„It is not me who has won the award, but the whole company.“
„Execution“ and „Flexibility“ as key success factors
„Firstly, let me say,“ Julián Díaz starts the conversation, „that it is not me who has won the award, but the whole company“. This likable modesty is characteristic – not only for this successful CEO but also for the company’s culture. Dufry is a truly global retailer, and as such nearly every day confronted with the challenges of its markets. Julián Díaz, CEO since 2004, continues: „One day you have to face the challenges of the political instabilities in Northern Africa, the next day you have the Swiss Francs challenge or the currency devaluations of the Ruble or the Brazilian Real on your agenda“. For Julián Díaz, there are many reasons, why the company has grown nicely over the past years, but if he has to summarize, there are two key reasons why Dufry is so successful:
„The first reason“, Julián Díaz explains, „is Execution. Dufry is a truly global retailer, acting worldwide and implementing locally. We have a strategy, we have our discussions and make decisions, but in the end, it all comes back to execution. You have to deliver what you promise and achieve the targets you committed to.”
„The second reason why the company is creating value for its different stakeholders is Flexibility“, Julián Díaz continues, „because you have to adapt to the local market demands and requirements. In most cases, our management is local, because they know best what is important in the different markets and how they have to adapt to the local circumstances, although 80% of our products are sold globally.“
„Execution“ and „Flexibility“ are important skills when managers are recruited at Dufry, and they are also important characteristics of Dufry‘s management style. Obviously, other aspects of leadership are key too for Julián Díaz, e.g. „Defining the strategy with his team“ or „Aligning the different interests, in particular, the ones of the employees“. These are key learnings and takeaways from this successful CEO who has always been ranked top in the „CEO Award“ of Obermatt during the last years and who has won the golden pin award „CEO 2015“ for the Dufry’s growth story.
But the company is not only focusing on hard facts. E.g. employees celebrating an anniversary with the company, get – with support from HR and Communications – a „Thank You“ or congratulation letter from the CEO.
What defines good leadership at Dufry?
Besides „Execution“ and „Flexibility“, there are many more elements which define a good leader at Dufry. „You have to create „Credibility“ and you have to be „Authentic“ as a manager in order to motivate people“, Julián Díaz says, who spends 80% of his time outside the headquarters in order to be close to his staff in the various countries. Dufry‘s annual average growth of 21% over the last years is due to 9% organic growth, and 12% to successful acquisitions. „Integrating know-how of acquired companies is also very important, and you need to know who your customer is: We have over 100 nationalities passing a Dufry shop every day and therefore, it is key to know customers’ preferences. Another important factor for a global retail company is „Standardization“ of processes, e.g. in operations “, the CEO concludes.
Profitable growth
Julián Díaz always says to his senior managers: „Growth itself is not a target but an outcome of a wide range of activities you have to manage properly, in order to achieve profitable growth. Just to be present at an airport – be it also a bigger one – is not a target, if it is not profitable.“ Profitable growth is also one reason why the company has started various projects many years ago in order to introduce a systematic approach in operations or standardized supply chain processes. “But this alone does not guarantee the success: At the end, you also have to work hard, you need to be consistent and you need to repeat things in order to achieve the desired outcome.“ Julián Díaz explains. „And making mistakes is a normal process, as long as you do not make them over and over again.“ Julián Díaz mentions.
Company Culture
When talking about the company’s culture, Julián Díaz stresses, that a lot of the employees including the management team, have been with the company for many years and hence the fluctuation rate is low. „To create solid teams is one important element of our company’s culture. People who join Dufry have to fit into the teams, they have to be credible, reliable and they have to demonstrate their ability to execute“, Julián Díaz says. „Dufry is an international company, where people have the opportunity to grow and to take on challenging functions abroad if the opportunity arises.”
Julián Díaz – who does not like to give advice to other people - emphasizes, „When talking about Dufry, I like the expression „Truly global retailer”. This means that you have to be intercultural and flexible but you have to execute locally.”
In conclusion, we would like to summarize, that Mr. Díaz truly deserves the award for sustainable growth. Thanks to his unpretentious and focused attitude, he has shaped the culture of Dufry during the last 10 years, a culture that does not put himself or Dufry, but the employees and products in the center of attention.