Mattel's CEO on Building a Culture of Innovation

Why It Matters

Streamlining the product line frees capital for innovative play experiences, strengthening Mattel’s competitive edge and profitability.

Key Takeaways

• Mattel cut SKUs by over 40% to streamline operations.
• Focus shifted to innovative experiences that inspire and develop children.
• Physical retail still drives 75% of sales across 500k stores.
• Company purpose clarified: create products that entertain and educate fans.
• Simplification enables focus on productive, additive product development.

Summary

Mattel’s chief executive outlined a cultural overhaul aimed at boosting innovation while trimming complexity. The company, which sells toys in more than 500,000 stores worldwide, has reduced its SKU count by over 40% to concentrate on products that add real value.

The CEO emphasized that 75% of revenue still comes from brick‑and‑mortar channels, with the remaining share driven by e‑commerce. By simplifying the portfolio, Mattel can allocate resources toward creative development and faster time‑to‑market for new experiences.

"We simplify… reduce the number of items we make… to make sure what we do is productive and additive," the leader said, reiterating the firm’s purpose: to create innovative products and experiences that inspire, entertain, and develop children through play.

This disciplined focus is expected to improve margins, accelerate innovation pipelines, and align the global workforce around a clear mission, signaling stronger growth potential for investors and partners.

Original Description

How do you build a culture of innovation when you're already managing a complex, global operation?

At the HBR Leadership Summit, Mattel CEO Ynon Kreiz shared the steps he took with HBR Executive Editor Alison Beard—including cutting over 40% of the company's product line and uniting everyone behind a single, clear purpose.

The result: a team with the space and direction to think creatively, embrace new technologies, and explore what's really possible.