Tricks of the Trade of the Erasmus Generation of Managers

Cristina Scocchia has a sky-blue glance that betrays clear ideas about where she wants go in order to reach her professional objectives. Born in San Remo 42 years ago, she moved to Milan to attend Bocconi, then lived in Rome, Geneva, Paris, before returning to Milan in 2014 to become CEO of L'Oreal Italy. A career built almost entirely abroad, like her peers of the Erasmus generation, which gave her the right mindset to make the Italian division profitable again for the French cosmetics group, which in 2015 recorded a total turnover of €25.3 billion.

Cristina Scocchia knows how to move with with the ease of an orchestra conductor in the complexity of divisions that characterize the company, from luxury to professional markets, from consumer products to the emerging sector of cosmeceuticals. She has recently taken a role in Confindustria with the position of vice president of Cosmetica Italia. She is also member of the board of Assolombarda and since 2015 is part of Luxottica's board of adminstration.

What does it mean to be a woman at the head of the Italian division of a large transnational?
I think that there are no female or male leadership roles. What counts is character and commitment. I was lucky. I worked in companies that valued talent above prejudice. In my experience, merit was earned for qualities unrelated to being a woman, to being young or Italian.

If there are no gender differences in corporate leadership, are there generational differences, for example concerning today's fortysomethings running companies with respect to their forebears?
Leadership is not a matter of age but mentality, although it is undeniable that my generation tends to have a different management style, if only for the fact it has formed more recently, with different stimuli and models.

Can you give us some examples?
To begin with, we have a certain predisposition towards participatory leadership: the top-down model has been definitely shelved in favor of the active involvement of a managerial team. As a result there has been a change of course also regarding interpersonal relationships within companies, where control over employees has been increasingly abandoned in favor of relationships based on exchange and trust. Also, we have greater confidence with digital culture, which today permeates all aspects of the work process, not simply communication. My generation is able to use these tools in a leaner way and better exploit their potential.

How important are experiences abroad?
Very important. My generation is open to the world in a way that was not true for those that preceded us. During our university years, we had more opportunities to develop international experience. We truly are citizens of the world.

Does talent help in professional success?
It should be its basis. But I always say that talent is equally distributed between men and women, while opportunity is not. On this premise L'Oréal has established the For Women in Science award, given to women researchers under 35 who have distinguished themselves on the field. It is a recognition given to all areas of science, not necessarily cosmetic research. With this initiative we try to help bring attention to young women scientists because they can be good role models, so as to encourage girls to undertake scientific studies and encourage them to pursue their ambitions in science.

How do you reconcile profitability with creativity?
For us, creativity means innovation in process, product and communication. I believe that innovation is the essential competitive advantage. It's the only way you can win over consumers and therefore boost sales and earnings to respond adequately to financial markets' expectations.

How much do you invest in innovation?
In 2014, L'Oréal Group invested over €760 million, 3.4% of its global turnover, in research and thus innovation. Proof of this effort are the over 500 patents that have been filed.

What kind of situation did you find at L'Oreal Italy when you were appointed CEO in early 2014? After two years, which objectives have been reached?
Those between 2009 and 2013 were difficult years, marked by red ink. My job was to bring the accounts back in the black. Conversely, 2014 and 2015 were the years of the turnaround: we returned to growth in sales and profits, but above all in market share, which represents the best indicator of a company's competitiveness.

What kind of tools did you employ to achieve these results?
First we put consumers at the center of our strategy, in some cases improving the value for money proposition, in others working on product image and communication. Then we focused on brands and key products in order not to waste resources: we have suspended five non-performing brands and simplified our assortments to invest on iconic products and our most important innovations. We also simplified our structures, processes and the organization of work to free up resources that could be reinvested to boost growth. We have also invested in long-term partnerships with our customers in the supermarket, perfumery, pharmacy, hairdresser retail channels. Finally, through the increased use of digital technology, we have modernized the way we work and renewed our channels of interaction with consumers.

YSL and Garnier, to name just two of the brands owned by L'Oreal Group, are so different in terms of history, values, market segment and positioning: how do you communicate the identity of each brand, but also the fact they belong to the same group?
Having a portfolio of brands that are so diverse and complementary is one of our strengths. We have 28 brands that are positioned in a very distinctive way, and this allows us to reach very different socio-demographic segments and psychological/behavioral profiles. What's essential for us is to represent each of these brands in a specific fashion, to help consumers to live them fully.

When you started working, where did you dream you would arrive?
I dreamed of holding the very same position I have today. I feel fortunate to have been able to fulfill my professional goals.

And fifteen years from now, where do you see yourself?
Today I'm very focused on what I'm doing. It's an interesting and exciting challenge. I wouldn't be able to predict what the future holds in store for me; we'll see.