Ilaria Resta PT1 - In Search Of Excellence

Summary

In Search Of Excellence: Interview with Ilaria Resta, CEO of Audemars Piguet (Part 1)

Podcast Information:

Title: In Search Of Excellence
Host: Randall Kaplan
Guest: Ilaria Resta, CEO of Audemars Piguet
Release Date: January 28, 2025

Introduction

Randall Kaplan kicks off the episode by introducing his guest, Ilaria Resta, the dynamic CEO of Audemars Piguet (AP), one of the world's most prestigious watch brands. With an impressive career spanning roles at Firmenich and Procter & Gamble, Ilaria brings a wealth of experience in leadership, branding, and quality management to the table.

Early Life and Family Influences [00:00 – 04:22]

Ilaria shares her upbringing in Naples, Italy, emphasizing the profound impact her traditional family had on her personal and professional development.

Family Background:
- Mother: Kindergarten teacher
- Father: Programmer in information systems for hospitals
- Grew up in a traditional Neapolitan neighborhood with limited exposure to the outside world.
Early Traits:
- Displayed a high standard of precision and excellence from a young age.
- Recalled being so focused on perfection that she would redo her drawings repeatedly, as noted at [03:03]:
  
  “I was always extremely high, demanding of myself on my standards of precision and excellence.”
Dreams and Aspirations:
- Unlike many children with clear career dreams, Ilaria's aspirations materialized later. Initially focused on academic excellence and drawing, her dreams shifted toward exploring the world beyond Naples ([03:52]).
- The desire to travel and discover new horizons became her primary ambition.

Educational Journey and Influential Teachers [04:22 – 08:53]

Ilaria delves into her academic path and the pivotal role a high school teacher played in shaping her future.

University Studies:
- Attended the University of Naples, studying ancient Greek and Latin at the Lyceum Classical Languages.
- Initially avoided modern languages, reflecting her early focus on classical studies.
Influential Teacher:
- A high school economics teacher recognized her potential and broadened her perspective beyond traditional career paths ([07:22]).
- This teacher encouraged Ilaria to explore opportunities beyond her immediate environment, fostering a desire to push boundaries and seek out new challenges.
Impact of Feedback:
- Her parents instilled the importance of feedback, viewing it as a gift rather than criticism.
- This early lesson in valuing feedback propelled her drive for excellence and continuous improvement ([04:41]).

Early Career and Transition to Marketing [08:53 – 17:44]

Ilaria discusses her entry into the professional world, highlighting her time at Procter & Gamble (P&G) and the transition to Firmenich.

Procter & Gamble (23 Years):
- Held various roles, culminating as Senior Vice President of North American Hair Care.
- Contributed to building iconic brands like Tide, Pantene, and Head & Shoulders.
- Key Lesson:
  
  “The importance of making fast decisions on your organization.” ([17:44])
- Learned to balance coaching and developing team members with the necessity of making tough decisions regarding personnel fit and performance.
Firmenich Tenure:
- Became President and CEO of the 120-year-old Swiss perfume company.
- Led the company to annual revenues exceeding $3 billion and a market value of $27.7 billion.
Marketing Contest:
- Participated in a university marketing contest to launch a new variant of mayonnaise.
- Despite initial disinterest in marketing, the experience ignited her passion for the field ([15:10 – 16:45]).

Joining Audemars Piguet: The Recruitment Process [17:44 – 29:33]

Ilaria recounts the unconventional process of becoming the CEO of Audemars Piguet, a family-owned luxury watchmaker.

Unexpected Recruiter Call:
- Received a recruitment call while on a drive, an uncommon occurrence in the traditionally closed watchmaking industry ([21:56]).
- Despite wearing a Swatch, she was candid about not hiding her personal watch choice, which was appreciated by AP's team ([22:51 – 23:19]).
Extensive Preparation:
- Underwent a rigorous interview process, including business case studies and multiple interviews focusing on leadership style and industry knowledge ([26:01]).
- Conducted mystery shopping to understand AP’s customer service and in-store experience ([27:10 – 29:04]).
- Emphasized "extreme preparation," ensuring deep understanding of AP’s values, products, and operations.
Key Insights:
- Preparation is fundamental for success in high-stakes interviews:
  
  “Preparation is fundamental for sure as the entry ticket to stay in the interview with a chance of success.” ([31:43])
- Curiosity and Agility are as important as thorough preparation, enabling responsive and natural conversation during interviews.

Leadership Philosophy and Company Culture [29:33 – 36:28]

Ilaria elaborates on her approach to leadership and fostering a company culture centered on excellence and relationship-building.

Client-Centric Approach:
- Focuses on building long-term relationships with clients rather than mere transactions.
- Emphasizes understanding clients’ motivations and curating their watch collections over time ([37:57]).
Maintaining Company Identity:
- Mission centered on guaranteeing the perpetuity of AP as an independent, family-owned business.
- Balances innovation, product quality, and client service without dramatically increasing watch production ([37:57]).
Avoiding the “Ivory Tower”:
- Strives to stay connected with all levels of the organization, from watchmakers to top management.
- Believes in open communication and actively seeks feedback, both positive and negative, to continuously improve ([14:06 – 14:49]).
Succession and Change Management:
- Advocates for wearing one’s own shoes rather than directly comparing to predecessors.
- Focuses on understanding the company's legacy while steering it toward future growth and innovation ([33:37 – 36:28]).

Watch Industry Insights and AP’s Strategic Focus [36:28 – 48:36]

Ilaria provides an in-depth look into the watchmaking industry, AP’s position within it, and the strategic directions she is steering the company towards.

Industry Landscape:
- 2025 Watch Market Projection: $104.21 billion.
- Top Brands:
  - Rolex: 1,240,000 watches/year, $11.5 billion sales.
  - Cartier: 660,000 watches/year, $3.4 billion sales.
  - Omega: 579,000 watches/year, $2.89 billion sales.
  - Audemars Piguet: ~51,000 watches/year, $2.61 billion sales.
  - Patek Philippe: 70,000 watches/year, $2.28 billion sales.
- Apple Watch Dominance: Sold 53 million units in 2022, surpassing traditional watchmakers.
Mission at Audemars Piguet:
- Perennity over Growth:
  
  “The mission is to guarantee the perennity of the company as a family independent business.” ([37:57])
- Prioritizes innovation, quality, and client relationships over aggressive expansion.
- Focus Areas:
  - Development of high-end complications and new materials like forged carbon and sangold.
  - Emphasizes creative excellence in watch design and functionality.
  - Invests in a selective distribution network to maintain client relationships and service quality.
Operational Excellence:
- Supply Chain Management:
  - Collaborates with 20-30 strategic partners while developing internal capabilities.
  - Focuses on micro mechanical components essential for high-quality watchmaking.
- Quality Control:
  - Implements multiple quality checks at every production stage to ensure functionality and durability.
  - Develops prototypes worn by engineers to simulate real-life usage and identify potential issues before launch ([47:29 – 48:36]).
Company Onboarding:
- First day dedicated to understanding AP’s heritage and operational environment.
- Engages deeply with watchmakers and production teams to grasp the intricate craftsmanship behind each timepiece ([42:25 – 46:17]).

Conclusion and Teaser for Part Two [48:36]

Randall Kaplan wraps up the first part of the interview, highlighting Ilaria Resta’s commitment to maintaining Audemars Piguet’s legacy while steering it towards sustainable, quality-focused growth. He teases the continuation of the conversation in part two, promising further insights into Ilaria’s leadership and AP’s future endeavors.

“You're listening to part one of my incredible interview with Ilaria Resta, the CEO of the luxury watch brand Audemars Piguet. Be sure to tune in next week to my awesome interview with Ilaria.”

Notable Quotes

On Perfectionism:

“I was always extremely high, demanding of myself on my standards of precision and excellence.” ([03:03])
On Client Relationships:

“The moment we meet with a client or a prospect client, we establish a relationship.” ([37:57])
On Leadership and Succession:

“You need to make the interest of the company and not your own ego. That's the reason why you are there.” ([33:37])
On Preparation:

“Preparation is fundamental for sure as the entry ticket to stay in the interview with a chance of success.” ([31:43])
On Company Mission:

“The mission is to guarantee the perennity of the company as a family independent business.” ([37:57])

Key Takeaways

Deep Relationships: Ilaria emphasizes building long-term, meaningful relationships with clients, viewing each interaction as the foundation of enduring loyalty.
Quality Over Quantity: Under her leadership, AP focuses on producing exceptional timepieces with intricate complications and innovative materials, rather than mass-producing watches.
Extreme Preparation: Success in leadership roles, especially in niche industries like watchmaking, requires thorough preparation, deep industry understanding, and adaptability.
Legacy and Innovation: Balancing respect for AP’s rich heritage with the need for modern innovation is central to Ilaria’s strategy, ensuring the brand remains relevant and prestigious.
Open Communication: Breaking the traditional "ivory tower" mentality, Ilaria maintains open lines of communication across all levels of the organization, valuing feedback and fostering a collaborative environment.

Stay tuned for Part 2 of this insightful interview, where Randall Kaplan and Ilaria Resta will delve deeper into Audemars Piguet’s strategies, challenges, and future visions in the luxury watch industry.

Transcript

A (0:00)

We are in a business of relationship and passion for quality because the moment we create a relationship, this relationship lasts for many, many years and beyond you. We receive watches that dates hundreds of years ago and we service them and we repair them. We take pictures because we discover movements that we are not producing anymore. And you enter in our family and we call our clients EP family, most of them, because they really start getting to know us. We know their collection. We can curate it. The reason why we acquired our distribution, which is quite an exception in the watchmaking industry, is exactly for the reason to invest in the relationship.

B (0:43)

Welcome to In Search of Excellence, where we meet entrepreneurs, CEOs, entertainers, athletes, motivational speakers and trailblazers of excellence with incredible stories from all walks of life. My name is Randall Kaplan. I'm a serial entrepreneur, venture capitalist, and a host of In Search of Excellence, which I started to motivate and inspire us to achieve excellence in all areas of our lives. My guest today is Hilaria Resta. Hilaria is the CEO of Audemars Piguet, one of the oldest and most exclusive watch brands in the world. Prior to ap, as it's known in the watch industry, Ilaria was The President and CEO of Firmaniche, 120-year-old family owned company in Switzerland that creates perfumes for many brands including Saint Laurent, Gucci, Hugo Boss, and which has annual revenues of more than $3 billion and a market value as of this morning of $27.7 billion. Prior to that, she spent 23 years at Procter and Gamble, most recently as senior vice president of its North American hair care division, where she helped create and build iconic brands including Tide, Pantene and Head and Shoulders. Laria, thanks for being here. Welcome to In Search of Excellence.

A (1:51)

Thank you, Randy, for inviting so let's.

B (1:53)

Start at the beginning. You grew up in Naples, Italy, which for those people who don't know, is the third largest city in Italy behind Rome and Milan. Your parents didn't go to college, they spoke Italian only and they had never left the country. So talk to us about what your parents were like and the influence they had on you growing up.

A (2:12)

Well, they were the typical family from Napoli, extremely traditional, a family that used to live pretty much in the same neighborhood. So my mom was a teacher for me, or you say kindergarten teacher. And my father was working first as a teacher and then as a support in a hospital. So I grew up in a family that was very, very traditional, very traditional values and not much curiosity to leave the country to speak new languages. I didn't know anything outside of my neighborhood existed for many, many years.