Oxford conversations on ownership: Marc Fielmann

Mary Johnstone-Louis (MJL): Marc, welcome to Oxford Conversations on Ownership. You are CEO of Fielmann AG, based in Germany - what are the headlines that you would like us to know about Fielmann as a company?

Marc Fielmann (MF): Fielmann is a listed family business, our main products are eyewear and hearing aids, and we serve 27 million customers across 15 European countries. We have a very customer-centric philosophy. That means we do everything with a clear focus on our customers and that has led us to market leadership across most Central European countries and we are expanding, especially in Western and Southern Europe. We have around 22,000 employees and annual sales of €1.6 Billion. We sell every second pair of glasses sold in Germany. We have a very clear focus on productivity, aim to cater to every customer and we don't focus on a specific customer group.

MJL: Tell me a little bit more about your role in the business as an owner?

MF: I would say we are a very typical family business. My father founded the business in 1972, we went to the stock market in 1994. In Germany, we have two boards: the Supervisory Board and the Executive Management Board. I am the CEO and Chairman of the Executive Board, and I represent the interests of the family, that is, the majority owner.

MJL: What does the term responsible ownership mean to you, Marc?

MF: I would say that it is one of accountability and of a long-term outlook. What sets our company apart is a very clear customer focus. We have integrated customer orientation in every part of our business. In English, I think there is the nice saying 'to put your money where your mouth is?' A lot of businesses speak about customer satisfaction; we actually pay for it in our incentive systems from the store management up to the board. At the same time, we understand that we can only operate our business thanks to our employees so I would say that we have a philosophy that is very people-centric, and we hope that we not only say this, but we live up to this.

My father once said that a company can only work in an intact social environment. So by that, we mean as a company we have the benefit of operating in a stable environment, with the rule of law, with democracy. where everybody can freely move. This is something that we don’t take for granted, and as a company, we aim to make our own contribution (to society). For example, we support the environment by planting a tree for every employee, every year. We've planted over 1.6 million trees and bushes across Europe.

MJL: One thing that I remember very strongly is your approach to training, so if you could just say a few words about the optometrists that you train in Germany and how you do that?

MF: A core reason for our success is our employees, their motivation, and their qualification. We train more than 40 percent of all opticians in Germany. We invest more than €20 million every year so at least six or seven days of training per year per employee. I believe training drives service and allows our staff to continuously develop themselves and to grow their own careers.

MJL: You mentioned this idea of a long-term perspective, so for you, in your role as Chief Executive, what does long-term mean? Can you put numbers on that?

MF: I would say from a family perspective long-term means a generation. My father handed a very healthy business to me and it's my goal to be able to hand it as a very healthy functioning and intact business to the next generation. As a family business, I believe you always have the benefit that you can take a very long-term view. And most of our non-family investors also have a long-term view, at least five if not 10 years.

We are just as happy to sell a pair of glasses for €10 Euros as we are to sell the highest quality branded frame with branded lenses that can go up to the many hundreds of Euros. For us, the only point that matters is that the customer is happy and that he or she comes and repurchases.

We have retention rates of well over 90 percent and most of our customers come to Fielmann, not so much because of the advertising that we do, but because of personal recommendations. And I think if you look at that from a very profit-oriented perspective, you might not be able to build such a business model, because the first or the second purchase of that customer might not be profitable for you.

MJL: So in your experience do responsible owners have to be long-term owners?

MF: I think long-term accountability is important. A family business owner that wants to pass a healthy company to the next generation will act prudently so that the business can survive many years from now. On the other hand, I believe that responsible ownership can also mean taking very short-term decisive action in a situation where you need to act very fast. In the coronavirus pandemic, to keep the family business healthy long-term we needed to act very decisively. We had no idea in March 2020 how the virus would affect us. We closed all of our shops until we procured the protective equipment needed to operate the business safely, we conducted scientific research into how to best safeguard both our customers and our employees, and only then, three or four weeks later, we reopened the stores. At the same time, because we were able to get so many masks, we donated three million masks, we donated protective glasses, and we contributed to society.

Only in an intact society can we thrive as a business. The faster that business, politics, science, working together can beat this pandemic, the faster can we go back to a world that is liveable for all of us. So that interest of course is a little bit more short-term, even though I hope that it's responsible.

MJL: Where have you learned about responsible ownership? Who do you look up to in this area?

MF: In terms of inspiration, it's part of the upbringing; I look to my parents, who taught me very early on that with ownership comes responsibility. We are a household brand across many Central European households; when you carry the same name wherever you go your actions will be connected to your name, so that taught me very early on to be very mindful about the actions that I take.

MJL: What is your number one piece of advice for family owners who maybe are listening to this and want to become more responsible owners?

MF: I'm of an age where I don't like to give a lot of advice to anyone, but maybe I can share my own experience. As a family business owner, and as a member of a family that owns a business, I think it's very healthy if you explain to your children why your business is making a contribution. My generation and successive generations are quite critical of issues such as purpose, such as emissions, such as climate change, so I think to have a discussion with the next generation is probably the best advice that I can give.

MJL: Would you have any advice that you would give to someone who is completing their MBA and wants to turn their degree into positive impact. What would you say to them?

MF: Jeff Bezos was sharing a childhood story quoting his grandfather who said, 'cleverness is a gift, kindness is a choice.' I think it's very important to understand that your choices in life define who you are. When you're doing an MBA in Oxford, you're probably among the smartest people on the planet. if you are now about to graduate from that programme, you're probably even smarter because you got educated by some of the best academic staff in the world, so I think you should contemplate questions such as:

If you are under pressure, will you do the easy thing or will you do the right thing? If you are put on the spot in a big group, what will you stand for? What do you want to leave in the world when you leave?  

Now you set the basis for your career, you set the basis for the path that you will walk in life.

MJL: Marc, it's really a pleasure to spend time talking with you, thanks so much. I think we can take away your very wise remarks - kindness is the choice.