According to an Ernst & Young survey with input from food industry leaders:
- 75% of CEOs are reassessing their business models to maintain historic profit margins.
- Only 29% say their companies are very good at making decisions on where to compete in an environment of continuous change.
- Just 30% say they are very good at making sure their strategies are clear and resources are aligned to execute.
- 37% say they are poor at increasing the pricing power of their brand.
- Asked which three activities offer the highest potential to create value in their business over the next five years, 53% of the votes chose new products and breakthrough innovation, 25% pointed to building new channels to market, 23% to mergers and acquisitions.
Look carefully at these findings. Their implications are major and money will not be made on incremental changes to address them. So what’s to be done? For starters:
- “Change the meanings to change minds” about strategic choices.
- Constantly examine ways to artfully and deliberately enhance your “brand promise”.
- Make value creation, not financial targets, the lens to view company decision-making. Questions about where and how to grow, deploy resources and develop talent will resolve more quickly.