Visionaries 2008

6/5/2008

In its seventh year, the June issue of CGT again profiles consumer goods executives who are driving change and innovation in the industry. Ranging from CIOs and senior vice presidents at major Fortune 500 firms to executives from innovative mid-market companies, the 2008 Visionaries list -- compiled based on nominations from their colleagues and peers -- is a who's who of industry leaders. You'll find out which career choice and accomplishment each of our Visionaries considers to be his or her greatest. Plus, the executives share thoughts on the greatest challenge facing the industry in the next five years, who they admire most in business and which leadership philosophy they aim to embody.


>> Dick Clark
Associate Director, Demand Planning Processes, The Procter & Gamble Company (P&G)
Demand planning for a $75 billion consumer products company with more than 140 plants in more than 80 countries and 23 billion dollar brands may sound like an overwhelming task. Dick Clark has not only taken on this task at P&G, he has  significantly impacted the company's demand planning capabilities worldwide. Working closely with demand planning leaders around the world, Clark implemented standard work processes, software solutions, master data management and effective volume forecasting for all P&G's business units globally. Clark implemented Terra Technology's Demand Sensing solution as part of a global initiative to win at the two moments of truth. This initiative reduces short term error by 30 percent, improving visibility to demand and enabling safety inventory reductions of more than 10 percent. Clark's vision, although not immediately understood or widely accepted, has ensured the double win for P&G. Clark states, "The team I lead ensures that we have the mastery, innovation and governance needed to support the company's demand planning needs today and in the future."

Greatest Challenge: "From a planning perspective, we must become truly demand or consumer driven. We must understand and embrace demand shaping, demand sensing and supply flexibility to efficiently meet customer and consumer expectations."



>>Peter Erickson
SVP, Innovation, Technology and Quality, General Mills
Peter Erickson has proven that, with a little non-conventional strategy, General Mills could strengthen its innovation capabilities. "We've done this by creating a new organizational construct that we call 'catalyst teams.' Our innovation catalysts are comprised of small teams that have developed expertise on a specific innovation best practice," says Erickson. Areas of focus include: tapping external innovation, experimenting in the market early, clarifying and articulating technical problems and creating new product strategies. "I believe our organization has been able to understand and embrace these innovation capabilities much more successfully due to our catalyst teams," he adds. Erickson's vision also incorporated the General Mills Worldwide Innovation Network (G-WIN), a team that engages external partners to uncover new ideas that may reshape the food industry. Thanks to G-WIN, General Mills has seen a 300 percent increase in the number of technology innovations submitted to the company, a higher percentage of game-changing technologies and a greater level of experimentation bringing new products to market with a lower risk.

Leadership Philosophy: "I support collaborative leadership. I don't see value in dysfunctional competition between people or teams. Rather, I applaud leaders who focus on working together to achieve results versus worrying about obtaining credit."



>>John L. Gusmano
VP Packaging Operations, Estee Lauder Companies Inc.
Eight years ago, John Gusmano took on the task of eliminating errors and improving efficiency to maximize global packaging development resources. This initiative required an in-depth study and evaluation of the creative, structural and graphics processes of the company's then 17 global brands. The result was the creation of the Estee Lauder Packaging Operations Group in 2001. Under Gusmano's leadership, the group was able to integrate existing enterprise-wide software with a new packaging-specific solution designed to reduce cycle time, improve accuracy and positively impact overall expenses. Using this technology, the group is now the global hub for all Estee Lauder packaging operations. "We function as a corporate group targeting packaging-related, cross-brand issues," says Gusmano. "The key to our success has been having the right people in the right positions. For example, small teams of 'experts' work together to constantly refine and develop our work methodology." The result: continuous improvements through creative solutions across six areas of responsibility within Estee Lauder Companies Inc. where -- Gusmano adds -- people are highly motivated to come to work.

Greatest Challenge: "The industry challenge is finding the balance between compliance and cost for global regulatory and environmental requirements. We have put in place both a strategy team and a group dedicated to compliance implementation."



>> Rich Mewborn
VP Worldwide Operations, Alberto-Culver
Alberto-Culver's rich 55-year history is marked by success and significant growth in consumer products. However, as a company, it took a very traditional approach to manufacturing and distribution. That was until Rich Mewborn delivered on a vision to transform global operations. Under his leadership, Alberto-Culver's entire supply chain was reorganized to include strategically located, quality third-party logistics providers and a new manufacturing facility in Jonesboro, Ark. Mewborn also restructured the Global Operations Management Team with resources focused on key supply chain roles to support a new integrated demand and supply process, strategic manufacturing capabilities and global procurement/sourcing strategies. "The biggest win has been changing the mindset of our global operations team from focusing on minimizing costs within the current systems, processes and asset base to thinking in a much more broad and strategic way in which overcoming obstacles is viewed as part of the challenge rather than a barrier," says Mewborn. As a result, process change has been embraced, Alberto-Culver outsourced some activities and taken in others, and invested in facilities significantly.

Leadership Philosophy: "I strongly believe in a participative environment, where the role of leadership is to ensure everyone is aligned on business goals, aware of issues and opportunities, and engaged in making a difference."


>> Jim Mulholland
VP of Information Technology, Creativity Inc.
Creativity Inc., the designer, marketer and distributor of arts and crafts products, seeks to distinguish itself through innovation and creativity, industry experience and the ability to anticipate and meet customer needs. However, the company's existing ERP analysis capabilities were limited, and as a result, negatively impacting its ability to deliver on this mission. Under Jim Mulholland's direction, Creativity Inc. initiated a data warehouse deployment and the delivery of an associated business intelligence platform from Cognos, an IBM company, in January 2005. "While there have been larger projects, no other project elevated Creativity Inc.' s operational awareness and customer service more," explains Mulholland. Dubbed CRAFTnet (Creativity Reporting Analysis Forecasting Tool), the project was delivered in stages over two years. By combining key data elements from various source systems, management can now monitor critical customer satisfaction metrics and deliver a product that consistently meets or exceeds expectations. "Additionally, CRAFTnet has delivered consistent, timely and accurate financial reports, such that we can now close the month in 50 percent less time than before," says Mulholland.

Greatest Challenge: "Undoubtedly, one of the greatest challenges is increased commoditization of our product lines. We plan on overcoming the challenge by ramping up our designer and fashion-forward design teams. By delivering unique and stylish product that no one else can, we expect to build our loyal customer base while improving the bottom line with higher margin product."



>> Hope Neiman
SVP, Marketing and Strategy, Right Start
When Hope Neiman joined the marketing department at Right Start, the largest national specialty provider of juvenile products for infants and young children, she found a company and a brand that had lost market share and lacked a clear vision. So, she embarked on an effort to develop a brand, creating of a logo, a tag line, a new Web site and the resumption of its direct-mail catalog business. All were designed to deliver and support a "high touch" experience across all channels of distribution. Neiman also turned to personalization to build positive customer interactions that foster strong customer satisfaction and fuel buzz. For example, a personalized marketing campaign offered products at discounted rates to consumers in areas affected by the recent California fires. The marketing strategy shift prompted in-store sales to increase 20 percent and online sales doubled in a year. "I am proud to say we became relevant and important to our customers, as indicated by not only our increasing sales, but also by the thousands of people who daily are and stay engaged with Right Start through the myriad of opt-in and personalized programs we have created to fit their family's life stage," says Neiman.

Role Model in Business: "Donna Dubinsky, the first CEO of Palm Inc. She had a clear vision that the magic in the technology was having it do less, thereby making it do more for each user. She never lost sight of what gave value to the consumer experience."



>> Leigh O'Donnell
Manager of Sales Technology & Communication, Wm. Wrigley Jr. Company
It is common knowledge that point-of-sale (POS) data is valuable. And while the Wm. Wrigley Jr. Company effectively analyzed data key account by key account, it was Leigh O'Donnell who first orchestrated the solution for new and untapped value via the integration of POS data, syndicated data and Wrigley's internal data. She set out to build tools that would simultaneously inform Wrigley's external partners and internal stakeholders, as well as strengthen its partnership with retailers. "We are overcoming the challenges of many disparate data sets, and, with the help of Decisions Made Easy, a service of The Nielsen Company, providing a unifying tool for the data," O'Donnell explains. The solution integrates and harmonizes data, providing a single way for analysts to work with the information. O'Donnell and her team evolved this solution into three dimensions: key-account tool, internal reporting tool and total coverage. The results help Wrigley to overcome industry data fragmentation and make more informed decisions. "We know our solution is successful, as we continue to enjoy strong relations with our retailers and growth at the shelf," concludes O'Donnell.

Greatest Challenge: "While the consumer's shopping and checkout experience is changing, the shopper's demand for quality confections is not. Wrigley's biggest challenge is to connect in-store with shoppers in ways that grow the category. Wrigley products continue to be sold wherever money changes hands."



>> John Phillips
VP, Customer Supply Chain and Logistics, PepsiCo Inc.
John Phillips is more than familiar with the way an effective sales force should operate. He joined PepsiCo more than 21 years ago as a route salesperson with its Frito-Lay division and has since worked in a number of different sales and field operations roles. Today, he is challenged to leverage technology to drive improvements in sales execution and collaboration. He was instrumental in the development and implementation of direct store delivery (DSD) route systems as well as the development of the next generation of frontline handheld computers for the DSD sales force. District sales leaders were also equipped with tablet PCs. "These tools are allowing us to create an innovative closed-loop framework to improve ordering and in-store execution," says Phillips. More recently, Phillips implemented a browser-based collaboration framework for PepsiCo's customer teams. "This collaboration framework has created an environment that allows teams to share critical information in a near real-time manner allowing them to become more nimble in executing against key customer initiatives."

Greatest Challenge: "Winning companies will find ways to leverage the ever increasing amount of granular POS data available between trading partners to improve on-shelf availability and in-store service levels. This will create a true 'shared supply chain' focused on delivering the highest possible service levels at the lowest possible cost."


>> Alex Poole
Director of Global Supply Chain Development, Crocs Inc.
Originally, Crocs Shoes were intended as boating/outdoor footwear. By 2003, Crocs had become bona-fide phenomenons, universally accepted as all purpose shoes for comfort and fashion. During 2006, Crocs acquired Jibbitz, Fury Hockey and EXO Italia. In February 2007, the company went on to acquire Ocean Minded LLC. But, as Crocs grew into a global company, so did its need for a more competent and fulfilling supply chain operation. "Operating across multiple geographies and distribution channels, it is important for us to build a standard global platform with a solution that offers built-in flexibility," says Poole. "We developed a standard global solution for deployment across our major regional distribution hubs." The solution included the roll out of Manhattan Distribution Management solutions in the company's largest distribution centers -- as well as in smaller facilities  -- based on the specific capabilities needed in each facility. Moving forward, Poole has plans to implement the solutions in 14 additional facilities worldwide.

Leadership Philosophy: "The pace of change and level of information our employees are dealing with requires a constant effort to focus on the critical pieces that count -- everyone should feel and know their day to day work is 'directly relevant' to the success of the business."


>> Jim Prevo
CIO, Green Mountain Coffee Roasters Inc. (GMCR)
When asked about his greatest accomplishment at GMCR, CIO Jim Prevo first  acknowledges his team, which is made up of capable and dedicated professionals that contribute to a culture that fosters personal growth and long-term tenure. With his team's support, Prevo was able to successfully build and nurture an information architecture that has been able to keep pace with the rapid growth of GMCR's business. In 1997, the $38 million dollar company selected a Tier-1 application platform -- Oracle PeopleSoft Enterprise -- to streamline finance, supply chain, manufacturing and human resources activities. Some were baffled as to why a small to mid-market company would elect to implement an application that was traditionally designed to meet the needs of larger enterprises. "Now, as we pass the $400 million mark, it seems obvious that we needed a platform that would scale to our current size and beyond," says Prevo. "We planned to grow quickly and didn't want to change platforms along the way. It is too disruptive." Even as GMCR added an immensely popular product line -- the Keurig Single Cup Brewing System and K-Cup portion packs -- Prevo and his team have ensured that the right technologies and best practice business processes are in place to accommodate growth without additional staff.

Leadership Philosophy: "I see my role as coach, mentor, collaborator, humorist and peer. We are all in this together. It takes a team to get things done."


>> Yvette Russell
Assistant VP, Business Development, SoftSheen-Carson
When Yvette Russell joined SoftSheen-Carson three and a half years ago as Director of Category Management, the department consisted of one. Thanks to her vision and the support of senior management, the department expanded into a team of six, and she was promoted to assistant vice president of business development. "While still very lean, the team fulfills the role of category captain at several key retailers, which gives us the ability to influence the growth of the Ethnic Hair Care category," says Russell. The integration of technology and business development in the areas of category management, sales planning and customer marketing has been one of the key factors of its success. For example, Russell has driven significant gains for the company through smarter and faster approaches to data analytics, which included the deployment of Kenosia's DataAlchemy solution. The implementation solved two major business issues: Data from accounts that do not report into syndicated data sources is now included in reporting, and the company can now gain full visibility into all major accounts. This opened up opportunities to report on the business faster and at a deeper level to gain market share in a very competitive category.

Leadership Philosophy: "I strive to lead by empowering, challenging and inspiring my team through a well-defined vision. Everyone's input is valued without respect to level. I offer positive reinforcement, feedback and guidance to my team, and I graciously accept their coaching so that I, too, can continue to improve as a leader."


>> Steve Sigrist
VP, Sales Operations & Supply Chain, Wal-Mart Division, Newell Rubbermaid
Many consumer goods companies are looking for ways to not only optimize their supply chains, but their customers' supply chains as well, to save potentially millions of dollars for both. Steve Sigrist has been able to do just that. As the leader of the customer-facing supply chain efforts at Newell Rubbermaid, supporting the company's global business with Wal-Mart, he helped to enhance the visibility into supply chain issues, facilitate order flow and replenishment strategies, and communicate opportunities and issues to retailer teams. Sigrist believes that achieving "visibility" is important, but not a solution to implementing beneficial data for analysis. "As such, our efforts begin by understanding 'what do I want to know -- then when I know that -- what will I do next?'" explains Sigrist. Under his lead, the supply chain team established an "operating rhythm" as well as installed business processes that use tools, like SAP NetWeaver BI, Microsoft Analysis Services 2005 and Interactive Edge's XP3 platform, to eliminate noise and pinpoint key factors that impact operational performance. "This focus on finding 'clarity' in our data and response plans helped to eliminate variability in the supply chain and quickly gives customers an assessment of what is impacting our business together," he concludes.

Greatest Challenge: "Achieving sustainable growth in the face of economic headwinds: Newell Rubbermaid will continue transforming into a consumer-driven branding company with continued investments in consumer insight, new product innovation, brand building and significant expansion of our international presence."


>> Manjit Singh
VP & CIO, Chiquita Brands International
Chiquita Brands International has had its share of challenges trying to become a single global IT entity. But, with the help of Manjit Singh, Chiquita's IT organization has made progress in shifting its focus to "business-facing initiatives versus ongoing services." Singh led this initiative as well as the initiative to simplify access to critical business data located across multiple ERP environments, a feat that speeds business decision making through improved processes and technology components. "As a result, Chiquita IT continues to maintain a best-in-class cost structure and has the ability to meet ongoing business innovation and growth requirements in a flexible and efficient manner," explains Singh. Singh has also brought new strategy and balance for both business and IT, and has driven key technology changes that have added business value. Thanks to Singh's contributions, Chiquita now has a corporate-wide portfolio management process, global collaboration capabilities and a key technology upgrade in the database area, which will provide improved end user response time and stability across the ERP platform.

Greatest Challenge: "The biggest challenge in our industry is the rapid rise in key input costs across the entire supply chain. By putting in place processes and systems that allow us to respond more rapidly to changes in underlying costs, Chiquita is well positioned to successfully manage through this difficult environment."


>> Jack Symon
Director Information Technology, Johnson & Johnson Consumer Products (J&J)
At J&J, Jack Symon spearheaded the creation and development of the Global Design Authority for the consumer group. Composed of equal parts business and information technology, this group has driven process standardization across the consumer sector of J&J, and Symon has introduced, overseen and driven to completion various high-value business projects in the areas of ERP, TPM, DSR, procurement and virtually every other part of the value chain. "One of our biggest accomplishments is our successful effort to transform and globalize our core business processes, supported by standardized technology and configuration," says Symon. This has enabled J&J to provide further upstream and downstream visibility; process flexibility and extensive partner end-to-end collaboration. "Our efforts allow us to continue to exceed the expectations of our customers; support our needs for operating in a global economy; and allow us to reap the benefits of efficient, responsive and agile processes," he says.

Greatest Challenge: "Numerous external concerns are affecting our industry, including the entry and servicing of emerging markets; sustainability concerns; increased exchanges of information; and the impact of changing demographics. This will require increased collaboration between all partners in the supply chain."


>> Milan Turk
Managing Director; Global Customer e-Collaboration, P&G Global Operations
Milan Turk has held many interesting jobs in many interesting places, like Venezuela and Brazil, during his 24-year career at P&G. Since his return to the United States, working in the area of e-collaboration with P&G's customers has brought new types of challenges. Turk leads a team that works with retailers to adopt new, innovative capabilities to improve business operations. Working with GS1's GDSN Inc., Turk conceptualized "Project Etoile" as an adoption framework. "The six points of the star were for the first six focus countries -- USA, UK, Holland, Spain, France, Germany," says Turk "and results this year have been strong." The information synchronization area led to "Common Goals, Common Measures," a pilot with Wegmans Food Markets that focused on joint business plans to better serve the consumer. On the RFID front, Turk has led P&G's EPC Advantaged framework, which enables conversations with retailers about EPC adoption plans that focus on mutual value. "That strategy was a breakthrough in the midst of 'mandates'," explains Turk. "It has given us a path forward for planning EPC adoption." Turk sees e-collaboration as a business growth opportunity for the future. "It's just getting started, but our industry's 'New Ways of Working Together' initiative is going to bring it all together and deliver shopper value through the capabilities we have built in the last few years."

Greatest Challenge: "Delighting the shopper and delighting the consumer. The choices that shoppers have of where to buy and what to buy will continue to expand -- some future options may not even exist today. Our response will be to provide superior quality products and services to improve the lives of consumers and we believe they will reward us for that."




On the Cover
After it merged with Brown & Williamson Tobacco Company in August 2004, R.J. Reynolds Tobacco Company was challenged to to identify which best practices from each organization should be maintained in order to build the most successful company going forward. Peter Hatch and Rick Ford were instrumental in identifying process gaps and technology opportunities in the areas of consumer and trade marketing, category management, contract management and field trade marketing management. "This fast paced and highly visible project was one of the most taxing and gratifying experiences of my career," admits Ford. "I learned that I did not need to have all of the answers; delegation and trust are essential; and success is the result of recognizing the best in others." More recently, the pair helped accomplish a feat that Hatch is most proud of: a new sales force automation tool. "This entire project has been exciting and very challenging and now we are able to see the results of our hard work," he says. To find out more about how Hatch and Ford delivered on their vision for an integrated solution for its customer-facing activities, read this month's cover story, "Enabling Efficiency" (Page 16).



Influential Execs in Retail
By Kevin O'Rourke
RIS News, CGT's sister publication, recently celebrated influential executives in the retail market. Much like CGT's Visionaries, RIS News' "2008 Influentials" is an elite group recognized for implementing products and processes that will have a dramatic impact on the future success of their companies. Here is an excerpt from the RIS News article:


>> Dave McNally
Global CIO, Royal Ahold
Dave McNally is a man split between continents. As global CIO of Royal Ahold, he directly manages IT programs for the company's three U.S. grocery brands: Stop and Shop, Giant Landover and Giant Carlisle. He also oversees the online Peapod business, as well as corporate systems and strategies in the United States and Europe. McNally considers himself a business person who happens to know a lot about technology.  Two years ago, Royal Ahold started developing a global strategy that made sense for each of its operating companies. According to McNally,  "We've been able to create an enterprise retail systems program. The key to success is contingent upon having integrated retail systems that can bridge gaps and deliver the right information at the right time. The real value of the integration is around the speed and efficiency of new product adoption and delivery to market."


>> John Polizzi
SVP/CIO, BJ's Wholesale Club
BJ's Wholesale Club is the smallest retailer that inhabits the club store vertical. But, it does not think small when it comes to information technology. John Polizzi and his nimble staff have put BJ's way ahead of competitors in key areas, like checkout. "We are the leader in the club segment in the implementation of self-checkout," says Polizzi. In the two years that Polizzi has been at the technological helm, BJ's launched a Web site and radically changed the operational direction of the online business. "We realized that, in order to be more effective for Cyber Monday, we had to establish our own fulfillment center. We put together a fulfillment center of BJ's products in one of our distribution centers within just four weeks. Then, we integrated it with the Web site," says Polizzi. "It was a phenomenal effort." Also, while most retailers were still scratching the surface on what the new PCI compliance means, Polizzi and his team quickly became experts on PCI data security standards. The team's efforts toward PCI compliance spanned a variety of complex areas both within and outside of IT. This included developing a new information security policy, changing age-old processes and migrating to secure systems. This program had many new product initiatives such as a PCI compliant wireless LAN infrastructure and data encryption.


>> Dr. Gerd Wolfram
Managing Director of Information Technology, Metro Group
With more than 2,400 retail businesses in more than 30 countries, Dr. Gerd Wolfram is tasked with providing advanced technologies, information technology strategy and procurement to Metro Group's retail sales brands. Earlier this year, Dr. Wolfram spearheaded Europe's largest RFID rollout to 200-facilities, spanning Metro's Cash & Carry supermarkets, Real hypermarkets and multiple distribution centers. "We are moving RFID out of the innovation labs and into working retail stores," says Dr.Wolfram. He also worked with Galleria Kaufhof's, a high-end German department store and also part of Metro. The retailer deployed RFID to provide real-time inventory management. The system addresses back room inventory management and involves fixed and hand-held readers, smart mirrors, smart shelves and RFID-enabled point-of-sale terminals that deliver efficient checkout. Dr.Wolfram also was the driving force behind Metro's highly publicized Future Store Initiative, which gathers companies from the retailing, consumer goods and information technology industries to elaborate on future retailing solutions. All companies involved share a common vision: setting new technological standards in retailing and supporting the modernization process of the industry on a sustainable basis.


>> Robert Willett
CEO and CIO, Best Buy International
Best Buy International is about two-thirds of the way through a three-year IT overhaul. Leading this overhaul, which includes totally remodeling the company's supply chain to using wikis to train its 160,000 employees, is Robert Willett. A business unit of Best Buy, Best Buy International is dedicated to developing and growing the company's businesses outside the United States. Under Willett's leadership, Best Buy International will implement a global integration and growth strategy to maximize opportunities beyond North America. It will continue to reengineer the supply chain and information technology functions that support the company's customer-centric transformation. "I don't separate technology strategy from the business strategy," says Willett. "The job of technology is to mirror the business strategy. Over the last three years, we've

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