are interfering in details, but do not have the courage to
replace the CEO.
You have served on various boards, including large
family business boards in emerging markets. Can
you share your views and lessons learned in private
family-owned entities? How and why are they different
from publicly listed companies? What are the most
important elements that a non-family non-executive
director can bring to the table in such a company?
Private family-owned businesses usually have a natural
long-term focus. They often think from the perspective
of generations. They are very often less bureaucratic and
more flexible than big companies. However, one of the
biggest challenges they face is how to best pass business
on to the next generation. Sometimes they simply lack
good succession plans, generating severe problems
when the next generation is not willing or able to run the
business in the same way. Spotting the weaknesses is a
difficult task when considering the next generation to
take over. The family members should have a preference,
however, only on the basis of merit and on their equal
competence with other candidates.
If I would have a say in preparing the legislation for the
family businesses around the world, there would be
obligatory institution of family councils! They should
enable families to speak with one voice and deal with
the critical issues such as succession, family employment
policy, dividend and other family governance issues. If
families do not realize the need for that they, as families
as well as businesses, sooner or later will start suffering.
There is a saying that “culture eats strategy for
breakfast”. How do cultures affect the functioning of
a multinational corporation? And vice versa – how do
large international corporations affect local cultures?
International corporations have to accept different
mentalities and cultures in different areas of the world.
This goes without saying. One has to develop a corporate
culture which is designed in the way that it does not
violate different cultures and mentalities.
However, as an international corporation, you need to
remember where you are coming from, where your nest
is, what your values are, and what you stand for.
Nestlé endeavors to integrate itself into the cultures
and traditions where it is present, while staying true
to the company’s core values and principles. This
entrepreneurial culture of Nestle is based on hard work
as well as on engaged, ethical and broad (not narrow)
thinking. These values have always been essential
and embracing the Nestle culture means working in
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an international environment and accepting different
cultural origins.
In large international corporations, such as Nestle, with
hundreds of companies around the world –how should
the CEO approach the issue of Subsidiary governance?
It all starts with leadership. You have to build the credibility
as the leader who has confidence in the company. You
need to establish open communication, treat people fairly,
build long term relationships and care about the long
term image. As a leader, you are constantly dealing with
change and people have to trust you in order to follow
you on that path. Equally important it is to know that you
cannot do everything on your own. In a big company you
select and work with some 300 people. They have to be
very good, not just professionally but also based on their
character and personalities. They are essential for the
implementation of the strategic issues in the right way
and establishing loyalty to the organization.
One of your crucial tasks as a leader of a large organization
is to work every day on developing human potential around
you. One of my important principles was – I delegate and
decentralize a lot of things; however that does not mean
I am not interested in those things anymore. Delegation
without following up and assessment of the results of
delegation is often useless.
Another principle I have used regularly was not to
interfere if things didn’t work; I have rather replaced the
incompetent managers.
Of course you need to develop a sense for the people and
problems. You simply cannot only rely on reports you
get on your table. Two thirds of my time I was always on
the move, all over the world, covering our operations.
Employees, business partners, other stakeholder have
to see and feel your presence. Without being able to
understand the business and make your own judgments,
you are lost. People will always try to tell you how good
and indispensable they are. After a while you develop the
knowledge and instincts that while you walk through the
factory and observe people, you learn all you need about
the results and capabilities of the managers.
You have also played a significant role outside
Nestle. Can you describe your role just within two
organizations – International Chamber of Commerce
and World Economic Forum? What is your view today
on both mentioned organizations?
First of all, I would like to emphasize that today’s topmanagement, beyond mere corporate social responsibility,
also has to become active in international organizations
and associations. Otherwise the business will not play
Interview with Dr. Helmut Maucher
Article by Leonardo Peklar
9/19/13 10:07 AM