What will happen in Conad after the dismissal of Pugliese
After Francesco Pugliese's exit, the 5 Conad cooperatives find themselves at a crossroads. Staying together, convinced and united to continue to grow, or each one going on his own as in a normal central or super central purchasing office. The in-depth study by Mario Sassi, author of Blog-Notes on work
Pappagone, the famous television personality of the 60s born from the imagination of Peppino de Filippo, would have asked himself in front of the crossroads that Conad has to face today after the exit of Francesco Pugliese whether it is better to be "linked or scattered". All together, convinced and united to continue to grow, or each on his own as in a normal central or super central purchasing body, albeit of a cooperative nature, regulated by a formal façade unity. If I had to give (unsolicited) advice to the leaders of the 5 Conad cooperatives and their President, I would suggest starting from here.
CONAD'S NEW PHASE IN THE POST ACQUISITION OF AUCHAN
In the affair involving Conad, following the acquisition of Auchan, several direct or indirect protagonists preferred not to hear the referee's whistle signaling the end of that match and the start of a new phase. In any case, due to its protagonists, dimension and economic and social dynamics, the complex operation was destined to bring with it inevitable contradictions and consequences. In the sector, accustomed to continuous but, all in all modest, acquisitions and reorganisations, a story that could have turned into one of the many economic and social disasters due to the numbers involved, for visibility and for the complexity of the operation itself, however, ended positively.
Of course, the disappointments expressed by many former Auchans are understandable. Betrayed by the multinational in which they had invested passion and professionalism and partly snubbed by whoever took over, they continued to seek confirmation of their legitimate negative judgment on who left, who arrived and all those who seek or have tried to close a phase and look ahead.
The judgments on specific and, all in all, marginal aspects for the size of the operation are another matter. Personally I accept the suggestion of the director of Starmag , Michele Arnese, when he quotes the Socrates of "I know I don't know". Judicial investigations have their times and their development. Raising fuss, insinuating, expressing easy opinions almost always derived from modest or ancient personal grievances, is useless. Making it clear that you have already understood everything when you don't know a damn thing is the practice of a certain "opinionism" which, as Giorgio Gaber recalls, "manages to say everything without saying anything with its 'it would seem', 'it is rumored' and 'it is said'.
THE END OF THE PUGLIESE ERA
However one thinks about the Auchan operation, the Consortium must decide how to move on. In the twenty years or so of Francesco Pugliese's leadership, the decision-making polycentrism of the system, while always present, had inevitably given way to a more performing model which obviously had its operational strengths in the area, leaving the vision and strategy always obviously shared with the top management of the five cooperatives at the centre. And this was the difference between having opted for a CEO with precise personal and professional characteristics rather than a "condominium administrator" as other groups have done.
It is clear that for some of the older cooperators linked to previous models (where decisions were taken not so much on the basis of the quality of the proposals but rather on the thousandths owned) the change introduced, the visibility acquired, the acceleration to the internal context and its pervasiveness seem to have been experienced more as a threat to their role and their perimeter than as an opportunity to grow and to be shared with others. Today's Conad is something else than before. And certain habits and cultures no longer have a reason to exist. Francesco Pugliese has finished his mandate. Everything else, including what came out at the time in the form of remote-guided tissue papers, will be dealt with in other forums.
For these reasons, if I were a member, I would first of all reflect on the level of unity still possible of the five cooperatives and on the ability of the current pro tempore leaders to stay in the field together. If the answer forces us to acknowledge that the current supremacy of the sector was a point of arrival generated by the vision and determination of Francesco Pugliese and not by a precise and shared common will, each cooperative (some more, some less) will return to preside over its own perimeter limiting itself to a formal relationship with the others. For what my opinion is, however, such a decision would be a mistake.
CONAD TODAY…
Conad today is quite another thing than a group of cooperatives where some have their eyes fixed on the rear view mirror. Conad now has a precise and unitary brand profile that is far removed from the original cooperative model. Like Rewe in Germany, others in France or elsewhere. I understand the exasperated ethnocentrism and attachment that some of the older cooperators have with what they themselves have built but that time is now behind us. Unless, as I have already written, for someone the primacy and responsibilities deriving from the new status of sector leader is experienced in contrast with the sense of satisfaction of what one's entrepreneurial experience has produced. But this would be the same problem that other entrepreneurs in the sector have, even if they are not cooperators, who find it difficult to step aside, making the same generational transitions unthinkable and fragile.
At the basis of the consortium's success are the more than 2,200 entrepreneurial members who manage 3,928 points of sale and who guarantee the 5 cooperatives a turnover of 18.45 billion in 2022 (+8.5% on 2021). I can hardly imagine such a contrasting situation at Rewe or Edeka in Germany, which also have a similar model. This group of absolutely performing entrepreneurs (more or less) in their respective interregional championships has shown over time that they know how to fill the role assigned in the match. Today he has to present himself to the members and to the country proving that he is able to continue playing in the top division.
…AND WHICH WAY TO TAKE
There is an Anglo-Saxon saying that goes «Can't See the Forest for the Trees». It is useless to get lost in minute details (your tree) forgetting the big picture (the forest). The forest is the challenge. Financially, inflation helps. Needless to deny it. A little dust under the rug can also be swept under the carpet this year. But the gaze must go beyond 2023. Other groups are hot on their heels and confirming themselves at high levels is increasingly difficult.
To do this, it would be necessary to ask oneself precise questions and not screw up on oneself. First of all, how does the consortium as a whole invest in its entrepreneurs to guarantee a generational turnover in the cooperatives themselves? What high-level training do you intend to put in place to support its growth? After digesting Auchan, can Conad go back to thinking about other acquisitions? Can the know-how you have at home, for example on the discount format, generate new opportunities? Can it continue to invest in its excellent internal operating structure, enhancing its role and enhancing its managerial skills and involvement, or does it aim to make "decision-making polycentrism" an unavoidable feature of its system with its cross vetoes? And on the job, its attractiveness in times of scarcity of resources, its recognition and the involvement of the so-called "internal customer" which proposals do you intend to put in place? As a leader you have greater duties than as a follower. The same goes for the relationship with the trade unions, which have been in crisis since the acquisition of Auchan.
Legitimate questions today, I think, still unanswered. On the other hand, the quality of an entrepreneurial strategy in such a heterogeneous group is measured by how it proposes to face the future. Being first each in their own backyard or together in the country is not exactly the same thing.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cosa-succedera-in-conad-dopo-il-siluramento-di-pugliese/ on Sat, 22 Jul 2023 05:11:49 +0000.