Learning to say no, the dream of young freedom, and the constant effort to always make the best decision. These are three of the reflections shared by the honorary president of Miquel y Costas, Jordi Mercader Miró, in a new session of the True Leaders cycle organized by The New Barcelona Post and EY to learn firsthand about different business leaders and their success stories in an exclusive setting with thirty presidents, CEOs, and CFOs. "Leadership is being able to exercise your convictions, from independence, and having significant personal freedom," he began.
Jordi Mercader was born in 1943 in Portbou, he is an industrial engineer and holds a master's degree from IESE, where he is also a professor. His first driver was "buying freedom from a very young age." And what exactly does this mean, buying freedom? He is very clear: "Saving to be able to say no when something doesn't meet your expectations." It seems easy, but it's not, and in his case, it had consequences as significant as not having a job. "The first condition for exercising leadership is freedom, and you must have the capacity to accept difficult challenges with risk. It is easier to have the capacity to lead in risky situations than in comfortable situations," he asserts.
Thus, the honorary president of Miquel y Costas recalls having said no on multiple occasions, such as when he left KIO and preferred not to be a proxy for Banca Catalana. At the same time, he also explains that he accepted living in Madrid to manage the company Bazán, dedicated to warships, even though he earned a lower salary. During that time at Bazán, he learned the importance of leadership where everyone is willing to pull their weight, "making people believe in it," and achieving set objectives such as the famous aircraft carrier, reducing staff, or obtaining positive results.
From INI to sabbatical year
Jordi Mercader was also president of the former National Institute of Industry (INI) between 1988 and 1990, coinciding with Felipe González's government. "After the success of Bazán, I was offered the spectacular challenge of presiding over the INI, which was the largest company in Europe with 300,000 workers and large subsidiaries such as Iberia, Pegaso or Hunosa. I couldn't earn more than the Prime Minister and I lowered my salary again," he recalls. In fact, his salary was Josep Borrell's decision. He was then able to improvise a leadership where he again had to achieve the maximum commitment from the team, while the INI had to start making money, "a lot" of money for the first time in its history. "Every morning there was a new problem and you get used to prioritizing and managing complexity. Like with Chinese plates," he adds.
Then comes an important moment in Jordi Mercader's life when his time at the INI ends and he is very clear that he does not want to continue in politics or in the public sector. He returns to Barcelona and decides to take a sabbatical year to "buy freedom," since he cannot find a job and does not receive any job offers. "If they offer you things, they actually also offer you problems...", he jokes with the perspective of time. In 1991 he receives many offers and decides to accept them all first and manage them a posteriori. In this sense, he reflects that "you have to be aware of the challenge you accept and believe that you will be able to carry it out because, if not, it's like cheating yourself."
In 1991, Miquel y Costas was in a complicated situation and incorporated Vista Capital into its shareholding, which was a venture capital company promoted by Banco Santander. They proposed to Jordi Mercader to make a contribution and buy 6% of the capital two years ahead and thus become an entrepreneur who risked his prestige and resources. The reflection is not long in coming: "You have to differentiate between being a significant professional with more or less luck and being an entrepreneur. The duality of working for others or for yourself, as the person responsible for guaranteeing the continuity of the project."
Mercader: "You have to go down to the trenches and not just stay in the offices"Just before starting the colloquium, Jordi Mercader delves into the "essential" factor of time, which must be managed well and without haste, and the importance of "going down to the trenches and not staying only in the offices." Rolling up your sleeves, touching the grass, and getting into the mud, as they say in the world of sports.
The handover (from father to son)
Since last June, Jordi Mercader Miró has been honorary president of Miquel y Costas, where he served as executive president for 32 years. More than three decades, specifically, since November 1991, of that still pre-Olympic Barcelona. It hasn't even been half a year since he handed over the presidential baton of the leading group in the manufacture of special papers to his son Jordi Mercader Barata.
As the honorary president of Borges, Antoni Pont, says, "family is one of the few truths in this world." We delve into the generational handover and the family issue. Jordi Mercader Miró explains that two and a half years ago he began to think about leaving the presidency of Miquel y Costas to his son, but that such a decision must be made with time and he preferred not to tell anyone. A decision that was prolonged one year longer than expected due to the pandemic.
And what does he do now that he is honorary president? "Not meddling; in truth, there is no family continuity project," he snaps. That is, not going to the management committee or calling any company manager. Right now, he is mainly dedicated to the board and the foundation and asks to have the same information and data that the president handles at least once a quarter so as not to lose knowledge. "In this process, you have to be very clear, there can be no shadow of Rebecca ---inspired by Daphne Maurieur's novel and Alfred Hitchcock's film---, the separation has to be complete. Although it costs a lot, it's what's due," he admits. Although it's what's due, I would add, it's also true that not everyone knows how to do it.
The success of three centuries of history
Miquel y Costas is a company with three centuries of history and all kinds of significant milestones in its growth, such as Papelera Barcelona, the entry into Celsa's capital, the incorporation of Payá Miralles, the start of trading on the Barcelona Stock Exchange, the establishment of the Argentine subsidiary, the creation of MB Papeles Especiales, the entry of international funds, or the acquisition of Clariana, among others. How has the strategy for internationalization, acquisitions, or business lines been decided?
Jordi Mercader responds that "the shareholders are the same families as always, except for me, who is new." He also details that during the 1991 crisis, no one took advantage of the situation at the expense of the historical partners, and that technology and knowledge have been "key" in every era of the company. Both the reflection on size and the reform of the administration ---which we will discuss later--- deserve a separate chapter: "I don't believe in size. I don't believe that to be competitive you have to be a large company. Our competitors are ten times larger, but they don't earn more than us, and some will even have to close. Size is a strategic decision. We look for market niches that are not very large nor have much growth capacity. Size is not essential; what is essential is to find the market segment that allows you to be differential. It's a different mindset, and you have to strategically choose where you want to be."
Mercader: "I don't believe in size. I don't believe that to be competitive you have to be a large company. Size is a strategic decision, and management control makes you red"In this regard, the honorary president of Miquel y Costas warns that sometimes mistakes are made that cause "growth to be slower" and claims the importance of having "very good management control: knowing where you win and where you lose, without half-measures that hide bad things." "Management control makes you blush," he adds to the audience's laughter. Miquel y Costas' star product is tobacco paper, but within its portfolio there are also industrial products for automotive, food, perfumery or hairdressing, as well as religious books, pharmaceutical leaflets or ballot papers, among others.
The questions from the board members
Jordi Mercader defines himself as a strong believer in governance, sustainability and innovation long before the three concepts became fashionable. So much so that he defends sustainability as "a significant source of competitiveness in every sense" and exemplifies this with the reduction of consumption, which "is an obsession," the intensity of energy consumed per unit of product, water consumption or the reduction of waste, among others. It is also popularly known that one must be transparent and that "board members have a penchant for asking what is not going well, but a company is not managed from the board of directors." The audience laughs again.
Jordi Mercader's career is not only linked to Miquel y Costas, but he has had and continues to have a strong presence in the business world and civil society. His resume also includes the presidency of the Sociedad General de Aigües de Barcelona or Adeslas, the vice-presidency of Caixa d'Estalvis i Pensions de Barcelona, Repsol or VidaCaixa. He has also been a director of Ferrocarrils, Iberia, Abertis, Colonial or CaixaBank, as well as vice-president of the Círculo de Economía, president of the Institut Cerdà or trustee of the Consorci Parc de Salut Mar, among others.
Currently, he is president of the Gala-Salvador Dalí Foundation, president of the Miquel y Costas & Miquel Foundation, vice-president of the Institut Cerdà, trustee of the Pasqual Maragall Foundation, trustee of the Princess of Girona Foundation or member of the honorary council of the Círculo de Economía Foundation.
Questions from the audience
It's time for questions from the business audience and, as always, the level is up to the speaker.
Not to go on too long, I share a schematic summary of the great hits:
-Optimism: "Catalonia has a very important entrepreneurial spirit. There are significant new companies that are very competitive and highly internationalized. I am very optimistic."
-The criticism: "We have to get out of the political algorithm and we need a more efficient and faster administration that doesn't complicate your life."
-The reform of the Administration: "We need an Administration that is powerful, agile, and of quality. We must provide stability and not change the entire administrative structure every time there is a change of Government. I am a radical defender of the revolutionary change of public administration. There must be a clamor and we need an administration that works. State intervention must be very competent because otherwise it generates problems and corruption."
-The entrepreneurial philosophy: "Entrepreneurs have a great capacity to manage their income statement well, but they live very far from the balance sheet, which is what costs them the most. People are not very aware of what it means to have significant leverage."
-The advice: "If we want to solve country problems, we have to identify where things are not done well."
Before finishing this chronicle about this new session of True Leaders, let me just add that during the meeting we held with Jordi Mercader Miró at the Miquel y Costas headquarters in Barcelona to prepare the conversation, we talked about opportunities and responsibilities, public notoriety, the organization of professional life, and involvement with civil society. Let's end as we began with the learning of saying no, the already bought dream of young freedom, and the constant effort to always make the best decision.
As Dalí said, inspired by Gala: "Work consists of a meticulous execution of dreams."
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