Serving on boards: the impact on the role of a Chief Executive Officer
A conversation with Jose Manuel Arana, CEO of Nadro
By Luana Ferreira
Jose Manuel Arana is the CEO of Nadro, a company focused on pharmaceutical distribution. The top executive has spent nearly four decades working for different industries (biotechnology, food, auto parts and pharma) and has lived in Brazil, the United States, China, and European countries. Arana is considered a reference in his area, but despite his experience, he is still planning to evolve and learn.
His career started in the early 1980s at the Dow Chemical Company, where he had the chance to work in different positions in Brazil and the United States for two decades. After that, he returned to Mexico, where he worked as the CEO of Tyson Foods for six years. Arana has been a board member for different Mexican companies for over 20 years, including Citrofrut and Protexa.
As a CEO, Arana's primary expertise is mergers & acquisitions (M&A). "When I was at Dow Chemical, I headed the Global Strategy Group for about three years in our corporate headquarters in Indianapolis," he says.
His leadership style is focused on people, ensuring the employees' potential and placing them in the most suitable position. His main challenge as a CEO is to speed up technology transformation, aiming to serve customers and suppliers better.
Working as a CEO and a board member gave Arana a new perspective on both roles, which are entirely different according to him. Arana explains that as a CEO, executives must present initiatives and strategic moves. "You must work and weave between all the stakeholder groups so the company can make the best decision. But you're driving a lot of that influence," explains Arana.
On the other hand, board members often navigate differently in a company. "You are influencing the CEO to make the best decision for the company. And they are so different in terms of interaction and how far you can go. You cannot operate the business," he says.
Having the chance to experience both positions is a thrilling experience for Arana. As a board member, he has the time to analyze and reflect, directly impacting his job as a CEO when he asks for advice.
Arana is not afraid of changes and is passionate about reinventing business. Of course, diversity is a key driver at the moment, and it is crucial for companies. "Regardless if you are Latino, Indian or Chinese, I think boards are required to have different backgrounds and mindsets. People have different experiences throughout their lives. It is very satisfying to join a diverse board, rich discussions and shape better ideas," he says.
However, a Corporate Board constantly faces challenges; Arana lists three ideas for better board practices. The first is to know where they want to take the business. The second step is "making an in-depth assessment of their top-level people. And make the hard decisions early so that you can have a good team for that vision," Arana says. Yet, the most critical part is the execution. "You can have a good strategy, but nothing happens if you don't execute properly."
In the coming years, Arana sees himself more involved in board positions. "Most of my career has been globally, and I think I can contribute a lot to someone that aspires to grow globally," he says. Education is a crucial value as he thrives on knowledge. "I plan on preparing myself to continue improving as a board member and always staying up to date with the best board practices."
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“I think boards are required to have different backgrounds and mindsets. People have different experiences throughout their lives. It is very satisfying to join a diverse board, have rich discussions and shape better ideas.”
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Photo credit: Courtesy of Jose Manuel Arana