Meet our people: Rafael Martinez-Frausto
At On Point Loyalty, our people are the key driver behind everything we do. Coming from diverse backgrounds, but all with a shared passion for loyalty strategy, our teams work around the world to deliver world-class solutions for our clients. In this episode, Rafael Martinez-Frausto talks about using his entrepreneurial mind both as a consultant as well as CEO of a start-up pet-tech company....plus the endless possibilities and attractions that Mexico City offers...
Having worked both on client and consultancy side, what are the perspectives and limitations of both?
Luckily my path has allowed me to see all sides of the spectrum with regards to consulting. During my time at AeroMexico, working as a project manager, I worked side by side with great people from top notch management consulting firms. It was great experience to see the depth of analysis and best practices these consulting firms bring to the table to transform an organization, but I also learned the limitations on the implementation side to turn all those recommendations into reality.
Later I had the opportunity of leading the project of the spin-off of Club Premier, AeroMexico′s loyalty program, working alongside with Aimia, that played a mixed role of shareholders and consultants at the same time in the development of project. The experience was quite different because you could see the same level of expertise a traditional consulting firm would bring to the table, but the level of involvement required as a shareholders forced them to get deeply involved in implementation of the project, to accompany Club Premier′s team along the way and that was key to deliver the outstanding results Club Premier has shown in recent years. That mix of know-how and operational involvement was a key success factor.
Ever since I joined On Point Loyalty, I have tried to imprint this experience to our approach to consulting. I believe every single project is unique and every client's needs are different. So I like to get fully immersed in understanding our client's strategy, their customers and local market context to help them design the best program for their needs. But also help them understand the best way to set-up their loyalty organisations according to their corporate dynamics and if possible, accompany them through the implementation of the project to help them maximise results. We have an entrepreneurial mind as consultants and always want to see our projects become a reality and a huge success for our clients.
You obtained a MBA from IESE Business School – can you tell us what were your considerations in pursuing an MBA, choosing the right school, and applying the lessons in day to day life now?
I was looking for an MBA program where I could be exposed to multiple business situations and also learn from talented people from very diverse backgrounds. I found that in IESE. A very strong academic program based in the Case Method which is normally ranked top-10, but differentiates from other schools in the emphasis they put in personal and professional values of people and recruit highly diverse classes, with students from 60 different nationalities in the case of my class. If you take all these and add it to the joy of living in Barcelona for two years, it makes for an amazing experience.
The MBA experience definitely helped me to have a more rounded approach to business situations and analyse the cases from different angles, but I'm sure that my experience of learning from classmates from such different backgrounds has made me better in understanding the perspective of the people involved in every project and the cultural context that affects the outcomes.
In parallel to your role at On Point, you also have your own start-up company. Can you tell us how you balance this – and what is it like to do a start-up company?
Yes, I recently launched a start-up in the Pet-Tech space called Lea&Bo, focused in delivering fresh food, personalised to each dog's nutritional needs, delivered direct to the consumer. It has been an incredibly challenging experience, but one with tons of learnings.
If you compare the design of a new loyalty business unit to a start-up, both are quite similar. You are basically are creating a new business within a company, for which you need to build a business plan, design a product that solves a particular client need, design the organization to run the business, get the appropriate investment to start the project and implement everything to make it a reality. The main difference is that when you create a new loyalty business unit you are building an extremely valuable business on top of an existing customer ecosystem, which can lead to immediate traction. That is that is the toughest part to get for a Start-up and something big corporations with the potential to make from loyalty a business should take advantage of.
Balancing my role as CEO of the start-up and remain involved in consulting projects is demanding, but totally manageable with the experience we have at On Point doing this type of projects for years. We can plan very well ahead and distribute the tasks among an extremely talented team of consultants and subject matter experts. On the other hand, it allows me to bring to the consulting space a lot of experiences I’m getting from developing a fast moving start-up that is tackling new consumer trends globally, while maximising the few resources at your disposal.
What are your favourite type of projects? (e.g. long-term versus short-term, strategy versus finance etc)
I definitely prefer long-term strategic projects for two reasons. First, you have the chance to dig deeper in the understanding of the strategic needs of the clients and the end user of the program, this is crucial for a tailor made design of a loyalty structure. Second, we can build a stronger relationship with our clients and become an extended part of their teams. We also take a more active role in the implementation phase of the project and help them to materialise all the value we envisioned in the design of the project.
I guess my preference comes from my entrepreneurial spirit and positive experience with consulting projects where the recommendations come along with implementation.
What is it like living in Mexico City?
It's a vibrant city with an explosion of experiences, It's really amazing. From afar you might only see a 22 million people monster city, but when you zoom in, you find all sides of the spectrum. A colonial city centre with Hispanic palaces built side by side Aztec temples. You can drive through modern avenues filled with skyscrapers and suddenly get inside some of the beautiful colonial towns eaten by the growth. The city is full of neighbourhoods that are like pockets that have completely different vibes and make you forget you are in this huge city.
What do you think is the most attractive feature of living in Mexico City?
Having lived in cities like Boston and Barcelona, I learned 3 things that makes Mexico City extremely attractive. The culinary, cultural & entertainment offering it has is one of a kind. If you enjoy food, is definitely one of the best destinations in the world to visit. It's one of the cities with most museums and cultural events happenings all year long and in terms of entertainment, there is a never ending schedule of things happening every day. You can really have fun and do different stuff all the time.
What do you think is the biggest misconception about Mexico in the eyes of foreigners?
?I believe many foreigners think of Mexico City as a very chaotic, dangerous and underdeveloped city, but in reality is the opposite, is one of the biggest cosmopolitan cities in the world, not a doubt about that. You can and enjoy everything you will find in any of the global capitals of the world, but with the uniqueness of the Mexican culture and friendliness.
Of course, as any big city it has its good and also its bad elements, but proof of the appeal for foreigners is the huge inflow of expats moving to Mexico City from all continents and how it has become one of the hottest tourists destinations in recent years.
What advice would you give to (young) people wanting to pursue a career in management consulting?
From a professional perspective it's a fantastic opportunity to learn from multiple business cases, in different industries and settings. This helps for sure to develop a great analytical mindset. On the other hand, you can get to know a lot of people and build great business and personal relationships, which in a certain point in time can lead to new career opportunities. That is extremely valuable down the road.