In the last two years, cabinet officer Robert Mosbacher– former oil wildcatter, highly successful entrepreneur, sailing enthusiast, and powerful political fund raiser — has made sales calls to 33 countries to help American companies sell more of their products and services in new markets. Under his leadership, America’s trade deficit is beginning to shrink.

What’s his secret selling style? According to Mosbacher, it’s quite simple, really. Do whatever it takes to close the sale. If XYZ Company can’t get an import license to market its products in France, he makes a quick call to the French minister of trade. If that fails to produce an opening on the Champs Elysees, Mosbacher doesn’t hesitate to call French President Mitterand. If Mitterand won’t take the call … no problem. Mosbacher calls Vice President Dan Quayle or President George Bush to intercede on behalf of American corporations that need a break from the reluctant Gauls. Simple, really.

Along with outdoorsman good looks, Mosbacher has brought a new vision to American commerce. He’s a supersalesman with the financial security of a Texas millionaire, the political muscle of a Washington insider and the razor-sharp vision for opportunity that jealous detractors call blind luck.

PSP: What do you like most about your job as Secretary of Commerce?

Mosbacher: The opportunity to help U.S. business take a step forward and be more competitive globally. That means convincing U.S. businesses, particularly the mid-sized and smaller companies, that they need to think of the entire world as a marketplace, rather than just thinking of the U.S. as their sole market. Although the American market has been and still is the biggest single market in the world, it’s only one market. If we are going to be more competitive with international sales, we can’t rely on traditional single market thinking.

PSP: What do you like least about the job?

Mosbacher: Bureaucracy. I have spent 90 percent of my life in the private sector where we talked about “the damned bureaucrats.” The truth is that most of them are very good, hard-working people and very intelligent. But on an inter-agency level, there is always a lot of power struggling and turf protecting. And much more difficult than that is trying to work with Congress. But, having said all that, I honestly get along with them all surprisingly well.

PSP: In your position you obviously get a different view of the world of business. How has your vision of business changed as a result of your new job?

Mosbacher: There is no doubt that it has broadened my perception immeasurably. I have learned more in the last two years than in any previous ten-year period of my adult life. You get a broader understanding of geopolitics and geoeconomic strengths, weaknesses and directions. Let me say that whatever business you are in, a broader view can help you tremendously, not only to understand the potential of your own business, but also how it fits into the larger scale of the world market.

PSP: Are you saying that a more global vision will give you a better view of the worldwide opportunities for your business?

Mosbacher: Sure.

PSP: And because of that vision you have a better view of the opportunities that are out there?

Mosbacher: Yes. There are just tremendous opportunities, almost regardless of what your business is. Whether you are selling doughnuts or high-tech products, or whether you’re looking for a place to get workers or looking for capital. There are great new markets in Eastern Europe and the Soviet Union. Latin America is burgeoning, particularly Mexico. Southeast Asia is still hot. Unfortunately, not enough people in the business world are able to see what is going on outside their own sphere.

PSP: Do you think that this is the primary reason why American businesses have lost their competitiveness?

Mosbacher: I think that American business is already starting back on the road to regaining its competitiveness. We never lost the number-one spot in some businesses like computers, telecommunications, aerospace, agriculture, pharmaceuticals or biotechnology.

Even in those areas where we lost it, like the automotive industry, we’re coming back. We’re closing the gap where we were behind and we’re widening the gap where we have traditionally been in front.

PSP: It sounds like you’re bullish on American business.

Mosbacher: I am optimistic for two reasons. First, American companies have realized that if you don’t have the best quality product, you’re not going to compete. The Malcolm Baldrige Quality Award has done a tremendous amount in that area. Second, U.S. companies have begun to realize that we have to be more flexible when we are selling to other countries. We can’t go into a foreign market and say, “Well, this is a U.S. product, it’s the best and it should fit you.” Now we are beginning to ask, “What will fit the Japanese, the Thais, the Brazilians or the Poles?” As a result, we are adapting products to fit markets rather than shoving products into slots where they may not fit.

PSP: It goes back to selling what the customer really needs.

Mosbacher: Right. With more selling power we help open these new markets. Manufacturing and design people have to fit market needs. The Commerce Department is working hard at building up higher levels of confidence for American products and services. It’s an orchestrated effort. Our foreign commercial service people are now working more closely with the State Department and the ambassadors than ever before. In fact, many ambassadors have told me, “I consider myself your chief commercial officer as well as the ambassador from the United States.” That’s a big step. Overall, in this administration we are more cohesive about helping business.

PSP: I see you in the role of a sales rep for American business to stimulate exports for American companies.

Mosbacher: That’s a good description.

PSP: Is it true that you make personal sales calls to help U.S. companies sell overseas?

Mosbacher: Sure. I have called on the heads of trade, or in some cases even the heads of state, and asked them to keep an open mind about proposals from U.S. companies, and suggested that they should make a decision not based on politics but based on merit, on quality, price and availability.

PSP: Let’s say a U.S. company has a problem with getting their product accepted in France. Would you pick up the phone, call President Mitterand and ask him to intervene?

Mosbacher: I would probably call Jean-Maire Rausch (French Minister of Trade), and not Mitterand. But, in an exceptional case — not often — I have made a call or have asked the President to call the head of state and talk to him.

PSP: Does the Vice President get involved in trade issues, too?

Mosbacher: Yes, many times. He has done it during his trips and so has the President and fellow cabinet officers. They are a very cooperative group.

PSP: What strikes me as the major difference between you and some of your predecessors is that you actually go out and help CEOs advance export sales.

Mosbacher: I don’t think there has been a day since I’ve been in this office that there hasn’t been at least one CEO come in to see us. And usually there are many. It may be about helping them make a sale, or it may be about export controls, economic policies or about something they want to change. Our role is to help them get their message out to other countries.

PSP: You have been very successful in your own business. In your view, what makes a good salesman?

Mosbacher: Everybody is a salesman. King, emperor or president, we’re all salesmen. We are all selling ideas. Each one does it differently, but I think that knowing your subject is the first quality. You’ve got to do enough homework to know what you’re talking about, to know what your customers are trying to accomplish, to find what their problems are and what they’d like the solution to be. Second, you have to be enthusiastic and interested. You have to convey that interest to your customer. Third, you have to strike a balance between being warm and friendly and, at the same time, aggressive. If you’re overly aggressive, you’ll turn people off; if you’re overly friendly, you won’t have the guts to get the sale. That’s a balance that not too many of us can reach with dependability.

PSP: How did you learn to achieve that balance?

Mosbacher: I’m not sure I’ve got it. I think of it as more an art than a science.

PSP: You seem to have a pretty good insight into the subject.

Mosbacher: I was born in the New York area and moved to Texas when I was 21. I think getting to know very different types of people gave me an insight on how to communicate with them. They were ranchers, farmers, and businessmen. I used to buy leases and royalties. Whether you are selling a toothbrush or buying a lease, you’ve got to be able to communicate with all kinds of people.

PSP: When you went to Texas, how did they look at someone who came from an upper crust New England school ?

Mosbacher: I think that after I was there for a year or so, they viewed me as a young guy who was interested in being a part of their culture. I wanted to learn about Texas. I liked it and was enthusiastic about it.

PSP: What made you choose Texas?

Mosbacher: My father had been in the New York stock market. In fact, he was instrumental in transforming the American Stock Exchange from a curbside market into an international securities exchange. (Mosbacher proudly shows a plaque next to his father’s picture.) I remember that my father had some small oil holdings and the idea of the oil business fascinated me. Besides that, I had an older brother and I realized then that I may not be much of a leader, but I am a lousy follower.

PSP: You are the second son?

Mosbacher: Yes.

PSP: I can relate to that.

Mosbacher: You are, too?

PSP: Yes.

Mosbacher: So you go off and do your own thing. Right?

PSP: Right. But you left at the age of 21, right after you got married and while your wife was pregnant. Weren’t you scared to just pack up and go to Houston?

Mosbacher: I wish I was as sure of everything today as I was then. I just knew I was going to be successful and that everything would work out. I have always been an optimist.

PSP: When did you make your first strike in the oil business?

Mosbacher: Oh, about three years later. I started out trading in oil leases first. I drilled the first well in 1952 and then I was hopelessly hooked. Have you ever seen that?

PSP: No.

Mosbacher: It is an incredible experience. There is an old Clark Gable movie called Boomtown that shows some of the excitement when the wells come in and they blow off the top of the derrick. That wasn’t the way it happened to me. I’ll never forget the first time we hit natural gas. The pipe goes straight out of what is called the “slush pit,” which means a big pit of mud. The mud cools the drilling hole and also holds the sides together. When your well starts producing gas, it just roars. It’s a huge, loud roar. You don’t really see much, it’s more like a vapor. Then they light it and there is this huge flame, about ten to twelve feet high. It’s a thrilling sight. The first time it happened I crawled around to the far end of the slush pit in all this muddy ooze to take a picture of the great flame shooting out. I set up the tripod and put the black cloth over my head to focus the lens. I looked but could not see the flame through the lens. I thought, “Why can’t I focus on the huge flame?” Then I looked up and realized that the flame had gone out. The cement in the pit had given way down in the hole and this let the water pour in. Luckily we could fix the problem and the hole began to produce money. That’s the nice part of this business. It’s real money. In Washington, there is no real money. What everybody deals in is power and turf.

PSP: What business lessons did you learn in the early days and how do they help you today?

Mosbacher: I guess the most important lesson really came from my father. He said to always let each deal stand on its own and don’t borrow.

PSP: What were some of your failures?

Mosbacher: I think those were the deals that I didn’t get but could have gotten. I remember one case where I traded too hard. I lost another one because somebody wanted to deal with a bigger company. Each failure teaches you a lesson and we can never learn enough.

PSP: You also were involved in competitive sailing. How has that helped you?

Mosbacher: I think it has been very useful. Sailing is a very competitive sport. It challenges you physically and mentally.

PSP: In what areas were you good?

Mosbacher: I used to be pretty good at starting. I had a good feel for getting the boat to take off fast. One important lesson I learned was that if you let your emotions get in the way it is a sure way to lose. I am somewhat emotional by nature, so I try to contain it. It’s just as true in sailing as in anything else.

PSP: In selling, many people have trouble with rejection. How do you handle that?

Mosbacher: Well, that’s something you just have to look at unemotionally and ask yourself, “What can I do different next time?”

PSP: I’d like to go back to the subject of competing with other countries. Could we review a few countries and look at their competitive strengths?

Mosbacher: All right.

PSP: You once said that the strength of the Japanese is in subtlety and procrastination. How do you view their competitive abilities?

Mosbacher: I am a great admirer of the Japanese. They are excellent business people because they tie business to their whole culture. They don’t look at business as a separate part of their lives. Business is part of their whole thinking process. They are dedicated and patient. They are thorough and constant. In addition, their focus is on the long term.

PSP: How can an American business compete better with the Japanese?

Mosbacher: First, you’ve got to think strategically. If I was running a public company, I would be aggressively selling what I was trying to do in the long term. I think the financial analysts can be convinced. But unless you convince them, they are going to ask, “What are you going to do in the next quarter?” not, “What are you going to do in the next five years?” Second, I would devote more effort in getting all the pieces together. For example, when Japanese companies go into a country, they bring their suppliers and consultants with them. They play off each other; they are not just limiting their efforts to moving the product. They use the advantages of a team effort, they focus on building an entire network.

PSP: How about the Germans? How do you see their strengths?

Mosbacher: They are very dedicated. They are perfectionists. In my view, they either do it right, or they are not going to do it at all. Of course there are exceptions, but I think that the world has always admired German quality.

PSP: What about the French?

Mosbacher: The French are certainly dedicated to their own methods and their own cause. They take a decidedly French view of everything. They are relentless and extremely strong in getting their view and their method accepted. I don’t think of the French as highly flexible.

PSP: It seems that American businesses need to learn more about the competitive advantages of another culture in order to improve export sales.

Mosbacher: I think that we’re winning through higher quality, but we need to realize that these foreign cultures require adaptation. We are beginning to learn that we need to talk to our foreign customers. Any successful company in the U.S. today has relearned that. So, you just take that same principle and apply it to your customer in France, Germany, Japan, Brazil or Mexico.

PSP: Which means that we cannot sell the export customer the same way we would sell to a domestic customer.

Mosbacher: Let’s look at the export opportunities from a different perspective. When the U.S. economy comes out of its present slow growth status, we may reach a level of three percent to four percent growth. That’s great, but compare that to the current opportunities in other parts of the world where you can find a six percent to 12 percent growth rate. In other words, the growth potential worldwide is much bigger than it is in the U.S. Our mission is to make U.S. businesses part of that growth.

PSP: What type of companies can benefit from that opportunity?

Mosbacher: Almost 80 percent of our exports are from the biggest U.S. companies. Compare that to Germany where the majority of German exports come from mid-sized and small companies. We have to educate U.S. companies and show them how they can sell in many different countries. We’ll help them by opening these markets. We have foreign commercial offices in 67 countries. It’s funny that we think of ourselves as bold and aggressive people domestically, but we’re scared of entering foreign language countries.

PSP: It takes time and patience to change that.

Mosbacher: That’s another good point. Patience is one of our shortcomings. Going into a country to make a deal after two or three days and thinking, “Now I’ll leave someone else in charge of follow-up,” is shortsighted. I’ve done it myself and realize how wrong I have been. You can’t go there just once, you need to go back again and again. We are not good at that because we’re just in too much of a hurry.

PSP: How do you see the opportunities in Russia?

Mosbacher: I think that there is a tremendous potential. They are intelligent people. They think of themselves as a superpower with 290 million people. They have great respect for us. I have a good feeling that they want to deal with U.S. companies. There is a very good long range potential.

PSP: Where do you see the greatest short term potential?

Mosbacher: I think it is Mexico because of its geographic, historical and cultural advantage. Remember, almost 10 percent of our population is Hispanic.

PSP: Your Department of Commerce has about 38,000 employees. If you were a business, you would do about $4 billion in sales. How do you set objectives and how do you measure the results?

Mosbacher: That’s very difficult to do because you can’t measure the results in dollars. But we can measure customer satisfaction. Our customers are the American people. We are measured by the American business community, by our Chairman of the Board, the President of the United States and by the members of the board of directors, which is the Congress. Of course, we discuss it, we know what we are trying to accomplish. We’ve got a great team made up of people who are very motivated and results-oriented.

PSP: Do you use management tools like benchmarking or quality circles?

Mosbacher: Yes, we’ve put in a quality control system to identify how and what we’ve accomplished. We do benchmarking and monitor our progress in senior staff meetings.

PSP: Do you measure the response time to questions that are asked by American business leaders?

Mosbacher: Oh, yes, we certainly do.

PSP: Do you have a complaint department?

Mosbacher: Yes. Do you know who is the head of it?

PSP: You?

Mosbacher: Yes. We don’t call it the complaint department, but through all the years that I have been active in different businesses I have made it a habit to listen to people who call me when they feel there is something wrong. I look into these questions and get to work on correcting the situation.

PSP: How would you characterize your style of leadership?

Mosbacher: Easy. (smiling)

PSP: I would disagree.

Mosbacher: (Laughing) I think it is informal, but there is a lot of emphasis on team- work, thorough communication and follow-up. I may be a little demanding.

PSP: What is your definition of success?

Mosbacher: Accomplishing what you set out to do. It means defining your goal and then reaching it.

PSP: What are your goals for the next two years?

Mosbacher: First, building exports. Second, encouraging business excellence and removing barriers at home and abroad. Third, helping to increase our technological capabilities. Fourth, making sure our patents and trademarks are protected.

PSP: What is your definition of integrity?

Mosbacher: You’ve got to be true to yourself first. Don’t kid yourself. That’s the basis. Then, what you tell people you’re going to do, you do. What you tell people you’re not going to do, you don’t do. You create a sense of reliability in what you say and in what you do. Also, you always strive to do more than what you say. My father used to say, “Don’t ever do anything to somebody that when you see him coming down the street you’d have to cross the street to avoid facing him.”

PSP: How do you deal with somebody who doesn’t have integrity.

Mosbacher: Actually, I just try not to deal with them. Ignore them, or don’t pay any attention to them. I have to say in all honesty, in some situations I get real angry. But I am maturing. (Laughing)

PSP: It’s been said that disappointments help people grow up and mature. What was your biggest disappointment?

Mosbacher: I agree with that, because you don’t grow when you’re winning. You’re having fun and that’s something I wouldn’t want to do without. But you grow when you’re losing. Looking back, my biggest disappointment was that I never made it to the Olympics in sailing. I won the World Championship the year before the Olympics and the year after and in these championships there were more Olympic sailors than in the Olympics. Strangely enough, that was my biggest disappointment and it had nothing to do with business.

PSP: You did have business disappointments, too.

Mosbacher: Oh, there were many, many disappointments in business. I tried to learn from each one. What would I do differently? How would I change it the next time? I try not to dwell on them but look at them only from the standpoint of what I could learn for the future. You should not dwell on the losses. I was terribly sad that my son, who ran an excellent race, did not win the Lieutenant Governorship. It’s been painful, but he’ll bounce back.

PSP: Last question. You don’t have a computer in your office. How come?

Mosbacher: (Laughing) I’m not sure I’d be smart enough to use it.

PSP: Again, I will have to disagree.