00:04well good afternoon everybody
00:08good afternoon everybody
00:11well it's great to be back here it's my
00:14third time here and it's it sounds great
00:18to be back to the GSB I'm here today to
00:20talk about how leaders and high
00:24performance culture connects I'm sure
00:28you all our leaders have been leaders or
00:31prepare yourselves to be leaders and you
00:33all want because you're here to do
00:35things that are best-in-class high
00:37performance so I'm here to to talk to
00:40you in our experience all those things
00:41connect first let me try to to share
00:46with you our definition of leadership
00:47because there's so many let me give you
00:50a very simple one first we we started
00:53thinking many years ago in a company I
00:55mean okay leadership something is
00:57important but our leaders born or forms
01:01that forever question and we said okay
01:04let's let's take the side of that we can
01:07form leaders because people that say
01:10that they're born leaders say that only
01:112% of the population are on that side so
01:14let's believe that we can form leaders
01:16because that will give us more
01:18opportunities to find those guys within
01:20our company second thing we said who is
01:24a leader in our company and we said
01:27anybody who has an objective at Target
01:30and for him or her to get there
01:33he needs a team he's in the leadership
01:36position okay if tomorrow he's in the
01:39spreadsheet and he's all by himself or
01:41herself he's not in a leadership
01:42position but he steps back into a
01:45position where I need my team to get
01:47somewhere he needs to play that role of
01:50leader and now that gets us to the
01:53definition of leadership leadership
01:55something very simple to define very
01:57hard to live what's the definition three
02:00things is about delivering results on a
02:03sustainable basis through the team so
02:07the whole thing about the people aspect
02:08you can't do it by yourself by the very
02:10definition of literature
02:11do it the right way so how we do it how
02:15you do it that matters as much as what
02:17you do it and I'm here today to explore
02:20those three dimensions with examples in
02:24our experience in how a leader can
02:26affect those things there are many more
02:28things about leaders you can say leaders
02:31are people that are cannot be selfish
02:35they have to think that it's not about
02:37their ego it's not about him or her it's
02:39about the company they're there to build
02:41something much bigger not their ego to
02:43resonate but the company also leaders
02:46have to be somebody some people that are
02:48people person they need to believe they
02:50need to like to be surrounded by people
02:52they need to to like to inspire people
02:56to to get people to believe that they
02:59can perform better than they think they
03:01can that they together can get to places
03:03that they never thought they could
03:05that's inspiration that's coaching
03:07that's making people believe giving them
03:09reasons to believe it's always that
03:11thing of up in the bar a leader is also
03:14somebody who has to know enough details
03:18about the operation to ask relevant
03:21questions and to set targets that make
03:24sense because some people believe that
03:27as you grow in the company you have to
03:28become more strategic that operations
03:31something that for the lower guys and
03:33you have to be strategic in our view
03:35that misses the point a leader has to be
03:39a mix of course I mean it's just like in
03:41a ship in a big ship if everybody is in
03:43is in the engine room and there's nobody
03:46looking toward the ships going that's
03:49not ideal if everybody's at the bridge
03:51and nobody looking at the engine that
03:53also doesn't work so of course there are
03:55different roles and different mixes
03:57between details of operations and
03:59strategic side of the business but a
04:01leader that's a hundred percent strategy
04:03will not be able as time goes by because
04:07it's getting distance from the business
04:08to ask good questions and set relevant
04:11targets so in our company we value
04:14people that can have both and when
04:17people come to meetings with me they
04:18know I can dive in into any of the
04:20details because I'm not afraid of it
04:21because I travel I try to get as much
04:25need to follow through things so again
04:28lots can be said about leadership but
04:30for us it's about achieving results with
04:33the team doing it right and now I'm
04:37gonna explore those three dimensions
04:38I'll start with the first one which is
04:42all about the dream what we call the
04:44dream so if you're saying you need to
04:47achieve great results you don't want to
04:50achieve just average results you achieve
04:51great results we call it and you need to
04:54inspire people we call it you need to
04:57give people a dream a sense of purpose
04:59something that will inspire people will
05:02get them to put their energy will get
05:04them to really believe they can get
05:05their role in the same direction
05:07align the company it's easy to explain
05:10to any of us what a dream is a dream
05:13something that's stretched but credible
05:16something that will require a lot of
05:18work something that motivates everybody
05:20and something that everybody can see how
05:23I can you know with my bit of the
05:26business help the company get there so
05:29it's something that needs to talk to
05:30everybody so it's a little bit of an art
05:32form it's an educated art form on how to
05:35set a dream that will talk to everybody
05:37get everybody excited to go in the same
05:38direction because if you can get there
05:40and establish that dream then you up the
05:44bar then you set the reference anything
05:46below that it's not acceptable so if you
05:49try to be best-in-class good it's not
05:51good enough right and dreaming big takes
05:55the same amount of energy as dreaming
05:57small so why dream small takes the same
06:00amount of energy so dream big inspire
06:03your people and that will make amazing
06:06things happen because people will start
06:08believing it's just like the high jump I
06:09mean if you always put the bar here
06:11people just jump enough to clear the
06:14hurdle if you start raising the bar and
06:16people believe that they can do it and
06:18they do it they start getting bad
06:20confidence and they do it so that's the
06:23thing about the big dream gets people to
06:25be confident that they can deliver the
06:28other thing is that you have to dream
06:30big but you have to stay humble that's
06:33very important because when you think
06:35about it what what's the finish of a
06:38dream it's something where you say I'm
06:40here I want to get here that's the dream
06:43we called this a gap and for you to
06:47determine a gap you have to find
06:48somebody out there who serves as a
06:50benchmark so you say the benchmarks here
06:53we are here our dreams to close this gap
06:56and then once this gap is closed you
06:58open the next gap that's the only
07:00function of a leader and management
07:02management in general open gaps close
07:04gaps but for you to open gaps you have
07:08to be humble enough to believe that
07:10there's always somebody out there
07:11companies out there that do it better
07:14than you do not in everything there's no
07:16such a company a perfect company but in
07:19every dimension supply chain logistics
07:21finance legal people whatever you want
07:25to call it there are three four five
07:27companies out there they do it better
07:29so think about trucks I mean the loading
07:32okay the routing systems you know the
07:35warehouse management or think about
07:38anything else you want to think
07:39everything is measurable and if you can
07:41measure you can compare to somebody else
07:43and establish the gap so this is the
07:46thing about being humble you have to
07:48believe that no matter how good you
07:49think you are there's always somebody
07:51out there who is in specific dimensions
07:54and in all dimensions do it better than
07:56you not once somebody maybe somebody's
07:59all you have to do is go look stablish
08:02the benchmark open the gap and then the
08:04whole thing and the targets and whole
08:06systems about closing those gaps and
08:08that covers the the first part in the
08:11very summarized fashion of getting to
08:14results in a sustainable way is to open
08:16gaps have dreams get people excited and
08:18make them believe that as a group that
08:20can do much more than they believed they
08:21could the high jump you keep putting
08:24that bar higher and people start
08:26believing because they do it that they
08:28can do more things than they thought
08:30they could all right are you guys with
08:32me are you guys with me yes all right
08:36okay so now let's go to the and to think
08:40about the dream is this because some
08:42companies you know you have that thing
08:44called a feel-good Department I don't
08:46know if you've heard about this one of
08:48the companies we acquired many years ago
08:50they had a department called the
08:52it was an invisible Department it was a
08:55no work chart but it was everywhere and
08:57every time they had a problem and a KPI
09:00and a key performance indicator was not
09:02being achieved they would send that
09:04piece of news bad piece of news to the
09:06few good department they would repackage
09:08that send it back as a piece of good
09:10news and everybody would be happy
09:13was that amazing so the first thing we
09:16got Theory said guys we need to close
09:18this department and when things are
09:21they're good well we'll celebrate do
09:24more of it when things are not going
09:25well we'll call it a gap a problem
09:27something we need to close and we always
09:30said it's great to look up trying to
09:34find that benchmark because when you
09:35look up you get inspired you get
09:37challenged if you're talented when you
09:40look down you got comfortable and you
09:43get lazy right it's the same thing I
09:47mean if you come to the GSB you're
09:49looking up because the people here will
09:51raise the bar for you you'll say oh my
09:53god this is very competitive if you go
09:55to some other schools you feel great
09:57it gave me the top 1% but is that gonna
10:01be good for you no because it will get
10:03you lazy and comfortable so you have to
10:05get your group to look up find those
10:07benchmarks open those gaps dream big and
10:10go for it that's the first thing a
10:12leader and high performance how they
10:14connect the second thing is also the
10:18whole thing about people when you think
10:21about it there's no company what you
10:23have is a group of people that equals a
10:26company it's not the opposite the
10:28company equals people know people equals
10:31company so for you to have a great
10:34company and a great leader want that
10:36what's that you have to first have great
10:39people the amazing thing about people is
10:42that people is the only sustainable
10:44competitive advantage any business can
10:46have over competition can be a
10:50consulting a banking in consulting and
10:52bank it's easier to imagine because all
10:53you have is people and telephones and
10:55computers and frameworks and knowledge
10:58at least that's what they say in
11:02companies more like ours and others
11:05where you have brands I mean people tend
11:08to get distracted that what counts is
11:10really the brands the factories the
11:12warehouses the trucks the access to the
11:15markets and forget the people components
11:18but in our view again just like banking
11:21consultant the most important things the
11:23only sustainable competitive advantage
11:25that is hard to copy as your people
11:28machine the way you really grow people
11:32attract retain grow develop deploy
11:36that's hard to copy and people don't see
11:40it sort of those soft things she
11:42launched a new product that can be
11:43copied next month the next day the next
11:45six months should come if you have a new
11:48marketing campaign that can be copied or
11:50even done better but if you have a
11:52people machine that get people to
11:55develop and stay within your company and
11:57grow and because they are the company
11:59the company will grow as well that's
12:01soft it's hard to see and when they see
12:04you're already 5-10 years ahead of them
12:06so people is very important for you to
12:08dream big you need great people for you
12:11to form a great company you need great
12:12people and for you and the things that
12:16great people attract more the same
12:17that's the amazing thing they like to
12:19work together they challenge each other
12:21they learn from each other they get
12:24inspired by each other the problem is
12:28that made yogurt people also love to
12:29work together they gave each other easy
12:33targets right they think about it's
12:36great they celebrate even when they have
12:38no reasons to celebrate they use the
12:41fuel department right and that builds a
12:44an average company not a great company
12:47great companies are for more great
12:49people but the thing about great people
12:51is not attracting great people
12:53it's retaining great people because a
12:56lot of companies that do a good job are
12:58attracting great people but they lose
13:00them they train them to the marketplace
13:02we're not at school I'm gonna be
13:05training people for our competitors to
13:07use them we want people to come and stay
13:10but for them to come and stay we don't
13:12lose good people and when we do it's a
13:14crisis we learned a couple of things
13:17four or five things that I'll share with
13:18you that talented people like you love
13:20in a company some companies offer that
13:25first thing meritocracy easy to say hard
13:30to do may Tucker's is that concept that
13:33people grow according to their talents
13:35what they can deliver the potential they
13:37have the teams they form the people they
13:39attract the culture ambassador the
13:41culture they spread they grow because of
13:45that not because of the passport last
13:47names how long they've been in the
13:49company now because of the first group
13:52of things that's meritocracy very hard
13:56in the Q&A we can explore more of that
13:57but that's meritocracy a meritocracy is
14:01hard to do because it entails the fact
14:03of fairness artificial fairness is that
14:07you have to treat different people in
14:08different ways that's be fair if you
14:11treat everybody the same that's unfair a
14:13meritocracy is being fair so if somebody
14:17is dedicating more time producing more
14:19results have more protections is willing
14:21to chew a bigger bone it's really to
14:23have more accountability is we need to
14:25go to places be transferred around the
14:27globe that person deserves more
14:29opportunity more exposure will have more
14:33learning and will also build their
14:35wealth according to the value that's
14:37being created that's also very important
14:39components it's not the most important
14:42one by any stretch but it's one of the
14:44components okay so the idea of fairness
14:48is that you treat different people
14:49different ways and a lot of companies
14:52are afraid of saying that because that
14:54sounds incorrect but at the end what's
14:58incorrect is treating everybody the same
15:00the second thing they like is this whole
15:03idea about informality if a melt is not
15:07the way you dress it's not the way you
15:09set up your operations in terms of
15:12offices and stuff for example in our
15:13place which I have no office I have a
15:16big table with my direct reports around
15:17me and so does everybody you know places
15:20in the world where we operate why
15:22because information flow
15:23people can speak up you don't need to be
15:27booking meetings all the time it has
15:28happened as you meet people in the
15:31there's no assistant blocking your
15:33agenda you're available that's a
15:36formality but that's only part of it
15:37the true informality is a company that's
15:40able to deal with healthy conflict
15:43conflicts and a lot of people don't like
15:46that a lot of bosses don't like to be
15:49contradicted or challenged what I say is
15:53that as long as it's respectful and
15:55constructive you can say whatever you
15:57want if you're trying to get the
16:00business to a better place and having no
16:03hidden agendas help that that's why I
16:07never go home with a work-related
16:09problem I go home with the market
16:11related problem so if in that market my
16:13brands are not performing well
16:14competition is kicking my you know what
16:16that's something it's 24/7 with me but
16:20if I go to a meeting somebody says
16:21something that sounds strange to me I
16:23won't go home with that after the
16:26meeting I'll call Jane Jane can we talk
16:27for five minutes ago to different room
16:29you said that they quite didn't
16:30understand did you mean a or B I meant a
16:33o very good because I thought was B okay
16:35up settled and then your mind is free up
16:39again to focus on what matters well what
16:41greats value and not on internal
16:44politics and things like that an open
16:46office also enables that people don't
16:49have doors to close and talk small talk
16:51it's all open so that's the formality
16:55the whole thing about healthy conflicts
16:58the other thing that talented people
17:00like you like in a company is skander
17:02honesty they want to know what they
17:05stand example performance evaluation we
17:11formally 90 minutes 1-1 both ways
17:17self-evaluation my evaluation of the
17:19individual his or her evaluation of me 9
17:22minutes it takes 90 minutes to get to
17:27very easy to say very hard to do because
17:31then it's a Friday and you say oh my god
17:34if I have to tell Tong the things that
17:37ruin his Wiccan and then the next week
17:40you travel and then when you're back
17:43his not here and then a years past ten
17:46years past his life is only one and it's
17:49short anyway all of our lives are short
17:51for everything we want to do and you're
17:53just playing God because you know
17:57something and you don't want to share
17:58it's his life it's wrong you have to
18:01tell what's good what's bad and how you
18:04can help him recover and get back on
18:07track candor talented people like to
18:10know where they stand their future with
18:13the company what the next steps could be
18:15and what they can do better
18:17okay don't like you to manage that as
18:20you know playing God and I'll do it my
18:23way I don't need to share that then
18:24they'll share with me it's my life I
18:26want to know it another thing that they
18:30like is this idea of partnership in our
18:33company we have partners partners the
18:37people up from a certain level up we
18:40have partners they share in the wealth
18:43that's created as a company we're not
18:45share we're not shy of sharing we're off
18:48that's created talented people like that
18:50they like to know that if you work hard
18:53and they do the things and they get the
18:55results that part of those things
18:57they'll also be able to share it's not
19:00the most important thing but it's part
19:02of the package so that's very key and
19:05it's some companies people are very shy
19:07they don't like to do that I think this
19:11is important for talented people because
19:13they feel that there is a wealth
19:15creation going on along with the company
19:18creating value the other thing they like
19:23is growth I was in Mexico yesterday the
19:28last two days we just acquired an
19:29operation Mexico the grupo modelo the
19:32corona brands module especial all those
19:34grants our head of the Mexico operation
19:37which is a zone as we call it we have
19:39seven zones around the world is the
19:42third important zone is a guy who's 35
19:46years old as the head of our maximum
19:50it's his responsibility to integrate the
19:52business make the tough decisions right
19:55size of structure delivers the synergies
19:58continue to grow the top-line get that
20:01business to be one of our business and
20:03implement the culture 35 so we're not
20:06afraid of giving people early on in
20:07their careers as much as they have a lot
20:10of the things I described before you
20:12know that they leapfrog others and they
20:14get ahead because they're better that's
20:16the thing about fairness he's better
20:19than others so why wait
20:23the third leg so I spoke about leaders
20:27again deliver results with the people do
20:30it the right way how you doing
20:32okay that's what we call the culture of
20:35the place guard mentioned this year as
20:38we integrate many companies as we as we
20:41grew organically and organically culture
20:44was the first thing you know the first
20:46thing I do when i acquire a company i go
20:50there and i talk about dream people
20:52culture that's it I don't talk about the
20:54business about the seniors no I talk
20:57about what we stand for because we
21:00believe that culture has to do with
21:01performance and performance cannot be
21:04compromised with things like oh here's
21:05different oh no no let me explain you
21:08this that works in X country in Y
21:10country here will not work I'm from
21:13white country we've tried this before
21:14don't buy into this one company one
21:18culture a lot of mergers and
21:20acquisitions don't go well because 10
21:23years after you merged is to go to a
21:25meeting and as Sam Brito from ABI and
21:28you see I'm Jane from XYZ ten years
21:30later that doesn't create value because
21:33just you operate this two entities just
21:35under one corporate umbrella so one
21:38company one culture is key and what's
21:41this culture I'm talking about is a
21:43coach of ownership owners make better
21:46decisions in our company we strive to
21:49have an engaged group of owners look at
21:54that an engaged group of owners versus a
22:00of professionals professionals are just
22:05trying to build a resume executives
22:07owners are trying to build the company
22:10something that's bigger than any of us
22:14in the company something that will be
22:16there forever that we can look back and
22:19sales part of it I was proud of it my
22:21that's an owner an owner will stay with
22:25the company for many years and because
22:27of that we'll make better decisions
22:28because the owner will live with the
22:30consequences of the decisions the
22:32executive who is there only for two or
22:34three years for the resume purpose
22:36doesn't care too much about the long
22:38term he's not gonna be there it's too
22:41short-term oriented I don't like that
22:43what I want to be a rental that company
22:46I say that because it compared that to a
22:48rental car and people always give me a
22:51hard time with that but I know that some
22:53people I'm sure not here I'm sure that's
22:56cool in the east that's the way they
22:57think okay that when you rent the car
23:02they have that thing don't be gentle
23:07and then East they say that not here so
23:12people who rental cars they they try
23:14things that they don't trying their own
23:15cars like going up a speed bump and see
23:18if the four wolves will go up you know
23:20and then they'll and
23:22crash Bank why'd they do that because
23:25somebody else will live with the
23:26consequence of their driving in their
23:29own car in our own car it's gonna be
23:30ours this year the next five years next
23:32ten years we're not gonna do that
23:35because we're gonna live in the
23:36consequences so we don't like people to
23:38come to our company as a rental company
23:40we're likely to GTO a company like the
23:42owned company and if at some point of
23:44the careers they ask the question oh you
23:47know what I think it I'm at a point in
23:49my career where I should go and try
23:50something that's my own company then we
23:53failed because the environment we have
23:56it's a big start-up where everything
23:59Foster's this idea that this is my
24:00company that's why wealth creation and
24:02linked to results so important I was
24:06compared with the bakery we have a
24:08bakery in Whole Foods open you know
24:13and you had that bakery for three
24:14generations nights under my watch
24:16Austin Whole Foods open up selling bread
24:19for a tenth of the price of my bread I
24:21know it's not same quality but they say
24:24consumers don't care and it's a one stop
24:26shop for everything two ideas here if
24:30you are an executive of the bakery you
24:33say know what let me cross the street
24:36and go work for work for Whole Foods
24:38because they are winning if you're the
24:40winner if you are the owner of the
24:42bakery you're gonna say
24:44times have changed I need to change
24:46competitive environment has changed I
24:48need to change what I offered to
24:50consumers I know them better than Whole
24:53Foods because I've been here for three
24:54generations I know their names their
24:56kids everything I know what they need to
24:58shop because I can ask them I can have
25:00here their baskets 20 items as opposed
25:02to just bread I can be more of a
25:04convenience store in and out in five
25:06minutes over there it's half an hour in
25:08lines and parking lots and everything
25:10and I can beat this guy with the
25:12knowledge I have that's an honor but for
25:14that my salary roll down 20% I have to
25:17cut my vacation for two years reinvest
25:19in the business and then compete with
25:21them failure is not an option
25:23that's the difference between an owner
25:24and an executive so ownerships key other
25:32things that we have in our culture that
25:34are very important that people like you
25:35love the whole idea of healthy
25:39dissatisfaction you're gonna do
25:41something that's best in class best gets
25:43defined redefined everyday so as long as
25:47you get to a threshold yes or celebrate
25:50you know how you're celebrating our
25:51company when we reach a threshold a
25:54milestone you say yeah that's great okay
25:57next that's it because the moment you
26:01get so convinced that you're the best
26:03and that you've got there and that's it
26:05that's the beginning the end that's why
26:08that thing that dream big but stay
26:10humble the other thing is face the
26:14brutal facts consumers face the brutal
26:18facts when consumers go with their
26:21wallets to buy products beer
26:24they give me a message every day of who
26:28they don't they don't you know sugarcoat
26:33they face reality why shouldn't we in
26:37the company not face reality
26:39why should we have the feel-good
26:40department open you need to face reality
26:44what's working let's do more of it
26:46what's not working let's not let's
26:48change let's call it the problem let's
26:50call it a gap a gap that we need to
26:52close another thing is focus on results
26:57that's another thing that average
26:59companies get confused look at this in a
27:04company what you should reward is
27:06results not efforts efforts you
27:10recognize you acknowledge it's important
27:13for career progression and yes normally
27:18great results can't come with great
27:21efforts but not necessarily the truth is
27:24the same companies when they go buy
27:27their products they don't buy efforts
27:30they buy results can you imagine you put
27:32a package on the shelf saying well this
27:34is the this is a package that represents
27:37six months of effort from this team you
27:39know we work really 24/7 guys it was
27:41amazing you know we did all this we
27:43didn't get anywhere but this is the
27:45final product of our effort consumers
27:50don't buy that they buy results and
27:52that's very hard because some companies
27:55that don't have results they stoop a
27:57bonus they still celebrate and that's
28:00again beginning of the end leaders
28:03celebrate when they have what to
28:05celebrate they call it the problem in a
28:07gap when there is a gap and they
28:09recognize and acknowledge effort but
28:13so think about means and ends what
28:16sqeeze ends means they're only good if
28:18they get you to the end faster quick or
28:20cheaper they need to exist otherwise the
28:23ends are not replicable but means by
28:26no it's about ends your the things that
28:32stay lean a leader of a high-performance
28:36company is always worried about staying
28:39just like my life stay healthy because
28:42when you're lean in situations are good
28:45but when situation turns bad like 2008
28:48and you're lean you have more of a
28:50condition to survive first and to
28:53compete and to take advantage the best
28:56deals we've done as a company was in
28:58countries that were having issues and a
29:01lot of foreigners were leaving we're
29:02coming in not because we're mattress or
29:05anything but because we take a long term
29:08view of the business and we say okay
29:11it's up but I'll have ups and downs and
29:14that country's having it down here a bad
29:17year but that country the fundamentals
29:19are there not changed because of a bad
29:21year so let's go in in the last thing
29:29before I open for Q&A is that no
29:31shortcuts that's very key to keep a
29:36culture that works and instills high
29:40performance and supports the big dream
29:42and supports great people to come and
29:45stay I once interviewed Jim Collins who
29:49used to be a professor here we're very
29:50connected to him as a company and I
29:52interviewed him and I asked him if your
29:55book good to great is a recipe book on
29:57how companies based on research not your
29:59go from good to great how come so many
30:02companies don't read the book and just
30:04like a cake or you know do it you know
30:06and he said Britta according to my
30:09research most companies start with good
30:11intentions but then because they are in
30:14executives professionals not owners
30:17they're in a hurry they jump stages so
30:22instead of developing their own people
30:23they hire from the market we're
30:26developing people from within we like to
30:29get people like you to join us
30:30undergrad to join us and yes takes five
30:33seven years to get somebody to be really
30:36up to that level that you need but then
30:39that person is part of the group is that
30:42engaged group of owners not that selfish
30:44bunch of executives and professionals
30:46trying to build a resume we hate that
30:51when I go to talk to two people like
30:53huge students there's one thing that all
30:56my colleagues hate when I say but I'm
30:57gonna say it as a leader I cannot
31:02promise fun in my company and then
31:06everybody leaves the other tour I'm not
31:10a native speaker as you can see I'm
31:12Brazilian so fun for me has always been
31:15a word in English that I quite did not
31:16understand because fun for me is being
31:19at the beach with my kids that's fun but
31:24in the company expects much more than
31:26fun I cannot promise fun hundreds at a
31:29time because one of the things that the
31:31leader should do to get performance is
31:33to put pressure in the system will work
31:36much better than the pressure think
31:39about the condemned --ax when you have
31:40an exam pressure you perform you study
31:44you cramp everything you go there you
31:45focus you do it the best you can you
31:48have ahead of you there right I can
31:54promise fashion which ramiz is much more
31:56boring than fun compromise development
31:58growth learning be excited that's what I
32:04can promise dynamic leap frogging steps
32:08and career funny yes when we achieved
32:12results back and I promise 100% of time
32:16other companies promise that and yes
32:19they become an average company because
32:21if you go to a place where you have fun
32:22all the time there's no pressure and
32:23without pressure there's no performance
32:26we all perform under pressure much
32:29better so the whole thing about no
32:32shortcuts is this it takes a long time
32:35to build a great company only owners can
32:39do it professionals cannot do it and
32:41I'll be right you to think about those
32:43things let me open up for questions
33:01all right we'll wash some audience here
33:07hi mr. Brito my name is Miho thanks
33:09first of all thanks for sharing with us
33:11your thoughts my question is in regards
33:14to how do you actually ensure that your
33:16company and the people there in the
33:18company live by those principles day in
33:20day out you know how do you make sure
33:22that they did not become complacent and
33:24they understand the principles but then
33:26at some point they kind of you know like
33:27fall short and and you know did not
33:29follow them well because of I travel a
33:32lot so do my other leaders in the
33:34company we have targets that are
33:36stretched targets you know that really
33:39put pressure on people and people that
33:41don't really like that they can put up
33:43with that for one year or two years and
33:45then at some point they saying what I
33:47never found anybody who said if you're
33:50trying to build as a leader a high
33:52performance company those things are
33:54wrong never met anybody like that in all
33:57the acquisitions and things we did but
34:00I've met people that said you know what
34:02given this stage of my life and my other
34:04interests I'm not willing to do it
34:06the same thing as a maritime high drug I
34:09don't run marathons because I'm not
34:12willing to put up the training that time
34:14you know I don't want to do it you know
34:17so I drug I don't run marathons we're
34:20looking for the guys that run marathons
34:21and some guys are joggers and it's fine
34:25but not here so when we go recruit an
34:28interview we try to be very clear about
34:30what we do about about how we do things
34:33then much more than what we do so people
34:36understand that they're joining a group
34:37of people that are trying to do
34:39something that's best-in-class it will
34:41we have many gaps that's why we need
34:43people like you to join us and help us
34:45close those gaps so we can open the next
34:47gap but that's the direction that's the
34:50the power of a dream yes question here
35:08okay one thing I forgot to say is that
35:11the best way to develop people within
35:13the company then I'll go back to your
35:14question is to get them constantly out
35:18of their comfort zone
35:19all of us will grow big time once we get
35:22taken out of our comfort zone
35:24some companies you enter finest you go
35:27all the way your career in finest and
35:29your company's exact just like when you
35:32came to the just be a now to your
35:34question when I came to GSB I came from
35:37Brazil where I was the top student in
35:39every place I went to you know my high
35:42school my engineering school I was
35:44always the top five top ten
35:46I came to the GSB I was average okay
35:49I was average and I was like oh my god
35:52that was important to me because it
35:55opened the gap to me my gap was closed
35:58because I said you know what here or him
36:01the screws I go and I went to the best
36:02schools in my country
36:04I was stopped I was not looking hard
36:08enough I think I did when I decided to
36:10come to decided to apply at least to
36:12just be and they accepted me but that
36:14opened the gap to me
36:15and I said man the world is much
36:17different than I thought it was so GSP
36:19helps help me big time on that second
36:22thing it helped me is the idea of
36:24excellence I think here every trying
36:27everybody's trying from the faculty to
36:29the students to do something that's
36:30excellence that's best-in-class in
36:33companies that you guys are starting
36:35ideas discussion groups I mean here you
36:39have Nobel Prize Nobel Prize winners
36:41teaching you I mean you know you come
36:44with this idea that good is not good
36:45enough it's it gotta be excellent
36:47because it can be okay so and the third
36:52thing is the power of ideas that's also
36:54something I didn't know this idea that
36:56when you have a powerful idea you can
36:58get people to really come with you and
37:00you can get a group to do much more than
37:03they thought they could because you had
37:05this powerful vision powerful idea and I
37:08think here Business School
37:09exposed to many of them so really opened
37:11my gap big time and I never looked back
37:14I'm still trying to close that gap by
37:16the way and I was like very lucky that I
37:18was here in 1989 1987 because if I were
37:20to apply it today I'm pretty sure I
37:22wouldn't be here like you are so the up
37:24to game big time here - hi my name is
37:27Rachel thank you so much you talked
37:29about yourself to companies right here
37:32okay you talked about looking at
37:35companies and other industries that are
37:37better than you guys are whether it be
37:39at legal marketing supply chain could
37:41you give us some examples of the
37:42companies that you're trying to learn
37:43from hmm in the old days when we're
37:48trying or our people compensation system
37:52will look a lot about a lot because of
37:54the partnership structure
37:56we'll look we look at companies like
37:58Goldman Sachs 20 years ago when there
38:00was - a private partnership not today a
38:03public company in those days they had a
38:05lot of the things that we learned from
38:07in terms of being frugal you know be
38:11very cost conscious because we are
38:13because mine is so hard to make that we
38:15try to tell our people guys let's spend
38:17money and a very careful way because
38:19very hard to make money in the first
38:20place and if we're here all working for
38:23the consumer let's see what's important
38:25for him are and everything else is up
38:28so if ABCD is what they really pay a
38:32premium for buy more off get more
38:35loyalty will get more Wildtree from them
38:37let's do more this and the non-working
38:40money let's question so Walmart was a
38:43big inspiration then Pepsi the whole
38:47thing about leadership we learned a lot
38:49about Pepsi so just three examples of in
38:52the old days when we're putting this
38:53stuff together companies that we look
38:55for for for hints by the way our company
39:01is a collection of things we copied from
39:02everybody we didn't create anything and
39:06we're very proud of that by the way we
39:09copy with pride the only thing we did a
39:13little twist wasn't the people side
39:15because we thought was so important in
39:18our culture in some way so unique that
39:22twisting everything we just copied and
39:25I've been in the company since the very
39:27beginning so I can pretty much in sales
39:29where I spend most of my time tell you
39:31everything all the best practice we have
39:33and the frameworks we use from which
39:35company which year in that visit that we
39:38saw that thing that we copied that we
39:40got the manual that we adapted to our
39:42situation so we copy everything but on
39:45people we try to invest much more time
39:48than the average company would do or
39:50even this companies that we visited and
39:52especially on the routine how can we
39:54build a place where these people love
39:56and will stay that's my number one
39:59priority another question here I think
40:15it's by by by staying humble I don't
40:17know if I understood your question
40:18correctly so you're saying how do you
40:20avoid as you grow to go over pain oh
40:27good I mean we have a toolkit we have a
40:30toolkit of things that are developed
40:32along the way because we've done many
40:35acquisitions but if you look at
40:36transnational you know different
40:39continents six and every time in the
40:41last ten years and every time we we get
40:44more tools than that toolkit so what we
40:46do is that we have a clue because we'd
40:48be very lucky that we've been acquiring
40:49things that's in our own industry so you
40:52have a whole bunch of metrics that you
40:54come and you say okay that's what's
40:55expected from this business it's not a
40:57diversification type business that you
40:59go into total different business you can
41:02get hurt so we go and we say okay this
41:05is the way this business should be run
41:06so therefore these are the synergies
41:08that should be there lots of things in
41:11procurement lots of things on
41:13duplication of structures because we
41:16have the the global teams that can do
41:18things that the standalone company had
41:20to do themselves so and we'd put a limit
41:24we're very disciplined you only know of
41:26the things we did but there are many
41:28things that we passed that we said no no
41:30it's beyond our limit our you know what
41:35and there's no better to be creative how
41:37RIT was never too big to be big was to
41:41be best in what we're doing and we'll
41:43never get there because best is one of
41:45those things that keeps getting rid to
41:46find every day it's a neverending story
41:48that's why every three years we do a KPI
41:51of the dream their dream is to be the
41:54best in what we do but because that will
41:56never we'll never get there every three
41:57years we'll say if we were to continue
41:59along this journey and given the
42:01situation competitive or because we
42:03acquired this company and isn't that for
42:04the next three years this is a subtle
42:06KPI KPI s' indicators that will orient
42:11us and then once you achieve those
42:12sometimes we achieve earlier sometimes
42:15takes another year never endure the way
42:17you planned it it's always because
42:19things change but the target remains
42:21then when your chief is said okay now
42:23for the next three years what are the
42:25next things that we'll be sure that
42:27we'll continue to be on that path
42:28because you'll never get there because
42:30it keeps getting rid of fine another
42:33question yes hi first of all thank you
42:37for the wisdom it's wonderful wonderful
42:40thoughts I really appreciate it I'm
42:41interested in the one company one
42:43culture idea especially as you're
42:46crossing borders with companies that are
42:48hundreds of years old I mean they a good
42:50question they are very proud of their
42:52legacy and their history and the culture
42:54that built it and yet you're saying that
42:57was wonderful now you're belong to us
42:59assimilate to the board or or what so
43:02I'm learning about turnover I'm
43:03wondering about how you retain that now
43:04your question very good question and
43:06that's that let's key guys because
43:09that's where a lot of people get
43:11distracted there are two things you have
43:13the national culture of countries of
43:16regions and you have the company culture
43:19two different things we don't want to
43:23change the national culture we can't do
43:25it and the beauty of the world is that
43:27people are different so you go to China
43:28they dress differently their past time
43:30is different their food is different
43:32they have landmarks that are different
43:34that's so beautiful then you go to India
43:36you go to Brazil go to Belgium go to
43:38Germany you go to Canada go to the US
43:39even in the same country different
43:41regions that's all beautiful and that's
43:43why the world is so interesting one
43:46thing we said from the very beginning is
43:48that if you join our company
43:49that's we called the ten principles 102
43:53on people 7 on culture 10 in good and
43:57bad times they don't change those are
44:00the principles so if you like them great
44:02we're not gonna change them and that
44:04causes turnover yes but fine because it
44:08takes 20 years 30 years a lifetime to
44:10get the fabric to to be one a strong one
44:14and it can destroy that by studying
44:16being flexible and starting believing
44:18things you go to Korea and people say oh
44:22no every printer here is different
44:23there's all idea of targets and
44:25compensation for example tell you when
44:28we came to the US because we believed in
44:30the ownership our long-term incentive
44:33okay its five-year vest so for you to do
44:36that get the shares it's a five-year
44:38vesting period the company we acquired
44:42in the US was three years
44:44given that the one-third would rest in
44:47the first year the second third in the
44:49second the third and the third you said
44:51that's that short term that's not long
44:54term call it something else if you're
44:56gonna be here for 30 years what's five
44:57years ours is five sometimes ten years
45:00cliff so if you live four years 11
45:04months zero it's five years and a lot of
45:08people left because of that for example
45:10I travel commercial and yes because I
45:14travel to Russia China India and all
45:16that it in a way one could picture as a
45:20but that's important for the culture
45:23because then when I ask her people guys
45:25we're in a tough year we need you guys
45:27to to buckle up and to really stretch
45:31things and really give your best because
45:33it's a tough year and find non-working
45:34money so we can invest behind the work
45:36your money I can say it because they
45:39travel commercial I stay in the same
45:40hotel as everybody stays they stay in
45:42the same hotels all I do I eat the same
45:44thing they eat everything is the same I
45:46need more money than they do
45:48we're not socialists
45:54okay no but on the silly things we hate
45:58anything that's the status symbol
46:01we think that destroys the whole idea of
46:03a group and engage group so I don't have
46:06a company car I don't have a driver I
46:08don't have an office I don't have a jet
46:10I'm just like all my colleagues and yes
46:13it takes at all but it's worth for the
46:16culture which is much bigger and the
46:18culture is the one that gives us the
46:19performance which I'm here for then it's
46:22a full circle but again this idea of
46:24national culture so what Japan is
46:27different but if you Japanese call it
46:29want to join a company you have to buy
46:31into this concepts and by the way what
46:34we say is that you have to have a big
46:35dream surround yourself with the best
46:37people can find and create an
46:38environment where they stay look at Mike
46:41Phelps he had the same idea he wanted to
46:44have a gold medals why eight all of us
46:46would be happy with one you want a late
46:49dream he surrounded himself with the
46:52best people he could find coaches
46:54exercise people everything in he own the
46:57process here's one being forced to do it
47:00he was doing this and during his
47:02birthday Christmas Day New Year's
47:03because you wanted so the prince was
47:08apply to any good student here at the
47:09GSP to any good athlete and we believe
47:13to the company too so we're not asking
47:15anything that's out of the ordinary it's
47:16all common sense but because it's common
47:19sense people don't talk about it they
47:20take it for granted and that's why it
47:22doesn't work that's diluted so one
47:25company one culture never buy to the
47:27situation oh no here it doesn't work
47:30no no we've tried before trust me it
47:32doesn't work don't buy it because then
47:35if cultures to do a performance and you
47:37dilute it your performance will suffer
47:39and as a leader again you're there to
47:41generate results with the people do it
47:44the right way another question last
47:47question I'm a second year MBA student
47:49my name is Alex thank you for coming I
47:51want to say here at the GSB we're big
47:53consumers of your products so thank you
48:00that said that's and I've included in
48:03that but that said I don't want to
48:05ignore all the harm that alcohol does
48:08call does cause in the world it is a
48:10drug and a harmful one at that Harvard
48:13just released a 75 year longitudinal
48:15study citing alcohol as the primary
48:18factor for relating to unhappiness and
48:21in life and I want to ask you how you
48:24deal with the implication the ethical
48:27implications of your question running
48:30this up anyway good question first I
48:32think any product is engineered and
48:35thought for something and then people
48:37can always misuse it think about cars
48:40how many accidents are on the roads and
48:43cars were thought to be what means of
48:47transportation to go from A to B but
48:49some people use it as a racing track as
48:51a racing thing think about
48:55pharmaceuticals drugs think about
48:58tylenol in some countries you cannot
49:02sell pollen all in the way it's sell
49:04here in the US because if you take 20
49:07you kill yourself because your liver
49:11stops but the guy inside of tylenol was
49:15for a headache for a back pain but if
49:17you take 20 you die of course the same
49:20thing the same way there studies proving
49:22what you said there are many studies
49:24that says including many countries
49:26alcohol is part of the healthy diet that
49:30governments tell people they should do
49:33nobody's saying you should start if you
49:35don't drink it but if you drink it in
49:37moderation that's good for many things
49:39governments say that so again we are
49:43against misuse of alcohol and we've been
49:46working I remember in Brazil 15 years
49:48ago we gave breathalyzers to the Highway
49:52Patrol because they didn't have the
49:54money to buy it and I remember being
49:56interviewed in the press and people say
49:57in a Brit oh you want to sell more beer
49:59and you give breathalyzers to people -
50:02you know - the Highway Patrol how does
50:04that connect and I say look at our per
50:08capita consumption here compared to
50:11those other countries have a higher per
50:13capita consumption but they do it rights
50:15and the accidents are way lower compared
50:18to ours so there's a clear opportunity
50:20here to designate a driver to use it in
50:25moderation to use more cab services and
50:28with support of all that for example if
50:30you go to a music event of ours today
50:32anywhere in the world and you drive and
50:34at the end you had two or three beers
50:37and you don't feel like driving back
50:38we'll provide your free parking with
50:41security transportation and you can come
50:44the next day and get your car again I'm
50:46not saying with perfect guys
50:47I'm just saying all industries have
50:50harmed for use okay I'm just saying as
50:53an industry we've always said we don't
50:55need that and we tried to partners with
50:57people that can enforce the laws because
50:59we can't so they have the means to go
51:02after people that are doing that on the
51:05other hand a B the company were acquired
51:08here has been a visionary on that has
51:10been working on responsible drinking
51:12since the eighties and government
51:14statistics in the u.s. say government
51:16statistics not ours they've been
51:18measuring for 30 years
51:19they say that drink and drive access in
51:21the US are at an all-time low
51:24in underage drinking all-time low
51:27their statistics pick why because what
51:30works is education and targeted
51:33intervention it's not increasing taxes
51:35restricting distributions because the
51:37moment you do do this you create a grey
51:40market so the way to do it like anything
51:43driving how do you teach your kid to
51:45drive I mean you take the kid you know
51:47it this is not a racing track this thing
51:50gets caught you can kill people and then
51:52maybe you have a kid that will be
51:54responsible I'll cause the same thing
51:56drugs the same thing you know time
51:59anything so I think anything can have a
52:01misuse can be misused but our business
52:05is mostly based on the way it was
52:07thought to get people together
52:09can you imagine celebration at least in
52:11our culture without an alcoholic
52:13beverage or food that was an ad by a B
52:17in the 80s where there was a graduation
52:18party and everybody was celebrating with
52:23if everybody was slowly brain we care
52:24it's okay graduate it's alright don't
52:26get that's toast and then Huck Huck
52:29well let's celebrate now that we
52:31graduated from Stanford Business School
52:33let's have water everybody will have
52:34water or juice can't imagine that no so
52:38that's what we're for
52:40that's how beer was created but yes just
52:43like automobiles just like farming
52:45industry some people luckily I might
52:47already will use it in strange ways and
52:49we're totally against it and if I have
52:52more time I can explain
52:53we're actually actually a report that's
52:56online saying of all the initiatives
52:58that we do and you can all say can do
53:00more always we can do more but you know
53:03at least we have a position in we're
53:05doing things thank you very much
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