THE CASE OF THE BRAZILIAN CADDIE

Very well, Tom. I guess we have our man. It really took me some time to teach him how to find his way around New Brunswick, but he is intelligent and with some more directions, I dont think we will have any problems.

Joe Brown finished his telephone conversation with the Latin America Human Resources director and started to think about his next conversation with Paulo Bock, his best sales manager and successor to the Vice Presidency of Sales.

Joe thought he had already paid his dues. Four years in a subsidiary was a long time, and more than the usual assignment of other expatriates from Julius Foods. Most of his peers would only spend two years abroad, and Joe was very concerned about the effects of staying away from headquarters for so long. Not that Joe didnt have a good relationship with the people in New Jersey; he called them frequently and made sure that he would visit at least once every two months. Joe was very conscious of the need to show his face and touch base with the right people, so he would have a nice position when he needed to come back for good.

Brazil had been an exciting and challenging experience for Joe. The country was developing quickly and the competition was brutal. All the multinational companies he knew from the States were here, and also some others from Europe, not to mention the local ones. They were taking whatever they could from this big, but not infinite market. It took Joe at least one year to understand all the complexity of the country, and he was still amazed of how many differences there were in the consumption habits of the several regions. It made him envy the easy job some of his friends had managing the sales department of the company in smaller countries.

Joe knew that one of his most important tasks would be to develop a successor. The company was convinced for some time that in a globalized world, talent should be groomed and nurtured wherever it could be found. Expatriates were necessary to establish the companys corporate culture in the country, but they were surely expensive. That was one of the reasons why corporate HR was so resolute in this objective of achieving a majority of Brazilians in the directors board. They were expecting that the new reality would motivate promising local professionals to work hard, since there would be no glass ceiling preventing their promotions.

Paulo Bock was an essential element in this plan. His results had been very good, and his talent had caught the attention of the right people, especially after the internship he did in New Jersey. He had started his career working for one of the largest distributors in Brazil, where he knew firsthand how the difficult sales market worked. Later he joined the staff of a competitor in the Marketing department and moved back to Sales when he came to Julius Foods, four years ago. Joe quickly realized his talent, and was one of the biggest motivators in his decision to pursue an MBA in the US. He realized that this international experience would be fundamental for Paulos development and for his chances within the company. Joe knew very well how hard it was for someone without these skills to move up, but he was not able to sponsor Paulos studies. He only assured Paulo of a job when he came back.

Paulo completed his degree in one year and after a short time in New Jersey, started working as the national sales manager for the most important division of the company. Combining his new skills with his knowledge of the market, Paulo achieved goals that Joe was only expecting to see two years in the future. New Jersey had started tracking him since his internship, and now it was obvious for them that he was the ideal candidate to take Joes place as Vice President when he came back.

However, Joe was not entirely convinced.  Paulo had expressed several times his disbelief in some of the guidelines from the company and made some comments in a recent workshop that were really not appropriate for a senior executive. It was not everyday that a consultant from New Jersey would come to give a presentation to the local team, especially one on a important point like the new sales system the US division had implemented last year. Paulo questioned several points and practically made it clear that such a system would not work in Brazil unless the subsidiary made a lot of changes in it. No matter how right Paulo were, this kind of attitude could be a serious problem for his reputation in New Jersey. Joe had learned the hard way to play the game and he had a feeling that Paulo had still much to learn. His willingness is siding with the sales team against some of the companys directives had been another problem. Paulo was convinced that the teams motivation was the reason of the sales increase, and that a sales department in Brazil should be run with total openness and informality, even if this philosophy was different from the one the company used in the US.

Joe had much to loose if Paulo didnt adapt to the new position. After all, Paulo was his responsibility. And now he was really concerned about his decision, especially after hearing from Jim Elliot, the US Logistics Director Paulo escorted to a visit to a big client. Jim missed an important meeting, and blamed Paulo for it.

Wondering how he would address the subject, Joe called Paulo on the phone and suggested a meeting for the end of the day. Better this way, so he will know it is important, Joe thought. I hope I can make my point, because he will be the man sitting on my chair.

Later, Paulo entered his office with a smile. Make yourself comfortable, Joe said in his broken Portuguese. You must be wondering why I called you this evening. You know we have talked a lot about the challenges you will find in this position when I am gone, but I would not be comfortable if I didnt talk to you one more time. And this time, I will open my heart as a friend, because I really want you to be very successful.

Paulo smiled, not really feeling comfortable with the compliment. Joe went on: Ive been very satisfied with your work and I cant deny that you are the best manager I have under my supervision. Im especially satisfied with the way you were able to apply the skills you learned at your MBA in your work and the way you deployed this knowledge with your subordinates. To tell you the truth, I was a little skeptical about the results you would get from the training program you implemented with your team, but you certainly proved me wrong. You have the stuff Sales managers are made from, the connection with the sales team and the ability to identify with the client.

Joe continued: However, when you move up to this position, you will be entering a different world. You wont have the time you do now to talk to the team and you will only be able to visit your main clients. Your first priority will be your relationship with the board and the people in New Jersey. You see, you will have to travel at least one every two months.

I hope you will have some time for me when I go to the US. Paulo joked.

I certainly will, Paulo. But let me finish thisthe other important responsibility you will have will be to escort people from New Jersey when they visit, and this brings me to the point I wanted to bring to your attention. Paulo frowned, trying to guess what the bad news would be. Jim Elliot and I had a conversation last Monday, and he is still upset because he missed his meeting with the Regional President. I know you cant be blamed for the storm that hit that day, but this kind of situation cannot happen again when you are the new Vice President.

Paulo defended himself: Joe, you know this client is one of the most important for us. He invited Jim to his farm and this was something we could not deny. The client would be very upset if he didnt gohe even arranged for a helicopter to pick up Ken so he wouldnt miss his plane. Joe, this man built the largest wholesaling company in Latin America in only 30 years, starting with a small rented truck. He is proud of his humble origins and still has a very traditional way of doing business. Being invited to his farm meant that he trusted us. And you know very well that his company is buying more from us than they ever did before.

Anyway, Jim felt he had no option but to go, and you dont put a director like him in such a position Joe replied, a little upset.

As you said, we could not predict the storm. There was no way for the helicopter to come and the car trip really took longer than we thought. Paulo explained. But I still think that the visit was worthwhile.

Paulo, I dont think you are getting my point... Joe said, now changing to English. Situations like that one cant keep on happening. People take notes about what they see, and this can be detrimental to your future in the organization. I understand that results are the reason we exist for, but there is a corporate culture that cant be denied. After all, this is an American company, and people will judge you with American standards, and one of them is the respect to rules. They appreciate the Brazilian way to create alternatives, the famous jeitinho that always finds a solution for problems, but you will have to understand that this phase of your career is gone. You have outgrown this phase. It is nice to have success, but success means you will have to give up some things you cherish. For example, I cant see a Vice President playing soccer with the employees: it is about time you learn to play golf.

With these words, Joe thought he had sent his message. There was nothing more he could do now; he had to trust that Paulo had heard the voice of reason and that he would try his best. He offered Paulo a glass of the scotch bottle he kept for special guests in his office, but Paulo declined, excused himself and left.

Next morning, Joe could not miss the way people were staring at him and the uncomfortable good mornings he was getting from staff. After entering his room, he called Martha, his secretary, and asked: What is happening this morning? People are behaving strangely. Is there anything I should know? Martha replied: It sounds like you havent read Paulos e-mail yet. He probably wrote from his house, since it was already here in the computer this morning. The e-mail is for you, with a copy to all regional managers and the President. Of course, the word is spreading like wild fire in the office. I guess it is better if you read it yourself.

.

To:       Mr. Joe Brown

From:   Paulo Bock

Cc:            Regional Managers, Presidency

Ref:            Meeting with Sales VP

Mr. Brown,

I hope you dont mind Im writing this e-mail in Portuguese. After all, this is the language of this country, and I guess that after four years, you should be able to understand a little of it.

I thank you for the incentive you gave me to go to your country and get a higher degree in my education. But there is one point that maybe escaped your attention.  My first objective in getting a MBA was to acquire knowledge and skills that I could later apply in my country, in order to improve the living conditions of the people by doing my part. You see, I believe in the potential of this country. It is fabulously rich, with creative and intelligent people and it has a varied and wonderful culture, like few countries could claim. Brazilians have original music, and excel in literature and movies. Their cultural wealth is recognized throughout the world. And all this was here well before multinational companies arrived.

However, I admit that business is now a universal language. You disagree with my position of adapting the companys guidelines to best fit the Brazilian market, and I can understand your behavior because of your background. You criticize my relationship with the sales team because you think it is a Latin characteristic of too much intimacy, something bad for business. You accuse me of being centered in the Brazilian way of doing things. But I dont do things in a certain way because I am Latin; it is because I think this is the best way to bring results to the company in this environment.

When I visit a client in the country, in small towns, I appreciate his traditions and his habits. This could mean a visit to his farm. If I visit a client that runs a virtual supermarket in the Internet, I choose another approach, maybe a discussion about this weeks Nasdaq performance. But both approaches are Brazilian.

I believe my heritage is valuable and could be used with good results by any company, but I think it is sad if Brazilians must cease to be Brazilians to be someone in Julius Foods: this is basically what you are asking from me. This is something I cant do for you, and Im sure that any citizen of this country with one gram of pride left in his heart will agree with me. Thats why I must finish my relationship with this company.

I wish you a nice trip and I hope you enjoy your golf games. Excuse, but today I have a soccer game to attend.

Sincerely,

Paulo Bock

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Discussion Questions

1. What is your assessment of Joe Brown as a global manager? His strengths? His liabilities?

2. Are Brown's liabilities trainable?

3. What is your opinion of Paulo Bock's reaction? Was it predictable?

4. Would you recommend trying to get Bock to reconsider his resignation? Why or why not?

5. If yes, how would you do this?

6. How does your organization handle a situation when a Brown or a Bock is dicovered?