As FMCG faces new and dynamic changes in a changed post-pandemic world, there’s no place for off-the-shelf leadership talent.

For a sector already known for innovation and change, COVID-19 has vastly accelerated the need for evolution. And that has implications for the kind of leadership likely to succeed in the era beyond the pandemic.

Whatever it is called, this ‘new normal’ is a massive opportunity for those bold and brave enough to grasp it and prove an enduring foundation for the long term.

But the issues, many highlighted by COVID, will be familiar.

Planet first, at last

Sustainability and the race to net zero are the headline grabbers, with profound effects on companies and organisations that need to balance commercial imperatives with their commitments to a more sustainable model.

This will be watched closely by consumers who increasingly want them to do the right thing on a host of fronts. From waste to animal welfare, sustainable practices to human rights, there is plenty of potential to slip-up. And, simultaneously, no-one can sacrifice the value consumers want, a demand likely to grow even more important in a COVID-damaged recessionary economy.

The big shopping switch

Consumers’ purchasing habits have altered with striking speed in the past year. A McKinsey global survey reports: “In nine of 13 major countries, at least two-thirds of consumers say they have tried new kinds of shopping. And in all 13, 65 percent or more say they intend to continue to do so.”

“The implication is that brands that haven’t figured out how to reach consumers in new ways had better accelerate their efforts, or they will be left behind.”

Kantar concurs that the most accelerated retail trend of the year was online grocery shopping in Europe. But do “expect some decline in share this year, particularly if a recession bites. Longer term though, this is where the majority of grocery shopping- all shopping- is heading.”

All channels are important

Now is the last call for an omnichannel marketing strategy, and the agility and creativity to ensure that when habits leave the well-trodden path, you don’t get caught off balance and passed by a more nimble competitor.

As technology improves, so does the ability to personalize consumers’ products. And that’s a strong trend, not just a route to more sales and loyal customers, but personalization strategies allow you to gather huge amounts of data to leverage for future brand innovation. All are aware of, but still few consequently use them for their business case.

"FMCG leaders will also need to face up to all the realities of stakeholder capitalism. They will be expected to weave a sense of social purpose that is more than mere words into the material of profit making. This is a time to appreciate diversity in perspectives, be more future oriented and have an openness to change and the possibilities that it offers.", says Gabriele Stahl, Partner and Head of the Consumer Practice at Odgers Berndtson Germany.

Just in case, not simply just in time

The COVID-19 pandemic revealed vulnerabilities in the long, complicated supply chains of many companies. The value of resilience became all too apparent. McKinsey describes the shift in thinking as “just in time plus.” Here, the “plus” stands for “just in case,” meaning more sophisticated risk management.  The rise of AI and data analytics, though, will help with that risk management, provide more sophisticated auditing function and visibility across global supply chains.

AI and big data are the spearhead of the digitisation that is revolutionising all aspects of busines from forecasting to the automation of production and logistics. No senior executive can be an expert on it all, but their ability to manage its human and organisational impact will be key to success.

Gartner reports that by 2025, smart robots and drones will take over a third of jobs.

As technologies change the skills required and the shape of the workforce, far-sighted leaders will know that reskilling current staff, rather than letting them go and then find new people, typically costs less and brings benefits that outweigh the costs. Furthermore, investing in employees is the route to foster loyalty, customer satisfaction, and positive brand perception.

Nicole Kremer, Partner at Odgers Berndtson Germany, adds: "Successful reskilling starts with knowing what skills are needed, not just now, but in the near future too. Companies need to evaluate their teams with sophisticated assessment tools and must offer tailored learning opportunities to meet those needs, and continue to decide what does and doesn’t work."

To make that all work, it requires more commitment from the senior leaders at the top that ensures a culture of lifelong learning, coupled with a far-sighted talent plan, is part of the company culture.

Cultures of collaboration and innovation

Much more important than ever: Leaders must build a culture that maximises the power of collaboration with brands, partners, suppliers and others outside the organisation, and across the globe.

Along with friends, there will be the threat of new enemies, as digitally-powered start-ups enter the market with highly-targeted innovations that fragment the market, whilst the tech giants like Amazon flex their data (and financial muscle) into new sectors and categories.

How do you create the innovations to respond more quickly? It’s not easy if you are encumbered by legacy thinking and top-down command.

Leaders will need to think about fast result labs, parallel start-up style structures and other ways to stay ahead of the game.

Overall, the going will not be easy and will require creativity and boldness since Kantar predicts that “It is unlikely we are ever going to see double digit take home FMCG growth again. A correction is inevitable. The scale and timing though is more difficult with so many unknowns, e.g. vaccine rollout plans, recessionary impact, post pandemic working from home, and changes to restrictions.”

The next FMCG leaders

To meet these challenges, we know, will take a special breed of leader. Our Global Leadership Confidence Index concluded that successful leaders in a disrupted environment lean towards change, not away from it. They are defined by mindset, not simply skillset, and they have shown that tendency in their experience to date.

"Our aim is always to identify and to assess true leaders with a strong personality and purpose. The ‘right’ attitude seeks to make a difference to both the organisation and to society. Those leaders have a magnetic effect, charismatic and motivational for their teams, their colleagues and customers. And that, at the end of the day, creates visible and sustainable results.", says Silvia Eggenweiler, Partner at Odgers Berndtson Germany.

But finding the right fit with your company, your organisation, and your functions means asking the right questions.

• Where exactly do you see your potential for growth?
• What has changed over the last 12 months?
• What sort of transformation projects have you initiated?
• Which challenges do you foresee for 2021, 2026 und 2031?
• Where are the gaps in your teams, and their competences?
• How does the team react to change?
• What are the key obstacles?
• What would make a new candidate successful in your organization?

Of course, that’s not all. Our proven processes, global reach and the ability to be a neutral sparring partner when the going gets tricky, are all part of every assignment.

To discuss your organisation’s talent plans, or your personal career, please get in touch. We will be happy to discuss how we can help.