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2012. 7. 17. 09:56


The story

In 2000 and 2003, Alberto Vollmer faced two challenges to his business, Venezuela’s Santa Teresa Rum Distillery. Although different from each other, both reflected the country’s exceptionally difficult operating environment.

Mr Vollmer heads the family-owned company, which is based 70km from the capital Caracas. Founded in 1796, and one of a dwindling number of privately held companies in Venezuela, annual sales are close to $100m and it exports to 35 countries around the world.

The challenge

The 2000 problem arose when almost 500 families invaded or squatted on part of the company’s estate. Demanding that they leave, or calling the police, was judged pointless. At that time, President Hugo Chávez was speaking out against private property and land owners, and encouraging his followers to become land grabbers.

The 2003 dilemma was what to do when members of a local criminal gang nearly killed one of the company’s guards and stole his gun, before being detained by Santa Teresa security staff. The response could have implications for the company at a local and central government level.

The strategy

In the first case, rather than use punitive force against the invader families, Mr Vollmer sought an agreement with their leader and with the pro-Chávez authorities in the state of Aragua, where Santa Teresa is based, by developing the idea of “dignified homes”. He recalls: “They couldn’t say ‘no’ to that, but it wasn’t going to be easy, either.”

The company’s charitable foundation would provide land and a housing development plan for 100 families, if central government financed the construction of quality homes, and if the state government funded the infrastructure and found housing for the other families. The 100 families would recruit building companies, decide which families to exclude, administer the funds and supply the labour force.

In the case of the gang, Mr Vollmer offered a choice: be handed over to the police, or move on to the estate and work for the distillery for three months with no salary to make up for their crime.

The results

The Aragua state government liked Mr Vollmer’s initial proposal regarding the homes. Talks with central government took longer, but within a year it agreed to finance the project, largely because of the “team” approach between the company and the invaders.

The first invader families received property rights to their homes in December 2011. They were also invited to take part in job-training programmes sponsored by the distillery. Later, the families’ leader asked Mr Vollmer to be godfather to one of his sons and has become the community outreach co-ordinator of Santa Teresa’s charitable foundation.

The accused gang members took the work option and after some discussion the rest of the 22-strong group also signed up. This unofficial pilot developed into Project Alcatraz, a programme that aims to help eradicate crime without using force.

Participants undergo civic values and rugby training, formal education, psychological treatment and community service, learn crafts, build homes and help to produce gourmet coffee.

Five other gangs have been recruited and the local homicide rate has dropped from 78 to 27 per 100,000 inhabitants.

Mr Vollmer is involved in a project with Accenture, the professional services firm, to make Alcatraz scalable in Venezuela.

The lessons

When forced to do business in a difficult political and economic environment, the rules of commerce can require novel solutions to difficult problems.

In the case of Mr Vollmer, his decision to engage the squatters and gang members rather than resort to a heavy-handed, legal approach was positive both for achieving his goals and also for improving the hostile perceptions towards his company.

- Financial Times, 16 July 2012