2010 FLP Executive Summary


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Here\'s a report of our 2010 Berlin Future Leaders event with summaries from all our speakers from the consumer goods business and other sectors. Get an update on our first "Peak Performance" workshop as well as feedback on the Berlin stores our delegates visited. An all-in-one document which will help you understand the value of the FLP event. Join us in 2011 at the FLP Congress in Chicago October 16th-18th!

For more information, visite our website at www.tcgfflp.com

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2010 FLP Executive Summary

  1. 1. Future Leaders Congress 2010 E x Ecut i vE S ummar yRe-shapinG yOuR Business, yOuRself and OuR wORld 10 th -12 th October 2010 / Berlin, Germany www.tcg fflp . com / www. tcgfflp. cn
  2. 2. inspiringPowerful speakersand motivators Great insight and very thought-provokingEye-opener unique – emphasis onpersonal leadership and industry knowledge
  3. 3. The future leaders programme is the global eventfor dynamic future leaders in the consumer goodsbusiness, moving rapidly within their company. ►Thought-leadership ►Discussion & debate ►Knowledge sharing & workshops ►International networking ►Store visits & best practices ►Consumer-focused analysis ►CEOs as mentors
  4. 4. The congress thematics are developed by the future leaders Committee: Chairman: Guy Tiebackx, Develey Senf & Feinkost GmbH, Germany hege abrahamsen, ica aB, Norway patrick Kgengwenyane, Pick n Pay, South africa Georg Bruch, Globus, russia Rhoda lane-O’Kelly, the consumer Goods Forum Jerry fleeman, Food Lion LLc, uSa simon lau, tcc, Hong Kong Richard flint, Nike, the Netherlands Karsten Kamin, the coca-cola company, Germany paul havinga, albert Heijn Bv, the Netherlands Thomas storck, Galeria Kaufhof Warenhaus aG, Germany Tara haynie, Wal-mart Stores inc., uSa Giuseppe Zuliani, conad, italya masterclass programmethis programme is designed to help future leaders to develop FLP provides a platform for discussion on top-of-mind issuestheir potential to become part of senior management, and and brings knowledge and networking to young leadersto enhance their personal contribution to the business. the from around the globe.Future Leaders congress includes strategic, operational many companies use the Future Leaders Programme as aand leadership modules, all of which are characterised by core development tool for their future generation of managersspirited debate. and as such the event is valued as an investment in the future of their company.examples of the diverse profiles of past future leader delegates include:Director Business Strategy, Director it Finance, Human resources Director, managing Director, Private Label Director,General manager - Store Operations, category manager, Sales Director, customer team Leader, Logistics manager,National account manager, customer marketing manager, marketing Director, communication Director, Format Director,Supply chain Development manager, Key accounts Director, Quality manager, Global Business Development Lead,Director Sustainable Development... FLP congress 2010 4 executive summary
  5. 5. COnfeRenCe sOundBiTes“the industry is changing. How can you “if you’re waiting to be a leader tomorrow,be the change?” you shouldn’t be in this room today ...Richard flint you need to bring yourself to work.” Jerry s. wilson“the small and unforeseen can haveenormous consequences, causing “it is dangerous to be surrounded bycataclysmic reputational damage and people who are afraid to tell you the truth.long term business damage.” you need to take the time to sort thealex Thomson yes-men from those who are speaking“the consumer is an animal of habit and their minds.” Thomas Gutberletnot change. auto-pilot shopping is thereality of our business”. «consume to be happy is a messageJean-Jacques Vandenheede drummed into us from birth, but is leading“rather than a huge amount of choice, to illness such as diabetes.” will dayshoppers seek the ability to makedecisions.”stephan Grünewald“the brand connection is made in themind. Don’t tell someone how greatyou are, prove you have something bypositioning.”amir Kassaei“We can actually create a more unifiedworld by dealing with the aspirations ofpoorer people.”wayne Chen FLP congress 2010 5 executive summary
  6. 6. Sunday 10th October 2010sTRaTeGiC sessiOnwelcome to the future leaders Congressi n his opening address, richard Flint introduced the twin themes of transformation and reinvention. Welcoming 110 participants from 27 countries, Flint said the question to address at this “pivotal conference” was “how we as leaders are transforming in a rapidly changingenvironment”. the industry was changing, he said, andcompanies were increasingly required to trust each other.Our leadership skills need to change to keep in step. “Howcan you be the change?” Flint asked. Richard flint, managing Director, Greece & associated territories, marks & Spencer; chairman, Future Leaders Programme committeea year of Transformation in ContextW e are living in a viral world, alex thomson the form of regulation was a real possibility. the argument asserted. Speaking as a journalist who that what consumers eat is a question of personal choice is had been initially slow to realise the “not a sustainable position,” thomson maintained, given the impact of so-called “citizen journalism” as links the medical world had established between weight and offered up by blogs and websites such health problems such as heart disease and diabetes.as twitter, thomson reminded the conference not to getcomplacent: “the small and unforeseen can have enormousconsequences,” causing “cataclysmic reputational damageand long term business damage,” he said, citing BP cEOtony Hayward’s unthinking remark that he wanted toget his life back, following the epoch-making oil disaster.“BP won’t be able to get into uS deep-sea drilling again,”thomson said.Looking at the world from an economic point of view,thomson said the austerity theme would be a lasting trend,as governments around the world – particularly in Europe –make drastic cuts to public spending to reduce their deficits.Obesity was increasingly a political concern, he said. “it’spossible that food companies won’t be able to go on asthey are” he said, adding that government intervention in alex Thomson, Presenter & chief correspondent, itN channel 4 News and congress moderator FLP congress 2010 6 executive summary
  7. 7. The new market trends storming our industryJ ean-Jacques vandenheede enjoys debunking “the consumer is an animal of habit and not change,” popular misconceptions about the industry with vandenheede asserted, and “auto-pilot shopping is the hard market data and this presentation was no reality of our business”. Faced with uncertain economic exception. calling for perspective on the pace times, most shoppers, according to Nielsen survey data, of change and transformation, he said “fast shopped at the same stores they always did. this maymoving consumer goods” was a misleading name, since be in part, vandenheede posited, because all the grocerstransformation in the industry generally happens very had essentially the same offer. Only a minority (not moreslowly. “recession” was another word to use with care, than 16%) swap stores to benefit from specific promotions.he suggested, since “overall, our industry has never been in fact, consumers’ store selection criteria have little to doin recession”. consumer confidence, generally reported to with price, which falls towards the bottom of their ranking,be low, has in fact “followed [economic] recovery, slowly and more to do with convenience and experience. Goodcrawling back” and consumption volumes are returning. in service and an efficient checkout is what draws them back.terms of turnover, large and small supermarkets have been the growth in the discount formats has gone hand in hand“flatlining”, also, although hypermarkets have suffered in recent with increased density: “it’s a mechanical phenomenon andtimes, losing 7% on average over the last few years. “there has nothing to do with consumer change.” Similarly, the is a need to reinvigorate the growth in private label is a “structural phenomenon” that hypermarket,” vandenheede has followed the density of organised retail and has not said. Both market share for been driven by consumers. all three format types and the the other myth that vandenheede was keen to explode is number of shopping trips were that the majority of consumers want to shop online. Not for also flat between 2007 and groceries: only 19% bought groceries online over the last 2010. three months, his data show. Jean-Jacques Vandenheede, Director, retailer insights Europe, the Nielsen companyThe Consumer in time of crisis: shaken but noton the rocksS enior citizens are not what they used to be. actually motivated by the desire to reduce complexity. “they Older people, are getting younger. today’s accept high prices in order to make mental savings.” the seniors burned their bras and put che Guevara consumer is not “homo economicus” . Shoppers don’t want posters on their bedsit walls. they were at to be bombarded with price messages: they don’t comfort. Woodstock. according to Stephan Grünewald, What they want are solutions: for a menu, for being morethese attitudes die hard: today’s seniors are characterised beautiful and so on. they want to buy happy moments andby the breaching of norms and ideals of eternal youth. they feeling of eternal beginning: “alldon’t “retire,” they maintain restless post-work activity and consumers dream of startingkeep their diaries full. By contrast, the 18-25s are controlled, something new,” Grünewaldmature and serious. they feel they are living in a “divided says. are we delivering?and fragile world” in which they may fall into an “abyss ofdownward mobility”. therefore, they pursue wishful thinkingwith “excessive prudence, determination, obsessions withorder, self-control and competent, relentless activity to keepthe abyss at bay”. stephan Grünewald, managing Partner,in retail and cPG, the crucial trend is for complexity rheingold institute forreduction. “rather than a huge amount of choice, shoppers Qualitative market &seek the ability to make decisions,” Grünewald holds. He media researchmaintains that the decision to buy at discount stores orfilling stations, or to buy regional and organic products, is FLP congress 2010 7 executive summary
  8. 8. Be everywhere, all the timet he digital revolution could never have been Sites offering «user generated foreseen by those who lived in the nineteenth content», such as youtube, century. in 2010 new technologies and options have now arrived as a proliferate at a bewildering rate. the challenge mainstream communication we face today is therefore to decide which channel. youtube is thetechnologies to grab and take forward into our business. second-largest search engine,But we also need to look ahead and imagine the as yet after Google, while micro-uninvented technologies. blogging site twitter receives 600 million search queriesin the new retail eco-system, information flows between the every day. increasingly,shopper and the retailer, between brand and consumer in people are using these sitesways previously unimagined. this development has led to via their phones rather thanthe emergence of a new «super consumer» empowered by their computers.new technologies and demanding of «hyper experiences» Mike Bosman, cEO,that live up to expectations set by more advanced sectors. more and more consumers One Digital mediacompanies need to master this new landscape in order to are making their purchasingengage the attention of their consumers and target their decisions and brand affiliations based on the «word of mouth»marketing. Facebook, for example, has 400 million active endorsements — or criticisms — of fellow consumers online.users. the average age of users is now 33 and the fastest «it’s a matter of looking for credible and trustworthy sourcesgrowing segment on the site is women over 55. Half the of information,» Bosman said. «What is your business doingsite’s users log in every day. However, users are resistant about all of this?» Bosman foresees a not-too-distant futureto the ads on the side of Facebook pages. a much smarter, in which our mobile phones will «learn about us and makesubtler approach is needed. recommendations». upcoming technologies ►Moving imagery on product packaging or store displays, via silicone ink ►Temperature sensing built into products (recording and displaying temperatures across supply chain) ►Intelligent shelving and dynamic electronic pricing ►Digital or biometric check-outs: finger and iris scanners will drive down exit time for shoppers ►Augmented reality: mobile phones can now overlay information about what is seen through their camera lenses ►Digital POS material and shopping cart tracking ►Digital personal shopping assistants, such as Siri: they can search the web for peer-reviewed recipes, scan online grocers and have the relevant ingredients delivered to your house ►Gender recognition technologies can tell whether a man or woman looks at a shelf or buys a product At present these technologies exist: what is yet to come is the ability to manage them well. For example, we generate far more customer data than we can mine for information to help us market. Could statistics be the next coolest career? FLP congress 2010 8 executive summary
  9. 9. learn to sell the way consumers want to buy i n a world where all the realised that success depended on converting the staunchly communications devices republican elderly Jewish vote in Florida, BBD created “the are connected and all Great Schlep” – a humorous idea with a serious purpose. the people are connected reasoning that the only people that Jewish grandparents via social networks, our would listen to were their grandchildren, DDB mobilised the customers are no longer kids via their social networks to make the trip across the “consumers” they are our States, in order to talk their elders round. the campaign friends. a new way of selling gained massive coverage in the mainstream media and is needed that they can buy the movement snowballed. the mix of web 2.0, and street- into. awareness alone is no level guerrilla marketing feeding into the mainstream media longer working; there is too was successful. Florida turned Democrat and Obama was much noise. companies elected. Similarly, in a campaign for German green energyamir Kassaei, chief should not use the internet as provider Entega, people were mobilised at a grass rootscreative Officer, Doyle a megaphone; it’s no longer level to militate against global warming by a massive “saveDane Bernbach Group about loudness. “Don’t tell our snowmen” campaign. For automotive manufacture vW, someone how great you are, DDB convinced public transport users to use the stairsprove you have something by positioning.” rather than the escalators by making the stairsthe internet is not a new media channel, it fun. Each step was converted into a pianois a tool for “connection, communication, key that played a note when it wasand distribution”. companies should be stepped upon, so the staircaserelevant, if they are not, they will get became a keyboard. “Before”“lost in space”. Fun is a key factor and “after” videos showed thein changing consumer behaviour. wholesale shift of traffic from theif marketing campaigns are both escalator to the stairs. Suchrelevant and fun, “the brand an approach is crucial, Kasseiconnection is made in the mind”. argued, if you want to turn customers into friends. theillustrative examples from DDB’s reason you want to do this isportfolio abound: When the simple: your friends will advocateObama election campaign your brand.Retailing in emerging marketsF rom its study of retailing in emerging markets, the offer with a relatively low barrier to entry, which both brings coca-cola retailing research council unearthed more aspirational shopping into underprivileged areas and a simple, basic truth that can be applied offers the possibility of self-governed economic growth via universally. “We can actually create a more unified local entrepreneurship. in Peru, “minka” has done well by world by dealing with the aspirations of poorer providing an ordered and structured environment in whichpeople,” Wayne chen said, showcasing highlights of the the capital’s diverse informal market traders can set up.findings. commerce, he claims, is the most important part of “it captures the energy of the informal market, but raised development. in more traditional the standard,” chen says. in turkey, discount retailer Bim times the place of worship was coped with the country’s 2002 hyperinflation crisis by the focal point of communities offering stable low prices for three months. certainly, the and also the chief dispensary retailer took a short-term hit, but created the “everlasting of hope. today, chen argues impression” that its prices were the best. Bim’s rival tansa that modern retail has to some navigated the same crisis by focusing on righting the things degree taken that place. “it is a its customers said they hated. the retailer formulated a temple that people can look to charter of “incredible consumer rights”, including having all and aspire to.” the tills open if it was busy, a no-questions return policy and a freshness guarantee. the result was a strong operational chen gave the example of improvement and a significant increase in profitability. all in Pick n Pay in South africa. all, success lies in actively creating a vision of the future; in the retailer has reached keeping an open mind; in enriching lives through customer- out to hitherto underservedwayne Chen, cEO, based solutions and in finding opportunities within crises. sections of the South africanSuper Plus Food Stores, community with a franchiseJamaica FLP congress 2010 9 executive summary
  10. 10. Built to lastcEOs discuss how they transformed their companies, reveal their biggest challenges and how they rose to them.Thomas Bruch, cEO Klaus dohle, cEO, Michael durach, Thomas Gutberlet,& Proprietor, Globus, Dohle Handelsgruppe managing Director, chairman, tegut GutberletGermany Holding, Germany * Develey Senf & Feinkost Stiftung & co., Germany * GmbH, Germany ** Ex-FLP committee memberhow lonely is it at the top? alex thomson asked.thomas Bruch said it shouldn’t be if you have built agood team. Klaus Dohle agreed and added that, onthe contrary, it is dangerous to be surrounded bypeople who are afraid to tell you the truth. “youneed to take the time to sort the yes-men fromthose who are speaking their minds.” thomasGutberlet said if you are both leader and servantto your company you don’t get lonely.On mistakesDurach said one of his mistakes had been not takingsmaller competitors seriously enough. “if it’s a good idea, sizedoesn’t matter.” Dohle agreed that overconfidence had beeninstrumental in one of his own failed acquisitions. Gutberletsaid that often we rush to get a first-mover advantage,when being a fast follower is more efficient. Bruch saidhis company had expanded without properly studying thelocations: “it’s important to see where you’re going in thewrong direction and turn the wheel.”are customers your “friends” ?Bruch said society had shifted and the industry has to shiftfrom a push to a pull model. “the push model was inefficientand unsustainable.” Dohle said companies needed to listenmuch more: “if we talk to our customers we’ll have a lotmore friends than we realised. But you have to make people The future leaderswant to have you in their community.” programme has beenOn flp developing leaders forDurach said that for 14 years, the Future Leaders Programmehad been a window on the world for him. “i’ve learned about over half a centurydifferent areas, business models, different thinking.” Over the – a true mark ofyears the contacts he has made have become friends. “youcan ask friends honest questions.” Bruch it was his first time sustainability.at the event and the exchange with colleagues from othercountries was valuable. Dohle said he had learned a lot andseen a lot of the world. Gutberlet said it had been invaluableto him to be able to share different perspectives.” FLP congress 2010 10 executive summary
  11. 11. Berlin Retail scene t he German market Germany has no strong is different to most convenience operator: the European markets in density of the discounters that it is dominated obviates the need for a separate by local players. proximity format. the market None of the big non-German has no successful hypermarket grocery retailers (Walmart, format either. Kaufland, carrefour, tesco, ahold) are mcKinsey argues, is really a present in the market. Growth “hybrid discounter”. Discounters in the market has been hard to achieve a far higher volume per come by and like-for-likes are SKu than their traditional rivals. negative. Expansion is the only However, despite the ubiquity thing that makes a difference, of the discounters, GermanTobias wachinger, Björn hagemann, but the excess space, coupled shoppers still shop around. aldiPrincipal, mcKinsey & co. associate Principal, with constant downward shoppers typically also visit pressure on prices from the Lidl (66%), Edeka (33%), rewe mcKinsey & co.discounters, makes for low sales densities. retailers “really (32%), real (30%), Penny (29%),have to struggle to be profitable”. Only one retailer is growing Kaufland (23%) and Netto (19%).profitably: Kaufland. Within the general context of Germany, Berlin is an especiallyOne of the major challenges in Germany is that 42% of the tough market. it has lagged German growth since 1995,market share is held by discounters, which drive the market. with a current caGr of 0.3% versus 1.5% for Germany asaldi –“the business of two brothers who hate each other” a whole. unemployment in Berlin is at 16.1% versus 8.7% in– effectively sets prices for all players. Discounters have a Germany. Even by German standards, then, Berlin is highlymajor share of the organic market and while the lions share price competitive. Discounters have 47% of Berlin, whereof sales come from high-margin private label, they are shoppers like to search for branded goods on promotion.increasingly persuading shoppers to stay with them while Berlin’s shoppers are younger and more diverse than theuptrading by introducing a higher branded component. the national average, there are more single-person householdsmargin advantage is now being aggressively reinvested in and a higher share of the population has a migrationbrands. carrying fewer SKus allows discounters to increase background. in this context, innovation is vital. New conceptstheir bargaining power: aldi, for example, has 17 times the born in Berlin include 24-hour organic convenience formatpurchasing power per SKu of Walmart. FreshNFriends, or Kochhaus, where consumers shop by recipe.this allows the discounters to sell brands at a lower pricethan supermarket rivals. FLP congress 2010 11 executive summary
  12. 12. a world in transformation P opulation is probably the most important factor in determining the future of our planet and its resources. and while population is increasing in countries such as china and india, russia, Japan, South africa, Germany, italy and Spain are among the countries expected to experience population decline. most of the increase in the older population is in developing will day, chairman, countries with an average Sustainable Development income of less than uSD 2 a commission, uK day. the fastest-growing age group is the over-80s — by 2050, over-60s will outnumber the under-14s and there will be 1.9 billion people over 65. the world’s population is also increasingly urban — every week, humans create combined conurbations equivalent to a city the size of vancouver. in terms of income, the world has 1.2 billion «middle class» consumers, accounting for 19% of total global consumers. the world’s wealthiest consumers, including the 488 billionaires and 10 million millionaires, account for only 10%. multinational corporate enterprise, therefore, reaches only 29% of the world’s total consumers. Some 4 billion people (71% of total) are not currently being reached by multinational corporations, according to Day. Within the next ten years, more than half the world’s poor will be found in middle income countries. «they’re not headed for leafy suburbs,» Day said. Day foresees significant migration by 2050, as water shortages and crop failures force farmers in africa, South america and southern asia to leave barren land. Food prices could soar, starvation could increase. this year the uS military warned of serious oil shortages by 2015, with a significant economic and political impact. «We really couldn’t have designed a worse place,» Day said of the 21st century city. the faster the economic growth, the more profound the gap between rich and poor. «it’s not a stable place to do business.» ultimately, our way of life is threatening our way of life. «consume to be happy,» is a message drummed into us from birth, but is leading to illness such as diabetes. moreover, «happiness» as reported by the world’s citizens, has not grown in line with GDP growth. «So what’s it for?» Strong economic growth gives only the illusion of prosperity, but in fact is destroying more than it is creating. the proof of this, Day argues, is that developed countries’ ecological footprints continue to expand, suggesting little tendency so far for the delinking of economic activity from environmental degradation.FLP congress 2010 12 executive summary
  13. 13. monday 11th October 2010OpeRaTiOnal sessiOnthe consumer Goods Forum would like to thank Bio company, real, rewe and rossmann for their hospitality in welcomingthe groups in their stores. FLP congress 2010 13 executive summary
  14. 14. store feedback sessiondeleGaTe RaTinG Of The sTORes VisiTed:Each delegate was asked to rate the store based onPrice, Service, communication, in-store experience andassortment.the consolidated results are reflected in the pentagramsbelow: Price Price 5 5 4 4 3 3 2 2 assortment 1 Service assortment 1 Service 0 0 in-store in-store experience communication experience communication Price Price 5 5 4 4 3 3 2 2 assortment 1 Service assortment 1 Service 0 0 in-store in-store experience communication experience communication FLP congress 2010 14 executive summary
  15. 15. peak performance workshop by McKinsey & Co. almost everyone mentioned trust – the suspension of individual agendas - and here we should not be surprised. if a group is to have the same sense of absorption and focus as an individual, then its members cannot lose time and energy trying to second guess their colleagues. closely linked to trust, though, and mentioned just as frequently, were simplicity and clarity. Delegates recognised the value of non-negotiable time-sensitive objectives in their teams delivering at such a high level, but there was more to simplicity and clarity than that. Some of the features that emerged in multiple conversations included clear direction and common understanding, the transcending of any sense of bureaucracy and above all, transparent feedback. in these peak performances, what success and failure lookedO n monday afternoon, delegates stepped like was not in any doubt. back from the day to day practicalities of in discussing why these peak performances had been the Operational Session to try something necessary, however, something very striking emerged. in new for the Future Leaders congress: some the majority of cases, the organization in which we worked group work exploring the psychologicalcharacteristics of those rare but unmistakeable experienceswhich constitute peak performance in a team: momentsin which we truly recognise that the whole of our teamis greater than the sum of its individual members, thatsuccess is of critical value and during which time eachperson senses an engagement and identification withwork that is so total that even exceptionally difficulttasks can appear natural, or at least, fully capableof accomplishment.tobias Wachinger from mcKinsey suggestedhow delegates might work to explorethis concept. it’s one which psychologistmihály csíkszentmihályi famously identifiesas that of flow – a feeling of being “in thegroove”, and work becoming effortless –and it can be applied to both individual andteam experiences. as a group of leaders,delegates would be concentrating on whatthey could learn from each other with regardto flow, or peak performance, in a teamsetting.So our groups worked on two sets of questions.the first explored individual experiences of peakperformance – when, where and why they hadoccurred, their key characteristics and what theyhad felt like for team members at the time. thesecond was more tactical: what blocked us fromhaving these experiences more of the time – andwhat might enable us to have more of them.So what were our experiences of peakperformance? the answer was inspiring.there was a common recognition of this kind ofexperience. it felt great. One delegate talked of asense of being “vibrant and alive”. Others talkedof passion. FLP congress 2010 15 executive summary
  16. 16. had been in a state of crisis. in the literal sense of the construct of flow, but for the idea that it could apply just asword, a crisis is not necessarily a problem, or a bad thing; much to group or team experiences as for individual ones.it means a significant choice. But of course sometimes that they could be divided up from the perspective of a leadersignificant choice can mean the difference between survival into those they should provide, those they could enable andor extinction for a project - or even a company. those they might observe.this paradox was a topic of discussion in most of our Leaders should thus be able to provide clear goals, articulategroups. On the one hand, these great team performances a difficult but not impossible challenge and provide directrepresented some of our best experiences of work. memories and immediate feedback. they should enable a senseto last a lifetime were generated; people felt deeply proud of personal control, the conditions for concentration andto have been there and to have played their part. On the attention and allow colleagues to find the intrinsic pleasureother, there was a nagging feeling that only conditions of in performing their work. in return, they might expect tothe greatest urgency had triggered this performance. could observe a significant loss of self-consciousness and focusedwe not aspire to lead this kind of work experience more of awareness completely on work. Of course the tenth pointthe time – and without emergency conditions? it was this – that people in the middle of flow can become unawarequestion that was at the heart of the second part of our of bodily needs – also implies leaders might want to makediscussion. sure that such fully engaged teams eat, exercise and rest properly.to try to break down the question we explored both enablers– the features or conditions which make something possibleor at least easier – and blockers – those which do theopposite.clearly, the first and most important enabler was a clear,common goal – and one of real importance to the team.Following closely on was strong personal relationshipsbetween team members (one reason why teambuildingsessions, however artificial they can seem initially, areso important where teams have been newly formed).But another enabler was more subtle – the sense of anoverarching story. Delegates talked of distinct phasesin their peak performance experiences: initial shock anduncertainty, the acceptance of collective responsibility, theemergence of a plan and the growing realisation of theteam’s strength when it acted together. as leaders, wemight conclude that these three factors - setting clear goals,convening teams built on mutual trust and being aware of adynamic, longer term setting – were especially important.in contrast, blockers could be said to be the absence ofthese factors – but they could also be characterised asacting in a territorial manner, being obsessed with multiplesmall priorities and the generation of multiple administrativeprotocols or policies.Summing up a rich set of discussion, tobias asked thegroup to reflect on the 10 factors which csíkszentmihályi hadoriginally identified for the psychological state of ‘flow’. Whatwas remarkable was how many of these had emergedspontaneously in our discussions – support not only for the FLP congress 2010 16 executive summary
  17. 17. tuesday 12th October 2010leadeRship sessiOnentrepreneurship, transformation and takinga chancea s capitalist business owners who were also part build a business in a wine-saturated market. the answers, of an aristocratic lineage, Prinz’s family were not it turned out, had a lot to do with his family story: humility, wanted in East Germany under Soviet rule. in sacrifice and perseverance were critical. Prinz believes in 1945, the family’s land, property and business the concept of “same eye level”. that is to say that his were expropriated, with no compensation: Prinz’s team are considered co-entrepreneurs, each with a stakeparents were instead sent to jail. When their employees in his or her own business area. tradition and innovation“made a lot of fuss”, the family was released and expelled were equally important: “tradition is dynamic,” Prinz asserts. from the GDr. From riches to there is room for individuality. Quality and authenticity are rags, Prinz senior and junior paramount in wine, but so is sustainability. Not only must both worked in menial jobs, the viticulture be sustainable in environmental terms, but the before gradually rebuilding trading relationships must also be sustainable. Only true their business interests in win-win partnerships can survive. the business began as a the West. after the fall of “garage winery” and built to the stage where, in 1996, Prinz the Berlin Wall, Prinz went was able to repurchase his old family estate. the esate back to Saxony and bought was renovated and redeveloped as a guest house and a run-down vineyard. He restaurant. acquired great soil and great people, but was still faced with the question of how to dr Georg prinz zur lippe, Owner, Schloss Proschwitz Wine Estate FLP congress 2010 17 executive summary
  18. 18. Managing Brand you “ if you’re waiting to be a leader tomorrow, you shouldn’t be in this room today,” Jerry S. Wilson seven steps to began his presentation. if you are hoping for success, managing Brand you you need a roadmap to your future, just as you would build 1. audit: recall your activities, successes, failures one for your brand. “What if etc you thought of yourself as a 2. image: what are the qualities that make you brand?” Branding is vital: “No unique and differentiate you from others? one says, bring me a brown, sparkling liquid. they say bring 3. identity: what do you stand for? LeverageJerry s wilson, Senior me a coke,” Wilson said, your equity beyond functional skills.vice President, chief adding after a slight hesitation: 4. Positioning: who are your target groups andcustomer & commercial “OK, maybe they say bring how should they perceive you?Officer, the coca-cola me a Pepsi too.” the point iscompany that both brown beverages 5. Goals: envision the life you want 10 years have a powerful brand, with from now and manage back.strong recognition and loyalty. the key to success, as a 6. Strategies: how will you achieve thesefuture leader, is unleashing the power of “Brand you”. this goals?is not about “dress for success”, nor is it about blatant self-promotion. it is about brand building by positioning and being 7. implementation and monitoring: set timestrue to yourself. Surprisingly few people choose to position and dates for commitments and monitor yourthemselves in a unique and valuable space. Sometimes, results.this means expanding your job description to marketingthe essence of what you bring to the table. Branding isnot that complicated in itself. a brand relationship is thesimple sum of promise plus experience. How well we deliveron our promise determines the success of the brand. agreat example is Google, a brand that has become a verb.Great brands do not try to please everyone. they focusand excel. mtv, for example, does not care if grandmadisapproves: it’s not for her. Good brand also communicatewith consistency: apple is a great example, Wilson says.Winning brands differentiate with authenticity. But how tobe authentic? it’s simple, Wilson says: “you need to bringyourself to work.” FLP congress 2010 18 executive summary
  19. 19. sustainable leadership:why doing good is good for business.a s the first South african company to promote «investment in the community a black manager above white staff, Pick n will stand us in good stead», Pay knows something about standing up for citing Walmart’s unsuccessful its principles. these are: make a fair profit; venture in Germany. ackerman have a heart; build social capital; build pride mentioned Pick n Pay’sin association; build an achievable values system and developmental work in Southacknowledge diversity. Pick n Pay openly opposed apartheid africa and said: «if you build apolicy and fought against cartels to make business fairer community, you build a middlefor all concerned. Founder raymond ackerman believed class. Energy can comethat if you fought on behalf of the consumer you would get from severe poverty.» askedgood press and the consumer would back your business. whether Pick n Pay was justSince the fall of apartheid, Pick n Pay has fought for the a company that had grownrights of South africans still disenfranchised, it has embraced rich on the back of apartheid,democratic change and in particular, employment equality. ackerman explained that Pick Gareth ackerman,Every part of the company –including the ackerman Family n Pay had never been a chairman, Pick n PayFoundation – invests in the local community with a focus company of «a discriminating Stores, South africa & Ex-on entrepreneurship, skills development and sustainability. nature». On the contrary, it chairman FLP committeethe company helps local farmers and food manufacturers had fought discriminatory lawswork sustainably. “Doing good is good business,” ackerman and the apartheid regime. «yes, we got wealthy during thesays. “Be good to your community and that will be good for apartheid years, but we’ve done so much better since andshareholders and employees.” we think our record as a family and as a business stands up around the world.» On the subject of health and wellness,mr ackerman agreed to a “hard talk type” by mr thomson. ackerman said the industry was not tackling obesity: «if thethomson asked ackerman «where did it all go wrong in industry doesn’t self-police, governments could interfere in anaustralia», a reference to Pick n Pay’s recent market incompetent way.» He concluded by saying that many cEOsexit. admitting he had been unprepared for the question, were «too shepherded», with too many people around themackerman replied that local retailers coles and Woolworths cossetting them. «you’ve got to get out and do the work.were «huge competitors» and that Pick n Pay had been you’ve got to understand the consumer.»unable to achieve a cost differential. On the subject ofWalmart’s imminent entry into South africa, ackerman agreedthat it was a «huge challenge» but added that Pick n Pay’s FLP congress 2010 19 executive summary
  20. 20. pillars of strength t he consumer Goods Forum is not “one eMeRGinG TRends more association” but rather, the vehicle through susTainaBiliTy which the industry can finally speak in one voice. Launched in June 2009, in New york, safeTy and healTh with the fusion of ciES with the Global commerce initiative and the Global cEO Forum, OpeRaTiOnal eXCellenCe the body aims to drive unified new ways Of wORKinG TOGeTheR collaborative action on non-Jean-Marc saubade, competitive issues. “the cEOsmanaging Director, the of your companies were sitting KnOwledGe shaRinG &consumer Goods Forum on too many boards and peOple deVelOpMenT going to too many meetings, inwhich they were talking about the same things,” Saubade the Forum is not a lobby but nonetheless aligns itselfexplained. “at the same time, the industry is not talking in strategically with lobbying groups in the regions, such asone voice. We are not in the driving seat.” Gma, Fmi, Errt, Eurocommerce and so on. “We stillthe consumer Goods Forum members have combined need to influence legislation in various countries,” Saubadesales of Eur 2.1 trillion: an organisation with enormous asserted. the connection in the regions is made via localcollective influence. the board of directors brings together the Efficient consumer response (Ecr) groups. the ForumcEOs and chairmen of 25 retailers and 25 manufacturers. also aligns with GS1: global projects need global standards.the Board positions cannot be delegated, so the decisions the idea is to avoid duplication and pursue a single industryare made by the people who can “really get things done”. agenda.Driven by its vision of “Better Lives through Better Business,”the Forum has a mandate to make collaborative workaccessible to all companies, for the good of the industry.“We work on things that can only happen when we unite,”Saubade underlined. these include, among others, foodsafety, sustainable packaging and carbon measurement,stripping cost from the supply chain and information sharingand are arranged under five strategic pillars: FLP congress 2010 20 executive summary
  21. 21. Keynote closing addressattitude is what determines altitude Z imbabwe-born Hilton-Barber lost his sight out of the blue at 21, the result of a hilton-Barber’s life congenital condition. principles He had joined the airforce, hoping to be a pilot. Blind, the options seemed greatly 1. Start with your goals and dreams, not with diminished. However, he did not your circumstances want to spend his life “weaving dog baskets”. He wanted to be 2. Fear is only False Evidence appearing real. a pilot. So he did. “Quality of life,” 3. you are only as big as the dreams you dare he says, “is not what happens to to liveMiles hilton-Barber, you, but what you do with whatBlind adventurer happens to you.” He became 4. all achievers are dreamers, but not all dreamers the first blind pilot to undertake are achieversa 55-day, 21,000 kilometre microlite flight from London to 5. Successful people are those who go throughSydney. to succeed, he employed revolutionary speech- bad things, and persevereoutput technology, accompanied by a sighted co-pilot, hisfriend, and raised money for blind charities. to achieve, he 6. unity is the key: there is no room for backbiting.says, “you need to start with your goals and dreams, not your future depends on mutual interdependencewith your circumstances”. 7. “Never judge a man until you’ve walked a milethis was only the beginning for Hilton-Barber. His philosophy in his shoes. that way, when you do judge him,was that “you can use up energy worrying or you can do you’re a mile away and you’ve got his shoes.”new things”. if you want to grow, it’s important to step outof your comfort zone: “the last time you did a new thing isthe last time you grew”. With these thoughts in mind, Hilton-Barber – among many other adventures – man-hauled asledge 250 miles across antarctica, climbed Kilimanjaro andmont Blanc, became the first blind aviator to break the soundbarrier and to participate in a drag-racing event, cage-divedwith Great White Sharks and raced 150 miles across theSahara on foot. in the process, he learned a lot about himselfand his capabilities, and about teamwork and success. “i’mnow giving you some life principles i’ve stumbled across asa blind man,” he said. “there are many sighted people whoare blind to their potential. i’m trying to give them vision.” FLP congress 2010 21 executive summary
  22. 22. sponsorsthe consumer Goods Forum wishes to thank the following companies for their generous support of the Future Leaderscongress 2010. networking Breaks product showcase monday 11th & tuesday 12th October 2010 leadership session tuesday 12th October 2010 & Refreshments Official delegates lunch Sunday 10th October 2010 store Tour programme monday 11th October 2010 Official delegates dinner monday 11th October 2010 FLP congress 2010 22 executive summary
  23. 23. networking moments facilitated bythe official sponsors FLP congress 2010 23 executive summary
  24. 24. Join us at the futureleadersCongress international headquarters Paris, France tel. : (+33) 1 82 00 95 95 E-mail : info@theconsumergoodsforum.com16 th – 18 October 2011 th Chicago, usa Japan Office tel. : (+81) 3 6272 6283 E-mail : tokyo@theconsumergoodsforum.com www.tcgfflp.com www.tcgfflp.cn The americas Office tel. : (+1) 301 563 3383 E-mail : washington@theconsumergoodsforum.com