An Iconic Brand
I grew up on Campbell’s soup. So did many of you. Chicken With Rice and Chicken Noodle soups were staples in our single-family household. Still today, you cannot not walk down your local grocery store’s soup aisle without seeing Campbell Soup Company products dominating the shelves.
You would think this iconic company was always be profitable and healthy. But that would not be the case.
A Brand And Company In Trouble
In 2001, Doug Conant was named Campbell’s president and chief operating officer. In Francesca Gino’s excellent book Rebel Talent: Why It Pays To Break The Rules At Work And In Life, she describes the conditions he took over.
Employees referred to the company headquarters as a “prison”. This is because the parking lot was literally surrounded by barbed wire. The building itself was in disrepair. The company was struggling financially as evidenced by its share price being half of its high reached in 1998.
Management then did what it often does during difficult times. It laid of 400 employees, cut its advertising, and then did the unthinkable.
Conant said, “They had to cut costs to the point where they were literally taking the chicken out of chicken noodle soup, and the product was no longer competitive.”
Regarding the culture, a Gallup survey revealed more than 60% of the company’s employees not engaged in their work. An additional 10% were actively disengaged which means they were literally working against the company. But what was worse was over 40% of the top management were “tuned out.” No wonder the employees felt the way they did. They were only modeling the toxicity they saw from leadership every day.
Conant was taking over a distressed asset to say the least.
Identifying His Top Priority
Over the objections of the company’s executives, Conant made investing in people his top priority. Some wanted him to continue cutting costs. Even less chicken in the chicken noodle soup???!!! Others wanted to revitalize the marketing efforts.
But Conant knew the most appreciable asset any organization has is its people. That is where he put his efforts.
Conant immediately began walking the various Campbell’s headquarters and plant facilities meeting with individual employees. He then lined up numerous meetings with employees, their managers, and Human Resources called One-Over-Ones. This gave Conant more information than he ever would have received from reports, spreadsheets, or those protecting the Status Quo.
It also gave him an opportunity to instill his vision to all levels of the organization.
Taking Action And Making Hard Decisions
Conant also began setting aside an hour to personally handwrite as many as 20 “Thank You” notes to employees each day. In the 10 years Conant served as CEO, it is said that he personally wrote over 30,000 notes of appreciation.
Conant also cut down the razor wire and cleaned up the working conditions. But what he cleaned up the most was Campbell’s leadership team.
In his first three years, Conant removed 300 of the company’s top 350 leaders. He replaced half of those from within and the others were high-performing leaders from other organizations.
The Market Responds
The results of Conant’s 10 years of leadership were astounding. Innovative products, like easy-opening pop-top cans, were created. Total revenue grew by approximately 24% while the S&P 500 declined 10% during the same period.
By any measure, Conant’s leadership was an extraordinary success.
The Leadership Lessons Of Doug Conant
The following are 5 Lessons For Helping Troubled Organization Regain Lost Momentum I gleaned from Doug Conant’s leadership of the Campbell Soup Company:
- Everything Rises And Falls On Leadership – If you want to get better as an organization and regain lost momentum, many times it takes a new leader.
- Gather Information At One Level, Make Decisions At Another – Many times leaders rush to judgement and solutions like cutting costs or throwing money at problems. This is a mistake. First, gather information at the lowest levels of your organization. Then, make decisions at the executive level.
- The Law Of The Inner Circle – John Maxwell famously taught The Law Of The Inner Circle which states those closest to the leader will determine the success of the leader. Conant knew he had to make dramatic changes with those closest to him.
- Create Something New – New creates momentum. By getting new leaders and creating new products, Campbell’s began increasing its revenue.
- Management By Walking Around – When momentum has been lost in your organization, you cannot lead from the Corner Office. You must “get your hands dirty”. As a leader, you must get amongst your people. Once again, people are your greatest asset. Momentum is rarely generated from the corner office. It is generated from the ground floor.
If your organization has lost momentum, look to Doug Conant for a roadmap on how to regain it.
And if you have not purchased Fracesca’s book Rebel Talent, do so today by clicking HERE.
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