Question

(a) Identify the specific type of organizational structure that has been adopted by Brunello Cucinelli (around 2018-19). Explain the company’s operational strategy.
(Max. 200 words
(b) The company is headed by three Co-CEOs: Cucinelli, Lisandroni and Stefanelli. Given that Brunello Cucinelli is a big fashion brand, do you see any problems or challenges with having three co-CEOs? How does the company manage to excel with such an unconventional leadership team?
(Max. 200 words

Answer 1

a. An entire business model has failed in the past centring around the financial crisis of 2008. Questions were raised on ethical business practices and the concept of "greed is good". Personal interests, rather than stakeholder's and society's well-being, was wrongly being focused upon by the companies. In such a situation, a familial business model was pinpointed as successful. This relates to the Italian luxury fashion company, Brunello Cucinelli. The company's operational strategy showcased that a business can survive odds, comprising ethical and moral principles. The strategy followed by the company was based on a philosophical and humanistic approach of shared mission and values. It focused on the creation of a "big family" instead of ‘just a place to work’. Following this leadership approach, there were positive financial outcomes. The company also successfully achieved other benefits like high happiness of the employees. Brunello Cucinelli, the traditional, old, and fair leader, dreamt that “I don’t know what I will do with my life, but whatever it is, I will do it for the dignity of humankind”. The leader is inspiring and motivating, maintaining a strong relationship between employer and employees. The leader successfully instilled in its employees to run successfully.

b. The unconventional leadership team of three Co-CEOs: Cucinelli, Lisandroni and Stefanelli can be challenging in terms of the company being led by multiple philosophies. Three individuals may think differently and may have three different philosophies. Arriving at an implementable blend or a consensus may be unproductively conflicting and may puzzle the employees of the company. This may hamper the productivity of the employees and may have a negative impact on the overall functioning of the company. To excel, the three CEO'S should arrive at a consensus regarding the leadership philosophy, which will drive the company. This stable philosophy will be the engine of the company driven on humanistic principles and values of care, compassion, sensitivity, strong positive personal relationships, and shared values and objectives. The shared philosophy will be helpful in case the founder dies. The philosophy will continue to exist in the co-founders who will render stability to the culture of the company, despite the death of its founder. With such an unconventional team, the company can manage to excel by dividing the leadership duties and aspects amongst each other, thereby reducing the burden on one person, that is, the founder. Division of roles and responsibilities helps a unit to function stably. So, the members of the unconventional team will be sharing the same philosophy but handling different leadership roles.