Session 6. The Board of Directors: Its Role in Corporate Culture: A CEOs Roundtable

00:55:32
https://www.youtube.com/watch?v=SRj5KOinBus

Summary

TLDRThe final session of the corporate governance conference brings together experienced leaders from various sectors to explore the impact of corporate culture on governance practices. Elena Herrero from HP emphasizes that culture, defined as 'values in action,' greatly influences their decision-making and strategy, describing it as an irreplaceable asset. Gildo Zegna shares insights from his family business, highlighting the importance of maintaining long-standing values and adapting them in the public market arena. Juan Pujadas discusses transforming culture at Wells Fargo following its corporate crisis, focusing on aligning governance with company values. Jovencio Maesto from IKEA elaborates on how their foundational purpose guides their corporate culture, leading to a commitment to sustainability and employee engagement. The panel underscores the need for boards to be diverse and act as custodians of culture, influencing strategic decisions and ensuring alignment with core values.

Takeaways

  • 🎤 Experienced leaders share insights on corporate culture.
  • 🌍 The conference bridges business and academia perspectives.
  • 💼 HP emphasizes culture as 'values in action.'
  • 🇮🇹 Zegna mixes tradition with public company demands.
  • ⚙️ Wells Fargo focuses on culture transformation post-crisis.
  • 🪑 IKEA's governance rooted in purpose and long-term view.
  • 🌐 Diversity and inclusion seen as strategic necessities.
  • ⚖️ Board's role as custodians of culture is crucial.
  • 🎯 Aligning strategy with corporate values is essential.
  • 💡 Innovation linked with sustaining strong culture.

Timeline

  • 00:00:00 - 00:05:00

    The conference session on corporate governance begins with an introduction to a panel of experienced speakers, highlighting the intersection of corporate governance and academia. The panel intends to delve into how corporate culture informs governance processes.

  • 00:05:00 - 00:10:00

    Elena Herrero discusses HP's culture, emphasizing that it's ingrained in the company's DNA and revolves around values such as trust, respect, and integrity. She explains how this culture drives HP forward, focusing on people empowerment and the ability to innovate and adapt.

  • 00:10:00 - 00:15:00

    Gildo of Senya shares insights on how the company maintains family values even after going public. He stresses the importance of ambition and talent in maintaining the company's long-term vision, alongside a strong cultural ethos rooted in sustainability and clear purpose.

  • 00:15:00 - 00:20:00

    Similarly, Juan emphasizes the significant transformation at Wells Fargo in rebuilding culture after a crisis, mentioning changes in talent, processes, and accountability as critical to realigning the organization with its intended values and purpose.

  • 00:20:00 - 00:25:00

    Discussions highlight how IKEA's culture is structured to benefit both its employees and the society. This is actively maintained through leadership and strong financial principles, which support long-term decision-making in alignment with IKEA's enduring values.

  • 00:25:00 - 00:30:00

    Elena expands on how the board's culture and dynamics affect overall corporate culture, underscoring the necessity of diversity and alignment with core values for effective governance. The board must exemplify the desired company culture through its own practices.

  • 00:30:00 - 00:35:00

    Jildo reflects on board dynamics and governance at Senya, advocating for a blend of family and independent board members to enhance decision-making and leverage diverse expertise, which supports forward-looking strategies and accountability within the company.

  • 00:35:00 - 00:40:00

    Juvencio shares how IKEA integrates values in its operations, ensuring decisions reflect its ethos of improving life and caring for the environment. This strategic alignment helps in maintaining cultural consistency across all levels of the organization.

  • 00:40:00 - 00:45:00

    Juan discusses changing governance at Wells Fargo, indicating comprehensive leadership changes to foster a new culture. Highlighting accountability mechanisms, he reveals how the company undertakes thorough transformations to align with ethical and purposeful practices.

  • 00:45:00 - 00:50:00

    An inquiry into Wells Fargo's past issues leads to a discussion on current practices that address these governance challenges, focusing on renewed talent, the purpose-driven operation, and enhanced oversight to prevent past governance failures.

  • 00:50:00 - 00:55:32

    The session concludes with reflections on how companies like IKEA and Zenya use their governance structures to navigate modern challenges. Highlighting the key role of values, stakeholders are urged to maintain resilient cultures that adapt align with ethical business practices.

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Mind Map

Video Q&A

  • Who are the main speakers in this session?

    The main speakers are Elena Herrero, Gildo Zegna, Juan Pujadas, and Jovencio Maesto.

  • What is the focus of this corporate governance conference?

    The focus is on understanding corporate culture from a governance perspective and how it integrates into the business world and academia.

  • What does Elena Herrero say about HP's corporate culture?

    Elena describes HP's culture as deeply embedded in values like trust, integrity, empowerment, and innovation, which are essential for employee engagement and talent retention.

  • How does Gildo Zegna describe Zegna's approach to corporate culture?

    Gildo Zegna emphasizes maintaining family values, philanthropy, sustainability, and constant innovation as key aspects of Zegna's corporate culture.

  • Why was Juan Pujadas asked to join the board of Wells Fargo?

    Juan Pujadas was asked to join to assist in transforming the company's culture and governance following a major corporate crisis.

  • What leadership challenges does Jovencio Maesto highlight at IKEA?

    Jovencio Maesto discusses the importance of purpose, financial resilience, and evolving values in leadership to maintain a thriving corporate culture at IKEA.

  • How do the panels view the role of diversity in boards?

    The panelists view diversity in boards as crucial for providing varied experiences and perspectives, which is essential to drive innovation and effective governance.

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  • 00:00:00
    foreign
  • 00:00:17
    welcome back to this final session of
  • 00:00:20
    the of these corporate governance
  • 00:00:23
    conference it's been a long day but I
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    think we are we are we're here facing a
  • 00:00:29
    fantastic uh panel of of speakers who
  • 00:00:33
    have many years of experience in the
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    business World in Boards of directors
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    and I'm sure that they will shed I would
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    say very interesting and insightful
  • 00:00:43
    light on the issues that we have been
  • 00:00:46
    discussing today and I think that part
  • 00:00:47
    of the of the goals of the of this
  • 00:00:50
    conference is to bring the the
  • 00:00:54
    experience of corporate governance in
  • 00:00:56
    practice also to the world of of
  • 00:00:58
    Academia so we're looking forward to a
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    fantastic panel we understand that
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    corporate culture also corporate culture
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    from a governance perspective has many
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    different dimensions that we have been
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    touching upon and exploring in some in
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    some depth during the during the day and
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    now it's a time for a very experienced
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    CEOs and board members to to help us
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    think more about about the corporate
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    culture and each role in corporate
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    governance so we have Elena Herrero
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    Elena is the president of HP for
  • 00:01:33
    southern Europe she has many years of
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    experience in very senior executive
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    positions at HP she's been uh
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    working on many changes in the company
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    worldwide and also on the European level
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    and she's also a board member of
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    different uh both uh for-profit and
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    non-for-profit companies so Elena thank
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    you very much for being with us today
  • 00:01:57
    and we have gildo jildo is the the
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    chairman and CEO of senya the
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    Italian fashion firm known worldwide
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    and he comes from a family that has been
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    in business for 110 years 12 and 12
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    years sorry okay sorry 112 years that's
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    a very important very important very
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    important 112 years so it's it's a
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    family business and uh we'll ask uh Jill
  • 00:02:31
    about what happens with family business
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    with a very deep values and very strong
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    culture when this firm goes public which
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    is the case of senya back in December
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    2021 so thank you Gilda for being with
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    us today I want to say hello and give a
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    world welcome to Juan pujadas Juan is
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    online
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    based out of New York Juan thank you
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    very much for being with us one is uh my
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    pleasure
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    so I got one uh great to great to see
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    you and great to be able to listen to
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    you juanis has had a very long and
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    distinguished career at PWC he became
  • 00:03:15
    the the global CEO for the Consulting uh
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    business of PWC and about about four
  • 00:03:22
    years ago he was asked and perhaps he
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    can give you some additional details to
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    become a board member of Wells Fargo the
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    retail the U.S retail bank that had a
  • 00:03:33
    huge corporate crisis and uh and and one
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    had already many years of experience in
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    working with Boards of directors being
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    at the board of PWC and and would love
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    to hear his experience on on how culture
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    you know gets ingrained in a company and
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    how you can change and improve the
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    quality and the depth of your culture
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    thank you very much Juan Juan is also a
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    board member of other companies USD
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    Global and other other companies also
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    number of non-for-profits so he will
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    help us a lot think about about these
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    Dimensions finally we have juventio
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    maesto here uh Juventus the deputy CEO
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    of Inca
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    Ikea incarciners the retail
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    company of of Ikea gives a large very
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    important group but the company that
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    actually does business and deals with
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    customers is the company that huben
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    leads human is also a member of the of
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    the of the supervisory Board of the of
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    the company he can tell us also if he
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    wants to the special
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    abort structure okay so it's not a board
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    structure that that fits well with
  • 00:04:48
    somehow definitions and models of
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    corporate governance but one that has
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    been very very effective and as you know
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    Ikea is a company known worldwide not
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    just for its products it's you know huge
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    retail presence but also the Deep car
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    culture that has been somehow permeating
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    the company and its employees for for
  • 00:05:10
    decades so we are here with a fantastic
  • 00:05:12
    panel and I would like to start asking
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    Elena uh Elena uh I have heard you many
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    times explain the culture the HP way the
  • 00:05:24
    HP culture tell us why this culture is
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    special and in which ways it makes the
  • 00:05:31
    company move forward
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    well good afternoon and thanks thanks
  • 00:05:37
    Jordy for for inviting me to be here and
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    honestly for the panel I mean I'm
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    sharing with
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    um I would say I mean I've heard today
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    just before presentation I mean defining
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    a culture is something very difficult
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    because it's like in a personal you know
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    it's the personality it's it's
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    um I always say culture is values in
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    action
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    it's what really and you know belonging
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    to an HP company we say uh it's it's in
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    the DNA it's in the DNA of the company
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    it's how people officially
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    non-officially it's how decisions are
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    taken it's how we do things and that is
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    fundamental we always say that when
  • 00:06:23
    people come into HP
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    you know
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    um it's not a it's not it's so easy
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    at the beginning because a lot is done
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    it's a culture very much centered in
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    people in trust and respect and
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    integrity in understanding the power
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    that a person has giving them
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    empowerment
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    development flexibility agility think
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    that we do things and we grow together
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    we
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    think that we can bring a contribution
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    we know that we sell technology to
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    people but it's important what the human
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    being what the person brings in when I
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    say this
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    could look very obvious but honestly
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    this is what really holds the company
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    binds the company
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    in 1939 when the founders Bill and
  • 00:07:17
    Hewlett we were
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    I remember they I used to have a book
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    that was called the HP way the managing
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    by objectives today everybody calls
  • 00:07:30
    managing by objectives that uh managing
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    by walking around
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    I mean in the hybrid world of today this
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    becomes fundamental
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    so the essence is a a culture that
  • 00:07:43
    adapts that understands and that Fosters
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    that people can bring thee out most we
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    say it's the HP family and what it's
  • 00:07:53
    true that it's inside the employees but
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    we also it's the whole ecosystem it's
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    our partners our customers that is what
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    it holds a foreign
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    um I think the Innovation and we have
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    the best example here in Barcelona with
  • 00:08:09
    the probably the largest center around
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    the world outside of the U.S in what is
  • 00:08:14
    innovation when you feel that you have a
  • 00:08:16
    contribution and people feel that their
  • 00:08:19
    contribution that that is important
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    it's a culture that is evolving now
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    everybody talks now about the ESG and
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    I've been listening about it and
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    for me I've been 40 years in this
  • 00:08:32
    company so I think I understand the
  • 00:08:34
    culture we've always thought about
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    social responsibility about the impact
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    companies have in the world and society
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    around about the evolution that in very
  • 00:08:46
    difficult moments like kovid or like a
  • 00:08:49
    different crisis that we've gone a lot
  • 00:08:51
    how can we help there so
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    I think it's it's something that is a
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    competitive advantage
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    it's fundamental for attracting and
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    retaining Talent it's fundamental for
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    human capital which honestly as Peter
  • 00:09:08
    Drucker used to say culture eats a
  • 00:09:12
    strategy at breakfast
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    it's true
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    it's true you can
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    you know you can access Capital you can
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    copy or replicate a strategy it's very
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    difficult very difficult to really uh
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    copy a cultural there it can be an asset
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    it can be a risk I have the fortune to
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    belong to a company that has a very very
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    strong culture and I see it with passion
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    because I think that's the main reason
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    I've been 40 years here it's culture
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    thank you Elena uh julo I would like to
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    to help us reflect a little bit on on on
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    the role of of of cultures you feel it
  • 00:09:54
    at senior uh and you've been uh you know
  • 00:09:57
    working with senya for many years now uh
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    and a number of values that have
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    remained the same a way of doing things
  • 00:10:05
    at Sanya of innovating of creating new
  • 00:10:08
    products Etc
  • 00:10:10
    and how the fact that you have become a
  • 00:10:13
    public company this has been somehow
  • 00:10:15
    changed a little bit the rainforest or
  • 00:10:18
    manage with different mechanisms can you
  • 00:10:21
    share with us some of your Reflections
  • 00:10:22
    on this no thank you thank you of course
  • 00:10:25
    to invite me to this entity session that
  • 00:10:29
    is becoming key since you are a public
  • 00:10:31
    company and we are still rather fresh in
  • 00:10:35
    New York you know we we run the Apo in
  • 00:10:39
    December of last year and so we are
  • 00:10:40
    learning so we are I think that this
  • 00:10:43
    subject is quite interesting is very is
  • 00:10:46
    very easy we remain very much related to
  • 00:10:50
    the family Unity into the value of the
  • 00:10:53
    founder
  • 00:10:54
    and I think that this is key not only
  • 00:10:58
    for future generation but to the way we
  • 00:11:01
    run the business and to the way you know
  • 00:11:04
    we keep the management together
  • 00:11:06
    and I think that this this theme
  • 00:11:09
    together with the big respect for
  • 00:11:12
    environment which the founder created in
  • 00:11:15
    the 30 he was a
  • 00:11:18
    philanthropistania my grandfather he was
  • 00:11:21
    a man that gave back in the authority
  • 00:11:25
    and the in the 50 who started
  • 00:11:28
    to plant reforestation project in the
  • 00:11:32
    mountain of more than half a million
  • 00:11:34
    trees he created a village so I think
  • 00:11:37
    this art of giving back is very
  • 00:11:39
    important and part of the value so I
  • 00:11:42
    would say United Family
  • 00:11:44
    a mix of Share value
  • 00:11:47
    good governance I think this is
  • 00:11:49
    something that I always believed in you
  • 00:11:53
    remember I've been serving me two 15
  • 00:11:55
    years and I think that the role of the
  • 00:11:58
    independent the role of committees are
  • 00:12:00
    very very important however
  • 00:12:03
    in running a study analysis with
  • 00:12:06
    McKinsey recently we decided to go for a
  • 00:12:10
    study in diversity equality and
  • 00:12:12
    inclusion
  • 00:12:13
    and we had 5 000 responses and I wanted
  • 00:12:16
    a factory worker
  • 00:12:18
    with a sales associate in the store be
  • 00:12:21
    part of that and I think it's a very
  • 00:12:22
    interesting study and and they showed me
  • 00:12:26
    a slide of longevity and they mapped
  • 00:12:30
    what longevity means and we are pretty
  • 00:12:33
    longevity company more than one one
  • 00:12:36
    century old and and I think that they
  • 00:12:39
    came up with four characteristics uh
  • 00:12:42
    exactly which they mapped here and which
  • 00:12:44
    I couldn't agree more one is ambition
  • 00:12:48
    and I think that the important is not to
  • 00:12:52
    lose the ambitious ethos of the founder
  • 00:12:55
    so I think that these the emperor then
  • 00:12:59
    entrepreneurship the giving back Factor
  • 00:13:02
    they
  • 00:13:03
    [Music]
  • 00:13:04
    um
  • 00:13:05
    care of the environment I think is very
  • 00:13:07
    much part of the of the ethos
  • 00:13:09
    clear purpose
  • 00:13:12
    I think that is a means transcend in the
  • 00:13:16
    organization
  • 00:13:17
    to be kept alive through decades going
  • 00:13:21
    beyond the the mere shareholder value
  • 00:13:25
    creation
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    and I think that aesg I mean has a lot
  • 00:13:29
    to do with that and and I think that we
  • 00:13:31
    are profound believer in the
  • 00:13:33
    sustainability world I think we are one
  • 00:13:35
    of the few companies that is able to
  • 00:13:37
    trace their raw material we have a
  • 00:13:41
    traceable War we're traceable Kashmir
  • 00:13:44
    that means we know the name of the
  • 00:13:46
    farmer that produces particular raw
  • 00:13:48
    material and I think it's very very
  • 00:13:49
    important the third factor for longevity
  • 00:13:53
    I think remission reinvention and
  • 00:13:55
    innovation
  • 00:13:56
    don't stay still so I think we have we
  • 00:13:59
    have a we have an award in in in zenya a
  • 00:14:03
    motto more than a word that this
  • 00:14:04
    generation should build a floor of the
  • 00:14:06
    house uh and I'm the third generation
  • 00:14:09
    and I think the fourth generation is now
  • 00:14:11
    with me and I think is is has been part
  • 00:14:13
    in rebuilding the rebranding of of zenya
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    which we uh coincidentally it happened
  • 00:14:19
    in parallel with the IPO I mean we we
  • 00:14:23
    decided that and and I bring in the
  • 00:14:26
    board judgment because really we were
  • 00:14:28
    supported by the board culture uh and
  • 00:14:31
    and also governance and we decided we
  • 00:14:34
    had to change the perception of the
  • 00:14:36
    brand from a tailoring brand to a luxury
  • 00:14:40
    um and I think that meant a in a kind of
  • 00:14:43
    a transformation of the culture of the
  • 00:14:45
    company uh literally from the store uh
  • 00:14:49
    to the designer to the factories and I
  • 00:14:52
    think that this was a a big
  • 00:14:54
    transformation in which management
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    worked with board and I had to
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    re-transform so this reinvention of
  • 00:15:01
    innovation I think that it's something
  • 00:15:04
    that gives our lives and the fourth and
  • 00:15:06
    the fourth Point probably the most
  • 00:15:07
    important one Obsession for talents I
  • 00:15:10
    think there is no company and no view of
  • 00:15:14
    the company without the believing in
  • 00:15:16
    talent and I think that it's it's it's
  • 00:15:18
    our responsibility to nurture talent and
  • 00:15:21
    I must tell you the IPO has made us more
  • 00:15:23
    attractive I think that the the
  • 00:15:25
    rebranding of zenya has made us more
  • 00:15:28
    attractive and this made us more diverse
  • 00:15:30
    I'm very proud to say that I'm hiring
  • 00:15:33
    more women than men's finally
  • 00:15:38
    we're becoming kind of more feminine in
  • 00:15:41
    a way which is good the lifestyle is
  • 00:15:42
    becoming and I think that this new look
  • 00:15:45
    that we came out is very only gender
  • 00:15:48
    I mean I can wear it you can wear it and
  • 00:15:50
    and and I think that's that's what it is
  • 00:15:53
    so
  • 00:15:54
    true belief in the value of the founder
  • 00:15:56
    but with the modernization factor uh and
  • 00:16:01
    with the right talent I think these are
  • 00:16:02
    the three ingredients of our corporate
  • 00:16:05
    philosophy regardless of whether we are
  • 00:16:07
    public or not that's that's secondary
  • 00:16:09
    the fact that you are public it adds
  • 00:16:12
    even more responsibility and pressure
  • 00:16:15
    which we'll talk about later pressure to
  • 00:16:18
    management Gilda welcome back to this uh
  • 00:16:21
    senior guy in public but I think uh your
  • 00:16:24
    initial remarks I think are very clear
  • 00:16:26
    and very I think uh insightful for
  • 00:16:29
    understanding the role of corporate
  • 00:16:31
    culture and values in this in this
  • 00:16:33
    conference so let me let me ask Juan uh
  • 00:16:37
    when you have uh you have many years of
  • 00:16:39
    experience in both in working as a board
  • 00:16:43
    director and Advising Boards of
  • 00:16:45
    directors and you've seen many
  • 00:16:47
    transformation processes and you've been
  • 00:16:50
    uh helping recently Wells Fargo and many
  • 00:16:53
    other companies from the inside how
  • 00:16:57
    how do you act at the bore level how can
  • 00:17:00
    you act at diver level so that somehow
  • 00:17:04
    the expected culture that that the board
  • 00:17:07
    shareholders may have around a company
  • 00:17:11
    how it this actually this Vision or this
  • 00:17:14
    perspective May trickle now the whole
  • 00:17:17
    organization what what's what's your
  • 00:17:19
    experience and what what can you share
  • 00:17:21
    with us
  • 00:17:23
    um your question is a very good one I
  • 00:17:25
    think I think it's been said by the
  • 00:17:27
    other panelists you know that um getting
  • 00:17:30
    it right is about having you know a set
  • 00:17:33
    of values having a purpose
  • 00:17:36
    having you know the uh the cultural
  • 00:17:39
    organization to to line up behind that
  • 00:17:42
    and then being
  • 00:17:45
    um accountable you know for when when it
  • 00:17:47
    works and when it doesn't work
  • 00:17:50
    um the question is how do you get that
  • 00:17:52
    to an organization in some cases it's
  • 00:17:55
    not hard it's an organization of you
  • 00:17:57
    know a few people
  • 00:17:58
    in our case at Wells Fargo it's 250 000
  • 00:18:01
    people
  • 00:18:03
    um
  • 00:18:04
    all of them you know growing up in an
  • 00:18:07
    organization where they said uh you know
  • 00:18:08
    run it like you own it which didn't give
  • 00:18:11
    you a lot of inspiration that there was
  • 00:18:13
    a Common Thread you know going
  • 00:18:14
    throughout
  • 00:18:16
    so the first step was really
  • 00:18:19
    um understanding where you've gone
  • 00:18:22
    um
  • 00:18:23
    astray so you had a vision of how the
  • 00:18:26
    organization was constructed and how it
  • 00:18:29
    operated but it's somehow not doing that
  • 00:18:31
    or not not operating that and that's a
  • 00:18:33
    very very challenging you know
  • 00:18:36
    a set of circumstances that you have to
  • 00:18:39
    face up right because you can think and
  • 00:18:41
    talk about how it's working but in
  • 00:18:43
    reality that's not how it was working
  • 00:18:46
    so that's very very difficult work and
  • 00:18:48
    we spent a good period of time just
  • 00:18:51
    trying to get
  • 00:18:53
    an understanding of where things were
  • 00:18:56
    not working the way we thought they
  • 00:18:57
    should be working
  • 00:18:59
    um with a lot of help we had Consultants
  • 00:19:01
    we had former employees we had customers
  • 00:19:05
    we had Regulators we had feedback from
  • 00:19:08
    the market
  • 00:19:10
    um you know through the evaluation of
  • 00:19:11
    the company
  • 00:19:13
    the second thing is to uh to then really
  • 00:19:16
    line up
  • 00:19:18
    um a series of concrete steps including
  • 00:19:21
    the fact that you're going to have to
  • 00:19:22
    change some of the talent in the
  • 00:19:24
    organization
  • 00:19:26
    um because you know the the people that
  • 00:19:29
    are there are no longer you know signed
  • 00:19:31
    up for the program or are no longer you
  • 00:19:34
    know agreeing that the program is the
  • 00:19:36
    one that's going to get to
  • 00:19:37
    to deliver that that uh that corporate
  • 00:19:40
    culture that's going to align behind
  • 00:19:42
    those values and um and and the purpose
  • 00:19:45
    that the organization desires to have to
  • 00:19:47
    get the return to not just the
  • 00:19:49
    shareholders but all the other
  • 00:19:50
    stakeholders you know the community
  • 00:19:53
    um
  • 00:19:54
    the The Regulators
  • 00:19:57
    um the communities that we're that we're
  • 00:19:58
    in and that's very important and then
  • 00:20:00
    you have to have the tenacity and the
  • 00:20:03
    patience
  • 00:20:05
    and the feedback and the accountability
  • 00:20:07
    to be able to deliver that and um and
  • 00:20:10
    that's a Playbook you know Jordy that
  • 00:20:12
    we've used at PWC with a number of
  • 00:20:14
    companies so it wasn't really a surprise
  • 00:20:18
    you know when I was asked to join the
  • 00:20:21
    board of Wells Fargo that this is the
  • 00:20:22
    program that you know we would have to
  • 00:20:23
    to um to get behind it's hard work it
  • 00:20:27
    takes time
  • 00:20:28
    um and it's in everything that you do
  • 00:20:31
    it's in the controls it's in the
  • 00:20:33
    reporting it's in the customer service
  • 00:20:35
    it's in the call centers it's in the
  • 00:20:38
    products it's in the face of the company
  • 00:20:40
    you can't just paint advertising on top
  • 00:20:43
    of it and declare Victory it has to be
  • 00:20:46
    felt by every customer every employee
  • 00:20:49
    every regulator in everything that we do
  • 00:20:52
    with excellence and with accountability
  • 00:20:56
    thank you very much Juan for your
  • 00:20:59
    remarks and observations uh Hoven I
  • 00:21:03
    would like to to to ask you about about
  • 00:21:06
    what makes Ikea such a unique company
  • 00:21:10
    for so many people first of all
  • 00:21:12
    customers it's one of the most
  • 00:21:15
    impressive Brands and in the world
  • 00:21:20
    what does
  • 00:21:22
    IKEA offer its Handler is that actually
  • 00:21:25
    makes Ikea so attractive for so many
  • 00:21:28
    young people and uh and how those values
  • 00:21:32
    that actually shape the way you normally
  • 00:21:34
    care Works how how those values actually
  • 00:21:37
    permeate your decision-making process at
  • 00:21:40
    the board level and also the executive
  • 00:21:42
    committee level
  • 00:21:44
    now I have two minutes to answer your
  • 00:21:47
    question
  • 00:21:48
    and I would summarizing three things
  • 00:21:52
    the first one is that you mentioned a
  • 00:21:55
    bit about the purpose and it's the power
  • 00:21:58
    of the purpose for Ikea founder Ember
  • 00:22:01
    Campground was to create a better life
  • 00:22:03
    for the many people and he created the
  • 00:22:06
    company to serve the purpose it's not
  • 00:22:08
    the other way around so for him the
  • 00:22:10
    company was a mean to such extent that
  • 00:22:14
    when he was 50s he donated the company
  • 00:22:17
    to the foundation so you have to be very
  • 00:22:20
    brave to do that when you are 50s
  • 00:22:24
    and and the point the basic point is the
  • 00:22:27
    depth of the understanding of the vision
  • 00:22:30
    so for us it's not something on the
  • 00:22:32
    corridors to the to the staff can think
  • 00:22:35
    it's actually pretty much deep
  • 00:22:38
    and we are the first Innovation who are
  • 00:22:41
    leading the company without the founder
  • 00:22:42
    he passed away for years ago and both
  • 00:22:46
    Jesper and myself which is a two people
  • 00:22:48
    board of directors then we have this
  • 00:22:51
    extra responsibilities not only to do
  • 00:22:53
    with this right it's not only to do what
  • 00:22:55
    you feel is right it's also to honor and
  • 00:22:58
    the legacy of the founder so we owe to
  • 00:23:01
    him the future the second thing is the
  • 00:23:05
    interaction between culture and values
  • 00:23:07
    and Leadership
  • 00:23:09
    because cultural value is pretty deep
  • 00:23:12
    but at the same time it has to evolve
  • 00:23:14
    because concept about the equality or
  • 00:23:19
    diversity and inclusion has a different
  • 00:23:21
    meaning today than 30 years ago or the
  • 00:23:24
    planet weaving updated that we have
  • 00:23:28
    eight corporate values we didn't have
  • 00:23:30
    one value called planet and I scared for
  • 00:23:32
    Planet which was introduced recently so
  • 00:23:35
    they are our values are quite generic
  • 00:23:37
    statements but the depths has been
  • 00:23:40
    evolving over time
  • 00:23:43
    and then to what extent leadership is
  • 00:23:46
    actually the important thing because
  • 00:23:48
    it's leading by example with makes a
  • 00:23:50
    cultural life you were referring to that
  • 00:23:52
    Elena
  • 00:23:53
    so it's this combination so at the end
  • 00:23:56
    of the day the culture is in the hands
  • 00:23:58
    of all the leaders to make it better
  • 00:24:01
    and the third one is pretty much
  • 00:24:04
    connected with the our organizational
  • 00:24:06
    structure where you could say our
  • 00:24:09
    long-term view is extremely supported by
  • 00:24:13
    our financial resilience we are quite
  • 00:24:15
    healthy balance sheet you could say 85
  • 00:24:19
    percent of the 55 billion euros balance
  • 00:24:22
    sheet is equity so this allows us to
  • 00:24:25
    actually attend long-term decisions you
  • 00:24:28
    could say that they were very
  • 00:24:30
    conservative in the financial side and
  • 00:24:32
    very aggressive in the opportunities and
  • 00:24:36
    we make the money before we spend at the
  • 00:24:39
    end of the day 29 percent goes back to
  • 00:24:42
    Society of taxes and then out of the
  • 00:24:46
    remaining net profit the majority stays
  • 00:24:48
    in the company and 15 percent goes to
  • 00:24:50
    the foundation so somehow we are one of
  • 00:24:53
    the biggest NGO in the world because
  • 00:24:55
    everything goes back to society that I
  • 00:24:58
    see the Euro that goes to the private
  • 00:25:00
    pocket of any shareholder that may be
  • 00:25:04
    differing and may be applicable to all
  • 00:25:06
    the companies but the essence
  • 00:25:09
    is what is important for every company
  • 00:25:12
    how to build a financial resilience that
  • 00:25:15
    allows you to take a long-term decision
  • 00:25:18
    because this is to your question this is
  • 00:25:20
    when you are cementing the corporate the
  • 00:25:24
    culture which is in every decision you
  • 00:25:26
    make it has to get to to the care Vision
  • 00:25:29
    so these three things are in my opinion
  • 00:25:32
    shaping our culture
  • 00:25:34
    thank you very much Robin thio a very
  • 00:25:37
    very interesting
  • 00:25:38
    Reflections on the culture of Ikea I
  • 00:25:43
    will ask a couple of additional
  • 00:25:44
    questions to the members of this panel
  • 00:25:46
    but if you want to start thinking about
  • 00:25:49
    questions for them in a few minutes we
  • 00:25:51
    will open up the debate to to all of you
  • 00:25:53
    I would like to go back to you jildo and
  • 00:25:56
    ask you about about how the how the
  • 00:26:00
    somehow the the culture of the company
  • 00:26:03
    and the culture of the values High shape
  • 00:26:05
    the culture of the board of directors
  • 00:26:09
    senia about about 20 years ago decided
  • 00:26:12
    you decided together with uh with the
  • 00:26:16
    other shareholders to invite external
  • 00:26:19
    board directors independent board
  • 00:26:21
    directors and you started to make the
  • 00:26:23
    board of directors I would say more
  • 00:26:26
    professional in the sense of having
  • 00:26:27
    independent directors this is something
  • 00:26:29
    that obviously now that you've gone
  • 00:26:30
    public is even more stronger how how do
  • 00:26:33
    you see the the the way in your case the
  • 00:26:37
    zenya family and the values of the
  • 00:26:39
    senior family have influenced the board
  • 00:26:42
    of directors and the culture of the
  • 00:26:43
    board this morning we had very
  • 00:26:45
    interesting paper by Paul Healey on the
  • 00:26:48
    effectiveness of the board and these
  • 00:26:50
    informal factors are seem to be very
  • 00:26:54
    relevant can you can you share with us
  • 00:26:55
    those Dimensions well listen I've always
  • 00:26:57
    been attracted by management
  • 00:27:01
    American culture
  • 00:27:03
    so I try to run a private company
  • 00:27:07
    family business like a public company
  • 00:27:09
    always since I've been appointed SEO so
  • 00:27:12
    it has been my Doctrine
  • 00:27:14
    so independent at least as many as
  • 00:27:18
    family members
  • 00:27:19
    because I had the experience of the
  • 00:27:21
    family of my mother that the business
  • 00:27:23
    went sour because too many families
  • 00:27:25
    stepped in it was Fila you know Fila is
  • 00:27:28
    now in the end of Korean and the Visa
  • 00:27:30
    went broke because there were no rules
  • 00:27:32
    and you know just everybody was running
  • 00:27:35
    because of the name was in the company
  • 00:27:37
    and it was no regulation so I think just
  • 00:27:40
    putting a regulation we should do what
  • 00:27:42
    and based on what he talks it was very
  • 00:27:43
    important both in the family and in the
  • 00:27:47
    board and so I elected to to have a very
  • 00:27:50
    strong board mem I like to be challenged
  • 00:27:53
    because I think the board has to
  • 00:27:54
    challenge the CEO uh um and in those
  • 00:27:57
    days I used to be only CEO not chairman
  • 00:28:00
    and the chairman as you know is another
  • 00:28:02
    role and I think I used the Independent
  • 00:28:05
    to become my advisor and every Sunday I
  • 00:28:08
    was paying a couple of calls just to uh
  • 00:28:12
    in order to listen to them in order to
  • 00:28:14
    seek advices to avoid making mistake and
  • 00:28:17
    so that helped when you you we we held
  • 00:28:20
    our five boards to go prepared and I
  • 00:28:22
    know whom I count on and and I think it
  • 00:28:24
    was already majority so I think that one
  • 00:28:26
    time only they voted against me I can
  • 00:28:29
    tell you for what thank God
  • 00:28:33
    otherwise it was it was really a good a
  • 00:28:36
    good thing the other positive things is
  • 00:28:40
    that
  • 00:28:42
    um
  • 00:28:43
    the independent have to have different
  • 00:28:45
    roles they can't be all actually all
  • 00:28:47
    banking or or lawyers and so I think
  • 00:28:50
    that
  • 00:28:51
    we selected a good representation in
  • 00:28:54
    terms of diversity of not only of gender
  • 00:28:58
    of nationalities of whatever just by
  • 00:29:02
    skills so in particular also in the old
  • 00:29:06
    board by a new board I think we have
  • 00:29:07
    really it's incredible team
  • 00:29:10
    of people that really can shape the
  • 00:29:15
    future of Zenia avoiding making mistakes
  • 00:29:17
    so
  • 00:29:18
    um
  • 00:29:19
    the two things go go together but God
  • 00:29:22
    bless the dependent in my case and and
  • 00:29:24
    and family members still there but you
  • 00:29:27
    know if they are capable based on true
  • 00:29:29
    meritocracy and also the fact that new
  • 00:29:32
    members the fourth generation step scene
  • 00:29:34
    we have very clear rules and regulation
  • 00:29:37
    uh on how they step in you know they
  • 00:29:39
    have to be going through a process of uh
  • 00:29:43
    that
  • 00:29:45
    you know what it is to avoid making
  • 00:29:48
    mistakes for the whole of the company
  • 00:29:50
    very good very good children very good
  • 00:29:53
    Elena uh if uh if I may I I mean you've
  • 00:29:58
    had many years of experience with
  • 00:30:00
    different types of boards you've you
  • 00:30:02
    have your own experience at HP actually
  • 00:30:05
    dealing with different types of boards
  • 00:30:08
    in the recent history of HP and I would
  • 00:30:11
    like to ask you how you think that the
  • 00:30:14
    the somehow the culture and the Dynamics
  • 00:30:17
    internal dynamics of abort can actually
  • 00:30:20
    have an impact on on outcomes on on
  • 00:30:24
    better decisions and in general how
  • 00:30:27
    these dynamics that you see you you've
  • 00:30:30
    seen in so many boards can actually
  • 00:30:32
    improve the quality of the culture of
  • 00:30:35
    the company itself
  • 00:30:38
    but um I think this is a fundamental
  • 00:30:40
    question I think when we talk about
  • 00:30:42
    cultures and cultural
  • 00:30:44
    impact I mean it starts by the board let
  • 00:30:48
    me be very clear because if it if we
  • 00:30:51
    oversee and you know how the strategy
  • 00:30:57
    um the operations the management the
  • 00:31:00
    talent
  • 00:31:01
    but also and I say this today of the
  • 00:31:04
    risks that we have I mean
  • 00:31:06
    boards need to start to think about what
  • 00:31:10
    does it mean what are the main ones so
  • 00:31:12
    when I think about different in the
  • 00:31:15
    different boards but also in the company
  • 00:31:16
    where I belong to is
  • 00:31:20
    um it's fundamental that uh with what we
  • 00:31:24
    say at HP will walk the talk it can't
  • 00:31:27
    say that we have an open and trust and
  • 00:31:31
    respect and Open Door culture and there
  • 00:31:34
    is no collaboration no Spirit the board
  • 00:31:38
    is not diverse diverse not only in
  • 00:31:40
    gender that we were I was listening
  • 00:31:42
    before but it's in the different
  • 00:31:44
    experience in the different uh
  • 00:31:46
    nationalities if you want to be a global
  • 00:31:48
    company if you want to understand
  • 00:31:50
    different Generations in consumers you
  • 00:31:53
    need to have different type of Ages
  • 00:31:56
    um and I think I mean it starts there
  • 00:32:00
    and it starts also also understanding
  • 00:32:03
    and listening and something that always
  • 00:32:06
    a worry says what's the culture you have
  • 00:32:08
    or you really
  • 00:32:11
    is going in the company and the culture
  • 00:32:14
    that is desired one thing that sometimes
  • 00:32:16
    I find is a lot of people say they would
  • 00:32:19
    like and they talk about the culture it
  • 00:32:22
    exists but the reality is not there why
  • 00:32:26
    there are lot of reasons if we can talk
  • 00:32:28
    about it it's the it's how you you
  • 00:32:30
    operationalize in the Senior Management
  • 00:32:33
    so for me boards need and I say boards a
  • 00:32:37
    chairman
  • 00:32:39
    starting there but it goes into what you
  • 00:32:42
    operationalize day to day is in the
  • 00:32:44
    Senior Management it's in the CEO and
  • 00:32:47
    it's an open dialogue it's two ways is
  • 00:32:49
    listening is asking the right questions
  • 00:32:51
    it's giving advice not doing it because
  • 00:32:54
    culture is not tactical it's strategic
  • 00:32:58
    and this is what some people do not
  • 00:33:00
    understand you don't change your culture
  • 00:33:02
    in one day now when you really change
  • 00:33:04
    and it's not an acid it becomes a risk
  • 00:33:07
    it takes time and when
  • 00:33:10
    boards are non-functional you know
  • 00:33:12
    they're non-functionally they're not
  • 00:33:14
    there is no trust within the members
  • 00:33:18
    that at the end you're not making the
  • 00:33:21
    right decisions you're not making the
  • 00:33:22
    right questions so for me I mean and
  • 00:33:25
    I've seen it for example in HP we've
  • 00:33:27
    seen a lot of Evolutions mergers at
  • 00:33:30
    positions I remember compact I remember
  • 00:33:32
    EDS split spin-offs you know in 2015 we
  • 00:33:37
    split the company in two
  • 00:33:40
    I remember the creation of that board
  • 00:33:42
    was very much well defined in what was
  • 00:33:45
    diversity and inclusion what you were
  • 00:33:47
    saying about not only gender it was
  • 00:33:50
    absolutely understanding that that
  • 00:33:53
    Fosters Innovation that really responds
  • 00:33:55
    to the reality of today so for me that
  • 00:33:58
    is fundamental I mean it can't be it's
  • 00:34:01
    it's it's it's a road it's another way
  • 00:34:03
    of two of two ways and it's with the
  • 00:34:06
    leadership it's with
  • 00:34:09
    um all employees because culture is
  • 00:34:12
    something that it's not only top down I
  • 00:34:15
    think it's both ways and if you don't
  • 00:34:18
    listen what is happening
  • 00:34:20
    I mean the best example is nowadays a
  • 00:34:24
    hybrid work
  • 00:34:25
    I mean we need to understand if the
  • 00:34:27
    culture is affecting or not affected by
  • 00:34:29
    this
  • 00:34:31
    this is something that boards think
  • 00:34:33
    about it
  • 00:34:34
    if the new generations are thinking in
  • 00:34:36
    the same way we were all thinking
  • 00:34:38
    how you manage that that are the type of
  • 00:34:41
    questions board need to take because
  • 00:34:43
    this is thinking about long-term
  • 00:34:45
    sustainable growth sustainable value if
  • 00:34:48
    they don't make that questions
  • 00:34:50
    the thing doesn't work
  • 00:34:53
    just doing it thank you Elena very very
  • 00:34:56
    insightful Reflections on the on the on
  • 00:34:59
    how boards actually work on culture and
  • 00:35:01
    how they influence the culture of the
  • 00:35:03
    organization uh juvenile let me let me
  • 00:35:06
    ask you uh about uh about uh how how how
  • 00:35:10
    you and the executive committee and then
  • 00:35:14
    and the board actually take into account
  • 00:35:16
    uh the values related with your
  • 00:35:19
    employees okay and you have a fantastic
  • 00:35:24
    HR policy and have a very high retention
  • 00:35:28
    rate and also the the values related
  • 00:35:32
    with customers how those set of values
  • 00:35:35
    how do you play with them at the
  • 00:35:38
    executive committee level and also the
  • 00:35:39
    board level and how important they are
  • 00:35:41
    when you make decisions strategic
  • 00:35:42
    decisions
  • 00:35:43
    uh you know to buy another company to
  • 00:35:47
    integrate another company to integrate
  • 00:35:49
    vertically even even deeper because you
  • 00:35:51
    are very very vertically integrated how
  • 00:35:55
    how do those values actually affect
  • 00:35:57
    those decisions
  • 00:35:58
    two things one is how do we integrate
  • 00:36:01
    and then how we take decision the first
  • 00:36:05
    answer is what is the purpose of the
  • 00:36:07
    purpose whether we want to have a
  • 00:36:09
    culture in the company and we clarify
  • 00:36:12
    internally
  • 00:36:14
    four years ago what does good
  • 00:36:17
    performance look like why do we have a
  • 00:36:20
    culture why do we have how do we
  • 00:36:22
    integrate that and we came with the
  • 00:36:25
    fourth dimension of the way we call
  • 00:36:26
    Value creation goals that I will mention
  • 00:36:29
    and did that connected quite quickly
  • 00:36:32
    to the entire organization has been one
  • 00:36:35
    of the easiest if not the easiest change
  • 00:36:37
    we have done we are 170 000 people and
  • 00:36:41
    it went quite quickly because we
  • 00:36:43
    clarified that it's about getting value
  • 00:36:46
    for customers we said better homes for
  • 00:36:49
    customer
  • 00:36:50
    then it's about better life for people
  • 00:36:52
    and people is employees is value chain
  • 00:36:56
    and also his communities Like We Touch
  • 00:36:58
    and then we say the better the planet
  • 00:37:00
    for all and also we said better company
  • 00:37:02
    for the loan chain that can create value
  • 00:37:05
    and when we have clarified that this is
  • 00:37:08
    a way we want to evaluate your
  • 00:37:10
    performance then this has taken off in
  • 00:37:13
    the company it was recently it was last
  • 00:37:15
    week in Berlin meeting a group of jam
  • 00:37:19
    potentials 100 people that we want to
  • 00:37:21
    fast-track they are 22 and in three
  • 00:37:24
    years we want them to be a director of
  • 00:37:27
    store money which is the backbone of our
  • 00:37:30
    business
  • 00:37:31
    um
  • 00:37:32
    and then one guy said to me he's 22. he
  • 00:37:36
    said the day I cannot stand behind the
  • 00:37:40
    product we sell I will quit
  • 00:37:42
    it was quite powerful statement and
  • 00:37:46
    that's why we have clarified the four
  • 00:37:48
    dimension and then by doing that the
  • 00:37:51
    next step is how do you integrate how do
  • 00:37:54
    you avoid dilemmas because I don't know
  • 00:37:56
    for example in the climate part I don't
  • 00:37:58
    know anyone who wants to destroy the
  • 00:38:00
    planet but I know many people who are
  • 00:38:02
    lost if it is good for the planet or the
  • 00:38:05
    wallet and then you find a lot of
  • 00:38:07
    dilemmas in the decision making how can
  • 00:38:10
    you integrate that and that's why we
  • 00:38:12
    have worked massively in having the
  • 00:38:15
    right standards the right policies the
  • 00:38:17
    right rules the right way to evaluate
  • 00:38:19
    decisions and more importantly which is
  • 00:38:22
    extremely neat in the future how can
  • 00:38:24
    support our leaders with a moral compass
  • 00:38:26
    to take decision because Society is
  • 00:38:29
    getting very polarized and it's a roller
  • 00:38:32
    coaster of geopolitics inflation supply
  • 00:38:34
    chain moral dilemmas so how can you
  • 00:38:38
    equip your leaders to deal with these
  • 00:38:41
    dilemmas and what is the moral Compass
  • 00:38:43
    to guide on this decision got this
  • 00:38:45
    decision are making the culture a real
  • 00:38:48
    living reality or not
  • 00:38:51
    thank you juvencio I would like to ask
  • 00:38:54
    Juan uh in your experience in in
  • 00:38:57
    different boards some of them family
  • 00:39:01
    businesses family owned businesses some
  • 00:39:04
    of them
  • 00:39:05
    public companies with a diversity of of
  • 00:39:08
    investors shareholders of many
  • 00:39:11
    institutional
  • 00:39:12
    investors how how
  • 00:39:16
    sitting in any of those boards and when
  • 00:39:20
    you have to deal with those investors
  • 00:39:22
    those shareholders being family business
  • 00:39:25
    family offices or being institutional
  • 00:39:27
    shareholders or other other asset
  • 00:39:30
    managers how do you discuss those
  • 00:39:33
    dimensions of culture and and and and do
  • 00:39:38
    you see any difference between let's say
  • 00:39:40
    family businesses and public companies
  • 00:39:44
    in this respect
  • 00:39:47
    um the the short answer is yes I I you
  • 00:39:50
    know we talked about a purpose and
  • 00:39:51
    values that doesn't mean that every
  • 00:39:53
    company has to has have the same purpose
  • 00:39:56
    and the same values
  • 00:39:58
    different companies you know have
  • 00:40:00
    different stakeholders and therefore you
  • 00:40:03
    know they're built for a different
  • 00:40:04
    purpose or they have different values
  • 00:40:06
    but I think one one rule applies to all
  • 00:40:10
    of them Jordy and that is
  • 00:40:13
    um in in the best examples that I have
  • 00:40:15
    seen
  • 00:40:16
    every major decision and I think uh
  • 00:40:18
    Elena touched on this the the board is
  • 00:40:20
    not there to run the company the board
  • 00:40:22
    is there to provide oversight
  • 00:40:25
    to ask the questions about whether the
  • 00:40:29
    company is keeping you know and
  • 00:40:31
    consistently to its purpose whether it's
  • 00:40:33
    driving you know in a way that is is
  • 00:40:36
    achieving the you know implementing the
  • 00:40:38
    values whether it's you know executing
  • 00:40:41
    the strategy
  • 00:40:43
    um but one thing that is very very
  • 00:40:44
    important is that you constantly come
  • 00:40:47
    back and that you ask the question you
  • 00:40:50
    know if we are going to do a
  • 00:40:52
    how does that relate to the values and
  • 00:40:55
    to the purpose that we have as a company
  • 00:40:57
    because at the at the end of the day the
  • 00:40:59
    board is the custodian you know it's
  • 00:41:01
    it's it's it's what holds that
  • 00:41:03
    you know with integrity and and so I
  • 00:41:06
    found very very good the companies ask
  • 00:41:09
    those questions
  • 00:41:10
    and that that guides then whether or not
  • 00:41:13
    an acquisition is made or whether a
  • 00:41:15
    change in compensation is made or
  • 00:41:18
    whether a
  • 00:41:19
    you know exiting a market exiting a
  • 00:41:21
    country uh exiting a product lines
  • 00:41:23
    something that's really strategic you
  • 00:41:26
    know how does it relate to the purpose
  • 00:41:28
    of the company and values you know in
  • 00:41:31
    how we do things what what we do and how
  • 00:41:33
    we do those things so
  • 00:41:36
    thank you thank you very much Juan so
  • 00:41:38
    it's time to open up the debate to the
  • 00:41:40
    to the participants of the conference so
  • 00:41:43
    feel free to so here Paul uh
  • 00:41:54
    so I have a question for Mr Xenia
  • 00:41:57
    um uh you've your company you've just
  • 00:42:00
    decided to uh be a public company
  • 00:42:03
    and uh that would seem a decision that
  • 00:42:08
    imposes additional constraints on the
  • 00:42:11
    board and on the company you're now
  • 00:42:13
    reporting to to investors and two or uh
  • 00:42:18
    to institutional investors more or
  • 00:42:21
    analysts activists potentially can have
  • 00:42:23
    an interest in the stock which might
  • 00:42:26
    take you away from the longer term
  • 00:42:28
    Vision that you've got for the company
  • 00:42:30
    I'm just curious whether you discussed
  • 00:42:32
    that when you thought about going public
  • 00:42:34
    and whether with the benefit of
  • 00:42:36
    hindsight whether you've experienced or
  • 00:42:37
    seen any evidence of pressures as a
  • 00:42:41
    public company that differ from when you
  • 00:42:42
    were not not a public company
  • 00:42:46
    with Ismail not yet
  • 00:42:48
    I'm not sure what that means
  • 00:42:52
    every day is different than when you're
  • 00:42:55
    a company company in particular in Wall
  • 00:42:57
    Street but listen I I try to be very
  • 00:43:00
    transparent I'm a very dark person when
  • 00:43:02
    there is an issue or rather said but I
  • 00:43:05
    used to do it in the family who stood in
  • 00:43:07
    the board and they do it with investors
  • 00:43:08
    with analysts so you know if I'm not I'm
  • 00:43:11
    not the strongest in digital okay uh
  • 00:43:14
    there are and so I say guys okay I'm not
  • 00:43:17
    the strongest but work in progress this
  • 00:43:19
    is the step I'm doing in order to to get
  • 00:43:21
    there I'm not a stronger licensing but
  • 00:43:24
    see it's not the licensing brand so what
  • 00:43:26
    do you want but I'm strong at the supply
  • 00:43:28
    chain I'm strong in creating excellent
  • 00:43:31
    product I'm strong in the service I'm
  • 00:43:34
    strong in the middle which I I try to
  • 00:43:36
    focus on the pluses but also making sure
  • 00:43:40
    that they know that the work in progress
  • 00:43:42
    in the minuses so this is the approach
  • 00:43:44
    and I think it works and I think that
  • 00:43:47
    the the
  • 00:43:48
    investor and the analysts are are there
  • 00:43:51
    to be listened I I I I I appreciate what
  • 00:43:55
    they tell me because the Benchmark is
  • 00:43:58
    very important you know you compare I'm
  • 00:43:59
    in a luxury field and and our Benchmark
  • 00:44:02
    the French unfortunately more than the
  • 00:44:04
    Italians
  • 00:44:05
    and they are extremely good in
  • 00:44:07
    engineering luxury and in utera the best
  • 00:44:10
    in product as a matter of fact the
  • 00:44:12
    French produced two-thirds of their
  • 00:44:14
    apparel luxury apparents produced in
  • 00:44:16
    Italy believe it or not however they're
  • 00:44:19
    very strong in marketing look at Wines I
  • 00:44:21
    mean I think that Italian wines are
  • 00:44:23
    better than French but they do a much
  • 00:44:24
    better job in marketing I'm not and
  • 00:44:26
    maybe in Spanish I mean you're a
  • 00:44:27
    fantastic one so I think we have to to
  • 00:44:30
    uh to to to to understand I mean how to
  • 00:44:33
    improve in the direction
  • 00:44:35
    and and I think this is what what
  • 00:44:37
    investor want
  • 00:44:39
    transparency and and Clarity that's what
  • 00:44:42
    I want and they want to to have your
  • 00:44:44
    vision and and how you proceed step by
  • 00:44:48
    step and I think every quarter is a step
  • 00:44:51
    and I think the boy should be there to
  • 00:44:54
    to help me in in doing the job and and I
  • 00:44:57
    think the board should listen to
  • 00:44:59
    management I saw five years in FCA
  • 00:45:01
    that's where I learned my American Way
  • 00:45:04
    preparing for an IPO with Sergio
  • 00:45:06
    Marciano which has been a fantastic
  • 00:45:08
    master of the universe and the challenge
  • 00:45:11
    was you know keep raising the bar and
  • 00:45:13
    and and and keep in doing things to the
  • 00:45:16
    maximum and being disciplined and and
  • 00:45:18
    and I think that this these are some of
  • 00:45:20
    the things that that I'm trying to do
  • 00:45:23
    but uh so far so good I I would say that
  • 00:45:26
    you know has my life changed yes more
  • 00:45:29
    pressure but the advantage is that I'm
  • 00:45:33
    not the one putting pressure the market
  • 00:45:34
    is putting pressure management so that
  • 00:45:36
    makes my life easier how many times I
  • 00:45:40
    use this the you know to to question
  • 00:45:43
    them and to say let's go and it was
  • 00:45:45
    going one way and coming the other way
  • 00:45:47
    around it's nice citizen this is what
  • 00:45:50
    the market wants period we are we are
  • 00:45:53
    part of of the mission you're part of
  • 00:45:55
    the of the stock of this company just
  • 00:45:58
    let's do it and if they don't do it out
  • 00:46:00
    it's as huge as that and you have to be
  • 00:46:03
    very very very
  • 00:46:04
    uh you know
  • 00:46:06
    um
  • 00:46:08
    how can I say fair on on what the market
  • 00:46:10
    wants so I would say more disciplined
  • 00:46:12
    and and quicker execution uh you know I
  • 00:46:16
    think speed clarity
  • 00:46:19
    it's very very important uh when you're
  • 00:46:22
    a public company so I think my
  • 00:46:24
    responsibility is not only to the same
  • 00:46:26
    family which also the majority we still
  • 00:46:28
    have uh 65 percent but to a more variety
  • 00:46:33
    of a shareholder and
  • 00:46:34
    and I feel more responsive but I think
  • 00:46:36
    that I apply the same rules I used
  • 00:46:39
    before that's why I feel very not
  • 00:46:41
    comfortable but Sereno how can I say yes
  • 00:46:47
    results
  • 00:46:54
    yes thank you very much I mean it's
  • 00:46:56
    actually two questions in one if I may
  • 00:46:59
    so I would like just to understand a
  • 00:47:01
    little bit better a couple of things so
  • 00:47:04
    I I teach a course it's called values
  • 00:47:06
    based strategy and we use Wells Fargo as
  • 00:47:09
    the wrong example
  • 00:47:11
    about what they did in the past and how
  • 00:47:14
    they created these false accounts and
  • 00:47:16
    this was pervading the entire company
  • 00:47:18
    and so actually we stopped at the level
  • 00:47:20
    of how these things happen in the
  • 00:47:23
    company because of the governance
  • 00:47:24
    because of the incentives at the
  • 00:47:27
    different uh levels of the company and
  • 00:47:29
    so my first question would be to Juan
  • 00:47:32
    could you help me teach my students
  • 00:47:34
    about how actually these governance that
  • 00:47:37
    was in place uh has been changed in
  • 00:47:39
    order is to implement a new culture that
  • 00:47:42
    actually fought back against what
  • 00:47:45
    happened in the past so this is the
  • 00:47:46
    first question and the second question
  • 00:47:47
    is for uh for for for for you
  • 00:47:50
    um you said that you were helping your
  • 00:47:53
    decision makers have been providing them
  • 00:47:55
    a compass a moral compass and it's a
  • 00:47:58
    clarification question how do you do
  • 00:48:00
    that I mean what is it that you give
  • 00:48:01
    them uh is it kind of a book of you know
  • 00:48:05
    questions is it a method is it so I mean
  • 00:48:07
    I was super interested in in knowing
  • 00:48:09
    this thank you
  • 00:48:13
    so
  • 00:48:17
    um very very good questions I I was not
  • 00:48:19
    part of the board historically
  • 00:48:21
    so I can't speak for um
  • 00:48:24
    what's been very well documented and um
  • 00:48:27
    and I'm going to leave it at that but I
  • 00:48:29
    will tell you that if you're going to
  • 00:48:32
    um
  • 00:48:33
    to change something you have to affect
  • 00:48:35
    change you can't just simply talk about
  • 00:48:37
    it
  • 00:48:38
    and so
  • 00:48:40
    um
  • 00:48:41
    what has changed at Wells Fargo
  • 00:48:44
    you know in the five years or so that
  • 00:48:47
    I've been on the board and I said that I
  • 00:48:48
    said this thing these things take time
  • 00:48:50
    you know they don't just simply happen
  • 00:48:51
    overnight
  • 00:48:52
    as as much as you want to move very
  • 00:48:54
    quickly but we we have a complete change
  • 00:48:58
    of the operating committee which is the
  • 00:49:02
    the top level governance structure of
  • 00:49:04
    the company so that's the the c-suite
  • 00:49:06
    you know
  • 00:49:07
    um in direct reports
  • 00:49:09
    we have changed um I would say probably
  • 00:49:14
    85 90 of the board
  • 00:49:17
    um
  • 00:49:19
    is is different
  • 00:49:20
    if you then go levels minus one minus
  • 00:49:24
    two minus three 75 percent
  • 00:49:27
    of that has changed in the company
  • 00:49:29
    and has been brought in with um new new
  • 00:49:32
    going on to your second question new
  • 00:49:34
    techniques
  • 00:49:35
    in terms of
  • 00:49:37
    um how goals are set how
  • 00:49:40
    um people are paid
  • 00:49:42
    how the you know the products have been
  • 00:49:44
    simplified how the governance uh
  • 00:49:47
    translates into the operating you know
  • 00:49:50
    uh procedures of the company so it's a
  • 00:49:53
    it's a very very radical transformation
  • 00:49:55
    of a company that's you know 150 years
  • 00:49:57
    old
  • 00:49:58
    and so it's it's not like you just
  • 00:50:00
    simply you know blew it up and started
  • 00:50:01
    again
  • 00:50:03
    um
  • 00:50:04
    you know it's also a company that is a
  • 00:50:06
    product of many many mergers and and
  • 00:50:09
    combinations in some cases affected in
  • 00:50:12
    some cases just put together and and
  • 00:50:14
    left to its own devices so very very
  • 00:50:17
    hard work that has been taken you know
  • 00:50:19
    with leadership from
  • 00:50:21
    the senior Executives and and the advice
  • 00:50:24
    and the
  • 00:50:25
    you know concurrence of the board
  • 00:50:28
    um
  • 00:50:29
    but in a very deliberate way through all
  • 00:50:31
    the levels of of the organization and as
  • 00:50:33
    I mentioned earlier you know with 250
  • 00:50:36
    000 plus employees
  • 00:50:39
    um this is a company that has the most
  • 00:50:40
    uh you know retail customers in banking
  • 00:50:43
    in the United States
  • 00:50:44
    uh you know Banks you know a significant
  • 00:50:48
    number of the population so it's it's
  • 00:50:50
    not a small change that you're affecting
  • 00:50:52
    but it's it's been done by big
  • 00:50:55
    transformation with a very clear sight
  • 00:50:58
    of where we wanted to get to in terms of
  • 00:51:01
    those values and our purpose in in
  • 00:51:04
    making you know life better financially
  • 00:51:06
    for our customers
  • 00:51:09
    thank you Juan yeah this is your
  • 00:51:12
    question
  • 00:51:14
    I think it's actually speak louder than
  • 00:51:16
    words and then I will mention examples
  • 00:51:19
    do I try to say that we are perfect no
  • 00:51:22
    but the important thing is that you
  • 00:51:25
    apply not only common sense but deep
  • 00:51:28
    values when you are facing decisions
  • 00:51:32
    if I take several examples for example
  • 00:51:35
    22 years ago at sub supplier level three
  • 00:51:40
    there was a case of child labor in India
  • 00:51:46
    and then the easy decision at that time
  • 00:51:48
    was to quit to terminate the decision
  • 00:51:50
    with the the relation with the supplier
  • 00:51:52
    you protect yourself you terminate and
  • 00:51:55
    you apply your code of conduct and
  • 00:51:57
    that's it
  • 00:51:58
    but you know 1200 families would lose a
  • 00:52:01
    job
  • 00:52:03
    so what we see what we did was to
  • 00:52:06
    partner with UNICEF and at that time and
  • 00:52:08
    then we developed the most rigid and
  • 00:52:11
    high level standard for child protection
  • 00:52:15
    in our entire supply chain
  • 00:52:18
    another example that we have is more
  • 00:52:21
    recently in Russia
  • 00:52:25
    Russia has been very important for us
  • 00:52:28
    and you could say and we have big
  • 00:52:30
    pressing in all the businesses we have
  • 00:52:33
    and then you have to take a decision
  • 00:52:35
    did you exit or not
  • 00:52:37
    and then we went through the entire
  • 00:52:40
    process and then we said okay we can
  • 00:52:42
    operate it's not right what is happening
  • 00:52:44
    at the same time we have thousands of
  • 00:52:47
    families that they bring on us what do
  • 00:52:49
    we do here finally we took a decision to
  • 00:52:52
    stop our operation but what we did in
  • 00:52:56
    such a way that we protect it for more
  • 00:52:58
    than three years the employees that we
  • 00:53:01
    have to say goodbye that came with a
  • 00:53:04
    massive course but we were happy to do
  • 00:53:06
    that or when the refugees of
  • 00:53:09
    Ukraine were coming to the Easter part
  • 00:53:12
    of Europe then we we didn't spend more
  • 00:53:16
    than 45 million euros in Furnishing
  • 00:53:19
    homes of the host of people who were
  • 00:53:22
    having and then it was a big pain in our
  • 00:53:25
    piano we said it is right to do or when
  • 00:53:29
    we take decision on climate for example
  • 00:53:31
    we don't maximize Financial
  • 00:53:34
    Dimension when we take decision on on
  • 00:53:37
    climate we optimizable financial and CO2
  • 00:53:41
    reduction or CO2 absorption
  • 00:53:44
    this is critical for the future an
  • 00:53:47
    institution like Esa who has a very good
  • 00:53:50
    tradition in ethics and values coming a
  • 00:53:53
    lot for the future because more and more
  • 00:53:56
    the society will get polarized in
  • 00:53:59
    china-based one do we all quit China
  • 00:54:02
    if South Arabia remove the driving
  • 00:54:05
    license to women do we quit Saudi Arabia
  • 00:54:07
    if the abortion or whatever it is gets
  • 00:54:10
    implemented what do we do here and
  • 00:54:13
    companies cannot be at the mercy of
  • 00:54:15
    Twitter or Instagram you need to find
  • 00:54:18
    your own way your own path based on your
  • 00:54:21
    values regardless of
  • 00:54:24
    people's opinion so I think it's
  • 00:54:27
    extremely relevant this resilience for
  • 00:54:30
    the future
  • 00:54:32
    thank you very much Elena Juan gildo and
  • 00:54:37
    juventio for a fantastic panel on on on
  • 00:54:40
    corporate culture and corporate
  • 00:54:42
    governance you have helped us
  • 00:54:46
    untangle a little bit these very complex
  • 00:54:48
    issue uh sometimes we are able to
  • 00:54:51
    identify when a company has a very good
  • 00:54:53
    culture but it's difficult to know how
  • 00:54:56
    to create one and and more important how
  • 00:54:59
    to protect one okay from from actually
  • 00:55:01
    declining or becoming obsolete or or
  • 00:55:05
    having eventually a corroding culture so
  • 00:55:07
    thank you very much for for being with
  • 00:55:09
    us here uh in this conference and we
  • 00:55:13
    look forward to continue exploring with
  • 00:55:14
    you all again many of these dimensions
  • 00:55:16
    of culture so please join me thanking
  • 00:55:18
    all of them for fantastic
  • 00:55:21
    come on
  • 00:55:27
    [Music]
Tags
  • corporate governance
  • corporate culture
  • board diversity
  • business strategy
  • leadership
  • sustainability
  • innovation
  • talent management
  • family business
  • public companies