Three ways consumer products companies can build an operating model that reignites growth
The operating model that made consumer products companies successful is now holding them back.
Future-fit companies must build a new operating model that reignites growth.
1. Redesign the model to unlock growth
Fit-for-purpose architecture
Organize around brands, consumers and markets that drive growth.
Brand and consumer centricity
Put consumer insight at the center of decisions.
Future-ready capabilities
Invest in data, AI, digital commerce and agile innovation.
Key capabilities include:
Revenue growth management, consumer data platforms and connected planning.
Methodology
2. Change ways of working for speed and impact
Agile value streams and scenario planning
Fund teams around outcomes and plan for several futures.
Fusion teams
Combine business and technology people in one team.
Human-centered technology
Design tools around how people work.
3. Shift culture and leadership mindsets
Leadership and performance mindset
Hold leaders accountable for growth.
Cost-conscious culture
Fund growth through disciplined cost management.
Adaptability and learning
Reward experimentation and learning.
A new transformation agenda
1. Rewire marketing
Data-driven, AI-enabled marketing.
2. Reimagine the commercial model
New channels and partnerships with retailers.
3. Reinvent product life cycle management and innovation
Faster, consumer-led innovation.
4. Reshape the supply chain
Resilient, responsive supply chains.
5. Make technology and AI investment business-driven
Fund technology for business outcomes.
The leadership agenda: what to consider
Leaders should agree the growth ambition, the capabilities needed and the order of changes.
Summary
A new operating model, new ways of working and a new mindset together reignite growth.
Related articles
What it takes to stay relevant as a brand in an era of endless choice
As consumer habits change, consumer products brands must focus on relevance and differentiation to keep their place in the basket.
How aspirational consumers are reshaping luxury growth
Aspirational consumers are redefining value expectations in luxury. How brands can adapt.
How will customer-first technology create lasting value for retailers?
Retailers must build technology foundations that respond to changing consumer behavior and expectations.