Leadership Espresso with Stefan Götz

Leadership Through Trust: How Astrid Turned a 180-Year-Old Company Around ⎪ feat. CEO & Co-Owner Berendsohn Group Astrid Schulte

• Stefan Götz

Share episode

What happens when you buy a 180-year-old family business that desperately needs transformation but has no clear path forward? Astrid shares the remarkable journey of how she revitalized the Berenson Group by building trust rather than demanding change.

When Astrid acquired this promotional products company with approximately 1,000 employees, she faced an organization paralyzed by uncertainty. Rather than imposing solutions, she spent her first hundred days conducting one-on-one interviews, asking everyone the same powerful questions: "What could be our growth path?" and "What would you personally change?" This approach immediately signaled that transformation would be collaborative, not dictatorial.

The transformation stories Astrid shares demonstrate profound leadership wisdom applicable to any organization facing change. She explains how she broke tradition by personally leading the sales department to understand the challenges of transitioning from physical promotional products to digital visibility solutions. Instead of forcing change through mandatory training, she identified naturally talented "local heroes" within the sales team who inspired their peers – creating a pull strategy rather than a push strategy that achieved an astonishing 80% adoption rate of new digital services.

Throughout our conversation, Astrid reveals how constant reinforcement of vision, creating psychological safety, and establishing trust as the foundation of all interactions transformed an anxious workforce into an enthusiastic team ready for growth. Her approach to leading through transformation offers a masterclass in human-centered change management that balances business needs with genuine care for people.

Whether you're leading a startup or transforming a legacy business, this episode provides actionable insights on creating meaningful change that brings people along rather than leaving them behind. Subscribe to gain leadership wisdom directly from executives who've successfully navigated major organizational transformations.

Listen to the Leadership Espresso Podcast:
https://open.spotify.com/show/4OT3BYzDHMafETOMgFEor3

View the Leadership Espresso Podcast:
https://www.youtube.com/@Stefangoetz_Global_Leadership/videos

Connect with Stefan Götz on LinkedIn:
https://www.linkedin.com/in/stefangoetz/

Check out Stefan's Executive and Team Coaching
https://www.stefan-goetz.com/

Speaker 1:

Hi, astrid, back again. Part number two of our podcast and your truly phenomenal story. Part number one whoever missed it, just look it up on our YouTube channel, gert's Global Leadership, and watch the reason why Astrid truly transformed and reinvented her leadership. So there you find the pillars, the reasons why someone really is changing. Now part number two all that change was preparation for another task, for another challenge, for another adventure.

Speaker 1:

Now, about three years ago, astrid bought a company called Berenson Berenson Group. That is a group that was based around selling promotional items and it was family-owned for about 180 years and it had a strong culture about us, about the family and about believing in that family that they would guide the ship, and that was great. But the ship has a number of holes let's call it this way and needed fixing, needed somehow even think about the course for the next maybe 180 years. So in that respect, we want to talk about what did happen. Why did it happen? And, most specifically, astrid and that is the first question is like I can imagine that the thousand people, the sound stuff that you actually had, everybody knew, somebody knew it was coming in and obviously there was a need for change and you reported that people had some sort of concern, some even maybe a little bit of fear what will happen? How do we have to change? So how did you address that element?

Speaker 2:

Thanks for having me again, stefan, to say first. Me again, stefan, to say first. So this element of fear of respect, I think was deep in in the people's heart and in the people's head, because I think main problem was that everyone knew well, the company has to change and the business model has to change, but there was no clear way designed how to do this. And I think I mean it's the same in the personal life, so you are afraid if you don't know how to get out anywhere. So I think when I came, the first thing was not that I thought okay, we're not profitable, so we have to fire 30% of staff. So the first idea was that we have this asset, we have the access to 100,000 of small, medium companies, so how can we make a success story again out of it? And the objective was to define a strategy, how we can use these assets together with a team of Berenson, and to find out a way everyone can share to sit in one boat.

Speaker 2:

And what I did when I came was in the first hundred days. So every CEO, I think, wonders so what do I have to do in the first hundred days? And I talked almost to everyone here in Hamburg and also to many people in Brisevitz, where our production site is, and I asked everyone in one-to-one interviews so what can be the growth path of Berenson? So what is your idea? And if you could change things, what would you personally do and what can be your contribution to change Berenson? And so I didn't come into the company saying so I know how it's like and I know exactly the way and I know how we do it. And first we have to get rid of many people. But we, we approached this together. So it was not I'm coming and I'm against you, but it was more.

Speaker 2:

So we are in a process and we which was very important after these 100 days and after all these interviews we defined a mission together. So what is what we really want to do in the future and why? And a clear objective as a vision, where we want to go. And also we discussed a lot about what are the values we want to share, because I think transformation doesn't only mean we change the business model into something which is sustainable, but we also have to change like the, the company in the heart and the culture as a definition. Culture is what everyone does in every second, so it's, it's a huge thing. So we define values and we said we draw this image together in a team. So how would Berenson be like in the future? To be a wonderful place where everyone wants to work? And what do we want to have as as like a company image we want to be a part of and we identify with?

Speaker 2:

and I think this process I mean it took some time and I'm sure that some people said so she's talking a lot and she's listening a lot and she talks to client. What is she doing?

Speaker 2:

Because everyone knew we need a solution how to change our values are the basement of our clear strategy we have now and I think this is a big wave. First it was a small wave, so some people believed in this, and then the wave got bigger and bigger and bigger and I think now after three years. So we're in the middle of the transformation and so I think the majority of our employees says I understand the, I like the strategy and I want to be part of building Berenson to the company I would like to have.

Speaker 1:

Beautiful. Let's pick out the main issues and address them like a takeaway, because that's a beautiful and a very powerful story and I guess most of our audiences have been involved or will be involved in some sort of transformation of projects, particularly at these times of the pandemic, because, let's face it, the business models need to be reviewed, the cultures need to be reviewed. So what I heard was your starting point was a more receptive point. So instead of going in saying okay, I have an idea how this needs to change, you kind of went into the place and first gave some safety, some security to the staff, saying everyone will be in that boat, we will together make this journey. No one left behind, no man left behind, no woman left behind. We will make this journey together.

Speaker 1:

Now that is a very strong, not just a metaphor, but that's a leadership attitude right Now. Could you explain more in detail how people responded to that? You know you told us that previously they all kind of looked up to the family and said you will sort the problem. Now, how did they react and how did you cope with that? The human way?

Speaker 2:

So I think, to start with, it was good for people that I didn't say you have to change, otherwise you're out. Yes, I think this was sort of like releasing that.

Speaker 2:

Um, I said we all go this way together, and so I have to say that also myself I I wasn't afraid, but I had a lot of respect and, uh, I think I think what made me credible was also that people understood that I have respect also, and this respect keeps me open, transparent, and I think this helped people to deal with their own fears, because I think I leaded the strategy from the beginning pretty strongly. But I also said we don't know this is the way we want to go, and we try every day to do the best to get the strategy done and to be successful, but if something doesn't work, I mean, then it doesn't work. We have to change the strategy, not the complete strategy, but we have to change some ways, and I think this helped people to relax a little bit, because I think if you have fear as a dominant feeling, so it's hard to transform yourself and so, as we said, we go this way together and I, from the beginning you know I was in the middle of the transformation, I didn't say so, I'm in the steering committee, so you all transfer, I define the business model I really went pretty much into detail and so I, for instance, I pretty quickly decided to lead the sales department myself, which was not in the history of Berenson that the CEO leads the sales department themselves, the history of Berenson, that the CEO leads the sales department themselves. But I thought, if I don't go in the depth of the sales structure, so it's hard for me really to understand what is needed and what is exactly the status of the salespeople, because this is our asset. I mean, you have to imagine there are hundreds of salespeople and they have a big Berenson heart and this is a treasure and they really want to go for the company.

Speaker 2:

And I really had to understand myself how shall we act? How have to we do? We have to transform our strategy into the sales department in order to be successful. And I can't say only sold promotional products so far. Now you have to sell digital products, because this was part of our strategy. To say so, we go from the visibility on products to the visibility digitally. So we sell websites, we sell local listings, we sell Zia, et cetera. So you can't only press a button and say so now you have to change everything what you did in the past 20 years. So we really had to talk, we had to understand what the fears are, we had to convince that this is a win-win situation for the client as well, to not only to get sold like pens, like pens or gifts, but also websites and local listing, etc. So, um, this was a long way, but I had to go into detail for this yeah, absolutely.

Speaker 1:

And I just put myself in the position of someone in the sales department. When a new owner is coming, a new ceo is coming and he takes over the sales department, I'll be having tremendous amounts of respect, say, wow, now I have a flash of a thousand. What? So? How did you help them? Uh, you know, feel safe. How did you help them get the idea? It's not about you, know, your idea, it's about them.

Speaker 2:

It's about togetherness, it's about we make it so I think it's clear that such a huge transformation cannot be done from the outside. So wrong thing would have been to say we get a consultant firm and they transform everyone in the business model. And then it's so clear was that it has to come from within and from inside. And so what we did, for instance, is that some sales people they're very, very talented in some things. So, for instance, there's their talents for digital products. So we didn't say everyone has to sell digital products. We say we said so.

Speaker 2:

This person, for instance, he is really talented and he understands exactly how to sell it. So he's a kind of local hero and we made um like him as a hero for a group of five to ten other sales people. And this was not push you have to change the way you sell but it was I inspire you. And this was not done by our training department, which would have been the normal way to teach people. This was done from within. So salespeople trained other salespeople and they motivated each other. So like to be in one direction. Dealing with some issues of our sales organization is much better as only to follow your structure. Following your structure would say so. My boss says I have to, so I do and I can't do it. So the training department is coming and trains me. So this was the old way and this is a way in many, many sales structures and we try to change from the inside and to motivate people. And this is huge. The success is really big because, um, it's uh, it's not a push strategy. You have to, but it's a pull strategy. So he's successful with digital products and I'm not, so I want to learn from him and, as a result, 80% of our salespeople now sell these digital products.

Speaker 2:

In the beginning, we thought this will be so tough and everyone from the outside said, no, this won't work, because people I mean they sell promotional products, nothing else since 20 years and we have many people being with us since 20 years. You know, and finally this works. We're still in the middle of a transformation, but I know now it works and people are really enthusiastic about it and really know now this is the way we go and I feel myself that I am talking a different way to the clients. I feel myself that my world is bigger now and that's why I know the company was successful and so the fear is gone and I I'm pretty sure that people now at berenstain they're not afraid anymore. They know it's hard and I mean there will be hurdles.

Speaker 2:

I mean there are hurdles every, every day yeah but we know where we go and we know we we will make it, because we feel it that, yeah, we will be successful.

Speaker 1:

Astrid. Now, actually I stands you applied the same strategy in two different areas. You said you, you shifted the business model from selling promotional items, which is product selling you're pushing to the market. You shifted that to putting the smaller, medium sized customers in the center and their visibility on their market. Now I believe you did the same inside, because you made your salespeople be visible, and then into the center, into the middle of that. It's their support, it's their approach. Now, I guess some of them would have taken it easily, some may be more difficult. How did you cope with the, the ones and I'm not saying it's a personal issue, but how did you address when, when there was a hurdle, when there was a barrier? How did you walk around this?

Speaker 2:

so I think our vision is so key and sometimes I felt a little bit like a prayer, because I traveled a lot and in every regional sales organization I repeated again and again, and again our vision. And I think this is really important Also in my daily life. I mean, sometimes I have days where I have thousands of hurdles and I think for myself if I wouldn't see every time the vision, because when you enter our office there's our vision and if you enter the regional sales departments, there's always our vision and I repeat it and I repeat it and I repeat it because then I think it's easier also for myself to get over these day to day hurdles. It's easier also for myself to get over these day-to-day hurdles because I think it's always, you know, like the attitude, how you look on things and it's your decision. You know you can.

Speaker 2:

If something goes wrong, you can say, um, okay, again it goes wrong, so we won't be able to manage it. Or you can say, okay, so there's a vision, it's clear we're gonna make it. And oh, have a look, there's a vision, it's clear, we're going to make it. And oh, have a look, there's a little hurdle on it, you know. And um, so I think it's um, you know it's, it's.

Speaker 1:

It's mainly the way you look at it and the vision helps to, to give the the big um direction right now to finish up, what were the values that you put into place and how do they reflect also the new culture and the practices?

Speaker 2:

So myself and also my vision of how I would like to lead Berenson is to trust, to trust. So this is my, my major, I think, link how I deal with people, that I always start with trust, and this is something really important. When I came to Berenson, there was not, I felt not a lot of trust, also to each other, so people blamed each other a little bit because I guess they were afraid if I don't do self-marketing and I blame someone, perhaps it's negative for me. And I think if you create a matter like an organization of trust and you know that we all go in this direction and everyone is giving the best, I think then you you can create a culture of like accepting failure, you can be connected and then also you can solve problems Because I think many energy is lost when you create, when you are in this aggressive, in this aggressive disputes who's uh blamed for any any mistake?

Speaker 2:

because sometimes shit happens, you know. And then you have to say, basically we trust each other. So this happened, and we don't think about who's to be blamed, but we think about how can we solve it and how will this problem not happen again. So trust for me is key. I mean, this is my personal life, this is key, but also in my business life, this is key. And certainly what you have to say is because when I in this big organization, you know, with many, many people, I felt so good after a certain time that I trusted. And certainly there are also people when I say you didn't gain my trust, you know, and then you have to separate, you get people, let people go and say this doesn't work, because if you have the feeling that you can't trust anyone and you're betrayed or you, you know, you feel that someone is not honest and it's not going this way with you, then you have to say okay, we have to separate, there's no other way.

Speaker 1:

Then you have to say okay, we have to separate. There's no other way. So trust is key, creating a safe space of learning, of failing, and that is all in this one vision of we make it all together, no one left behind, no woman left behind, no man left behind. I think that is a very strong picture and certainly one that gives people the power to flourish, and certainly some of them will feel I don't belong to the chip anymore because I was used in a different way and and and, as you put it. Then you let them go, you know, and not throwing them out, but you let them go and maybe even support them on their journey. So what is your journey for the next couple of months?

Speaker 2:

Well, we have now our ship pretty stable, which is good, so the Berenson ship is now moving in this direction, and so I think it's important really to follow your strategy and to go 100% for it. And we still will launch some new digital products, like newsletter marketing and Zaya, in the next month, and so we want to hire more people now, because I think we're ready now and our assortment is great, our people are in a good mood and now it's also time to enlarge our organization and to get salesperson. So we we're in a growth attitude and mindset and I think we will fulfill this next year and I'm very much looking forward to that.

Speaker 1:

Awesome, a real, very authentic and profound personal story and corporate story, in finishing with a story of expansion in those times of the pandemic. You are hiring, so I will see LinkedIn. We are hiring now in the future is a phenomenal story and I'm sure there's a lot to learn. So maybe, astrid, we will have another podcast, maybe in half a year or a year, and to find out the next steps about the journey and what we can potentially learn from them and from your lessons learned on this way we call human is the next big thing. So I really appreciated having you on the show and it's all about leadership espresso what else? Inspiration?

Speaker 2:

Thanks for having me, stefan. Bye-bye, see you in six months, yeah.