Bacardi is building a global pipeline of talented leaders who are prepared to take bold action in the midst of rapid industry change.
Scott Northcutt, senior vice president for human resources, talks about an innovative partnership with HBS Executive Education that is helping to drive Bacardi's revenue and growth.
Bacardi Limited is the world's largest privately held spirits company, producing and marketing wines and spirits under more than 200 brands and labels. When the family-owned company was searching for a new CEO and shifting its strategy in 2015, Chairman Facundo Bacardi decided to invest in developing the next generation of leaders within the company's global workforce. Scott Northcutt, senior vice president of human resources, is leading the major initiative. After close collaboration with HBS faculty, the Emilio Bacardi Harvard Business School Leadership Program was launched. "Emilio, the son of Bacardi's founder, was a bold, dynamic leader," says Northcutt. "The program name reflects the robust leadership we value."
Driven by HBS case studies that are relevant to Bacardi's goals and challenges, the program curriculum features topics such as developing the mindset of a visionary leader, tapping new markets and growth strategies, and driving performance and innovation. The company carefully chooses participants who reflect diverse regions, roles, and perspectives. The custom program delivered results right from the start—and continues to do so five years later. "Our executives seamlessly move lessons from the classroom to our business," says Northcutt, who has attended both program sessions. "From our board to the program participants, all agree that this is the best leadership investment we've ever made."
The program's second session aligned with the launch of Bacardi's "Best 10" strategy, a comprehensive plan for sustaining success over the next decade. "Through case study collaborations, our executives dive deeper into the different parts of the business and the diverse levers they can use to manage more effectively," he says. "The connections they make help to create a more cohesive company."
Bacardi saw the program learnings in action at a company-wide brand-planning session, where brand and commercial leaders teamed up for the first time to present each brand's plan. "I've never seen anything done so seamlessly between the marketing and commercial teams at Bacardi," Northcutt recalls. "That's going to make our brands even stronger."
The company is seeing a similar transformation on the finance side of the business. A group of executives from the first session were inspired to redesign the company's cash management approach, addressing both the processes and the cultural aspects. "Executives now view the value of cash differently," he says. "It's improved the overall performance of the company."
More than 70 percent of the executives who attended the program are now identified in Bacardi's succession plan. "It's an important measure of the program's success," Northcutt explains. "We've also been able to promote talented leaders more quickly." These executives will draw on their new leadership skills and connections to guide Bacardi through the next stages of growth.
Because the company sells products in more than 170 countries, one program module takes place in Shanghai. "We want to ensure Bacardi is well positioned to take full advantage of opportunities in China and other emerging markets," explains Northcutt. "These experiences outside the classroom have sparked ideas that can also be applied in developed markets."
TThe 100+ Bacardi executives who have completed the program now view strategic challenges both vertically and horizontally. "We want a leadership team that can see issues from many different angles, look honestly and critically at ourselves as a company, and figure out how we can do better," he says. "With this program, we are developing leaders who can do that."
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