Chapter 11
Juan Carlos Archila Cabal
CEO of Claro (Colombia)
Your presence is determined by your reputation; your reputation can spiral up or down based on your “wow” factor—do you fall short or just meet people's expectations … or, do you wow the people in your life?
—John Mattone
JUAN CARLOS ARCHILA CABAL WAS born in Bogata, Colombia, where he auspiciously attended a U.S. school run by the Benedictines. It would be the first of many times in which internationalism forged his values and paved his path. It was Juan Carlos's father, a Colombian physician who spent three years in the United States in his medical school residency, who insisted on an education that offered a wider worldview.
The senior Archila Cabal's vision became a reality not just for young Juan Carlos, but also for his brother, six years his senior. After high school and completing a Bachelor of Science degree in engineering at a top-tier Colombian university, Juan Carlos followed in his brother's academic footsteps by attending the University of South Carolina where—like his brother before him—he earned a master's degree in international business. A primary factor in choosing that program was an internship abroad program. Juan Carlos knew instinctively that international experience would serve him well in his career.
He was right.
At the completion of his master's degree, Juan Carlos, already married and longing to return to his homeland, was hired by Motorola into their Cade 2000 Plus Program. With 18 months of on-the-job training that would send him back to Colombia, it was the perfect opportunity to meet Juan Carlos' needs. He said yes, a fateful decision that would inform his entire future.
One of the main tenants of Cade 2000 Plus was employee development. Ironically, as Juan Carlos began to build leadership teams across the globe in developing countries in Asia, Eastern Europe, and Latin America, he was also developing his own leadership skills. True to his penchant for international business, Juan Carlos bounced back and forth between Colombia and Mexico in his time with Motorola. From the Cade 2000 Plus program he became president of Motorola Mexico, eventually becoming CEO of Motorola in Latin America.
Motorola offered Juan Carlos the opportunity few leaders get: experiencing the arc of a company's initial rise and eventual fall. After 14 years, Juan Carlos moved on to become president of Brightstar Corp. Latin America. Finally, he moved to his current position as CEO of Claro.
Under Juan Carlos's leadership, Claro has become Colombia's leading communication services provider. He brought cell phone and Internet services to the remotest corners of the country, areas other companies were not interested in investing in due to security concerns and low revenue potential. But Juan Carlos was driven by his mission to improve the quality of Colombian people's lives. He offered the lowest possible prices so that the maximum number of people could use the services. He continues on the path of this mission, with cell phone and Internet access playing a critical role in the future and security of the country. Being able to communicate means being able to attain security, ultimately improving one's quality of life.
Claro has achieved astounding success in its mission with the number of Internet connections in Colombia tripling in the last two and a half years to 6.2 million. Claro has succeeded in getting 3G technology to almost 100 percent of Colombia's municipalities—a feat that hasn't been achieved anywhere else in Latin America.
To his role of CEO, Juan Carlos brings the knowledge that like no person, no company is immortal. Just as individuals pass away, so too can companies. Although Motorola met a stunning demise, the legacy of Juan Carlos's impact lives on in his commitment to Claro. I spoke to Juan Carlos Archila Cabal about the rise and fall of great corporations and the legacy leaders forge in their many positions over the course of a long, successful career.
JM:
Thanks for your contribution, Juan Carlos. You have such a fascinating story. Particularly your time with Motorola—you were there through the whole arc of the company's rise and fall.
JCAC:
It is a fantastic story, both from a legacy and a leadership perspective.
JM:
It must have been huge in your personal leadership development.
JCAC:
Motorola was an incredible powerhouse in terms of creativity and innovation. But amidst it all, they were not allowed to move forward, not allowed to transform.
JM:
Yes, and that's why I'm focusing on cultural transformation. It's a huge issue that affects companies in profound ways. Often by the time organizations realize transformation is essential, it's too late. People don't realize the company is dying.
JCAC:
Motorola is the quintessential example: a huge U.S. flagship that faltered and died. It went from 140,000 employees to what it is today. So it becomes a relevant story for me in that I lived through it and I saw it happen.
JM:
It most certainly had an impact on what you're doing and your legacy. You know this, but I'm not sure everyone does; just like people die, companies die. Any company, no matter its current success, could die. Including Claro. Do you think about this in your position, having witnessed the demise of Motorola?
JCAC:
Yes, of course. Claro absolutely could die. The mission then becomes to ensure the company's sustainability. Claro's parent is America Movil. In a span of 20 years the company has become a $60 billion-plus organization.
JM:
It's amazing.
JCAC:
It has grown very fast, but right now it's essential that we transform ourselves so we can effectively move on to the next phase.
JM:
That's your current challenge, then?
JCAC:
It truly resonates and defines what I do today and every day moving forward.
JM:
When you were in grad school in South Carolina, did you ever imagine you'd be in a role like this?
JCAC:
No, I did not.
JM:
But the opportunities kept arising and you kept meeting them: growing, developing, enjoying every minute.
JCAC:
That's a key reality. I was getting to know the world and to see how things were done in different places. That was something I enjoyed. I grew into my love and expertise for technology. There is no other industry today that changes so rapidly. If you don't have your eyes open things can change in an instant and you'll be finished. I've seen that happen with Motorola, with Nokia, with BlackBerry, with pretty much everyone.
This industry is relentless. In this fast pace, you have to be constantly on top of your game. If you're not atop of it, you really end up in a very bad place in a few short years.
JM:
Absolutely. Timing is critical. Only 25 percent of market leaders possess the capability to transform to meet the needs of their organizations. That leaves 75 percent who are not up to the task. You may be way ahead of the curve, but you cannot rest on your laurels.
JCAC:
We recognize at this point in time that even when you're a market leader, you have an incredible challenge within the changing technology. Very quickly you recognize how the competent companies are challenging the carriers in the rear.
We need to adapt and transform our business models. It is also a very young company.
JM:
Talk to me about the greater journey that led you to where you are today. After Motorola, what was next?
JCAC:
After 14 years at Motorola, I went to Brightstar. Brightstar is a service provider to the technology industry, mainly distribution services. I spent three years as president of their Latin America operation, which was a great experience. They are a very entrepreneurial company founded by a visionary Bolivian guy who built it from the ground up to a $10 billion organization.
Eventually, the Japanese corporation SoftBank bought Brightstar. The founder of Brightstar became the CEO of Sprint.
JM:
Your entrepreneurial CEO position with Brightstar combined with your leadership experiences at Motorola became pivotal developmental experiences for what you are doing today.
JCAC:
Yes, absolutely. When I became vice president at Motorola—the youngest vice president ever to be named a vice president at Motorola—the role gave me the opportunity to lead the device business for Latin America. I built relationships and connections and one of those was to America Movil. From there I went to Brightstar as president of Latin American, which was about 70 percent of their business.
JM:
How old were you at that time?
JCAC:
I was 44.
JM:
At some point in your 30s did a lightbulb go off and allow you to say, “I've got what it takes to run a big company?”
JCAC:
I think I grew into it, like many leaders do. It's a gradual process. I wanted to make sure I was always progressing—that was my preoccupation. That, and finding the balance of being always challenged while also maintaining a reasonable personal life. Unfortunately, I ended up at one point being out of balance.
JM:
Most people do.
JCAC:
It was a time period of great growth and experience, but I would not want to repeat it. I was making my way in the world, just as the economic crisis of 2008 hit, plunging the company under water. Suddenly I had an enormous amount of pressure on my shoulders.
JM:
And you had a family to think about as well, I assume.
JCAC:
I had responsibility to my family and to the founder of the organization at once. Just like I wanted to provide for my family, the people working for us depended on me to keep the company afloat so they could provide for their families. The responsibility is great and highly intertwined. We are not just dealing with the success of organizations, we are dealing with the livelihood of families. The great responsibility ultimately took a toll on my health. It was a significant toll that reinforced the notion that balance is not just an idea, it's essential to continued success as a father, a leader, a person.
JM:
Sounds like it was an inner transformation.
JCAC:
It was a transformative learning experience. I bring it to how I lead at Claro today.
JM:
How did you arrive at Claro?
JCAC:
There was a management change and, having worked with them for so many years, they called me up and asked me to come aboard. They needed a Colombian national that knew the business and would be willing to come back to take the position.
Coming back to Colombia had been my dream.
JM:
You eventually achieved the dream.
JCAC:
Yes, and it's been six years now. I came in as president and CEO of the mobile operation, and since 2012 I have been president and CEO of the entire operation.
JM:
Looking back on all your years of development as a leader what would be your proudest accomplishment or moment?
JCAC:
If I had to single out my proudest moment it would probably not be the most important to my career but it was where it all started. It was when I was selected for the Cade 2000 Plus program at Motorola.
It was a very key moment that laid the foundation for my entire career. Of course I didn't know that at the time. We see the significance of these moments only when we can look back. It's an important lesson for young leaders that what can seem fairly insignificant can eventually change the course of your entire trajectory. Being chosen for that program changed mine.
JM:
And it's not about the money and the prestige for you, it's about the lifestyle and the people with whom you travel this road. Your altruistic nature compels you to give back to Colombia, to your employees, to your family.
JCAC:
Altruistic seems too big a word for what I do. I simply view it as something that allows me to feel complete, to have an authentic reward for the work I do. I try to help people when I can, just as others helped me. That way, we grow together. One day I will not be here and what will remain is the legacy of these relationships forged.
JM:
That's what leadership is—it's about your legacy. If you were to pinpoint two or three leadership strengths or gifts that contribute to your legacy, what would they be?
JCAC:
Integrity. Integrity is the name of the game in business.
It's just a matter of creating your own unique quality of life, which becomes your personal equation, nobody else's. I see today as the start of my career. Every day is a new beginning, built on the foundation you've forged over the course of your career. It is with this experience that I lead a major transformational effort to sustain our company. This is the beginning of my next 25 years.
JM:
So integrity is first. What's next?
JCAC:
Discipline with passion.
JM:
What do you need to improve?
JCAC:
The main thing is my ability to work with others and delegate.
JM:
You're holding things too close to the vest.
JCAC:
Yes, I am. Partly because I have such high expectations, which can be an issue and a strength.
JM:
That's exactly right.
JCAC:
I am definitely an enemy of mediocrity. I'm very passionate about execution and making sure that even when our execution is good, we can always improve. Execution is the name of the game for large companies to behave as small companies. It makes all the difference.
JM:
It will make the difference. As CEO of this company, what's your biggest challenge currently?
JCAC:
I have a commitment to our employees, to our people. As a leader, I value experience over newness. It's important to have a stable environment of people that are committed to giving their all for the company they're loyal to. Once you have that, then you can bring a lot of bright minds to create short-term value.
JM:
I have a lot of respect for what you're saying—many new CEOs clean house.
JCAC:
At Claro, the average age is 40. These people have grown up within the organization, have developed themselves in the organization, have grown from within. That's part of our policy.
JM:
Excellent. Let's talk a little bit about culture. When I say cultural transformation, what does that mean to you?
JCAC:
It starts with having the right mind-set. Currently we are transforming the company mind-set to a more customer-centric vision. Not only customer service, customer advocacy. That is our current road map.
JM:
It's excellent. In your mind, what does the need to “think different, think big” mean to you as a CEO?
JCAC:
The people who work with me never thought about the possibility of a company this large in Colombia.
It's a $5 billion company. But they have experienced, just as I did at Motorola, the whole process. They have executed it as a team.
JM:
Tell me about transforming Claro into a customer-centric company.
JCAC:
I only recently introduced to them the concept of advocacy. I don't know if I'm pushing too hard; advocacy is a tough thing to sell.
JM:
Your question in your mind is, “Am I pushing too hard?”
JCAC:
Yes. But there is no way to know. That's where courage and decisiveness comes in. As a leader, we must move forward with what we feel is the right transformative direction, without knowing if it's right. That is the only way to get to the other side.
JM:
What would be your message to future leaders?
JCAC:
There is one very simple tip that I give to everybody:
Make sure you spend at least 20 uncomfortable minutes a day. Twenty minutes in which your stomach aches, as it were.
When you have that feeling, you know you are thinking deeply about what needs to change and what you need to do differently.
JM:
Excellent. Those 20 minutes are a marker.
JCAC:
Yes, you pick your battles and gather up the whole of your experience and you do it.
