Creating Value By Unlocking Total Innovation
Nabisco and Gillette were both in a challenging situation in the mid-late 1990’s. Both had consistently under-delivered Wall Street’s financial expectations and the company’s own EPS guidance numbers. Nabisco, since its 1995 IPO following the 1988 buy-out by KKR that was popularized in the book and HBO movie Barbarians at the Gate, had only 10% of its U.S. products (including cookies, crackers, confections, and specialty products) growing retail consumption and market share… and it had spent about $100 million less in 1997 on advertising than it did in 1987. Compounding all this was the complexity of its capital structure and its association with tobacco via Nabisco’s ownership by RJR-Nabisco, a holding company owning 80.5% of Nabisco and 100% of RJ Reynolds tobacco. Gillette had similar issues over the 1995 – early 2001 period, including under-delivering on sales, profit, EPS and ROA growth targets as well as having a dysfunctional organization motivated and driven more by 'effort' then by 'results.'
The management team at both firms developed a new growth vision and Strategic Plan; including the recognition that innovation needed to play a significant role in turning around and sustaining the company’s marketplace and financial performance to enhance shareholder value
Specific Innovation Management topic areas for talks/speeches and project work:
- What Total Innovation means
- Why needed
- Success model and alternatives
- Practical examples of innovation across the value chain/business system (e.g., that resulted in 88% of Nabisco’s U.S. retail businesses increasing its retail consumption and market share in 1999, 90% in 2000 and in meeting or exceeding Wall Street’s consensus EPS expectations for 10 straight quarters before it was sold following a public auction)
- Key Messages
- Why Companies Need Innovation
- Total Innovation: What is it, why it's critically important?
- Innovation Barriers & Characteristics
- A Success Model & Strategies + Key Initiatives for Inculcating Innovation
- A Process Framework and Specific "How To's"
- Examples Across the Value Chain
- 5 organization enablers for innovation
- Passionate senior management commitment to innovation
- A corporate culture that fosters innovation
- Significant innovation talent
- An organizational structure that facilitates innovation for current and new business
- Effective teamwork throughout the process
- Conflict transformation... leading through conflict!
- When conflict is confronted it is more likely to catalyze innovation solutions (versus polite conversation, issue avoidance, denial, etc.)
New Products and New Product Development ... Organic Growth
- Key messages, takeaways
- Successful new products: Lessons learned, cases and principles
- Criteria for evaluation… marketing + financial success... nothing else counts!
- New product process that works; including identifying Strategic Growth Opportunity Areas (SGOA's), with the client's basis-for-interest and key success requirements