Beyond Performance 2.0, 2nd Edition

Chapter 3Aspire

Where Do We Want to Go?

When Alejandro Baillères, the son of Mexican billionaire Don Alberto Baillères, took the reins of Mexico’s largest national insurance company, Grupo Nacional Provincial (GNP), it was facing challenges on many fronts. Founded in 1901, it had a proud heritage as the nation’s first life insurance company. In 1969, it became a universal insurer, and in 1972, it was purchased by the family-owned Grupo Bal, one of the largest entrepreneurial conglomerates in the country. The company prospered for many years, enjoying a privileged position as the largest Mexican-owned insurer in a regulatory environment that favored domestic players.

But as the twenty-first century dawned, the industry began to experience a dramatic increase in competitive intensity. In the wake of sweeping government reforms, a host of new players piled into the market: multinational insurers, mono-line attackers specializing in particular products, and global banks looking to extend their reach into insurance. With them came a push toward doing business through direct channels, along with a number of product offerings that were not natural strengths for GNP.

Prior to Baillères’ appointment, GNP had lost money for two years running. Its market share was eroding fast, its cost structure was high for the industry, and employee satisfaction was on a downward trajectory. His mandate was to restore GNP to its former glory and then take it to the next level of performance and health. ...