In June of 2022, Matias Verdugo, CEO of health and wellness company Empresas SB in Santiago, Chile, participated in a business simulation exercise as part of the MIT Sloan Executive Education Advanced Management Program (AMP). His assigned group included several CEOs like himself. To their collective surprise, they fared the worst in the simulation, as their fictitious company demonstrated the least amount of growth out of all of the participating groups. While the results were unexpected and a bit disheartening, they also proved to be very enlightening for Verdugo.
“We left money on the table,” he recalls of the assignment. “There were other teams with less senior executives that took more risky bets, and their companies grew 45 percent or more. We just couldn’t do that. I realized that my team was comprised mainly of CEOs. The problem is that, as CEOs, we are very good at doing what we are asked to do, but we are also very worried about not failing. So we don’t take chances. It’s not the first time that has happened to me, and it was very eye-opening.”
A New Mindset
The desire for that kind of awareness is what led Verdugo to the AMP, an intensive five-week in-person program held on MIT’s Cambridge campus that gives experienced executives the tools they need to make systemic changes at all levels across their companies. He felt it was necessary because of the political and societal changes his country is facing, as a new constitution is being drafted after decades of political stability. For the last 10 years, Verdugo has been with Empresas SB, starting as CFO and then becoming CEO. The company consists of an extensive group of health and beauty businesses, including more than 400 pharmacy stores and an additional 100 retail stores. The new constitutional process promises to change the way the government and businesses interact, and Verdugo recognized the need to modify his mindset to help his company adapt to any changes that will come in the future.
“I knew that I needed new tools because what we have learned in the last 20 years may not be useful for the next five to ten years. Our company operates in the healthcare arena, and in Chile, there are many healthcare insurers that will disappear in the next one, two, or even 10 years because of the changes we are seeing in our country. I saw that as a very big risk,” he explains. “I had to learn to welcome the changes that are coming and try to focus on them as opportunities. I had to be more prepared to face the changes with a better attitude.”
“AMP taught me how to look at change with an entrepreneurial open mind. Now I see that we can be protagonists of major changes...”
Of course, one of the first takeaways from the AMP for Verdugo was his DISC assessment personality style, which he learned is a D, or dominant, meaning that he is assertive, competent, and results driven. It also means that he is risk-averse and should strive to be more patient and empathetic. Although he knew that about himself, it was helpful to learn about his management style and be given tools that would allow him to both use and adapt that style as he—and his employees—deals with change. “As CEOs, we want to produce change, but we don’t when change arises,” he observes. “AMP taught me how to look at change with an entrepreneurial open mind. Now I see that we can be protagonists of major changes that can affect millions of people in Chile. I’m starting to look forward at what we will be able to do.”
Beyond Knowledge
For Verdugo, what really set AMP apart from other courses he has taken over the years is that the MIT Sloan program goes beyond pouring knowledge into its participants—it gives them tools they can use to apply that knowledge. From hands-on leadership experiences to valuable strategies for using today’s most prevalent business technologies, the AMP provides insights that can be used immediately in any business setting.
“You get an entirely new toolkit for tackling challenges that you face on a day-to-day basis. Of course, it’s not a tool unless you use it, and MIT prepares you to use all of the tools,” he says. “In some cases, the tools seem ridiculously simple, but you quickly see that you just haven’t been looking at those tools correctly. The program gives you a special lens to look through to solve problems.”
Faculty Director Court Chilton (L) presenting Matias with his AMP Certificate
With his newfound way of thinking and applicable skills, Verdugo looks forward to many more years in his position at Empresas SB. “When I got to the company, I knew I wanted to be there for a long time. I never dreamed I would be CEO, and now I’m looking down the road 10 or 15 years,” he concludes. “You need to be a long-term thinker, and the AMP gave me solid tools to be one.”
Learn more about the Advanced Management Program.