Galeazzi is the largest restructuring company in Brazil. Founded in São Paulo in 1995, Galeazzi & Associados has in its curriculum the process (or attempt) of reorganizing more than a hundred companies on red alert.

Among them, pedigree names such as Pão de Açúcar, Vulcabrás/Azaleia, Lojas Americanas, Artex and BRF.

Cláudio Galeazzi, 76, is the most feared figure in the Brazilian business market. Within a company, the pronunciation of its name often causes tremors among employees and shivers among executives. Outside, its mention is soon understood as a certificate that something is not going well.

Reserved, averse to the spotlight and modest in interviews, this Tuesday Galeazzi made a rare appearance at the management forum at HSM Expo 2016 in São Paulo. It was the first time he had spoken at a large event. Hands of Scissors, as it is called in the market, said that his “university” was his first company, which went into bankruptcy. He remembers being hospitalized and learning to give himself an injection for lack of money to pay a nurse. After seven years, he managed to regain the company.

Respected among Brazilian businessmen for the firm grip he usually adopts when taking command of ships that are almost capsized, the consultant confessed that it is not easy to land in a company that needs restructuring. Especially if, at another time, it was already a successful company. “Joining the company as a savior is difficult. Then he becomes a god, then he becomes a friend and when everything is great again, they say that anyone would have done it”, he jokes.

Galeazzi's formula for rebuilding companies combines managerial efficiency, cost (and personnel) reduction and profit optimization – it hurts whoever it hurts. But he remembers that there is a barrier for this equation to work: “real will to implement the change”. “Sometimes there is no such will, only an intention without the will, then it is not possible” Below, a little of the booklet that Galeazzi revealed at the HSM Expo 2016 forum:

The most common mistakes made by entrepreneurs

“The most relevant thing is what lives off the success of the past. Things change, and the success of the past does not continue without updating”.

Symptoms that things are not going well in a company

“They are clear, evident: drop in sales. increase in inventories, in the debt profile, in expenses costs. And the worst part is that no action is taken. The justifications are all unacceptable: dollar, rain, the government, etc. Justifying rather than taking action.”

When the founder is the problem

“The founder has every reason to be vain, but he has a hard time accepting changes. He only accepts change when he is losing, being beaten. And it has a natural tendency, after the turn-around is successful, to revert to its previous bad behavior”.

How to change the accommodation culture

“Being unorthodox. A company's culture and tradition must be respected to a certain extent, to the extent that this culture does not harm the business. Culture does not prevail over company decline.”

Where does resistance in transformation processes come from?

“Higher resistance is normal at higher levels. Because they've been doing it this way for a long time and they're comfortable, even if the results aren't good. Fear of the unknown creates enormous discomfort.”

Advice to be a good entrepreneur with a long-term career

“The first condition is admitting that you don't know everything. Then, as much as you think you're good, I can guarantee you that you're not so good. It is important to recognize your limitations in order to grow. And know how to listen. I learned in meetings in Japan that silence is magical.”

Source: https://goo.gl/MLboUf