In 2012, when Ralf Oster started at PFConcept, the European arm of supplier juggernaut Polyconcept, the company, the economy and the promo industry in Europe were faltering. He was hired by no less than Michael Bernstein, himself a past Counselor International Person of the Year and the scion of Leed’s (asi/66887). Bernstein was, at that time, running all of Polyconcept and living in the Netherlands – PFConcept’s headquarters – to do it. When toggling back and forth between the U.S. and Europe became untenable, Bernstein began searching for his European replacement and found it in Oster, a supremely capable, charismatic German with laser-focus and a love for optimization and efficiency.

“Ralf was one of the easiest hiring decisions I’ve had to make,” says Bernstein. “His engaging spirit, sharp intellect and humble bearing contribute to making him an incredibly effective leader.”

Uphill Battles & Clean Slates
Now the CEO of PFConcept International, Oster was already a seasoned manager when asked to join the company, having done tenures as the head of Berendsohn AG in Hamburg, and as the vice president of Newell Rubbermaid in Paris, among other large entities. But when he got to PFConcept, to say he had his hands full is a masterpiece of an understatement, as the company and its sales force were stagnating.

“We had to reverse course from a decentralized wholesale model to market strategies centralized in European countries, and implemented decoration services and value segments that mirrored Bullet’s (asi/42424) strategy for Europe,” Oster says. “We worked to position ourselves as a pan-European warehouse, reduced our carriers in Europe from 35 to seven and simplified the back office.”

As if all that weren’t enough, Oster did something few new bosses would have the stomach for: He completely gutted the sales team and brought in new talent, without baggage or agenda, with whom he could work to fulfill the vision he believed could reenergize the company and the brand. “We now have a true pan-European sales force with 37 field salespeople, in addition to a robust online platform that we rebuilt at the end of 2013,” he says.

But rebuilding the sales team and streamlining the company’s operations were only part of the challenge Oster was facing. The economy in Europe was a mess and the promo market experienced a double-digit decline for eight consecutive years. “Quite simply, with the exception of the U.K., the promo market in Europe is not growing,” Oster says. “There’s been a shift from the gift market to the value segment – items like Bullet Line carries in the U.S. However, we outperformed GDP growth and grew our market share by emphasizing the bottom line and gaining efficiency and leveraging structure. We’ve had double-digit growth in the value segment and by mirroring the go-to-market strategy and profitability of PCNA. We also overhauled less successful items and staff.”

Gene Colleran, CEO of Polyconcept Global and Oster’s boss, points out that with Oster at the helm, PFConcept has established a true leadership position as the partner of choice for the company’s European customers. “Ralf’s team continues to find new ways to fuel our customers’ growth, delivering creative branding solutions on high-quality merchandise,” Colleran says.

But lest you think Europe is a complete economic dumpster fire right now, Oster points to growth areas in the industrial segment, service companies surrounding building and construction like carpenters and plumbers, automotive – due to entities like Mercedes, Audis, Volkswagen being in Germany – and online businesses. “There is business to be had,” Oster says. “You just have to know where to find it and work for it.”

“Go The Extra Mile”
One area where Oster made a fortuitous decision in his career is that he trained with famed management guru Ken Blanchard and that he, himself, is a licensed coach for leading people through changes in business, especially in the areas of international sales and marketing. This made him uniquely prepared to deal with the preparation and fallout of letting one sales team go and hiring a brand-new one in its place.

“What I ultimately learned was to not postpone difficult decisions,” Oster says. “What makes everything successful is people. Stay humble, believe in yourself and work to get management and sales aligned. You always need to give your team a vision that builds a picture of the future. Once they have that, they’ll always go the extra mile for you without you even asking.”