Food and CPG leaders are putting a spin on failure with reports that company profits surged while revenues fell–blaming industry conditions for the latter.
This is unacceptable…
…proving just how far removed they are from new value elements in their customer base and market environment.
The carnage of one-sided performance is staggering. On what platforms will these companies rebuild?
Boards have not set the right expectations. They pronounce slashing costs as acceptable without first re-examining business models or conducting a thorough review of factors essential to value creation and growth…including failures in the integration phases of their acquisition strategies.
Control is irresponsibly handed over to big-name consulting firms paid to make outrageous, value-destroying recommendations.
The greater tragedy is that reported results socialize failures into the industry as justification for others to perform similarly.
Growth has people at its core. Profits surge and revenues increase when CEO’s mobilize their people to do innovative and valuable things for customers.
Subsequent market traction is what drives momentum, thrust.
When revenue growth unravels, so does momentum. When that happens, amassing profits alone means little.
Food and CPG chiefs must realize that today more than ever, their organizations are just one innovation, just one lost customer away from getting whacked by a competitor—eliminating further need for them in the marketplace.
They are subject to the same lessons learned by those in more enlightened industries: The capability of Doing Better with Less must be assimilated into organizations and performance expectations.
Unfortunately, top food and CPG companies are Not Doing Better With Less.
They are Doing Less With Less.
There’s nothing acceptable about that. Nothing to applaud. Nothing to feel good about.
No matter the spin.