Ilaria Resta, CEO of Audemars Piguet: “I’m Ready to Take Risks to Foster Innovation”

The meeting with Ilaria Resta was scheduled in Le Brassus, a few days before her first public appearance in front of the international press, scheduled for the first week of March. In her office with floor-to-ceiling windows opening onto picturesque scenery, she preferred to surround herself with very few objects. This stark transformation contrasts with her predecessor, a big fan of Master Yoda and pop culture. Despite the simplicity of the surroundings, her melodic Italian accent and powerful energy fill the room. She immediately felt at ease, captivated by the sense of belonging that permeates everyone at Audemars Piguet. A devoted tennis fan and unconditional admirer of Jannik Sinner, herself a regular player, she confesses to brim with ideas, enjoying action and risk within control. A mother of two children aged 10 and 15, she refuses to compartmentalize her professional and family life. She extensively explains her desire to support each employee in advancing their talent, gaining the trust of everyone, while continuing the mission given to her by the board of directors: to stabilize, ensure sustainability, guarantee independence, and support growth. Our meeting with a highly anticipated female leader in the industry.

What were your first impressions upon arriving last summer at Audemars Piguet?

In the months leading up to my arrival in August, I delved deeply into the world of Audemars Piguet through reading and listening to what could be said about it. I nurtured my rational knowledge, in a way. But from the very first moments upon arrival, everything changed. I immediately felt the very human aspect of the company. The employees' sense of belonging, the warmth, the welcome, the connection to something greater, deeply rooted in the culture of the place. While it usually takes some time to understand the spirit and workings of a company to feel comfortable, this feeling at Audemars Piguet was immediate. I already feel like I've always been here. This stems from the unique sense of belonging shared by everyone in the company.

Could you define your management style?

My leadership is circular. It's a concept that has integrated itself throughout my career. In the classic pyramidal scheme, leadership is upward, with a leader largely isolated from reality. I realized that the major mistake, which I myself made in the past, is being too distant from the field, the customers, the markets, the suppliers. I understood that my ideal organizational structure is as horizontal as possible. The solution is to be closest to the decision-makers on the ground, by removing intermediate layers of management. Without this, leaders are unaware of the corporate culture they're creating. The leader's solitude is dangerous and doesn't suit me because I'm extroverted, informal, and open. I always say, "Send me a WhatsApp and I'll respond, send me an email, and I’ll wish you good luck." Conversation should be immediate, without any need to create a context for it. I like direct, clear, open discussions, which define me as a leader. And the image of circularity corresponds to my approach. I defined, designed, theorized my leadership typology, and then applied it by changing my way of communicating with my team.

Did you formalize this at Procter & Gamble?

Yes, precisely in the United States when I was promoted to head the American beauty care segment. I was new to the market, almost like an alien. The only way to succeed was to be present in the field with collaborating employees. My desk in the middle of an open space was ideal. Every Friday, I wrote a personal letter to everyone to share what had happened. The employees responded, informing me in turn about their daily lives, and this turned into a communication habit. Passing through offices, stopping by each one, asking questions allows for direct, rapid decision-making without being locked in endless meetings. My door is open, and when I'm there, it's to be with people, not to write emails, which I do elsewhere. I like it when employees bring me samples, products; I like to touch and see; this physical leadership is essential to me.

In watchmaking, trust isn't gained so quickly. You have to earn it. Is this inherent difficulty in the industry challenging to overcome?

I like your question about earning trust because that's the central point. You're not appointed a leader; you have to earn that role by gaining trust. And in this industry that I'm not familiar with, I have a double challenge: knowing the brand as well as watchmaking. So upon arriving, I preferred to listen, observe, visit the manufactures, understand the craftsmanship, practice a bit of watchmaking, and then act accordingly.

What were the questions or concerns expressed upon your arrival?

It's, of course, the fear of change. And changes are often proportional to the size of the leader's ego. When a company's situation is healthy, as is the case with Audemars Piguet, provoking changes simply to assert oneself is irresponsible. Of course, with a change in direction, some priorities are reviewed, but I wanted to reassure everyone about my understanding of the company, my ability to see talent, and my supportive role before any change. I'm here to remove barriers, promote projects, advance expertise, and safeguard everyone's well-being.

What was your analysis of the brand upon arrival, and what is it now, seven months later?

I knew the immense respect the public has for the brand. Audemars Piguet is a Manufacture that isn't afraid to innovate, at the forefront of what's called the zeitgeist of culture, making unconventional choices. I knew the brand didn't compromise on quality. I immediately saw this obsession with detail, this ability to push boundaries. There's no glass ceiling; there's no self-satisfaction either. The pursuit of improvement in every department is a powerful motivator.

Audemars Piguet's hallmark is precisely breaking codes. Is this a character trait that resonates with you?

If I may add to the slogan, to break codes or rules, you must first master them, that's absolutely correct. But you're right, at a certain level, if the leader doesn't align with the company culture, it doesn't work. I feel comfortable with the idea of taking risks while protecting the teams. Giving ideas and innovations the opportunity to express themselves is easy, but it must be done by creating a healthy environment to do so. For that, you have to give people time to explore and think, by eliminating any unnecessary bureaucracy. I must admit, I'm an impatient person, my brain is always buzzing, so when I felt this powerful catalyst of desire and creative fervor, I felt like I was arriving in a place that aligns with who I am, with my speed, and my thirst for achievement. But you also have to know how to respect timing. Coming from the fast-moving consumer goods industry, where speed is the essence of everything, I have to adapt to the long-term pace that watchmaking requires.

In terms of risks, what are you willing to take?

I'm willing to take risks to foster innovation, which has implications in terms of time, human resources, and finances.

Will Audemars Piguet continue to sign innovative and wild partnerships with other industries, as has been the case recently with the rap and street style scene?

It's interesting to define what we mean by wild. You can certainly expect to discover new collaborations with partners who share the same values as us. There's a strategy behind every choice, which corresponds to the values and direction defined by the brand. Creativity must be framed.

Can you define this framework?

The reputation, independence, and sustainability of the company are the foundation of our framework. Audemars Piguet has existed for 150 years and will exist for many centuries after me. It's a matter of balance between short-term and long-term. The brand's values illustrate how to act and operate: family, integrity, authenticity, protecting expertise. And in this equation, support for our suppliers is crucial. We have a duty and responsibility to them. Differentiation points are also important. We're innovative in materials, marketing, distribution. On this last point, the choices made were right because they ensured the brand's reputation, respect, and good relationship with customers. We'll continue in this direction.

The announcement of the two-billion-dollar revenue in 2023 was a major milestone. What is your ambition in this regard?

The mission given to me by the Board of Directors isn't just about revenue, but it's about consolidating the company's foundations, so it's ready for growth and sustainability.

So, are you sticking to the last reported production figures?

Broadly speaking, yes. We're building a new production site in Le Brassus. It's a huge challenge. We're consolidating the various sites in the Vallée de Joux under one roof. It's not just a relocation; it will be a new way of working together, with different flows, a new approach to watch production processes.

This site is being built to reach 75,000 watches per year. Is that your goal?

Our goal is the success of this new organizational production structure. The figures always follow; they're the result of the work done and the strategy implemented.

What are the advantages of working for a family-owned company in this regard?

For 23 years, I worked for a publicly traded company. It's an immense life and experience lesson. Then, at Firmenich, I discovered what it meant to work in a family-owned company. It suits me best; it gives you a different sense of responsibility, even if you're responsible to shareholders and employees anyway. It's more emotional, and it changes the dynamics of my relationship with the board of directors.

What is your definition of the watchmaking industry and the place Audemars Piguet occupies in it?

As a brand, we have a responsibility to contribute to preserving the watchmaking ecosystem. Watchmaking is synonymous with craftsmanship, art, micromechanics, specific know-how, heritage, but it's also a symbol of a moment in life for the person receiving a watch. I've been accustomed to analyzing a market by identifying substitutes for a product. What can replace a watch? A piece of art, a house, a trip, an investment? There are as many emotional, material, or financial responses. The watch is much more than an object that measures the passage of time.

The watchmaking industry is relatively small compared to others. What do you think it could do better and differently?

Once again, supporting the watchmaking ecosystem as well as collaboration between players is essential for the industry to grow.

Audemars Piguet has withdrawn from all watch fairs, including Watches & Wonders. What is your position?

It's not a priority topic at the moment, but it's worth noting that we're still present at the Dubai Watch Week.