Turnaround: Crisis, Leadership, and the Olympic Games by former Massachusetts governor and Republican presidential candidate Mitt Romney, is a 397-page personal memoir about Romney's stint as CEO of the Salt Lake Organizing Committee (SLOC) during the 2002 Olympic Games. Published in 2004, the book touches on some personal matters outside of his work, but mostly chronicles the three years of trials, tribulations and successes Romney experienced as head of the committee after he was put in place to clean up a fiscal scandal that plagued his predecessor. —Katie Rooney
Turnaround: Crisis, Leadership, And The Olympic Games
by Mitt Romney
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| Romney's Childhood | Romney was born and raised in Detroit, to a family he says emphasized morality over most else. He characterizes his mother as someone who lived by adages (One of her favorites — "If not me, who? If not now, when? If not here, where?"), but also someone who was hard for him to grasp. "Nothing Mom said made a lot of sense to me. And yet as I've gone back and read the things she said, she was actually quite eloquent." It was his father, George Romney, whom he truly idolized as a child. When Romney was 10 years old his dad grabbed the reins of American Motors, a failing car company at the time, and turned it around by introducing a new automobile design, the Rambler, the first "compact" car, an economical solution to the gas guzzlers of the time. "Work was never just a way to make a buck to my dad. There was a calling and purpose to it. It was about making life better for people." (p. 10-11) |
| His Mormon Roots | In 1837, Mormon missionaries convinced Romney's great-great-grandfather Miles Romney that a young prophet from New York had restored the church of God to the earth. Believing what he was told, Miles left behind an established practice in England as an architect and took his family to New Orleans, where he boarded a steamer up the Mississippi River to join with the "saints" in Nauvoo, Ill. The Romney family later followed the Mormons west to Utah, where they were told by Brigham Young to settle the southern part of the state for the cause. They built schools and libraries and irrigated. "Theirs was a life of toil and sacrifice, of complete devotion to a case. They were persecuted for their religious beliefs but they went forward undaunted…. These were the same values and commitments that animated my grandfather and my father and mother. They were the same values that were passed along to me." (p. 9) |
| His Political Background | Both Romney's parents dabbled in politics, so it's no surprise Romney ended up doing the same. In 1962, when Romney was 15, his dad ran for governor of Michigan and won. "I went to work on his campaign…. I would introduce myself and shout out to people walking past, 'You should vote for my father for governor. He's truly a great person. You've got to support him. He's going to help make things better…' And I really believed it. We all did. It was true." In 1970, Romney's mother ran for the U.S. Senate in Michigan as a Republican because she felt that the incumbent Democrat needed a challenge. "She ran a vigorous campaign. She won the primary, but lost the general election to the popular incumbent. There was no shame in losing." In 1994, Mitt Romney entered into his first political campaign, running against incumbent Massachusetts Sen. Ted Kennedy. He lost but says the experience helped him prepare to turn around the Olympic Games in Salt Lake City. "It is one thing to be in campaign for political office; it is quite another to launch and long and steady effort to rebuild the reputation of an enterprise." (p. 12, 10, 170) |
| Romney, The Entrepreneur | As a young businessman, Romney became very successful. In 1978 he joined a young, up-and-coming consulting firm Bain & Company and worked his way up the ladder to CEO. In 1984, he left the company to found a sister company, the venture capital fund Bain Capital. He started the firm with about $37 million in assets under management, and by the time the Olympics contacted him in 1998, the company he founded had billions. "I would walk away from my leadership at Bain Capital at the height of its profitability and take a position without compensation," (p. 7) |
| Joining the Olympics | In late 1998 Romney was approached by the Salt Lake Organizing Committee to helm the committee in the face of scandal — the former CEO and others were charged with bribing the International Olympic Committee in exchange for allowing Salt Lake City to be the 2002 Winter Olympics site. "I dismissed the notion out of hand. It was a preposterous idea. I had no background in sports administration." But a family friend thought Romney was perfect for the job — they were looking for someone with managerial expertise, ties to the area, with no hint of skeletons in the closet. Since he figured Romney would say no, the friend went first to Romney's wife, Ann. She was able to convince her husband to take the job in the "spirit of service" and he packed his bags and moved to Utah. (p. 1, 7) |
| His Wife, Ann | Romney married his high school sweetheart Ann in 1968 and they have been together for almost 40 years. Until 1998, they spent their entire careers and raised their five sons in Massachusetts. Romney refers to Ann as his confidante. "Ann is my most trusted advisor; her judgment on the widest range of business, organizational and human resources matters was more sound that any other I know." Romney first went out to Utah by himself and realized he couldn't turn around the Olympics without her and she joined him, leaving their Boston home. Prior to the move, Ann was diagnosed with multiple sclerosis, and despite aggressive treatments the disease was destructive. But Romney says being a part of the Olympic Games was good for Ann [EM] and she even participated in the opening ceremonies. "There was the love of my life running the Olympic torch down the street. We had wondered if she would be in a wheelchair by that time. Among my children and me, there was not a dry eye." (p. 52, 347) |
| Saving the Olympic Games | It wasn't easy for Romney to settle into his new position, with the bid scandal still fresh in everyone's mind. But Romney was determined to turn around the operation. He started by eliminating impropriety within the group, he says, asking for resignations of anyone who had ties to the bribes and assembling a new team — almost all of whom he praises thoroughly in his book. Romney distanced himself from the scandal, refusing to answer questions about it, and focused on the Games' future instead. "Some have argued that had it not been for the disruptive shock of the scandal, SLOC may well have been able to proceed without a turnaround. Others insist that the scandal provided the opportunity to get SLOC on track. Whichever, the tsunami of financial, banking, legal, government, morale, and sponsor problems following the revelation of the bid scandal swamped the organization. It was the most troubled turnaround I had ever seen." But he did turn it around — focusing on fixing finances and building back trust, which he says was crucial for the success of the games. "No one likes joining a loser, but they like rooting for, and helping, a comeback kid. And that's what SLOC had to become, soon." (p. 51-52, 110) |
| Romney, the Marketing Man | Romney's biggest task — and something he spends several chapters focusing on — was cutting the Olympic budget to affordable levels so he didn't have to ask the taxpayers of Utah to pay for the Games. He cut nearly $200 million by eliminating extravagance and getting unusual sponsors to provide free products such as computers, soft drinks and office supplies. Further, Romney decided to forgo a salary. "[BRACKET {M}]y personal finances were such that I could afford it, and I wanted to make it entirely clear that I was at the Games to serve, not to make a bundle." Faced with several daunting tasks as an Olympic CEO, he says he spent most of his time selling, particularly to sponsors — and one of his biggest moments during his tenure was signing Gateway as their technology sponsor. "In some countries, where the Games and Olympic committee are financed and backed entirely by the government, sponsors are icing on the cake. In the U.S., unlike every other country in the world, the sponsors pay for the Games. They are the appetizer, main course, and dessert." (p. 55, 222) |
| His Mormonism and the Olympic Games | Romney couldn't keep his religion out of the Olympic Games, particularly when they were taking place in the Mormon epicenter. "I would never have guessed that a religion would be such a big matter for the Olympics." (p. 269) But it was — Romney needed the cooperation of the church to make the games go smoothly since they owned a lot of the land that needed to be used for the Games. But, despite Romney's background, the groups clashes on alcohol being served on their property and soon enough the press was exploring the "Mormon Olympics" angle, which Romney felt was polarizing. "I made a candid statement at the press conference: 'the characterization of Olympic matters as Mormon or non-Mormon is in my view both divisive and demeaning…These are Games for America…They’re Episcopal. They're Catholic. They're Muslim. They're Jewish. They're Mormon. They're Baptist.'" (p. 269, 281-282) |
| Romney in Washington | Being an Olympic executive made Romney a permanent fixture in Washington because he needed to secure federal support, both financially and legally. But it was tougher than expected — "To say the scandal had a polarizing effect on federal appropriators is saying the Yankees are not very welcome in Boston." Romney counted on funds from the government for transportation, and for exemptions of laws like customs duties for all the athletic equipment and special visa accommodations for athletes and officials. Ironically, though, when it came to the Games, Romney's biggest rival was Sen. John McCain, who was vocal about Atlanta's supposed abuse of federal funds from the last U.S.-hosted games and wasn't going to let it happen again. "In the Olympic world, Senator McCain is viewed as the alter ego of Senator [BRACKET {Ted}] Stevens. Where Senator Stevens sought to protect the Olympics, Senator McCain had earned the unfair reputation of being out to destroy the Games." (p. 227, 229) |
| Sept. 11 | That morning, Romney was in D.C. working on security preparations for the Games. He had planned on being in New York City hosting a press conference adjacent to the World Trade Center to announce the names of the Olympic torchbearers, but Congress was held up on its security appropriations and they decided to take care of that first. When he first heard, Romney said he was shell-shocked and the Olympics didn't even come to mind as he drove by the Pentagon to get out of the city — "Acrid black smoke poured into our car. It didn't smell like burning jet fuel or a house fire. It smelled like nothing I had ever smelled before. Like war." But later, Romney knew he would have to fight to keep the Olympic Games scheduled in the U.S.: "We would forge forward…. In the face of such hatred and violent prejudice, the Olympics needed to stand as a visible demonstration of solidarity and the enduring principles of civilization, mutual respect, fair play, brotherly competition." But Romney had to make changes — the government wanted to review every detail of the security plan, beef up the number of officers and also hosted an Olympic security summit. "It is an understatement to say that September 11, 2001 changed our perception of security." (p. 302, 303, 305) |
| Finally, the Olympic Games | After almost three years of planning, the games arrived in Salt Lake City, and many of the ceremonial aspects became tributes to 9/11 victims and opportunities to show American unity. "In the aftermath of 9/11, the Olympic torch seemed to represent more than just Olympics," Romney says. The torch was held by then New York City Mayor Rudy Giuliani near the World Trade Center and at the Pentagon by President Bush before reaching Utah. The President also decided to attend the Games — and had a front-row seat next to Romney during the opening ceremonies, where they brought out the tattered World Trade Center flag. "During opening ceremonies, he never moved from his seat. The advance persons and security team were amazed. He loved the show." NBC reported the ceremonies had the highest ratings of any in Olympic history. And in the end, Romney said he and his team finished the game with a $56 million surplus. Many said the Games surpassed their wildest expectations. Romney says, "To all those who came together to host the world, the Games fulfilled our vision." (p. 344, 377) |
| After the Olympics | Romney insists his decision to take the Olympics job was not politically motivated, though he took office as the governor of Massachusetts in 2003, just a few months after the Games ended. "I gave very little thought at all to what I would do afterwards. Many people can't believe that. They think that I calculated the political benefits. But honestly, I had no idea." (p. 19) He said he knew the Games would give him a more visible profile, but joined mostly because it was the right thing to do when he was asked to save the Olympics drowning in scandal. "While in my professional life I've done things that are very interesting and challenging and rewarding, and I may do so in the future, I cannot imagine how anything could surpass the Olympic experience." (p. 19, 21) |
