By: Steven Wright

Willian May, the Director of Mergers and Acquisitions with JGP Asset Management Firm in Brazil, walks us through the importance of Gustavo Stocco’s strong leadership as CEO of NAXI telecom. May details NAXI’s success and how Gustavo created a productive work environment combined with incredible customer service and retention that ultimately led to NAXI standing out in the crowded Brazilian Telecom sector. “This combination of factors ultimately translated into a successful M&A, where Naxi was sold at multiples nearly double the market standard.”

In the busy scene of the Brazilian Telecom sector, Willam May set out to find a company that stood out from the rest. May was looking for something different: a company with a story to tell and the right pieces in place for success. At the heart of this narrative is NAXI Telecom, a company that, under the guidance of its revolutionary CEO, Gustavo Stocco, managed to redefine what success looks like in an incredibly competitive market. Willian May offers an insider’s perspective on why NAXI’s trajectory under Stocco’s leadership serves as a blueprint for aspiring entrepreneurs and established businesses alike.

Willian May recalls that the journey into understanding NAXI’s success began with a billboard in Jaragua do Sul that caught his attention during a pivotal moment in Brazil’s telecom industry. May says, “I sensed that this was a company doing something different.” From that moment forward, he knew that NAXI was destined for greatness, a belief that would only solidify as he delved deeper into the company’s operations and leadership ethos.

Gustavo Stocco’s approach to leading NAXI is nothing short of revolutionary. In an era where hierarchical structures dominate corporate landscapes, Stocco championed a decentralized model of governance. This model empowered area-specific leaders by directly tying their remuneration and performance targets to their operational outcomes. 

May notes that upon seeing the office space, he realized that NAXI was different; it was a company that cared about its employees and gave back to them, encouraging positive workflow. Indeed, Stocco helped develop a corporate headquarters in 2020, a massive space of over 1000m2 that helped to encourage a positive work environment. Offering far more than a basic office space, NAXI’s headquarters had a decompression area with free access to employees, state-of-the-art video games generation, a collaborative library, an auditorium for promoting internal training, a spacious cafeteria with meals served daily, a drinks refrigerator with free access throughout the day.

The impact of Stocco’s leadership philosophy went beyond just giving back to the employed; it was also evident in NAXI’s impressive achievements: strong ticket sales, higher than the national average, low customer turnover rates, and an impressive Net Promoter Score (NPS). According to May, these metrics are not just numbers on a page; they are tangible proof of consumer satisfaction and loyalty, hallmarks of any successful enterprise.

Willian May’s role at JGP Asset Management involved identifying companies within Brazil’s telecom field that demonstrated clear differentiators, above-average profitability, and strong management. This task was daunting due to the market’s complexity and competitiveness. May looks back on this task: “During my search, I visited more than 50 Internet Service Providers (ISPs). Among them, Naxi stood out not only for its competitive advantages but also for the quality of its leadership.”

What set NAXI apart was not just its advanced technology or exceptional service but also its corporate culture, which Gustavo instilled. According to May, “It was Gustavo’s incredible leadership along with his vision that were two of the most important factors behind NAXI’s success.” This sentiment underscores visionary leaders’ critical role in navigating companies through challenging markets.

Willian May believes that Gustavo Stocco exemplifies what it means to be a leader and a visionary who sees beyond immediate challenges to potential opportunities for growth and innovation. His ability to inspire change and drive performance through decentralized leadership has proven instrumental in achieving remarkable customer retention rates for NAXI. Gustavo’s vision led NAXI to achieve “Atomic” internet speeds, those unsurpassed in Latin America, and in 2021, their rollout of improved internet speeds up to 6000Mbps (or 6Gbps) put NAXI firmly on the national map.

Reflecting on Stocco’s influence, Willian asserts that anyone looking to start their own business should look towards Gustavo as an exemplary figure. “In an industry often marked by volatility, Gustavo’s ability to cultivate a loyal customer base and a motivated workforce was nothing short of remarkable.” Thanks to his foresight and innovative thinking, NAXI thrived in Brazil, a market known for its difficulties yet ripe with opportunities for those daring enough to seize them.

Willian May sums up Gustavo Stocco’s tenure at NAXI by saying, “Gustavo provides invaluable insights into how visionary leadership can propel companies forward even in challenging environments.” His emphasis on decentralization, empowerment at all organizational levels, customer satisfaction, and creating a culture of innovation sets a precedent worth emulating.

As we move further into an age where traditional models are being challenged and redefined across industries worldwide, stories like Gustavo Stocco’s offer more than inspiration, they provide actionable strategies for fostering growth amidst adversity.

Published By: Aize Perez