BUSINESS schools regularly teach their students about great turnaround CEOs who breathe new life into dying organisations: figures such as IBMs Lou Gerstner, Fiats Sergio Marchionne and Apples Steve Jobs. Now Harvard Business School needs to add another case study: Jorge Bergoglio, the man who has rebranded RC Global in barely a year.
When Pope Francis celebrated his first Easter as CEO, just after being appointed, the worlds oldest multinational was in crisis. Pentecostal competitors were stealing market share in the emerging world, including in Latin America, where Francis ran the Argentine office. In its traditional markets, scandals were scaring off customers and demoralising the salesforce. Recruitment was difficult, despite the offer of lifetime employment in a tough economy. The firms finances were also a mess. Leaked documents revealed the Vatican bank as a vortex of corruption and incompetence. The board was divided and weak. Franciss predecessor, Benedict XVI, was the first pope to resign for 600 years, amid dark rumours that the founder and chairman, a rarely seen elderly bearded figure whose portrait adorns the Sistine boardroom, had intervened.
In just a year, the business has recovered a lot of its self-confidence. The CEO is popular: 85% of American Catholicsa tough audienceapprove of him. Footfall in RC Globals retail outlets is rising again. The salesforce now talks about a Francis effect. How has a septuagenarian Argentine succeeded in galvanising one of the worlds stodgiest outfits? Essentially by grasping three management principles.