In this edition of the Masterclasses in Managerial Excellence, we had the honor of welcoming Nathalie Balla, a symbol of committed leadership and successful transformation. A graduate of ESSEC and holding a doctorate in economic sciences, she achieved the impossible: saving La Redoute from bankruptcy thanks to a unique participatory takeover model in France, where employees became shareholders of their own company. With her, we explore how to turn an existential crisis into a growth opportunity and how to mobilize teams around a bold collective project.
How to Diagnose the Extent of a Digital Transformation: when Reality Exceeds Expectations
Nathalie began her career in audit at PricewaterhouseCoopers before specializing in retail and distance selling. Trained in Germany and Switzerland, she joined La Redoute in 2009 to support
the digital transformation
of this century-old company founded in 1837.
Upon her arrival, she discovered the extent of the challenge: customers who paid by credit card were reimbursed by check for returns!
A total anachronism
in a world where Amazon and Zalando already offered a fluid and simple experience. This anecdote perfectly illustrates the huge gap between traditional practices and modern e-commerce standards.
La Redoute was losing 50 million euros per year and seeing its sales drop by 10% annually. Faced with this reality, Nathalie understood that the transformation could only be radical. For leaders facing similar crises, this testimony highlights the importance of precisely measuring the extent of the challenges before committing and adapting one’s strategy accordingly.
Entrepreneurial Audacity in the Face of Failure: how to Take over a “Doomed” Company
Initially brought in to oversee La Redoute’s exit from the PPR group (now Kering), Nathalie found herself facing a dilemma when the proposed takeover projects did not convince her. She then had
two choices
: accept a project she didn’t believe in and leave, or present her own project with the management team.
It is this courageous decision that makes the difference:
presenting her own buyout project
with
Eric Courteille
as co-president. This approach, far from being planned, stemmed from a deep conviction in the collective capacity of the company to recover.
The project she proposed stood out due to several revolutionary innovative elements for a company of this size: an assumed co-presidency to pool skills, a commitment to no dividend distribution for 3 years to reinvest in the transformation, and above all the opening of capital to all employees. This participatory approach transformed employees into direct stakeholders in the recovery.
Keys to Convincing an Outgoing Shareholder: Method and Arguments
In-depth knowledge
of the company after 5 years of internal presence
An ambitious but realistic project
supported by the entire management team
- A socially responsible approach: halving the workforce but gradually with retirement and early retirement plans
- A strong financial commitment: no dividends for 3 years to reinvest in the transformation
- Opening of capital to employees, a unique case for a company of this size
The choice of
co-presidency
with Eric Courteille aligns with several strategic rationales: recognizing the difficulty of the task and the need for collective intelligence, combining
complementary skills
, and jointly taking
difficult decisions
during a period of radical transformation.
Participatory Governance in Action: how to Involve all Employees in Success
Nathalie’s major innovation lies in associating employees with the company’s capital. The capital opening was done via two carefully structured investment vehicles:
Direct shares
for top management
FCPE
(Employee Investment Fund) housed within the savings plan, with a 200% matching contribution securing employee investment
The results reveal a significant
cultural divide
in the adoption of employee share ownership:
100% of managers
invested,
80% of supervisors
participated, but only
20% of blue-collar workers
joined. This difference is explained by disparities in financial culture and, unfortunately, by the opposition of certain unions, notably the CGT (General Confederation of Labour).
Despite union reluctance and differences in financial culture, this experience shows the importance of
support and education
in participatory transformations. Nevertheless, during the last professional elections in 2024, the CGT achieved its lowest historical score at La Redoute, demonstrating the final adherence of employees to the project.
The Concrete Results of a Successful Radical Transformation
- Shift from mail order to e-commerce
- Complete overhaul: offering, IT, logistics
- Return to
sustainable profitability
- Achieved
one billion euros
in revenue
Employee-investors saw their commitment rewarded
far beyond their expectations
, demonstrating the relevance of the participatory model. This success illustrates several key managerial principles:
the power of the collective
to achieve a transformation of this magnitude,
the alignment of interests
by making employees shareholders, and the strategic patience with no dividends for 3 years to finance the transformation.
In a nutshell…
Here are the 3 major lessons to take away from this Masterclass with Nathalie Balla:
- Entrepreneurship out of necessity: Sometimes, the best entrepreneurial decisions arise from a refusal of the unacceptable and can transform a crisis into a sustainable growth opportunity.
- Employee share ownership as a lever for performance: Associating teams with capital can transform engagement and create a shared destiny, provided this approach is culturally well-supported.
- Assumed co-leadership in the face of complexity: When facing major challenges, sharing leadership can be more effective than solitary leadership for navigating uncertainty and making difficult decisions.
Don’t miss the next Masterclass!