Estee Lauder is Lauderless

Fabrizio Freda was the first “outsider” to be chosen to run a company dominated by members of the founding family since it was founded by Estée and Joseph Lauder in 1946. His previous experience at PG was in stark contrast to the culture at Estee Lauder.

“I had to build my credibility,” he says of the months after being hired by William Lauder, the founders’ grandson who was then chief executive. “People were afraid that I would bring in processes instead of creativity.”

This article paths his first 2 years at Estee Lauder and follows the changes that have taken place within the business in order for Estee Lauder to be ready for the next generation. This article can be useful for sparking a class debate about changing culture and direction of a business; conflict of interest between family interest and shareholder interest in the business; strategic change in a competitive environment and internal versus external recruitment.

Read the article here