When Giovanni Ferrero became the outright CEO of Ferrero in 2011, he didn’t bet the house on the legacy of his father, who founded the chocolate maker in 1946.
In the six years since his brother and former co-CEO died in a car accident, he’s overhauled its slow-paced and meticulous production process, halved the time it takes to launch new products and hired new managers from overseas.
Now, he’s broken with tradition again by standing aside and appointing the Italian’s company’s first non-family CEO. The move doesn’t come down to a lack of success: profits at the maker of Nutella spread, Tic Tac candies and Kinder chocolate eggs have improved significantly during his reign. By taking a step back and becoming executive chairman, Ferrero, just age 52, hopes to concentrate on strategy, while letting his new CEO, Lapo Civiletti, take care of day-to-day management duties.
Civiletti currently heads up the company’s Central and Eastern European business. “He has been chosen for his business acumen, vision and mission-driven orientation while truly fostering the Ferrero culture and core values,” Ferrero said in a statement.
The pace of technological change also is transforming the ways CEOs allocate their resources. As recently reported by Chief Executive, some consultants are even recommending they delegate tasks to their COOs so they can devote more time to experimenting with ideas and conceiving new business models. Uber is one of the most recent companies currently looking for a No.2 (though its motivations for finding help for CEO Travis Kalanick might not stretch far beyond his tendency to wade into scandals).
Assuming an executive chairman’s role is also a common means by which CEOs—sometimes from family businesses—can give themselves a break after years of toiling, while still wielding influence. Rupert Murdoch, for instance, remains executive chairman of 21st Century Fox and News Corp. Evolving corporate governance expectations, meanwhile, have seen investors put more pressure on boards to pick talent based on more than blood alone.
Ferrero said its management reshuffle will allow Giovanni Ferrero to focus on long-term strategies, new business directions and innovations, while keeping the company’s culture and values intact. “This will be the essential step to combine “the best of our worlds”: our distinctive entrepreneurship, our managerial excellence and the quality of all our people, the perfect blend for success,” Ferrero said.
The company, long cited as a possible takeover target for the likes of Nestle or Hershey, remains privately owned. Perhaps the possibility of a share-market listing will be chief among strategy questions for Giovanni Ferrero to ponder.
You might also like:
Why the Next 5 Years will be the Most Challenging for Boards
For CEO-Chairmen, the Corporate Governance Crystal Ball Doesn’t Look Good
Principles as Important as Products? Corporate Governance is a Growing Reputation Factor
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
