When consumer tastes are continuously changing, companies can sometimes miss, but the goal is to keep innovating so that it can make the hits that count. Or to put it in the words of General Mills Inc.’s chairman and CEO Jeffrey Harmening: “Perfection is not the goal,”
“There’s no doubt that it’s a dynamic environment,” Harmening told attendees at a Boston investor conference. “And when you say dynamic, people immediately see all the challenges. And there are challenges. But the flipside of those is opportunities for those who are willing to take it.”
General Mills “clearly missed the trend” in Greek yogurt, launching its own product late, but the company which originally sold just flour has also scored many wins, including inventing the Nerf ball, and for years owning board game maker Parker Brothers.
“One of the reasons that we’ve been successful is that we’ve changed over time,” Mr. Harmening said. “We’ve lasted 150 years for a reason, and that’s because we like to win and we’re up for change.”
While the company can’t “chase” every new trend that pops up, General Mills’ management and board will remain focused on delivering what the consumer wants, “where they want it and how they want it.”
“And that might mean for us Wanchai Ferry dumplings in China — we’re actually delivering it under 30 minutes warm in Shanghai,” he said. “It might mean selling pet food. It might mean a number of things, but it really is staying focused on what the consumer is looking for.”
In the company’s fiscal fourth quarter earnings call last week, Harmening said that the year represented an important step “in returning General Mills to sustainable top line growth.”
“We finished the year on a positive note in the fourth quarter delivering top and bottom line results that met or exceeded our most recent guidance, including a third consecutive quarter of organic net sales growth as well as strong growth in profit, margins and earnings per share,” he said. “We made significant progress against our global growth priorities in fiscal 2018.”
The company posted growth in organic net sales, as well as enhanced its capabilities in e-commerce and strategic revenue management, Harmening said. One leading product for next year will be “highly-profitable” premium natural dog and cat food the company now offers due to its recent acquisition of Blue Buffalo Co. Ltd. The company will also focus on maintaining efficiency, and including eliminating 625 positions by 2019.
“As we turn to fiscal 2019, we will continue to follow our Consumer First strategy and invest behind our global growth priorities to accelerate our topline growth again,” he said. “We are also keenly focused on maintaining our efficiency in this more inflationary cost environment, and we have initiatives underway to help protect our profitability and continue to drive cash flow.”
He’s No. 166 on Chief Executive and RHR International’s CEO1000 Tracker, a ranking of the top 1,000 public/private companies.
Headquarters: Minneapolis, MN
Age: 51
Education: DePauw Universityy (B.A.), Harvard University (M.B.A.)
First joined company: 1994
Positions prior to being named CEO: President and Chief Operating Officer
Named CEO: 2017
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.
