Right people build road to success

In 2002, Sunoco Inc. spun off its pipeline network as a separate enterprise, Sunoco Logistics Partners, L.P., and named Deborah M. Fretz its chief executive officer.

Last year Sunoco Logistics reported net income of $120.9 million, up from $90.3 million in 2006. That is earning Fretz kudos from all over.

"She's been very calm. She thinks through things. She's been able to articulate a very good message to the Street," said John G. Drosdick, chairman of Sunoco. "She fits my ideal of a good executive. She's broader than just company. She's had an impact in the community."

At a luncheon Wednesday, the Greater Philadelphia Chamber of Commerce will honor Fretz, 59, with its annual Paradigm Award.

Question: What attracted you to the oil industry?

Answer: Well, I was in Philadelphia just finishing up my MBA from Temple. And I knew somebody in one of my graduating accounting classes who worked for Sunoco. And essentially she said that they had some positions open. And I had an interview. And things went from there. So I don't know that I was attracted to the oil business. But I was attracted to a job that was in Philadelphia at the time.

Q: Were there other careers you considered at the time?

A: I had been a microbiologist . . . in the cancer research labs at Merck Sharp & Dohme up in West Point. And I had looked at that. But decided, you know, to be successful in that area you almost have to go get a Ph.D. in some kind of science. And I was more interested in the business side. So I was happy to be at Sunoco.

Q: What were your most critical decisions that put the company on the road to success?

A: Well, we needed to make sure we had the right people. . . . And we found out that the people we had who worked fine when it was part of Sunoco were not the same people that . . . had the expertise to . . . go out and get new customers - go out and figure out how to add business. It's more entrepreneurial. . . . And when you have that direct line of sight that says, "I know that what I'm going to do here will add cash flow," that's a different mindset than you have when you're working for a much bigger corporation.

Q: What should a young woman who aspires to run a company, particularly in a male-dominated industry, do to prepare herself?

A: She should . . . get as much experience as she can get. Once she gets out of school, when you work for any kind of company, or several companies, they're going to give you opportunities to fail. And it's not always going to be successful. But the more challenges you accept and work experiences you get, to me that's what sets you up for being successful down the road.

Q: How would you describe your primary job as CEO?

A: Well, my daughters used to say I sat in meetings all day, which I do. But my job is to, I think, set the strategic direction of a company. And to - and for us - it's to continue to grow cash flow for our unit holders. So . . . we, in this company, spend a lot of time on our business development efforts. Where can we do other projects or new projects to expand the business?

Q: Speaking of meetings, several people say you're an excellent person to have in a meeting. What do you do?

A: I most of all keep it on time. I think that people in corporations spend too much time in meetings. And you need to have some meetings. But they need to be concise and get to the point of the meetings. . . . You need to get input from people, and then you need to make a decision and get on with it.

Q: Is there some particular behavior you see frequently that damages a meeting's ability to get things done?

A: People don't listen to each other. They don't necessarily respect what other people are saying. And everybody has something to bring to the meeting or else they wouldn't be in the meeting in the first place. . . . You just don't need to hear it four times.

Q: What do you look for when hiring an executive?

A: Anybody you interview, you already know what their background is. But you're trying to, in my mind, sort out two different things. One important thing is how do they make decisions. How do they think about how they're going to make a decision? And the other thing is how do you think they'll get along with the other people in the organization. And I think that's very important, particularly with a small company like ours. . . . People get to where they are by being aggressive, and that's fine. But they also respect one another. And you can disagree with somebody and still, at the end of the day, enjoy working with them and respect how they think about things.

Q: For nine years you've been on the board of the Free Library foundation. Why did this become a priority for you?

A: I've always liked libraries. . . . I grew up in Haddonfield. . . . And the library there . . . was always near one of the schools that I went to. And so I spent a lot of time there. . . . When you've been in the business world for a while, you acquire some expertise in how to run things. And it was something that I thought I could contribute back to the community. . . ..

Q: What do you think about getting the Paradigm Award?

A: I'm excited about it. . . . When they (called) I was over at the Pennsylvania Women's Governors Conference. . . . I was going back and forth three times that day. They said, "Bill Sasso is on the phone for you." And I'm thinking, "Gosh, I don't have an appointment with him. I don't have time to talk." And they said, "Oh, just for a minute." So I took the phone call. . . . It was a great honor.

Q: Do you see more women going into engineering, or if not, why not?

A: You know, I don't know why. And I think that as the salaries go up, you're going to get more women and men come in, because they're all pretty highly valued right now. . . . I think that's what will pull them into the schools.