DECIDING IN THE MIDDLE OF ECONOMIC TURMOIL

27-MAY-2013UPF - BARCELONA

D.CaberoM. Le Menestrel

WHY COMING TO

SHARE THOUGHTSWITH YOU?

D.CaberoM. Le Menestrel

INSPIRING BEING INSPIRED

DECIDING IN THE MIDDLE OF ECONOMIC TURMOIL

Defining

1- “the question” / “the problem”

2- the priorities & constraints

Deciding3- Creating alternatives

4- The solution that was implemented

Learnings

Defining 1- “the question” / “the problem”

2- the priorities & constraints

Learning

F.O.C. S.A.MARKET

COMPETITORS

VALUES

STRATEGY

OBJECTIVES

VISION

Deciding3- Creating alternatives

Learning 1a Look for other product categories to boost sales

1b Reduce headcount

1c Find customers for export to increase output & productivity in pantyhose factory

1d Close down the pantyhose factory

1e Others….?

Deciding3- Creating alternatives

Learning DECISION MAKING PROCESS IS ALSO AN “INTERNAL PROCESS” for the person deciding

Þ FEELINGS / EMOTIONS:

Þ THE FEAR & INSECURITYÞ SENSE OF HAVING TOO MUCH RESPONSIBILITY Þ SENSE OF FAIRNESS/ETHICAL vs UNFAIRNESS/UNETHICAL

What you ARE

ready to do

What you ARE NOT

ready to do

GREY

Learning to live & to decide in the grey zone

Deciding 4- The solution that was implemented

Learning We took two kind of decisions:

- SALES : oriented to grow market shares & open other businesses

- COSTS : oriented to reduce costs & get more flexible organization

Deciding 4- The solution that was implemented

Learning Two kind of decisions:

- SALES : oriented to grow market shares & open other businesses

1) FOCUS where you can grow your market share :

- shavers: “MADE IN GREECE”

- stationery traditional channel

2) Create a team to find NEW BUSINESSES:

=> distribution of Smoking Paper & condoms with sinergies in “lighters” channel

Deciding 4- The solution that was implemented

Learning Two kind of decisions:

- SALES : oriented to grow market shares & open other businesses

3) PROTECT your strenghts (distribution network) and your people:

- CLOSED pantyhose factory => italian manufacturers- BIC workers were moved to the BIC shavers factory (20 Km away)

As a result:=> we remained competitive in cost we avoided sales force restructuring while saving manufacturing jobs

Deciding 4- The solution that was implemented

Learning -COSTS : oriented to reduce costs & get more flexible organization

DECISION in 3 STEPS, adapting it to the evolution of the economicsituation:

1) take any opportunity to reduce headcount: do not replace vacancies

2) focused in main regions (Athens, Salonica, Crete) and left all the other regions to exclusive distributors:

- part of the sales team was moved to our distributors - fixed costs (salaries) to variable (commission on sales)=> inventing WIN-WIN

Deciding 4- The solution that was implemented

Learning -COSTS : oriented to reduce costs & get more flexible organization

DECISION in 3 STEPS, adapting it to the evolution of the economicsituation:

3) Special economic proposal to encourage pre-retirement

4) Talented young managers sent to other BIC countries

5) All non-labor costs reduced

6) Last decision were dismissals

=> number of dismissals & were small compared to total exits, and social cost reduced

Deciding 4- The solution that was implemented

Learning

2007 2011

No replacement

Pre-retirement

Sales people with distributors

Talented people to BIC countries

Dismissal

Italian procurementpantyhose

Focus in opportunitiesshavers & stationery

COST

SALES Look for NEW BUSINESSES

Learnings

Learning

BUSINESS LEARNINGS:

- Anticipation is key = predicting and moving before things happen

- Bigger focus in generating additional sales (80%) than in cost-cutting (20%)

- Do not try to solve everything at the beginning / keep flexibility to change direction

- ONE THING I WOULD HAVE CHANGED: LOOK for NEW BUSINESSES from DAY 1

- Do not forget:- to think “also” long term across all decisions- PLAY TO WIN

Learnings

Learning

PERSONAL LEARNINGS:

- Take care of your team

- Be conscious that emotions will influence your decisions

- Set the principles that are going to drive your decisions at the beginning

- Do not go ahead with “tough” decisions if you beleive they are not the right ones => first convince yourself