2010 FLP Executive Summary

Future Leaders Congress 2010

ExEcutivE Summary

www.tcgf f lp .com / www.tcgf f lp .cn

10th-12th October 2010 / Berl in, Germany

Re-shapinG yOuR Business, yOuRself and OuR wORld

Eye-opener

inspir ing

Powerful speakers and motivators

Great insight and very thought-provoking

unique – emphasis on personal leadership and

industry knowledge

inspir ing The future leaders programme is the global event for dynamic future leaders in the consumer goods business, moving rapidly within their company.

►Thought-leadership

►Discussion & debate

►Knowledge sharing & workshops

►International networking

►Store visits & best practices

►Consumer-focused analysis

►CEOs as mentors

FLP congress 2010 5 executive summary

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...

a masterclass programmethis programme is designed to help future leaders to develop their potential to become part of senior management, and to enhance their personal contribution to the business. the Future Leaders congress includes strategic, operational and leadership modules, all of which are characterised by spirited debate.

FLP provides a platform for discussion on top-of-mind issues and brings knowledge and networking to young leaders from around the globe.

many companies use the Future Leaders Programme as a core development tool for their future generation of managers and as such the event is valued as an investment in the future of their company.


The congress thematics are developed by the future leaders Committee:

Chairman: Guy Tiebackx, Develey Senf & Feinkost GmbH, Germany

hege abrahamsen, ica aB, Norway

Georg Bruch, Globus, russia

Jerry fleeman, Food Lion LLc, uSa

Richard fl int, Nike, the Netherlands

paul havinga, albert Heijn Bv, the Netherlands

Tara haynie, Wal-mart Stores inc., uSa

patrick Kgengwenyane, Pick n Pay, South africa

Rhoda lane-O’Kel ly, the consumer Goods Forum

simon lau, tcc, Hong Kong

Karsten Kamin, the coca-cola company, Germany

Thomas storck, Galeria Kaufhof Warenhaus aG, Germany

Giuseppe Zul iani, conad, italy


“the industry is changing. How can you be the change?” Richard fl int

“the small and unforeseen can have enormous consequences, causing cataclysmic reputational damage and long term business damage.” alex Thomson

“the consumer is an animal of habit and not change. auto-pilot shopping is the reality of our business”. Jean-Jacques Vandenheede

“rather than a huge amount of choice, shoppers seek the ability to make decisions.” stephan Grünewald

“the brand connection is made in the mind. Don’t tell someone how great you are, prove you have something by positioning.” amir Kassaei

“We can actually create a more unified world by dealing with the aspirations of poorer people.” wayne Chen

“if you’re waiting to be a leader tomorrow, you shouldn’t be in this room today ... you need to bring yourself to work.” Jerry s. wilson

“it is dangerous to be surrounded by people who are afraid to tell you the truth. you need to take the time to sort the yes-men from those who are speaking their minds.” Thomas Gutberlet

«consume to be happy is a message drummed into us from birth, but is leading to illness such as diabetes.” wil l day

COnfeRenCe sOundBiTes


FLP congress 2010 6 executive summary FLP congress 2010 7 executive summary

sTRaTeGiC sessiOnSunday 10th October 2010

welcome to the future leaders Congress

in 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 changing

environment”. the industry was changing, he said, and companies were increasingly required to trust each other. Our leadership skills need to change to keep in step. “How can you be the change?” Flint asked.

a year of Transformation in Context

We are living in a viral world, alex thomson asserted. Speaking as a journalist who had been initially slow to realise the impact of so-called “citizen journalism” as offered up by blogs and websites such

as twitter, thomson reminded the conference not to get complacent: “the small and unforeseen can have enormous consequences,” causing “cataclysmic reputational damage and long term business damage,” he said, citing BP cEO tony Hayward’s unthinking remark that he wanted to get 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’s possible that food companies won’t be able to go on as they are” he said, adding that government intervention in

the form of regulation was a real possibility. the argument that what consumers eat is a question of personal choice is “not a sustainable position,” thomson maintained, given the links the medical world had established between weight and health problems such as heart disease and diabetes.

Richard fl int, managing Director, Greece & associated territories, marks & Spencer; chairman, Future Leaders Programme committee

alex Thomson, Presenter & chief correspondent, itN channel 4 News and congress moderator


The new market trends storming our industry

Jean-Jacques vandenheede enjoys debunking popular misconceptions about the industry with hard market data and this presentation was no exception. calling for perspective on the pace of change and transformation, he said “fast

moving consumer goods” was a misleading name, since transformation in the industry generally happens very slowly. “recession” was another word to use with care, he suggested, since “overall, our industry has never been in recession”. consumer confidence, generally reported to be low, has in fact “followed [economic] recovery, slowly crawling back” and consumption volumes are returning. in terms of turnover, large and small supermarkets have been “flatlining”, also, although hypermarkets have suffered in recent times, losing 7% on average over the last few years. “there

is a need to reinvigorate the hypermarket,” vandenheede said. Both market share for all three format types and the number of shopping trips were also flat between 2007 and 2010.

The Consumer in time of crisis: shaken but not on the rocks

Senior citizens are not what they used to be. Older people, are getting younger. today’s seniors burned their bras and put che Guevara posters on their bedsit walls. they were at Woodstock. according to Stephan Grünewald,

these attitudes die hard: today’s seniors are characterised by the breaching of norms and ideals of eternal youth. they don’t “retire,” they maintain restless post-work activity and keep their diaries full. By contrast, the 18-25s are controlled, mature and serious. they feel they are living in a “divided and fragile world” in which they may fall into an “abyss of downward mobility”. therefore, they pursue wishful thinking with “excessive prudence, determination, obsessions with order, self-control and competent, relentless activity to keep the abyss at bay”.

in retail and cPG, the crucial trend is for complexity reduction. “rather than a huge amount of choice, shoppers seek the ability to make decisions,” Grünewald holds. He maintains that the decision to buy at discount stores or filling stations, or to buy regional and organic products, is

actually motivated by the desire to reduce complexity. “they accept high prices in order to make mental savings.” the consumer is not “homo economicus” . Shoppers don’t want to be bombarded with price messages: they don’t comfort. What they want are solutions: for a menu, for being more beautiful and so on. they want to buy happy moments and feeling of eternal beginning: “all consumers dream of starting something new,” Grünewald says. are we delivering?

Jean-Jacques Vandenheede, Director, retailer insights Europe, the Nielsen company

stephan Grünewald, managing Partner,

rheingold institute for Qualitative market &

media research

“the consumer is an animal of habit and not change,” vandenheede asserted, and “auto-pilot shopping is the reality of our business”. Faced with uncertain economic times, most shoppers, according to Nielsen survey data, shopped at the same stores they always did. this may be in part, vandenheede posited, because all the grocers had essentially the same offer. Only a minority (not more than 16%) swap stores to benefit from specific promotions. in fact, consumers’ store selection criteria have little to do with price, which falls towards the bottom of their ranking, and more to do with convenience and experience. Good service and an efficient checkout is what draws them back. the growth in the discount formats has gone hand in hand with increased density: “it’s a mechanical phenomenon and has nothing to do with consumer change.” Similarly, the growth in private label is a “structural phenomenon” that has followed the density of organised retail and has not been driven by consumers.

the other myth that vandenheede was keen to explode is that the majority of consumers want to shop online. Not for groceries: only 19% bought groceries online over the last three months, his data show.


Be everywhere, all the time

the digital revolution could never have been foreseen by those who lived in the nineteenth century. in 2010 new technologies and options proliferate at a bewildering rate. the challenge we face today is therefore to decide which

technologies to grab and take forward into our business. But we also need to look ahead and imagine the as yet uninvented technologies.

in the new retail eco-system, information flows between the shopper and the retailer, between brand and consumer in ways previously unimagined. this development has led to the emergence of a new «super consumer» empowered by new technologies and demanding of «hyper experiences» that live up to expectations set by more advanced sectors. companies need to master this new landscape in order to engage the attention of their consumers and target their marketing. Facebook, for example, has 400 million active users. the average age of users is now 33 and the fastest growing segment on the site is women over 55. Half the site’s users log in every day. However, users are resistant to the ads on the side of Facebook pages. a much smarter, subtler approach is needed.

Sites offering «user generated content», such as youtube, have now arrived as a mainstream communication channel. youtube is the second-largest search engine, after Google, while micro-blogging site twitter receives 600 million search queries every day. increasingly, people are using these sites via their phones rather than their computers.

more and more consumers are making their purchasing decisions and brand affiliations based on the «word of mouth» endorsements — or criticisms — of fellow consumers online. «it’s a matter of looking for credible and trustworthy sources of information,» Bosman said. «What is your business doing about all of this?» Bosman foresees a not-too-distant future in which our mobile phones will «learn about us and make recommendations».

Mike Bosman, cEO,

One Digital media

►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

upcoming technologies

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?



learn to sell the way consumers want to buy

in a world where all the communications devices are connected and all the people are connected via social networks, our

customers are no longer “consumers” they are our friends. a new way of selling is needed that they can buy into. awareness alone is no longer working; there is too much noise. companies should not use the internet as a megaphone; it’s no longer about loudness. “Don’t tell someone how great you are,

prove you have something by positioning.” the internet is not a new media channel, it is a tool for “connection, communication, and distribution”. companies should be relevant, if they are not, they will get “lost in space”. Fun is a key factor in changing consumer behaviour. if marketing campaigns are both relevant and fun, “the brand connection is made in the mind”.

illustrative examples from DDB’s portfolio abound: When the Obama election campaign

realised that success depended on converting the staunchly republican elderly Jewish vote in Florida, BBD created “the Great Schlep” – a humorous idea with a serious purpose. reasoning that the only people that Jewish grandparents would listen to were their grandchildren, DDB mobilised the kids via their social networks to make the trip across the States, in order to talk their elders round. the campaign gained massive coverage in the mainstream media and the movement snowballed. the mix of web 2.0, and street-level guerrilla marketing feeding into the mainstream media was successful. Florida turned Democrat and Obama was elected. Similarly, in a campaign for German green energy provider Entega, people were mobilised at a grass roots level to militate against global warming by a massive “save our snowmen” campaign. For automotive manufacture vW, DDB convinced public transport users to use the stairs

rather than the escalators by making the stairs fun. Each step was converted into a piano

key that played a note when it was stepped upon, so the staircase became a keyboard. “Before” and “after” videos showed the wholesale shift of traffic from the escalator to the stairs. Such an approach is crucial, Kassei argued, if you want to turn customers into friends. the

reason you want to do this is simple: your friends will advocate your brand.

Retailing in emerging markets

From its study of retailing in emerging markets, the coca-cola retailing research council unearthed a simple, basic truth that can be applied universally. “We can actually create a more unified world by dealing with the aspirations of poorer

people,” Wayne chen said, showcasing highlights of the findings. commerce, he claims, is the most important part of

development. in more traditional times the place of worship was the focal point of communities and also the chief dispensary of hope. today, chen argues that modern retail has to some degree taken that place. “it is a temple that people can look to and aspire to.”

chen gave the example of Pick n Pay in South africa. the retailer has reached out to hitherto underserved sections of the South african community with a franchise

offer with a relatively low barrier to entry, which both brings more aspirational shopping into underprivileged areas and offers the possibility of self-governed economic growth via local entrepreneurship. in Peru, “minka” has done well by providing an ordered and structured environment in which the capital’s diverse informal market traders can set up. “it captures the energy of the informal market, but raised the standard,” chen says. in turkey, discount retailer Bim coped with the country’s 2002 hyperinflation crisis by offering stable low prices for three months. certainly, the retailer took a short-term hit, but created the “everlasting impression” that its prices were the best. Bim’s rival tansa navigated the same crisis by focusing on righting the things its customers said they hated. the retailer formulated a charter of “incredible consumer rights”, including having all the tills open if it was busy, a no-questions return policy and a freshness guarantee. the result was a strong operational improvement and a significant increase in profitability. all in all, success lies in actively creating a vision of the future; in keeping an open mind; in enriching lives through customer-based solutions and in finding opportunities within crises.

amir Kassaei, chief creative Officer, Doyle Dane Bernbach Group

wayne Chen, cEO, Super Plus Food Stores, Jamaica


how lonely is it at the top? alex thomson asked.

thomas Bruch said it shouldn’t be if you have built a good team. Klaus Dohle agreed and added that, on the contrary, it is dangerous to be surrounded by people who are afraid to tell you the truth. “you need to take the time to sort the yes-men from those who are speaking their minds.” thomas Gutberlet said if you are both leader and servant to your company you don’t get lonely.

On mistakes

Durach said one of his mistakes had been not taking smaller competitors seriously enough. “if it’s a good idea, size doesn’t matter.” Dohle agreed that overconfidence had been instrumental in one of his own failed acquisitions. Gutberlet said that often we rush to get a first-mover advantage, when being a fast follower is more efficient. Bruch said his company had expanded without properly studying the locations: “it’s important to see where you’re going in the wrong direction and turn the wheel.”

are customers your “fr iends” ?

Bruch said society had shifted and the industry has to shift from a push to a pull model. “the push model was inefficient and unsustainable.” Dohle said companies needed to listen much more: “if we talk to our customers we’ll have a lot more friends than we realised. But you have to make people want to have you in their community.”

On flp

Durach said that for 14 years, the Future Leaders Programme had been a window on the world for him. “i’ve learned about different areas, business models, different thinking.” Over the years the contacts he has made have become friends. “you can ask friends honest questions.” Bruch it was his first time at the event and the exchange with colleagues from other countries was valuable. Dohle said he had learned a lot and seen a lot of the world. Gutberlet said it had been invaluable to him to be able to share different perspectives.”

Built to lastcEOs discuss how they transformed their companies, reveal their biggest challenges and how they rose to them.

Thomas Bruch, cEO & Proprietor, Globus, Germany

Klaus dohle, cEO, Dohle Handelsgruppe Holding, Germany *

Michael durach, managing Director, Develey Senf & Feinkost GmbH, Germany *

Thomas Gutberlet, chairman, tegut Gutberlet

Stiftung & co., Germany *

The future leaders programme has been developing leaders for

over half a century – a true mark of

sustainability.

* Ex-FLP committee member


Berlin Retail scene

Tobias wachinger, Principal, mcKinsey & co.

Björn hagemann, associate Principal, mcKinsey & co.

the German market is different to most European markets in that it is dominated by local players.

None of the big non-German grocery retailers (Walmart, carrefour, tesco, ahold) are present in the market. Growth in the market has been hard to come by and like-for-likes are negative. Expansion is the only thing that makes a difference, but the excess space, coupled with constant downward pressure on prices from the

discounters, makes for low sales densities. retailers “really have to struggle to be profitable”. Only one retailer is growing profitably: Kaufland.

One of the major challenges in Germany is that 42% of the market share is held by discounters, which drive the market. aldi –“the business of two brothers who hate each other” – effectively sets prices for all players. Discounters have a major share of the organic market and while the lions share of sales come from high-margin private label, they are increasingly persuading shoppers to stay with them while uptrading by introducing a higher branded component. the margin advantage is now being aggressively reinvested in brands. carrying fewer SKus allows discounters to increase their bargaining power: aldi, for example, has 17 times the purchasing power per SKu of Walmart.

this allows the discounters to sell brands at a lower price than supermarket rivals.

Germany has no strong convenience operator: the density of the discounters obviates the need for a separate proximity format. the market has no successful hypermarket format either. Kaufland, mcKinsey argues, is really a “hybrid discounter”. Discounters achieve a far higher volume per SKu than their traditional rivals. However, despite the ubiquity of the discounters, German shoppers still shop around. aldi shoppers typically also visit Lidl (66%), Edeka (33%), rewe (32%), real (30%), Penny (29%), Kaufland (23%) and Netto (19%).

Within the general context of Germany, Berlin is an especially tough market. it has lagged German growth since 1995, with a current caGr of 0.3% versus 1.5% for Germany as a whole. unemployment in Berlin is at 16.1% versus 8.7% in Germany. Even by German standards, then, Berlin is highly price competitive. Discounters have 47% of Berlin, where shoppers like to search for branded goods on promotion. Berlin’s shoppers are younger and more diverse than the national average, there are more single-person households and a higher share of the population has a migration background. in this context, innovation is vital. New concepts born in Berlin include 24-hour organic convenience format FreshNFriends, or Kochhaus, where consumers shop by recipe.

FLP congress 2010 12 executive summary FLP congress 2010 13 executive summary FLP congress 2010 12 executive summary

a world in transformation

wil l day, chairman, Sustainable Development commission, uK

Population 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 countries with an average income of less than uSD 2 a 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.



OpeRaTiOnal sessiOnmonday 11th October 2010

the consumer Goods Forum would like to thank Bio company, real, rewe and rossmann for their hospitality in welcoming the groups in their stores.



store feedback session

deleGaTe RaTinG Of The sTORes VisiTed:

Each delegate was asked to rate the store based on Price, Service, communication, in-store experience and assortment.

the consolidated results are reflected in the pentagrams below:


Price

Service

communicationin-store

experience

assortment

543210

Price

Service


experience

assortment

543210

Price

Service


experience

assortment

543210

Price

Service


experience

assortment

543210


peak performance workshop by McKinsey & Co.


On monday afternoon, delegates stepped back from the day to day practicalities of the Operational Session to try something new for the Future Leaders congress: some group work exploring the psychological

characteristics of those rare but unmistakeable experiences which constitute peak performance in a team: moments in which we truly recognise that the whole of our team is greater than the sum of its individual members, that success is of critical value and during which time each person senses an engagement and identification with work that is so total that even exceptionally difficult tasks can appear natural, or at least, fully capable of accomplishment.

tobias Wachinger from mcKinsey suggested how delegates might work to explore this concept. it’s one which psychologist mihály csíkszentmihályi famously identifies as that of flow – a feeling of being “in the groove”, and work becoming effortless – and it can be applied to both individual and team experiences. as a group of leaders, delegates would be concentrating on what they could learn from each other with regard to flow, or peak performance, in a team setting.

So our groups worked on two sets of questions. the first explored individual experiences of peak performance – when, where and why they had occurred, their key characteristics and what they had felt like for team members at the time. the second was more tactical: what blocked us from having these experiences more of the time – and what might enable us to have more of them.

So what were our experiences of peak performance? the answer was inspiring. there was a common recognition of this kind of experience. it felt great. One delegate talked of a sense of being “vibrant and alive”. Others talked of passion.

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 looked like was not in any doubt.

in discussing why these peak performances had been necessary, however, something very striking emerged. in the majority of cases, the organization in which we worked


had been in a state of crisis. in the literal sense of the word, a crisis is not necessarily a problem, or a bad thing; it means a significant choice. But of course sometimes that significant choice can mean the difference between survival or extinction for a project - or even a company.

this paradox was a topic of discussion in most of our groups. On the one hand, these great team performances represented some of our best experiences of work. memories to last a lifetime were generated; people felt deeply proud to have been there and to have played their part. On the other, there was a nagging feeling that only conditions of the greatest urgency had triggered this performance. could we not aspire to lead this kind of work experience more of the time – and without emergency conditions? it was this question that was at the heart of the second part of our discussion.

to try to break down the question we explored both enablers – the features or conditions which make something possible or at least easier – and blockers – those which do the opposite.

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 relationships between team members (one reason why teambuilding sessions, however artificial they can seem initially, are so important where teams have been newly formed). But another enabler was more subtle – the sense of an overarching story. Delegates talked of distinct phases in their peak performance experiences: initial shock and uncertainty, the acceptance of collective responsibility, the emergence of a plan and the growing realisation of the team’s strength when it acted together. as leaders, we might conclude that these three factors - setting clear goals, convening teams built on mutual trust and being aware of a dynamic, longer term setting – were especially important.

in contrast, blockers could be said to be the absence of these factors – but they could also be characterised as acting in a territorial manner, being obsessed with multiple small priorities and the generation of multiple administrative protocols or policies.

Summing up a rich set of discussion, tobias asked the group to reflect on the 10 factors which csíkszentmihályi had originally identified for the psychological state of ‘flow’. What was remarkable was how many of these had emerged spontaneously in our discussions – support not only for the

construct of flow, but for the idea that it could apply just as much to group or team experiences as for individual ones. they could be divided up from the perspective of a leader into those they should provide, those they could enable and those they might observe.

Leaders should thus be able to provide clear goals, articulate a difficult but not impossible challenge and provide direct and immediate feedback. they should enable a sense of personal control, the conditions for concentration and attention and allow colleagues to find the intrinsic pleasure in performing their work. in return, they might expect to observe a significant loss of self-consciousness and focused awareness completely on work. Of course the tenth point – that people in the middle of flow can become unaware of bodily needs – also implies leaders might want to make sure that such fully engaged teams eat, exercise and rest properly.



leadeRship sessiOntuesday 12th October 2010

entrepreneurship, transformation and taking a chance

as capitalist business owners who were also part of an aristocratic lineage, Prinz’s family were not wanted in East Germany under Soviet rule. in 1945, the family’s land, property and business were expropriated, with no compensation: Prinz’s

parents were instead sent to jail. When their employees “made a lot of fuss”, the family was released and expelled

from the GDr. From riches to rags, Prinz senior and junior both worked in menial jobs, before gradually rebuilding their business interests in the West. after the fall of the Berlin Wall, Prinz went back to Saxony and bought a run-down vineyard. He acquired great soil and great people, but was still faced with the question of how to

build a business in a wine-saturated market. the answers, it turned out, had a lot to do with his family story: humility, sacrifice and perseverance were critical. Prinz believes in the concept of “same eye level”. that is to say that his team are considered co-entrepreneurs, each with a stake in his or her own business area. tradition and innovation were equally important: “tradition is dynamic,” Prinz asserts. there is room for individuality. Quality and authenticity are paramount in wine, but so is sustainability. Not only must the viticulture be sustainable in environmental terms, but the trading relationships must also be sustainable. Only true win-win partnerships can survive. the business began as a “garage winery” and built to the stage where, in 1996, Prinz was able to repurchase his old family estate. the esate was renovated and redeveloped as a guest house and restaurant.

dr Georg prinz zur lippe, Owner, Schloss Proschwitz Wine Estate



Managing Brand you

“if you’re waiting to be a leader tomorrow, you shouldn’t be in this room today,” Jerry S. Wilson began his presentation. if

you are hoping for success, you need a roadmap to your future, just as you would build one for your brand. “What if you thought of yourself as a brand?” Branding is vital: “No one says, bring me a brown, sparkling liquid. they say bring me a coke,” Wilson said, adding after a slight hesitation: “OK, maybe they say bring me a Pepsi too.” the point is that both brown beverages have a powerful brand, with

strong recognition and loyalty. the key to success, as a future leader, is unleashing the power of “Brand you”. this is not about “dress for success”, nor is it about blatant self-promotion. it is about brand building by positioning and being true to yourself. Surprisingly few people choose to position themselves in a unique and valuable space. Sometimes, this means expanding your job description to marketing the essence of what you bring to the table. Branding is not that complicated in itself. a brand relationship is the simple sum of promise plus experience. How well we deliver on our promise determines the success of the brand. a great example is Google, a brand that has become a verb. Great brands do not try to please everyone. they focus and excel. mtv, for example, does not care if grandma disapproves: it’s not for her. Good brand also communicate with consistency: apple is a great example, Wilson says. Winning brands differentiate with authenticity. But how to be authentic? it’s simple, Wilson says: “you need to bring yourself to work.”

seven steps to managing Brand you

1. audit: recall your activities, successes, failures etc

2. image: what are the qualities that make you unique and differentiate you from others?

3. identity: what do you stand for? Leverage your equity beyond functional skills.

4. Positioning: who are your target groups and how should they perceive you?

5. Goals: envision the life you want 10 years from now and manage back.

6. Strategies: how will you achieve these goals?

7. implementation and monitoring: set times and dates for commitments and monitor your results.

Jerry s wilson, Senior vice President, chief customer & commercial Officer, the coca-cola company



as the first South african company to promote a black manager above white staff, Pick n Pay knows something about standing up for its principles. these are: make a fair profit; have a heart; build social capital; build pride

in association; build an achievable values system and acknowledge diversity. Pick n Pay openly opposed apartheid policy and fought against cartels to make business fairer for all concerned. Founder raymond ackerman believed that if you fought on behalf of the consumer you would get good press and the consumer would back your business. Since the fall of apartheid, Pick n Pay has fought for the rights of South africans still disenfranchised, it has embraced democratic change and in particular, employment equality. Every part of the company –including the ackerman Family Foundation – invests in the local community with a focus on entrepreneurship, skills development and sustainability. the company helps local farmers and food manufacturers work sustainably. “Doing good is good business,” ackerman says. “Be good to your community and that will be good for shareholders and employees.”

mr ackerman agreed to a “hard talk type” by mr thomson. thomson asked ackerman «where did it all go wrong in australia», a reference to Pick n Pay’s recent market exit. admitting he had been unprepared for the question, ackerman replied that local retailers coles and Woolworths were «huge competitors» and that Pick n Pay had been unable to achieve a cost differential. On the subject of Walmart’s imminent entry into South africa, ackerman agreed that it was a «huge challenge» but added that Pick n Pay’s

«investment in the community will stand us in good stead», citing Walmart’s unsuccessful venture in Germany. ackerman mentioned Pick n Pay’s developmental work in South africa and said: «if you build a community, you build a middle class. Energy can come from severe poverty.» asked whether Pick n Pay was just a company that had grown rich on the back of apartheid, ackerman explained that Pick n Pay had never been a company of «a discriminating nature». On the contrary, it had fought discriminatory laws and the apartheid regime. «yes, we got wealthy during the apartheid years, but we’ve done so much better since and we think our record as a family and as a business stands up around the world.» On the subject of health and wellness, ackerman said the industry was not tackling obesity: «if the industry doesn’t self-police, governments could interfere in an incompetent way.» He concluded by saying that many cEOs were «too shepherded», with too many people around them cossetting them. «you’ve got to get out and do the work. you’ve got to understand the consumer.»

Gareth ackerman, chairman, Pick n Pay Stores, South africa & Ex-chairman FLP committee

sustainable leadership: why doing good is good for business.



pillars of strength

Jean-Marc saubade, managing Director, the consumer Goods Forum

the consumer Goods Forum is not “one more association” but rather, the vehicle through

which the industry can finally speak in one voice. Launched in June 2009, in New york, with the fusion of ciES with the Global commerce initiative and the Global cEO Forum, the body aims to drive unified collaborative action on non-competitive issues. “the cEOs of your companies were sitting on too many boards and going to too many meetings, in

which they were talking about the same things,” Saubade explained. “at the same time, the industry is not talking in one voice. We are not in the driving seat.”

the consumer Goods Forum members have combined sales of Eur 2.1 trillion: an organisation with enormous collective influence. the board of directors brings together the cEOs and chairmen of 25 retailers and 25 manufacturers. the Board positions cannot be delegated, so the decisions are made by the people who can “really get things done”. Driven by its vision of “Better Lives through Better Business,” the Forum has a mandate to make collaborative work accessible 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, food safety, sustainable packaging and carbon measurement, stripping cost from the supply chain and information sharing and are arranged under five strategic pillars:

the Forum is not a lobby but nonetheless aligns itself strategically with lobbying groups in the regions, such as Gma, Fmi, Errt, Eurocommerce and so on. “We still need to influence legislation in various countries,” Saubade asserted. the connection in the regions is made via local Efficient consumer response (Ecr) groups. the Forum also aligns with GS1: global projects need global standards. the idea is to avoid duplication and pursue a single industry agenda.

eMeRGinG TRends

susTainaBiliTy

safeTy and healTh

OpeRaTiOnal eXCellenCenew ways Of wORKinG TOGeTheR

KnOwledGe shaRinG &peOple deVelOpMenT



Keynote closing addressattitude is what determines altitude

Zi m b a b w e - b o r n Hilton-Barber lost his sight out of the blue at 21, the result of a congenital condition.

He had joined the airforce, hoping to be a pilot. Blind, the options seemed greatly diminished. However, he did not want to spend his life “weaving dog baskets”. He wanted to be a pilot. So he did. “Quality of life,” he says, “is not what happens to you, but what you do with what happens to you.” He became the first blind pilot to undertake

a 55-day, 21,000 kilometre microlite flight from London to Sydney. to succeed, he employed revolutionary speech-output technology, accompanied by a sighted co-pilot, his friend, and raised money for blind charities. to achieve, he says, “you need to start with your goals and dreams, not with your circumstances”.

this was only the beginning for Hilton-Barber. His philosophy was that “you can use up energy worrying or you can do new things”. if you want to grow, it’s important to step out of your comfort zone: “the last time you did a new thing is the last time you grew”. With these thoughts in mind, Hilton-Barber – among many other adventures – man-hauled a sledge 250 miles across antarctica, climbed Kilimanjaro and mont Blanc, became the first blind aviator to break the sound barrier and to participate in a drag-racing event, cage-dived with Great White Sharks and raced 150 miles across the Sahara on foot. in the process, he learned a lot about himself and his capabilities, and about teamwork and success. “i’m now giving you some life principles i’ve stumbled across as a blind man,” he said. “there are many sighted people who are blind to their potential. i’m trying to give them vision.”

hilton-Barber’s life principles

1. Start with your goals and dreams, not with your circumstances

2. Fear is only False Evidence appearing real.

3. you are only as big as the dreams you dare to live

4. all achievers are dreamers, but not all dreamers are achievers

5. Successful people are those who go through bad things, and persevere

6. unity is the key: there is no room for backbiting. your future depends on mutual interdependence

7. “Never judge a man until you’ve walked a mile in his shoes. that way, when you do judge him, you’re a mile away and you’ve got his shoes.”

Miles hi lton-Barber, Blind adventurer



sponsors

the consumer Goods Forum wishes to thank the following companies for their generous support of the Future Leaders congress 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


networking moments facilitated by the official sponsors

international headquarters

Paris, France

tel. : (+33) 1 82 00 95 95

E-mail : [email protected]

Japan Off ice

tel. : (+81) 3 6272 6283


The americas Off ice

tel. : (+1) 301 563 3383


Join us at the

future leaders

Congress

16th – 18th October 2011Chicago, usa

www.tcgff lp.comwww.tcgff lp.cn

2010 FLP Executive Summary

Documents

Transcript of 2010 FLP Executive Summary