NEW ITALIANS REJECT THE PAST

Massimo Brunelli is one of a new breed of young Italians thrusting their older colleagues aside at the top

Timeline: 12/01/2000

Some people think Italian business has been stuck in a time warp for the last 50 years. In 1999 that started to look very different. A former state monopoly was taken over in a hostile bid and Enrico Cuccia, the 92-year old banker, was almost overthrown as four of the top Italian banks announced they were to merge. Cuccia prevailed but the seeds of disruption and change were indelibly sown so deep that not even Cuccia could erase them.

A revolution is happening within Italian corporations as a new breed of young executives is nurtured and encouraged to help bring much-needed reforms to Italian corporations. Careers are being made and broken as company after company faces up to radical restructuring that was sparked when Olivetti bid for Telecom Italia.

It is the start of a new move to youth after years of Italian commerce being dominated by eighty, and sometimes ninety-year-olds. The trail was originally blazed in the seventies by young Luca di Montezemolo, a nephew of Gianni Agnelli of Fiat. But di Montezemolo did not break the mould and he was seen as an example of nepotism that some say is bad for Italian business. As it turned out di Montezemolo was held back by his family connections and turned down many outside approaches out of family loyalty.

But nepotistic promotion has decidedly been broken by the new breed and the new environment. One of the very brightest stars of the new generation is 41-year old Massimo Brunelli. Brunelli won a Bank of Italy scholarship to study economics as he had the best grades at Bologna University and 'the best graduation thesis'. Since he graduated he has been on the fast track and has had a roller-coaster career.

At times it seemed headhunters were never off the phone. He spent seven years in America with Elsag Bailey in Ohio before coming to Olivetti. Then, after only a few months of putting his feet under the table at Olivetti, he was snapped up by the Italian utility company Enel. At the time Olivetti was struggling. Enel had the added attraction that it was a huge utility that was about to be privatised. And finally it was back to Olivetti and Telecom Italia.

Within just over three months of being appointed chief financial officer of Telecom Italia he was given an extra job as chairman of Stream, the pay-TV platform company that is part-owned by Telecom Italia. No one doubts that Brunelli is Olivetti chief Robert Colannino's chosen successor. It hasn't hurt Brunelli that he is a protégé of Colannino and when there is a problem he is the first man Colannino calls. Brunelli's rise has captivated a country not used to celebrating young business stars.

The trail for Brunelli was blazed initially by Pietro Guindani, now 41 years old, who has already made his mark at mobile network Omnitel. In the past five years he has played the dominant role in deciding the strategy of the telecoms company. His rise has meant the move to youth is spreading fast. Now other new young Italians include 33-year old Gian Maria Argentini of food manufacturer Unichips and the 37-year-old Massimo Manelli of Motorola.

Brunelli believes it is not just at the top that change is happening. He believes he is part of a general trend of Italian companies employing younger staff and encouraging risk taking as a tool for quicker growth. He is quite clear about what motivates him: "If you ask me to work 20 hours a day, make difficult decisions and take risks I will do it. I will bet my life on Telecom Italia. I can because I am 41 years old. But a 55-year old is less likely to risk divorce, or having no life. They would rather choose the easier life."

Brunelli believes in his ability to pick people: "I build a team and make it succeed. I am the guy who takes them up the trenches." Now Brunelli is helping other young stars of the future by teaching international finance at the university in Rome. A sure sign that the very fabric of executive culture in Italy is changing. It has been a long time coming.

Author: Catherine Monk