Aug. 17 (Bloomberg) -- Business leaders have much to learn from orchestras, says Nestle SA Chief Executive Officer Peter Brabeck-Letmathe. He cites Claudio Abbado, who conducts the Nestle-sponsored Lucerne Festival Orchestra, as an inspiration.

``Abbado is an artist, but he's also a good leader,'' Brabeck said in an interview in Lucerne's concert hall, overlooking the town lake dotted with swans and paddle-boats. ``And one thing that leaders have in common -- whether in art, business, or politics -- is an ability to be sensitive toward people. You have to have the ability to motivate people to do more. A good conductor can change the sound of a whole orchestra with a glance or a gesture.''

Brabeck spoke on Aug. 15, hours after Nestle reported higher-than-estimated first-half profit. In a panel discussion that day, he announced that the world's largest food company will sponsor the Lucerne Festival Orchestra through 2010. Nestle will contribute 1 million Swiss francs ($820,000) over three years.

Nestle's relationship with the Lucerne Festival started in 1988, with the sponsorship of one concert. In 1992, the company began sponsoring the Berlin Philharmonic's concerts there. When Brabeck became CEO in 1997, he was soon in talks with Lucerne Festival Managing and Artistic Director Michael Haefliger.

``I was very interested in the idea of a new orchestra,'' Brabeck said, looking relaxed and tanned in a yellow striped tie and cuff links. ``It was the possibility of becoming associated with something exceptional.''

All-Star Team

The Lucerne Festival Orchestra, Abbado's brainchild, is a hand-picked ensemble with the Mahler Chamber Orchestra at its core. Key positions are filled by leading orchestral musicians and soloists from around the world.

As with all-star soccer teams, an orchestra made up of top musicians is not necessarily a top orchestra.

``We didn't really know whether the project would succeed or not,'' Brabeck said. ``Nobody could have anticipated what a tremendous success it would be. The risk was worth it.''

Brabeck once took members of a conference of international Nestle managers to an orchestral rehearsal.

``I had given a talk in which I compared the role of CEO to that of an orchestral conductor,'' he said. ``I invited all the managers to sit next to the musicians of a French orchestra during a rehearsal. The orchestra also tried to play for a while without a conductor, so that they could see the difference, and it wasn't long before the whole thing went astray. The quality of a performance depends on what the conductor does.

``There was a lot of discussion after that,'' he said. ``They saw that if it is to work, the musicians also have to assume responsibility.''

Lessons for Nestle

Accordingly, Brabeck has dispensed entirely with job descriptions at Nestle.

``It would be wrong to write down everything that each job entails,'' he says. ``It's a ridiculous idea. People must be able to define for themselves how they can create the most value for the company.''

The Lucerne Festival Orchestra got a rapturous reception at its Swiss home and highly acclaimed tours to Rome and Tokyo have confirmed its reputation for perfection and enthusiasm. Brabeck attributes its excellence to Abbado.

``In the world of music, he has achieved a status which sets him apart,'' says Brabeck. ``Of course, part of that is also not having the full-time responsibility for a particular institution, along with all which that entails. It's about having time to reflect. It is also connected to his illness.''

Cancer Fight

Abbado, now 74, became the first conductor in the Berlin Philharmonic's 110-year history to give up the post of chief conductor for a reason other than death in 1998. His shock resignation was followed by a battle with stomach cancer. Since then, he has only taken on select projects, including his elite Lucerne Festival Orchestra.

Sixty-two-year-old Brabeck is stepping down as Nestle CEO in April. As chairman, he expects to be involved in ``some internal and corporate governance issues'' and will take part in big strategic decisions.

``I will give the incoming CEO complete freedom,'' he says. The company plans to announce his successor in September.

Giving up his CEO post may allow Brabeck more time for the piano, which he learned as a child and still plays ``when nobody is listening.'' He may also spend more time at the Lucerne and Salzburg festivals.

``Until now I have had very limited time,'' Brabeck said. ``In general, I go to two concerts a year in Lucerne and two in Salzburg. We support both festivals because they are the top two European events. We are proud to be associated with them.''

(Shirley Apthorp is a critic for Bloomberg News. The opinions expressed are her own.)

To contact the writer of this story: Shirley Apthorp at sarabande@compuserve.com.

Last Updated: August 17, 2007 01:56 EDT