DECIDING IN THE MIDDLE OF ECONOMIC TURMOIL 27-MAY-2013 UPF - BARCELONA D.Cabero M. Le Menestrel

WHY COMING TO SHARE THOUGHTS WITH YOU? D.Cabero M. Le Menestrel INSPIRINGBEING INSPIRED

DECIDING IN THE MIDDLE OF ECONOMIC TURMOIL Defining 1- “the question” / “the problem” 2- the priorities & constraints Deciding 3- 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

Deciding 3- 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….?

Deciding 3- Creating alternatives Learning DECISION MAKING PROCESS IS ALSO AN “INTERNAL PROCESS” for the person deciding  FEELINGS / EMOTIONS:  THE FEAR & INSECURITY  SENSE OF HAVING TOO MUCH RESPONSIBILITY  SENSE OF FAIRNESS/ETHICAL vs UNFAIRNESS/UNETHICAL GREY 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 economic situation: 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 economic situation: 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 No replacement Pre-retirement Sales people with distributors Talented people to BIC countries Dismissal Italian procurement pantyhose Focus in opportunities shavers & 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