Gina Goetter

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Recently, someone asked me about the changes in the CPG industry over the years. My response was a lazy "Nothing." Then, I had to back it up with something to soften the shock, so I elaborated. The 'Why' and 'What' has not changed. 1. The fundamental CPG consumer needs have remained the same. Consumers are looking to save time on chores (e.g., cooking, cleaning, personal care, household care, etc.) and spending more on leisure. They are willing to pay the right price for a product that facilitates this. 2. The CPG investor expectations have remained the same. They invest their money in exchange for dividends and capital appreciation. 3. The outcome metrics for CPG CEOs have remained the same. They must help meet investor expectations by generating free cash flow powered by disproportionate revenue and earnings growth. 4. How CPG CEOs achieve the outcomes has remained the same. They meet the needs of the consumers through 'Superior Value Proposition,' 'Superior Mental Availability,' and 'Superior Physical Product Availability.' They enable all of the above through 'Superior Management Operations.' 5. The way management operations are run has fundamentally remained the same. They are run by people collaborating to make effective decisions or efficiently performing value-adding tasks to meet the CEO objectives stated above The only changing factor is the 'How,' around the bases of competition (like price, innovation, quality, etc.) and the technology (where we hear a new buzzword every few years, only to see them disappear after the initial hype fades) that supports a) How people collaborate: workflow platforms like ERP, Teams, B2B portals, etc. b) How decisions are made more effectively using data and intelligence: AI/ML, GenAI, BI/reporting/Dashboards, DSS/Optimization tools c) How people can perform more value-adding tasks: Automation (Intelligent automation, Robotic Process Automation, etc.) d) How they perform their work more efficiently: Data marts, APIs, Cloud, Integration, etc. e) How they do all the above to drive functional and organizational objectives As a business consultant, what matters to me the most is ensuring that regardless of ever-changing buzzwords in technology, they are being meaningfully deployed e) to drive functional and organizational objectives to achieve the fundamentally unchanged consumer, investor, and CEO needs. It’s a win when technology is aligned with the bigger purpose of gaining a competitive advantage on the bases of competition, leading to market share gains. What are your thoughts? #cpg #cpgindustry #consumerproducts

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I came across a thought-provoking McKinsey article today that got me thinking about how consumer companies can revamp their operating models to stay ahead in today's fast-paced market. It's about focusing on a few key consumer-centric priorities and aligning them with individual and team goals. I recently met with a client who had a laundry list of 15 priorities for their organization. I couldn't help but wonder, how are they going to tackle all of that? This article really resonated with me because it emphasizes the importance of doing fewer things better, rather than spreading yourself too thin. McKinsey highlights six hallmarks of high-performing operating models, and a few of them really stood out to me. Firstly, they suggest creating dynamic, cross-functional teams to break down silos and encourage collaboration. Secondly, the idea of establishing end-to-end business units ensures that decisions are made closer to the action, leading to faster response times and alignment around consumer-centric goals. And let's not forget about the importance of knowledge sharing and continuous learning across the organization to avoid reinventing the wheel. Check out the whole article below if you are looking for ways to streamline priorities, foster collaboration, and drive success in today's competitive consumer market. Happy learning! Sue #ConsumerCompanies #OperatingModels #McKinseyInsights #Teamwork #SuccessFactors High-performing operating models for consumer companies | McKinsey https://mck.co/3Ltr4ot

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