument by repeating this to myself over and over again until I feel better about my decision.

"Doesn't mean you will use a homophobic slur, but inside you have hateful feelings. I have a strong feeling he would go ballistic if he found out any of his kids were gay."

This is not true. Mitt Romney has said the following:

  • "This is a subject about which people have tender emotions in part because it touches individual lives. It also has been misused by some as a means to promote intolerance and prejudice. This is a time when we must fight hate and bigotry, when we must root out prejudice, when we must learn to accept people who are different from one another. Like me, the great majority of Americans wish both to preserve the traditional definition of marriage and to oppose bias and intolerance directed towards gays and lesbians."
    • Governor Mitt Romney, 06-22-2004 Press Release
  • "Preserving the definition of marriage should not infringe on the right of individuals to live in the manner of their choosing. One person may choose to live as a single, even to have and raise her own child. Others may choose to live in same sex partnerships or civil arrangements. There is an unshakeable majority of opinion in this country that we should cherish and protect individual rights with tolerance and understanding. "

It's a long-forgotten moment, but it was a poignant and revealing one. In the wake of the Massachusetts Supreme Judicial Court's discovery of a right to gay marriage that had been long–hidden in the Commonwealth's John Adams penned constitution, Governor Mitt Romney had vigorously protested both the substantive result and the judicial arrogance that led to the result.

On the day the decision went into effect, dozens of gay couples descended on Massachusetts' city and town halls to get married. The TV cameras sought out Governor Romney for his response to the day's events. The media no doubt expected him to toss some red meat to the knuckle-dragging conservatives that Romney was courting in anticipation of a presidential bid. Instead, Romney pleaded that the public and gay marriage critics in particular bear in mind that this was a happy and joyous day for many individuals, and act respectfully and accordingly.

If you saw him deliver that sentiment on the news, you could see it was heartfelt. You could also see that Mitt Romney would not square with the stereotypical (and of course mistaken) view of a gay marriage opponent. He was not a hater and not a homophobe. Rather, he was a decent man who thought the policy of gay marriage was an unwise one and, regardless of the policy's wisdom, was disappointed in the judicial overreach that brought it into being.

I'VE BEEN THINKING ABOUT THAT MOMENT in recent Romney history while assorted pundits have been trying to sort through the Romney record when it comes to gay rights issues. Of special interest this week is a 1994 interview Romney gave where he was extremely generous on matters of interest to the gay community. Because I was volunteering for him in 1994 and spent considerable time with him, I think I can help shed some light on this latest "scandal."

When he ran for Senate in '94 against Ted Kennedy, the opinions of Mitt Romney's church was a recurring subject of discussion, thanks largely to the efforts of the Boston Globe. One of the things that the theologians at the Globe noticed is that the tenets of Mormonism regarding homosexuality weren't particularly accepting or tolerant. The Globe kept implicitly pressuring Romney to make the choice – gays or his church. (Oddly, Ted Kennedy's Catholic faith didn't trigger any similar demands or curiosity on the Globe's part.)

 

Romney spent a solid chunk of the '94 campaign expressing his tolerance and acceptance for homosexuals. Naturally, nothing he could say in this regard would satisfy his critics. If he didn't explicitly condemn the teachings of his church, his critics would continue to bray. And bray they did, from practically the first day of his campaign until the last.

It was in this context that Romney made his now-famous comments in a 1994 interview with Bay Windows, a Boston newspaper that caters to the gay community. Among his observations were these:

 

    I feel that as a society and for me as an individual, it's incumbent on all of us to respect one another, regardless of our differences and beliefs, our differences in sexual orientation, in race and that America has always been a place, and should be a place, to welcome and tolerate people's differences.

 

    I personally feel and one of my core beliefs is that we should accept people of all backgrounds and recognize everyone as a brother and a sister because we are all part of the family of man.

Fueling the current controversy is the question, How could so vocal a supporter of gay rights in 1994 be such a prominent opponent of gay marriage in 2006?

FORGET THE PART that in the same interview, Romney also said, "Bill Weld does not feel at this time that he wishes to extend legalized marriage on a same-sex basis, and I support his position." Those looking for a scandal here certainly have.

The question itself regarding Romney's putatively shifting views suggests Romney has a penchant for flip-flopping with such audacity that John Kerry should be envious. There is, however, an answer to the question and it's not a particularly complex one. I spent a decent amount of time with Romney in '94, and got to know him reasonably well. He's not a hater. He's not a bigot. He's not a homophobe. No one who has worked with him or who actually has known him in any capacity says otherwise. And this is a man who has led a prominent and powerful business life.

Romney is also a traditionalist. He does not believe that institutions such as marriage should be mucked with. And he certainly doesn't believe that such institutions should be playthings for a gaggle of unelected officials who happen to wear black robes for a living.

In other words, his opposition to gay marriage is based on good faith differences with gay marriage proponents regarding where a particular legal line should be drawn. And by good faith, I mean that he arrives at his position not out of hate, bigotry or political calculation, but out of a true sense of moral conviction regarding what is best and noblest for our society.

On where the legal line should be drawn on gay marriage, he and I happen to differ. Unlike Romney, and unlike most of the readers of this site, I have no problem with legalizing gay marriage. But unlike Romney's critics, I know that the difference is a good faith one, and not the result of those I disagree with making venal calculations or indulging their prejudiced natures.

The preceding is the part that some narrow-minded gay marriage proponents just can't get. They think that if you're against gay marriage, you are necessarily a hater and by definition a homophobe. That's just not so.

Another thing regarding Romney and gay marriage warrants mentioning: This was not a fight he sought. Even given the Massachusetts Supreme Judicial Court's prior reckless disregard for precedent and the democratic process, no one foresaw the SJC discovering a pre-existing right to gay marriage in the Commonwealth's 220 year old Constitution. Even by the SJC's own lofty standards for such things, it was a stunning piece of judicial arrogance. In short, it was not part of a Romney master-plan to be the anti-gay marriage candidate.

Critics of Evangelicals and Fundamentalists think the key to winning their support is to be the most-narrow minded and hate-filled candidate in the field. These critics chronically lament the bigotry of these specifically identifiable communities while crudely and cruelly caricaturizing them; it is a perverse credit to these critics that they never betray any sense of irony while doing so.

One of the reasons Mitt Romney will be increasingly successful as more people get to know him is because he is the real deal – Mitt is a good, honest and decent man. And those are far from his only virtues. But those are the virtues that Republicans of all religious and ethnic affiliations hunger for most in their '08 standard bearer.

Q&A: Mitt Romney Discusses Iraq War, Reagan's Influence and Gay Marriage

Click here for the interview. Here is the intro:

As he ponders whether to seek the presidency in 2008, Massachusetts Gov. Mitt Romney yesterday took a break from his family vacation in Utah to talk exclusively to HUMAN EVENTS about the War on Terror, his conservative beliefs and the role bloggers are playing in politics. He also clarified his views on abortion and gay marriage and addressed concerns about his healthcare plan.

Romney's term as governor ends on January 4, 2007, and he's expected to announce his future plans shortly thereafter. Recently he's reached out to conservatives, including National Review Online and talk-show host Hugh Hewitt to discuss his political views.

A complete transcript of our interview follows. It is also available to download in .mp3 format or via Windows Media.

~~~Mike

Hugh

Hugh

Posted by Mike on 12/28/06




Romney was on Human Events and Town Hall yesterday.

Here is the link to the Hugh Hewitt transcript.

Photos

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This photo provided by the Massachusetts governors office shows Gov. Mitt Romney, left, meeting with a Massachusetts Army National Guard member assigned to Aviation Task Force, Camp Buehring, in Kuwait in this May 23, 2006 file photo, before visiting Iraq. (AP Photo/United States Air Force, Lt. Col. Martin Moerschell, File)

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Massachusetts Gov. Mitt Romney speaks at fundraiser for the Republican Party of Orange County in Irvine Calif. in this June 17, 2005 file photo. (AP Photo/Chris Carlson, File)
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Massachusetts Gov. Mitt Romney gestures while speaking to a Republican Women's club in Concord, N.H. in this March 18, 2006 file photo. (AP Photo/Jim Cole, File)
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Massachusetts Gov. Mitt Romney gestures while speaking to the Republican's at the 4th annual Ronald Reagan Dinner in Des Moines, Iowa, in this Oct. 16, 2004 file photo. (AP Photo/Steve Pope, File)
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Massachusetts Gov. Mitt Romney speaks during a holiday reception in Manchester, N.H., Thursday, Dec. 21, 2006. Romney will step down from office next month and is considered a possible 2008 presidential candidate. (AP Photo/Jim Cole)
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Massachusetts Gov. Mitt Romney shakes hands with former state Speaker of the House Donna Sytek at a holiday reception in Manchester, N.H., Thursday, Dec. 21, 2006. Romney will step down from office next month and is considered a possible 2008 presidential candidate. (AP Photo/Jim Cole)
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Massachusetts Gov. Mitt Romney greets guests at a holiday reception at a holiday reception in Manchester, N.H., Thursday, Dec. 21, 2006. Romney will step down from office next month and is considered a possible 2008 presidential candidate. (AP Photo/Jim Cole)

http://news.search.yahoo.com/search/news?ei=UTF-8&p=mitt+romney&c=&fr=&c=news_photos






Yahoo News

  • Romney set for presidential announcement AP - Sat Dec 23, 12:21 AM ET

    BOSTON - Massachusetts Gov. Mitt Romney is making plans for his campaign for the 2008 Republican presidential nomination in two phases early next month, a top adviser told The Associated Press on Friday.

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