The Médis team is faced with an unexpected and profound structural change
At the end of the third quarter of 2004, the Médis team—consisting of Francisco Henriques (General Manager), Pedro Gomes da Silva (Director of Communication and Retail), and Leonor Ferreira de Castro (Director of Medicine and Provider Network Support)—along with the heads of the other Life and Non-Life branches, were called to the Millennium bcp building on Rua Augusta for an extraordinary meeting. The meeting was led by the Chairman of the Board of Directors of Millennium bcp and focused on what would become known as “Project Madre-Deus.”
This project consisted of two distinct phases. The first phase—the “Deus” phase—involved the sale of the insurance companies Império Bonança (IB), Seguro Directo, Impergesto, and Servicomercial to the Caixa Geral de Depósitos Group (GCGD). The second phase—the “Madre” phase—consisted of establishing a joint venture between Millennium bcp and the Fortis Group, with the latter holding a majority stake (51%). Under this agreement, the new company (Millenniumbcp Fortis – Grupo Segurador) would be responsible for managing the insurance companies Ocidental, Ocidental Vida, and Médis, as well as the pension fund management company Pensõesgere.
In light of this unexpected revelation, the Médis team realized that with the sale of IB, Médis would lose 40% of its client portfolio to GCGD, jeopardizing its market leadership position as well as the strategy previously outlined for the company’s future.
Upon leaving the meeting, the tension was evident. While Francisco Henriques reflected on the need to rethink Médis’s strategic positioning, his apprehensive team did not hesitate to confront him with the doubts they had regarding the future:
. “How will our provider network react to this drastic prospect of a decrease in the number of clients?” asked Leonor Ferreira de Castro.
. “More important than that will be the impact on the satisfaction levels of clients associated with IB and maintaining the high brand awareness of Médis,” noted Pedro Gomes da Silva, highlighting the core of his concerns.
. “Your observations are very pertinent,” Francisco Henriques stated in a reassuring tone. “As a starting point, I will gather as much information as possible so that we can define an action plan. Let us not forget that there are still issues related to human capital, financial sustainability, and the optimization of processes and operations.”
Francisco Henriques realized the urgency of defining a new strategy for the future of Médis that would accommodate the concerns of all stakeholders. But which one?
