On Monday we talked about Agatha: 30 years in fashion and Tuesday Tous: the fusion of jewelry and fashion. Since we are in this sector, today I want to talk about Valentino , business and haute couture designer who once said: Everybody asks me about the future of haute couture, and I always reply that will never disappear because it is so important. Yes, it's not like before. I remember there were customers who ordered 30 models at once. Now, if someone in charge five, is actually a billionaire. It's different, but high fashion is such a beautiful sight that will never end. " also some time ago I was with Michele Norsa , CEO of the company by then and right hand in the management Valentino . He was booked when the company went through a bad time, because high fashion firms have always been focused on building management aside. also why he was born a few years ago ISEM Fashion Business School, which Covadonga O'Shea is President with whom I could also talk in the wake of his book So Amancio Ortega: The man who created and Zara already realized here
I leave the interview with Michele Norsa, Valentino CEO would sign shortly after by Salvatore Ferragamo, another Italian firm reference. That interview was titled: "Michele Norsa, Valentino's business face."
ALCAIDE FRANCISCO: Valentino is a company which in 2002 was in the red and now makes a profit, despite the delicate situation was going through at that time and the environment not conducive to luxury brands. What are the pillars of this administration to succeed? MICHELE
NORSAR: When we started to prepare the strategic plan Valentino knew very well the company and the moment that passed through the market. We left a difficult situation after the attacks on the twin towers of the World Trade Center and on the other hand, the luxury market began to slow after a decade of strong growth. Therefore, the first thing we did was design a strategic plan that would respect the laws of the market with a conservative risk profile. Competition, however, began ambitious expansion plans with the opening of many stores, large and in many places they have been unable to capitalize. Even today there are brands such as Yves Saint Laurent continuing losses.
The second aspect is more important than planning is execution. Most businesses have good strategic plans, including Valentino before you buy us, but the key is having the right people to run as planned. This requires that there is a strong permanent tension. When I came to the company people would come at ten o'clock in the morning and I began to convene meetings at seven o'clock. Some executives left because they could not keep up.
was also important to reduce costs, but always smart, high fashion because there are elements of image and communication can not be neglected. It tried to find a more efficient organizational structure without damaging the brand image.
FA: Many managers we confess that the organizations they admire most are characterized by their culture, this group of values, principles and beliefs that are implicit in the organization who are a potent regulator of behavior people. What are the values \u200b\u200bbehind is the corporate culture of Valentino Fashion Group?
MN: Strong results orientation at all levels, something that has not been customary fashion industry and is changing the way we work. Most people were not accustomed to working on a budget. A parade would cost between 500,000 to 700,000 euros, but increased by 20% at the last minute because they asked for four more models, other lights or a dog. Now I have no need to talk, the structure knows that it must operate within budget and that is why you can not go. Something similar happened with the gifts. When I entered had lost $ 350,000 in dresses that had disappeared. Are given to the actresses, not returned, etc.. Now things are different. The other day I called because Valentino wanted to give a dress a princess future queen, and there was, but always in control and sense. Another aspect to highlight about our culture is very entrepreneurial attitude by everyone. What we lack, however, is working better together. This strong focus on results has led to a big competition.
FA: He said once that "Valentino is 50% creativity and 50% business management." It is not always easy to reconcile the two variables. If I had to choose, would opt for a good product or good management?
MN: When we bought the company with the creativity of Valentino was very good, but overly dependent on him and the company was not working. Today the organization operates and about Valentino, there are 45 people working in the creative end. This has two consequences. First, Valentino works more liberated and can create more and better quality. Second, the final consumer buys products in which the image is Valentino, but many people involved in the process of creation.
FA: You said: "This is a very complex business and it cost us a lot of work to find people trained to handle it. We have a serious problem of lack of management. The sector requires many specific skills and flexibility. " Why should this shortfall and what are the competencies and skills in demand?
MN: In the world of fashion in the last twenty years there has been a substantial change. We've gone from a business model in which the operator did everything (drawing, design shop ...) to a more complex business model with diversified functions. Luxury fashion, retail, direct store, represent over 50% of sales as a direct channel, however, there is little experience in senior management because companies who have experience in retail are other lower level, while in the luxury sector is more recent history and plenty of people who have that expertise. In addition, globalization is a reality in this sector. Previously, luxury fashion was addressed to the United States, major European economies and Japan. We have gone from selling in 15-20 markets to sell at 70-80, and new markets are a totally different issue. Working with Russians, Arabs and Asians is different from working with cultures that are more accustomed, and there are few people who know these markets, which speaks several languages \u200b\u200band have great flexibility.
FA: According to JP Kotter, a Harvard professor, "only 20% of the current directors who manage the companies have talented leaders," and other papers, said that "if companies have the opportunity again, again only recruit 62% of their managers. " After a long career in senior management and an industry as complicated. What are the most important qualities to be met by a manager-leader?
MN: That's interesting. In our group we have people with great technical competence but lack leadership skills. I think this is related with the lifestyles of each individual. There are many people who think something interesting work, have a great professional, but do not want you to eat a too much of his life. However, in positions requiring a much stronger commitment. I on Saturday or Sunday call people at any time. This has a double meaning: it is a form of pressure, but also a form of attention. Leadership in business and, especially, in situations of tension, stress, high growth and losses, it is essential to generate power on the computer because it shrinks to the difficulties
FA: What is the most difficult to occupy positions of responsibility?
MN: The loneliness. On the one hand, the CEO of a company has a limited relationship with shareholders, and secondly, if you have a company in a situation of tension is difficult to have an open exchange with partners, so that ultimately you have to take decisions and face the problems alone, and that adds greater psychological pressure.
FA: Before you told us that the implementation of a strategic plan is more important than the plan itself, in fact, some studies show that only 10% of the strategies are implemented successfully. What are the guidelines for implementing a strategic plan to be effective?
MN: When you design a strategic plan needs the resources and autonomy to carry it out quickly and a decision-making. Any plan to run poorly or run well, but slowly, fails. Running time is very important. On the other hand, the power means to have autonomy to manage an organization. The limits on the company should be but always respecting the autonomy of the manager. For example, the investment I can make is a clear boundary, but if I make that investment all in one month or at different times of the year is a decision that I I can run independently. Take swift decisions without a lengthy formal process helps tremendously to the results of the company. A decision process that dilate much is a symptom of lack of power steering and is a significant weakness.
FA: Peter F. Drucker said that "60 percent of business problems are the result of miscommunication." What is your opinion?
MN: I totally agree. One of the key is communication Valentino. Communication is a two-edged sword because they often made mistakes, misunderstandings, etc, but with a highly qualified consumer is important for the evolution of the brand comes to market. There are brands that evolve and others regress, there are brands that age and other rejuvenating, and this is communicated through advertising and, above all, with the products. With regard to internal communication I think we have to improve. We have focused more on external communication and we have forgotten a bit of internal communication. In large companies internal communication is quite limited.
FA: Michael Porter said: "75% of companies do not have a strategy and simply copy their competitors. If all pursue the same objective, the companies end to resemble more and then the customer choose based on price. Success does not happen to be the best but be different. "Do companies that innovate and simply copy will not survive long term?
MN: In the case of luxury brands is one of the most differential between them and other firms. At the product level is a continuous innovation. I think there is possibility to copy, and I think intelligent, commercial strategies and market, because we must try to be unique but never make strategic decisions upstream. If all large firms have a store on Calle Ortega y Gasset makes no sense to open it in Velázquez. What is important is to have a benchmark with which to compare yourself to, for example, Valentino is Chanel, a brand with similar prices and similar market penetration. This helps me do things similar or different but always with a reference. There are small companies trying to innovate and fail completely, because there are strategies that must be respected and you can not leave, in addition, globalization of the world to do things in a certain order, the luxury consumers often go to certain areas of the world for reasons of branding, security, environment, and you can not try to move to other areas.
FA: What do you value when to select its employees?
MN: Right now what I value most is the open-mindedness, people open to the markets, systems and the world to try to have the best knowledge of competitors, business, everything in general, and two commitment to the project as if it were a part of his personal life. Often lack love and passion in what you do and that involves personal sacrifice. If you work a lot but no taste, work activity becomes a burden and the result is suffering.
FA: To Michele finish. Tell us a sentence or a quote that reflects your philosophy of life.
MN: One of Winston Churchill: "I realize that if I get up very early in the morning, work all day and go to bed late, luck is with me."
* To see the full story at: Michele Norsa: Valentino face business.
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