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e46934cd234fb276fbcd6d6c9193f52a0568d14500145145007fffd9 }}}}}\marglsxn1440\margrsxn1500\cols1\colno1\colw9300 {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-204\slmult0\par {\pard\plain \li0\sl229\slmult1 \ri7360\nooverflow\ql{\f1\fs24 Santa Barbara, CA (805)965-1400 info@bigspeak.com bigspeak.com}\par} } {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-374\slmult0\par {\pard\plain \li1820\sl239\slmult1 \ql{\f4\fs36 Custom Corporate Education Programs}\par} } {\pard\sl-200\slmult0\par \pard\sl-242\slmult0\par {\pard\plain \li60\sl239\slmult1 \ql{\f4\fs36 Designed with Solutions in Mind for Positive Long-term Change}\par} } {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-351\slmult0\par {\pard\plain \li1340\ql{\f1\fs24 Source: White Papers {\field {\*\fldinst {\cs15 HYPERLINK "http://bigspeak.com/consulting/whitepapers" }} {\fldrslt {\cs15 \ul {\ul \cf2 http://bigspeak.com/consulting/whitepapers}}}}}\par} } {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-315\slmult0\par {\pard\plain \li220\ql{\f2\fs20 BigSpeak Speakers Bureau, Santa Barbara, CA {\fs40 \f3 \super \u-3929 ?} (805)965-1400 {\fs40 \f3 \super \u-3929 ?} info@bigspeak.com {\fs40 \f3 \super \u-3929 ?} www.bigspeak.com}\par} }\sect\sbkpage\sectd\pard\plain \pgwsxn12240\pghsxn15840 {\*\bkmkstart page2}{\*\bkmkend page2} \ margl700\margr1200\margt409\margb524\marglsxn700\margrsxn1200\cols1\colno1\col w10340 { {\pard\plain \li0\ql{\f5\b\cf4 \fs88 strategy+business}\par} } {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-209\slmult0\par {\pard\plain \li20\ql{\f6\b\fs20 issue 68 {\b0 AUTUMN 2012}}\par} } {\pard\sl-200\slmult0\par \pard\sl-220\slmult0\par {\pard\plain \li20\ql{\f10\fs98 The Thought Leader}\par} } { {\pard\plain \li20\ql{\f10\fs95 Interview: Douglas Conant}\par} } {\pard\sl-275\slmult0\par {\pard\plain \li20\ri900\nooverflow\ql{\f11\fs36 The coauthor of {\i TouchPoints} and former CEO of Campbell Soup Company explains how executives build their company\rquote s capabilities by connecting with people more effectively.}\par} } {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-390\slmult0\par {\pard\plain \li20\ql{\f9\fs20 by art kleiner}\par} } {\shp {\*\shpinst \shptop3805\shpleft9363\shpright10860\shpbottom4219\shpfblwtxt1\shpbypara\shpbxco lumn\shpwr3{\sp{\sn shapeType}{\sv 75}}{\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn pib} {\sv{\pict\jpegblip\picw100\pich28\picwgoal2000\pichgoal560\picscalex99\picscaley99 ffd8ffe000104a46494600010100000100010000ffdb00430008060607060508070707090 9080a0c140d0c0b0b0c1912130f141d1a1f1e1d1a1c1c20242e2720 222c231c1c2837292c30313434341f27393d38323c2e333432ffdb0043010909090c0b0c 180d0d1832211c213232323232323232323232323232323232323232
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\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-304\slmult0\par {{\listtext{\pard\plain {\f19\b\cf5 \fs55 \sub C }\tab}}\pard\plain \f19\b\cf5 \fs55 \sub \qj\fi718\nowidctlpar\jclisttab\tx718\faauto\ls1\ilvl0\rin0\nooverflow\lin718\itap0 \sl180\slmult1 {\plain\f20\fs18 ampbell Soup Company has long been an iconic enter-prise. Founded in 1869 in }\par} } {\pard\sl-40\slmult0\par {\pard\plain \li58\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 Camden, N.J., its basic logo and can design have not changed since 1898. Andy Warhol\rquote s paintings of those cans, which began as an irreverent comment on their emblematic na-ture, are themselves half a century old. The company\rquote s recent business history is also iconic, at least in the way it evokes the overall drama of the consumer products industry.}\par} } {\pard\sl-9\slmult0\par {\pard\plain \li58\sl296\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Like many other food compa-nies, Campbell diversified its prod-}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-304\slmult0\par {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj{\f20\fs20 uct lines to gain scale during the 1980s and early 1990s. Then, in the mid-1990s, its financial perfor-mance began to decline. It adopted a more coherent strategy in the 2000s, seeking global growth with a sharply reduced portfolio focused on three brand families: Campbell\rquote s soup, V8 beverages, and Pepperidge Farm baked goods. Finally, in recent years, as is becoming common in the food business, it has had to meet two seemingly contradictory imperatives in its product line \emdash the pro-motion of health and wellness, and a}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-279\slmult0\par {\pard\plain \li0\sl247\slmult1 \ri0\nooverflow\qj{\f20\fs22 high level of appeal to customers craving comfort food.}\par} } {\pard\sl-29\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Making these shifts takes a fair amount of sophistication \emdash in tech-nology and process, and in leader-ship and human management. In-stead of trying to gain those capabilities through acquisition, Douglas Conant, CEO of Campbell from 2001 to 2011, sought to build them from within. Conant was hired as a turnaround artist after se-nior executive stints at
General Mills, Kraft, and Nabisco, but his approach focused on investing in people, including paying deliberate attention to his own leadership style.}\par} } {\pard\sl-14\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 Jon Katzenbach, who writes regularly on organizational culture in this magazine, regards Conant as one of the few leaders who under-stand not just the importance of personal impact, but how to deploy it in practice. That\rquote s the subject of Conant\rquote s book {\i TouchPoints: Creat-}\i ing Powerful Leadership Connections in the Smallest of Moments {\i0 (Jossey-}\i0 Bass, 2011), coauthored with execu-tive coach Mette Norgaard. The book describes how to reframe inter-actions with people \emdash even annoy-ing interactions, like interruptions}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl296\slmult1 \ri0\nooverflow\qj{\f20\fs20 \emdash as opportunities to raise the qual-ity of a leader\rquote s connection with}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-317\slmult0\par { \trqc\trowd \trrh2240\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxbtlr\clftsWidth3\clwWidth184 \cellx184 \pard\plain\intbl {\li0\ql{\f22\fs16 Photograph by Peter Gregoire}\cell}\trowd \trrh2240\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxbtlr\clftsWidth3\clwWidth184 \cellx184\row } }\sect\sbknone \ marglsxn260\margrsxn2300\cols2\colno1\colw100\colsx1940\colsr1940\colno2\colw692 0 {\pard\sl-190\slmult0\par {\pard\plain \li0\ql{\f14\b\cf3 \fs17 1}\par} }\column {\pard\sl-237\slmult0\par {\pard\plain \li0\ql{\f23\fs16 BigSpeak Consulting (805)965-1400 info@bigspeak.com www.bigspeak.com}\par} }\sect\sbkpage\sectd\pard\plain \pgwsxn11520\pghsxn15120 {\*\bkmkstart page4}{\*\bkmkend page4} \ margl1240\margr112\margt1440\margb50\marglsxn1240\margrsxn112\cols4\colno1\col w2960\colsx240\colsr240\colno2\colw2980\colsx240\colsr240\colno3\colw2960\colsx54 6\colsr546\colno4\colw241 {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par
{\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f20\fs19 people, and thus to further the pur-pose of the enterprise. (Conant\rquote s suc-cessor as CEO, Denise Morrison, was formerly the executive champi-on of the company\rquote s signature well-ness initiative.)}\par} } { {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 We sought Doug Conant out because the Campbell story and the anecdotes in {\i TouchPoints} have par-ticular relevance for one of our own ongoing inquiries: How can compa-nies build the capabilities they need to distinguish themselves? The in-terview was conducted at the offices of Conant\rquote s Philadelphia-based not-for-profit group DRC LLC, which is dedicated to raising the quality and impact of leadership among senior executives.}\par} } {\pard\sl-265\slmult0\par {\pard\plain \li0\sl307\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 What are you trying to accom-}\b0 \fs18 plish now, in your writing and your work with companies?}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj\fi-0 {\f25\b\fs18 CONANT: {\b0 \fs20 \f20 My goal is to contribute} \b0 \fs20 \f20 to the conversation about leadership, from a practitioner\rquote s point of view. For the first time, there are five \ldblquote generations\rdblquote of people in the work-place, with an unprecedented diver-sity of backgrounds and perspectives across the globe. Executives have to manage people connected through handhelds and broadband. Tradi-tional hierarchical management structures that evolve at a glacial pace are being stress-tested in pro-found ways, and it\rquote s taxing leaders.}\par} } {\pard\sl-7\slmult0\par {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 But the real issue is community. I recently asked someone at a social media company to name one of the big management problems they have to deal with. \ldblquote Well, so-and-so down the hall is not doing what he\rquote s sup-}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 posed to do.\rdblquote OK,
you think the world\rquote s never dealt with that before?}\par} } {\pard\sl-2\slmult0\par {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Nonprofits and for-profit com-panies might look different on the surface, but they have the same chal-lenge: trying to create high-perfor-mance communities that will make an impact on the world. And they both break down the same way: They fall short on bringing strategic thinking to life amid the day-to-day work of the enterprise.}\par} } {\pard\sl-256\slmult0\par {\pard\plain \li0\ql{\f25\b\fs19 S+B: {\b0 \fs18 Why is that?}}\par} } {\pard\sl-57\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f25\b\fs17 CONANT: {\b0 \fs19 \f20 It begins with the aspira-}\b0 \fs19 \f20 tional nature of their strategies. Ev-erywhere I\rquote ve worked \emdash at General Mills, Kraft, Nabisco, and Camp-bell \emdash we have always talked about being the world\rquote s best: the world\rquote s best cookie company, snack com-pany, and so on. People naturally aspire to be part of something bigger than they are, to not just draw a pay-check but find meaning in their work. Jon Katzenbach made that point in his book [{\i Why Pride Matters} \i More than Money: The Power of the World\rquote s Greatest Motivational Force}\par} } { {\pard\plain \li0\sl235\slmult1 \ql{\f20\fs22 (Crown Business, 2003)].}\par} } {\pard\sl-36\slmult0\par {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 I\rquote ve been building aspirational strategies my whole life. At Camp-bell, one of my big moments came at the start of my third year, during our global leadership meeting. I re-alized that I had to raise our level of engagement and commitment, and I opened by saying, \ldblquote Enough is enough. I hope all of you want to be part of this company going forward, but you have to lead in a way that\rquote s going to build the world\rquote s most ex-traordinary food company. If you}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl247\slmult1 \ri0\nooverflow\qj{\f20\fs22 don\rquote t want to sign up for
that, you shouldn\rquote t be here.\rdblquote }\par} } {\pard\sl-29\slmult0\par {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 That spirited desire to do better resonates with employees. But over time, you run the risk of becoming too ambitious. Your reach exceeds your grasp. You create anxiety and stress in the system, and it compro-mises your ability to execute.}\par} } {\pard\sl-259\slmult0\par {\pard\plain \li0\sl307\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 In other words, if your reach} \b0 \fs18 exceeds your grasp, you\rquote ve got to improve your grasp.}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl274\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 CONANT: {\b0 \fs21 \f20 And vice versa. If your} \b0 \fs21 \f20 grasp exceeds your reach, you should be {\i more} ambitious. You need to search for that sweet spot where your company can grow and prosper and seek greatness, but in a well-executed way.}\par} } {\pard\sl-3\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Ideally, you should find a job that lasts. My kids, who are 30, 28, and 25 years old, have heard all their lives that they live in a chaotic, en-trepreneurial world, where they\rquote ll probably work for seven or 10 com-panies during their career. I don\rquote t think that\rquote s their first choiceand it doesn\rquote t have to be. They should be able to find a quality work experi-ence in a company where they are appreciated, where they can learn and grow, and where there\rquote s an en-during sense of contribution. I\rquote ve worked for four companies during my career \emdash about nine years each}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\ql{\f20\fs22 \emdash and that worked out all right.}\par} } {\pard\sl-301\slmult0\par {\pard\plain \li0\sl307\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 For those four companies, did} \b0 \fs18 their grasp exceed their reach or did their reach exceed their grasp?}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl304\slmult1 \ri0\nooverflow\qj{\f25\b\fs18 CONANT: {\b0 \fs20 \f20
They were reasonably bal-}\b0 \fs20 \f20 anced, and their grasp exceeded}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
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{\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-314\slmult0\par { \trqc\trowd \trrh1480\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxtbrl\clftsWidth3\clwWidth241 \cellx241
\pard\plain\intbl {\li0\ql{\f24\b\cf3 \fs21 thought leader}\cell}\trowd \trrh1480\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxtbrl\clftsWidth3\clwWidth241 \cellx241\row } }{\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz0\shpleft293\shptop-1999\shpright336\shpbottom3040{\sp{\sn shapeType}{\sv 1}}{\sp{\sn fLine} {\sv 0}}{\sp{\sn fBehindDocument}{\sv 1}}{\sp{\sn fillColor}{\sv 743933}}}} \column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-356\slmult0\par {\pard\plain \li0\sl304\slmult1 \ri0\nooverflow\qj{\f20\fs19 their reach. That\rquote s typical of the food industry. It\rquote s a mature 150-year-old industry; its consumption grows with population, but individual peo-ple don\rquote t appreciably eat more every year. So the businesses are managed in a conservative way. The brands and the competition don\rquote t materially change from year to year.}\par} } {\pard\sl-249\slmult0\par {\pard\plain \li0\sl313\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 And yet you were involved in} \b0 \fs18 turnarounds at every one of them. At Campbell, for instance, once you de-clared the goal of being extraordi-nary, you had to change the company to match.}\par} } { {\pard\plain \li0\sl303\slmult1 \ri0\nooverflow\qj{\f25\b\fs17 CONANT{\b0 \fs19 \f20 : We followed Jim Collins\rquote s} \b0 \fs19 \f20 hedgehog model from {\i Good to} \i Great: Why Some Companies Make the Leapand Others Don\rquote t {\i0 [Harper-}\i0 Business, 2001]. Fundamentally, you choose to do only the things that you can do better than anyone else in the world, that you can make money at \emdash that Collins says \ldblquote drive your economic engine\rdblquote \emdash and that you can be
passionate about. We set out to build that kind of business at Campbell, and the results are still playing out. We were coming from such a difficult starting point that it took 10 years to put the building blocks in place. We\rquote ll see what hap-pens in the next 10.}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-346\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj\fi-0 {\f25\b\fs19 S+B: {\b0 \fs18 How was it that you came to join} \b0 \fs18 Campbell?}\par} } { {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj\fi-0 {\f25\b\fs18 CONANT: {\b0 \fs20 \f20 The company was in a} \b0 \fs20 \f20 very tough spot in 1999. The world was changing; the food industry was consolidating. Campbell was a mid-sized, US$10 billion to $12 billion company, with the one thing food companies need most: several large and growing categories with the number one or two brand. But it was failing miserably in execution. Sales, earnings, market share, and employee engagement were waning, and the company was involved in several prickly legal situations.}\par} } {\pard\sl-7\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 In the year before I arrived, the company had lost half its market value; it had gone from $60 to $30 per share. The leadership team had tried to grow and diversify in unpro-ductive ways; the board felt a change was clearly needed. I\rquote d been director of strategy for Kraft, and I\rquote d helped rebuild Nabisco. I think the board would have preferred someone who had been a CEO already, and who had done this before, but I had skills and experience that suggested I could figure it out.}\par} } {\pard\sl-13\slmult0\par
{\pard\plain \li0\sl290\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 We did a survey of employee en-gagement soon after I arrived, and Jim Clifton from Gallup said we had the worst levels of any Fortune}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-355\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 500 company they\rquote d ever surveyed. It was a little less than two-to-one; for every two people engaged in the work, one was looking for another job. In other words, about 6,000 of our 20,000 employees were actively dissatisfied. I had been in toxic envi-ronments before; I had gone into Nabisco with Kohlberg Kravis Rob-erts just after the events described in}\par} } {\pard\sl-9\slmult0\par {\pard\plain \li0\sl290\slmult1 \ri0\nooverflow\qj{\f21\i\fs20 Barbarians at the Gate {\i0 [KKR\rquote s 1989} \i0 leveraged buyout of Nabisco]. But that was nothing compared to what we encountered at Campbell.}\par} } {\pard\sl-254\slmult0\par {\pard\plain \li0\ql{\f25\b\fs19 S+B: {\b0 \fs18 How did it get that way?}}\par} } {\pard\sl-57\slmult0\par {\pard\plain \li0\sl303\slmult1 \ri0\nooverflow\qj{\f25\b\fs17 CONANT: {\b0 \fs19 \f20 The company had fallen} \b0 \fs19 \f20 into what Jim Kilts, the former CEO of Gillette, calls \ldblquote the circle of doom.\rdblquote You overpromise and under-deliver, and in trying to make up the difference, you make bad short-term decisions that compromise your ability to continue to deliver. At Campbell, the executives had ac-quired a group of diverse companies to keep the growth track positive, but they didn\rquote t adequately integrate [those companies], and they started to miss their numbers. So they raised
prices in core categories like soup. Sales went up, but volume actually went down. This invited private-label competition, and enabled a vir-}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-314\slmult0\par { \trqc\trowd \trrh1500\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxbtlr\clftsWidth3\clwWidth138 \cellx138 \pard\plain\intbl {\li0\ql{\f27\fs12 strategy+business {issue 68}}\cell}\trowd \trrh1500\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxbtlr\clftsWidth3\clwWidth138 \cellx138\row } }\sect\sbknone \marglsxn260\margrsxn2300\cols1\colno1\colw8960 {\pard\sl-196\slmult0\par {\pard\plain \li0\ql{\f14\b\cf3 \fs18 3}\tx2020\tab{\f23\fs16 BigSpeak Consulting (805)965-1400 info@bigspeak.com www.bigspeak.com}\par} }\sect\sbkpage\sectd\pard\plain \pgwsxn11520\pghsxn15120 {\*\bkmkstart page6}{\*\bkmkend page6} \ margl1240\margr112\margt1440\margb50\marglsxn1240\margrsxn900\cols3\colno1\col w2960\colsx240\colsr240\colno2\colw2960\colsx260\colsr260\colno3\colw2960 {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 tually nonexistent brand, Progresso, to establish a foothold in the U.S.}\par} } {\pard\sl-2\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Now they had to keep profits high in the face of competition, so they cut marketing spending, which is the lifeblood of a brand. Short-term earnings were maintained but volume slipped further,
and then they went too far in raising produc-tivity to a point where they compro-mised product quality. They literally began to take some of the chicken out of the chicken noodle soup. Not surprisingly, volume kept coming down, and they took their costreduction efforts to another level by cutting overhead. They fired 250 R&D people in one day.}\par} } {\pard\sl-15\slmult0\par {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 With R&D cut, the product pipeline faltered. People kept getting let go. The best people left. Those who didn\rquote t leave were discouraged. This went on for several years. The organization\rquote s malaise was tragic.}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f20\fs19 your way into,\rdblquote I told the staff. \ldblquote You have to behave your way out of it.\rdblquote }\par} } { {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 To get the right people on board, we turned over 300 of the top 350 leaders in the first three years. This was unheard of in large con-sumer packaged goods companies, which typically have wellestablished cultures. We promoted 150 people from within and we hired 150 nextgeneration, high-performance lead-ers from outside; they\rquote re running the company now, or out successfully running other companies.}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 Our next step was to establish a clearer, focused agenda. We were al-ready the world\rquote s largest soup maker}\par} } { {\pard\plain \li0\sl306\slmult1 \ri0\nooverflow\qj{\f20\fs19 \emdash so we focused on expanding our soup capabilities into the broader simple meal category and on build-ing out our healthy beverage plat-form with a focus on vegetable-based beverages. Vegetables came into the}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl247\slmult1 \ri0\nooverflow\qj{\f20\fs22 price dropped almost to $19. But we were building for the future.}\par} } {\pard\sl-294\slmult0\par {\pard\plain \li0\ql{\f25\b\fs19 S+B: {\b0 \fs18 How did you do that?}}\par} } {\pard\sl-57\slmult0\par {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj{\f25\b\fs18 CONANT: {\b0 \fs20 \f20 We reworked things on} \b0 \fs20 \f20 multiple fronts. For instance, we ad-dressed the two biggest consumer issues with Campbell\rquote s soup. To help people find the soup they were look-ing for, we developed an innovative shelving system. We also improved the healthfulness of our soups by re-ducing sodium without compromis-ing on taste.}\par} } {\pard\sl-7\slmult0\par {\pard\plain \li0\sl304\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 We revamped our executive compensation with longer-term goals. A major share of a leader\rquote s salary was linked to long-term com-pensation, based on Campbell\rquote s to-tal shareholder returns versus a peer group of companies, over a rolling three-year period. That kept people sufficiently focused on the future. I}\par} }{\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz1\shpleft3213\shptop145\shpright2967\shpbottom145{\sp{\sn shapeType}{\sv 20}} {\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn fFlipH}{\sv 0}} {\sp{\sn fFlipV}{\sv 0}} {\sp{\sn lineWidth}{\sv 12700}} {\sp{\sn lineColor}{\sv 743933}} {\sp{\sn lineDashing}{\sv 0}}}} \sect\sbknone \ marglsxn1240\margrsxn1440\cols2\colno1\colw2960\colsx240\colsr240\colno2\colw564 0 {\pard\sl-260\slmult0\par {\pard\plain \li0\ql{\f25\b\fs19 S+B: {\b0 \fs18 What was your first year like?}}\par} } {\pard\sl-57\slmult0\par {\pard\plain \li0\sl295\slmult1 \ri0\nooverflow\qj\fi-0 {\f25\b\fs18 CONANT: {\b0 \fs20 \f20
I came in with a few prin-}\b0 \fs20 \f20 ciples: a belief in the power of being a focused food company, and the}\par} }\column {\pard\sl-49\slmult0\par {\pard\plain \li0\sl260\slmult1 \ri0\nooverflow\qj{\f34\fs37 \ldblquote To get the right people on board, we turned over 300 of the top 350 leaders in the first three years.\rdblquote }\par} } {\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz0\shpleft645 0\shptop-523\shpright7080\shpbottom4516{\sp{\sn shapeType}{\sv 1}}{\sp{\sn fLine}{\sv 0}}{\sp{\sn fBehindDocument}{\sv 1}}{\sp{\sn fillColor}{\sv 743933}}}} \sect\sbknone \ marglsxn1240\margrsxn112\cols4\colno1\colw2960\colsx240\colsr240\colno2\colw2960\ colsx260\colsr260\colno3\colw2960\colsx546\colsr546\colno4\colw241 {\pard\sl-5\slmult0\par {\pard\plain \li0\sl282\slmult1 \ri0\nooverflow\qj{\f20\fs20 belief that we needed about three years to become fully competitive and several more years to be in a po-sition to drive quality growth in an enduring way. There were no silver bullets. I also knew that you can only win in the marketplace if you win in the workplace first. You\rquote ve got to get \ldblquote the right people on the bus,\rdblquote as Jim Collins put it. They\rquote ve all got to be sitting in the right seats, and they have to be highly engaged in the work. \ldblquote You can\rquote t talk your way out of something you behaved}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-287\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 plant; we sent them in one direction to make soup and in another to make our best-selling V8 juices. We also owned a couple of tremen-dous baked-goods assets: Pepperidge Farm in North America and Ar-nott\rquote s in Asia/Pacific. We built the number three position in baked snacks in the world. We shed every-thing else.}\par} } {\pard\sl-9\slmult0\par {\pard\plain \li0\sl296\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 While we were downsizing and making these changes, the share}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-287\slmult0\par
{\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 think that kind of balance needs to find its way more fully into the cor-porate sector. Yes, people need to be rewarded in the short term; they have bills to pay. But they also need to be sufficiently dispassionate about everyday issues, so that they can build a greater company tomorrow as well.}\par} }{\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz1\shpleft3213\shptop-2686\shpright2967\shpbottom-2686{\sp{\sn shapeType}{\sv 20}} {\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn fFlipH}{\sv 0}} {\sp{\sn fFlipV}{\sv 0}} {\sp{\sn lineWidth}{\sv 12700}} {\sp{\sn lineColor}{\sv 743933}} {\sp{\sn lineDashing}{\sv 0}}}} {\pard\sl-8\slmult0\par {\pard\plain \li0\sl291\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Engagement was especially im-portant to me in the leadership area. If your top people are not wildly en-}\par} }\column {{ \trqc\trowd \trrh1480\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxtbrl\clftsWidth3\clwWidth241 \cellx241 \pard\plain\intbl {\li0\ql{\f13\b\cf3 \fs21 thought leader}\cell}\trowd \trrh1480\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxtbrl\clftsWidth3\clwWidth241 \cellx241\row } }\sect\sbknone \marglsxn2300\margrsxn280\cols1\colno1\colw8940 {\pard\sl-190\slmult0\par {\pard\plain \li0\ql{\f23\fs16 BigSpeak Consulting (805)965-1400 info@bigspeak.com www.bigspeak.com}\tx8840\tab{\f14\b\cf3 \fs14 4}\par} }\sect\sbkpage\sectd\pard\plain \pgwsxn11520\pghsxn15120 {\*\bkmkstart page7}{\*\bkmkend page7} \ margl260\margr758\margt916\margb38\marglsxn900\margrsxn1240\cols3\colno1\colw2 960\colsx240\colsr240\colno2\colw2980\colsx240\colsr240\colno3\colw2960 { {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 gaged in the work, you can\rquote t expect commitment from the people on the front lines. So we worked hard on getting the organization mobilized and self-directed. We built the en-gagement of our
top 350 people up from that two-to-one ratio to 77-to-one. We did this while shedding as-sets and tightening the organization.}\par} } {\pard\sl-8\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 After it was clear we would re-cover, we made two big, long-term bets, which we could have delayed}\par} } {\pard\sl-3\slmult0\par {\pard\plain \li0\sl275\slmult1 \ri0\nooverflow\qj\fi0 {\f20\fs20 \emdash and our near-term earnings performance would have been better as a result \emdash but which we needed to do. First, around 2007, we invest-ed $135 million in an enterprise resource planning (ERP) system. This, over time, would allow us to manage our cost structure as effec-tively as other large food and bever-age companies. Second, in 2008, we opened offices in Russia and China, the two largest soup-consuming countries in the world. Neither coun-try had a major commercial soup manufacturer; it was all homemade. But we believed that their growing}\par} }\column { {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj{\f20\fs20 growth. By the time I left in 2011, we had record high returns on in-vested capital. We had a good P&L, great cash flow, and a good balance sheet. And we were still building the business for the future; we had re-cord high investment. Our stock price came back up, but not to $60 again; it reached $40 just before the economic crash, and it\rquote s in the mid-$30s now, in 2012. We were also able to raise the shareholder divi-dend in each of the last 10 years.}\par} } {\pard\sl-265\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 What capabilities did you need} \b0 \fs18 to build back, and how did you do it?}\par} } { {\pard\plain \li0\sl305\slmult1 \ri0\nooverflow\qj\fi-0 {\f25\b\fs17 CONANT: {\b0 \fs19 \f20 First of all, we made a ma-}\b0 \fs19 \f20 jor commitment to training and de-velopment, which was part of a phi-losophy we called \ldblquote The Campbell Promise.\rdblquote If you\rquote re asking people to do extraordinary things, they have to see you leaning in to help them learn and grow. Otherwise, your message will fall on deaf ears over time. We had high expectations of}\par} }\column { {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f20\fs19 where we brought leaders together from around the world, to work in teams on real cases, from Campbell and
elsewhere. They would tear apart the strategy issues, employ a common process approach with the same language, and present their ob-servations to senior executives. Sepa-rately, I developed a program where I took 20 to 25 young, promising leaders and met regularly with them over two years, with homework fo-cused on significantly lifting their leadership profile. I taught this course for three separate cohorts.}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 We also developed our own Campbell leadership model for managerial behavior. We had func-tional excellence programs targeting manufacturing, leveraging proven methods. We began to create com-mon ways of doing things across all our functions \emdash supply chain, IT, marketing, and sales \emdash along with more disciplined HR and financial planning systems, so people knew}\par} }{\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz1\shpleft3213\shptop218\shpright2961\shpbottom218{\sp{\sn shapeType}{\sv 20}} {\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn fFlipH}{\sv 0}} {\sp{\sn fFlipV}{\sv 0}} {\sp{\sn lineWidth}{\sv 12700}} {\sp{\sn lineColor}{\sv 743933}} {\sp{\sn lineDashing}{\sv 0}}}} \sect\sbknone \ marglsxn900\margrsxn1700\cols2\colno1\colw2960\colsx240\colsr240\colno2\colw5720 {\pard\sl-184\slmult0\par {\pard\plain \li0\sl305\slmult1 \ri0\nooverflow\qj{\f20\fs19 number of middle-class consumers would soon want convenience foods. We invested $50 million to $60 mil-lion a year building our capabilities there. To justify the investment, only one of the two countries had to \ldblquote work,\rdblquote and after I left, Campbell}\par} }{\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz0\shpleft899\shptop-480\shpright-269\shpbottom4559{\sp{\sn shapeType}{\sv 1}}{\sp{\sn fLine} {\sv 0}}{\sp{\sn fBehindDocument}{\sv 1}}{\sp{\sn fillColor}{\sv 743933}}}} \column {\pard\sl-1\slmult0\par {\pard\plain \li0\sl260\slmult1 \ri0\nooverflow\ql{\f34\fs38 \ldblquote We had said we wanted to win first in the workplace, and then in the marketplace. Now, we said we would win in the community.\rdblquote }\par} } {\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz1\shpleft6\sh ptop236\shpright6181\shpbottom236{\sp{\sn shapeType}{\sv 20}} {\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn fFlipH}{\sv 0}}
{\sp{\sn fFlipV}{\sv 0}} {\sp{\sn lineWidth}{\sv 12700}} {\sp{\sn lineColor}{\sv 743933}} {\sp{\sn lineDashing}{\sv 0}}}} \sect\sbknone \ marglsxn294\margrsxn758\cols5\colno1\colw241\colsx364\colsr364\colno2\colw2960\co lsx240\colsr240\colno3\colw2980\colsx240\colsr240\colno4\colw2960\colsx344\colsr344 \colno5\colw138 {\pard\sl-39\slmult0\par { \trqc\trowd \trrh1480\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxtbrl\clftsWidth3\clwWidth241 \cellx241 \pard\plain\intbl {\li0\ql{\f24\b\cf3 \fs21 thought leader}\cell}\trowd \trrh1480\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxtbrl\clftsWidth3\clwWidth241 \cellx241\row } }\column {\pard\sl-49\slmult0\par {\pard\plain \li0\sl211\slmult1 \ri0\nooverflow\qj{\f20\fs22 Soup doubled down on China and pulled back on Russia.}\par} } {\pard\sl-303\slmult0\par {\pard\plain \li0\sl307\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 How did you know that making} \b0 \fs18 this long-term investment was the right thing to do?}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl306\slmult1 \ri0\nooverflow\qj{\f25\b\fs17 CONANT: {\b0 \fs19 \f20 All our analysis suggested} \b0 \fs19 \f20 that we couldn\rquote t sustain our growth profile for the long term without these measures. I was willing to take the risk. While the decision has yet to be proven out completely, we de-livered quality sales growth and 10 straight years of earnings-per-share}\par} }\column {\pard\sl-256\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 people, and we couldn\rquote t expect them to value the company\rquote s agenda if we didn\rquote t tangibly demonstrate that we valued their agenda as well.}\par} } {\pard\sl-4\slmult0\par
{\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 Moreover, we had brought in many new executives with different backgrounds; we had people from Pepsi, Procter & Gamble, and Gen-eral Mills, all speaking the language of their old businesses. There wasn\rquote t a \ldblquote Campbell way\rdblquote to think about strategy. So we set up a strategy and management training curriculum,}\par} }\column {\pard\sl-256\slmult0\par {\pard\plain \li0\sl290\slmult1 \ri0\nooverflow\qj{\f20\fs20 what was expected of them. We had tight budgets, but every year we found ways to improve the learning opportunities for virtually everyone.}\par} } {\pard\sl-254\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 What other investments did you} \b0 \fs18 protect?}\par} } { {\pard\plain \li0\sl308\slmult1 \ri0\nooverflow\qj{\f25\b\fs17 CONANT: {\b0 \fs19 \f20 We restored product qual-}\b0 \fs19 \f20 ity. We put more chicken back into the soup, for instance. We started a continuous improvement program so we were making better products every year, not worse. Products are}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-239\slmult0\par { \trqc\trowd \trrh1500\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxbtlr\clftsWidth3\clwWidth138 \cellx138 \pard\plain\intbl {\li0\ql{\f27\fs12 strategy+business {issue 68}}\cell}\trowd \trrh1500\trleft0\clvertalb\clbrdrt\brdrnone \clbrdrl\brdrnone \clbrdrb\brdrnone \clbrdrr\brdrnone \cltxbtlr\clftsWidth3\clwWidth138 \cellx138\row } }\sect\sbknone
\marglsxn260\margrsxn2300\cols1\colno1\colw8960 {\pard\sl-182\slmult0\par {\pard\plain \li0\ql{\f14\b\cf3 \fs18 5}\tx2020\tab{\f23\fs16 BigSpeak Consulting (805)965-1400 info@bigspeak.com www.bigspeak.com}\par} }\sect\sbkpage\sectd\pard\plain \pgwsxn11520\pghsxn15120 {\*\bkmkstart page8}{\*\bkmkend page8} \ margl1240\margr112\margt1440\margb50\marglsxn1240\margrsxn112\cols4\colno1\col w2960\colsx240\colsr240\colno2\colw2980\colsx240\colsr240\colno3\colw2960\colsx54 6\colsr546\colno4\colw241 {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-202\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 important to our employees. Neigh-bors would talk to them about their favorite soup, or what they liked about a new Pepperidge Farm prod-uct. We also restored our marketing spending to competitive levels \emdash from about 16 percent of sales back up to 20 to 22 percent.}\par} } {\pard\sl-7\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 To pay for this, we shed under-performing or less-connected assets, including a very large food business in the U.K. and Ireland that went back 100 years. We sold Godiva Chocolatier, which was a magnifi-cent brand but made no sense for our portfolio. We weren\rquote t a confections or retail company.}\par} } {\pard\sl-8\slmult0\par
{\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 We lowered some of our systems expenses. For instance, we realized that we had been overinvesting in transactional costs, so we outsourced processes to which we couldn\rquote t add value. Although our new ERP sys-tem raised costs in the near term, it clearly positioned us to reduce costs in the mid- to long term.}\par} } {\pard\sl-1\slmult0\par {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 In addition, we reduced our trade promotion profile and spent more on advertising directly to the consumer. We built our capabilities by leveraging our competencies across categories. For instance, we knew consumers were concerned about the amount of sodium in their}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-202\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 diet. So we developed worldclass sodium reduction capabilities in soup, and then applied them across our entire portfolio: juices, Prego pasta sauces, and even baked snacks. We also developed marketing in-sights around the world in the same way, and harvested global views of our customers that improved our ability to compete.}\par} } {\pard\sl-9\slmult0\par {\pard\plain \li0\sl304\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 Then we incorporated a corpo-rate social responsibility program into the Campbell success model. We had said we wanted to win first in the workplace, and then in the marketplace. Now, we said we would win in the community and that we would continue to bring a high level of integrity to everything we did.}\par}
} {\pard\sl-250\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj{\f25\b\fs19 S+B: {\b0 \fs18 Do you think of corporate social} \b0 \fs18 responsibility as a capability?}\par} } { {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi0 {\f25\b\fs18 CONANT: {\b0 \fs20 \f20 Yes, and it\rquote s a necessity.} \b0 \fs20 \f20 Companies are challenged by the public sector, by activist groups, and by consumers themselves. The best defense is a good offense, so you\rquote d better shape your agenda and move it forward in a visible and commit-ted way. Starting in 2007 at Camp-bell, we began measuring our efforts to help build a better world and re-porting on it in the annual report. We also sought to improve our cor-}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-202\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 porate citizenship as measured by the Ethisphere Institute, which pub-lishes a list of the 100 best corporate citizens in the United States. After we were included on that list, we be-came more recognized as a high-integrity company. This, in turn, did wonders for our employee en-gagement, and that had a positive impact on our performance in the marketplace.}\par} } {\pard\sl-10\slmult0\par {\pard\plain \li0\sl287\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 We put our arms around the city of Camden, N.J., where Camp-bell was founded. Camden is one of the poorest, most dangerous cities in the United States. It had nearly 40 murders in 2010, in a
population of only 75,000. Most of the 23,000 kids in the public school system are obese but still hungry. The food they get is not conducive to a good, well-balanced diet. We launched a 10-year program to revitalize the city, starting with nutritional train-ing in the schools. Campbell\rquote s em-ployees are involved; they\rquote re promot-ing exercise and helping to attract quality supermarkets and other food sources to the center of the city.}\par} } {\pard\sl-265\slmult0\par {\pard\plain \li0\ql{\f25\b\fs19 S+B: {\b0 \fs18 How did you come to write}}\par} } {\pard\sl-64\slmult0\par {\pard\plain \li0\ql{\f35\i\fs19 TouchPoints{\i0 ?}}\par} } {\pard\sl-49\slmult0\par {\pard\plain \li0\sl333\slmult1 \ri0\nooverflow\qj{\f25\b\fs17 CONANT: {\b0 \fs19 \f20 At the leadership course I} \b0 \fs19 \f20 taught, after a serene off-site session,}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
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\pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 the key program facilitator, Mette Norgaard, asked me, \ldblquote How can you go back to all the buzz in your office}\par} } {\pard\sl-3\slmult0\par {\pard\plain \li0\sl247\slmult1 \ri0\nooverflow\qj{\f20\fs22 \emdash the phone, the people stopping by, the interruptions?\rdblquote }\par} } {\pard\sl-29\slmult0\par {\pard\plain \li0\ri0\nooverflow\qj\fi360 {\f20\fs20 \ldblquote I don\rquote t view them as interrup-tions,\rdblquote I said. \ldblquote They\rquote re opportunities to help advance things. So I look forward to them.\rdblquote }\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl305\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 It\rquote s also how you bring strategies to life. As Campbell CEO, I sent 10 to 20 handwritten notes out a day. For example, I might have said, \ldblquote I saw you did good work here. You got this line up and running on time.\rdblquote Or maybe I said, \ldblquote You helped us get}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-327\slmult0\par {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 ripples out around you. Someone will tell others, \ldblquote I had a really good conversation with Doug in the lunch line,\rdblquote instead of saying, \ldblquote That jerk, he\rquote s not giving me the time of day.\rdblquote }\par} } {\pard\sl-5\slmult0\par {\pard\plain \li0\sl324\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 You can\rquote t manage
every interac-tion well. There are times when you}\par} }{\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz1\shpleft3213\shptop164\shpright2965\shpbottom164{\sp{\sn shapeType}{\sv 20}} {\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn fFlipH}{\sv 0}} {\sp{\sn fFlipV}{\sv 0}} {\sp{\sn lineWidth}{\sv 12700}} {\sp{\sn lineColor}{\sv 743933}} {\sp{\sn lineDashing}{\sv 0}}}} \sect\sbknone \ marglsxn900\margrsxn1760\cols2\colno1\colw2960\colsx240\colsr240\colno2\colw5660 {\pard\sl-180\slmult0\par {\pard\plain \li0\sl302\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs19 We started talking about the \ldblquote interruption age,\rdblquote as she called it \emdash the fact that every four minutes, on average, a worker is likely to have his or her concentration broken by an encounter with someone else. But I was sincere; I liked those moments, because I actually had people com-}\par} }\column {\pard\sl-2\slmult0\par {\pard\plain \li0\sl275\slmult1 \ri0\nooverflow\ql{\f34\fs36 \ldblquote As Campbell CEO, I sent 10 to 20 handwritten notes out a day. Each interaction is an opportunity to advance the company\rquote s agenda.\rdblquote }\par} } {\shp{\*\shpinst\shpfhdr0\shpbxcolumn\shpbypara\shpwr3\shpfblwtxt1\shpz1\shpleft6\sh ptop212\shpright6185\shpbottom212{\sp{\sn shapeType}{\sv 20}} {\sp{\sn fBehindDocument}{\sv 1}} {\sp{\sn fFlipH}{\sv 0}} {\sp{\sn fFlipV}{\sv 0}} {\sp{\sn lineWidth}{\sv 12700}} {\sp{\sn lineColor}{\sv 743933}} {\sp{\sn lineDashing}{\sv 0}}}} \sect\sbknone \ marglsxn294\margrsxn758\cols5\colno1\colw241\colsx364\colsr364\colno2\colw2960\co lsx240\colsr240\colno3\colw2980\colsx240\colsr240\colno4\colw2960\colsx344\colsr344 \colno5\colw138 {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
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sched-ule.\rdblquote I avoided gratuitous compli-ments and focused on the business priorities; I had a part-time assistant who collected reports about what was going on in the company. Over my 10-year tenure, I wrote 30,000 notes. It got to the point where I felt something was missing if I didn\rquote t have a chance to do it; I blocked out half an hour a day just to write the notes. I also deliberately wandered around the buildings, asking people about how things were going. It cre-ated a platform for candor: \ldblquote Well, it\rquote s not going very well.\rdblquote Then I could ask, \ldblquote Really? Is there some-thing you need?\rdblquote }\par} } {\pard\sl-17\slmult0\par {\pard\plain \li0\sl288\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs20 People can have 200 or more in-teractions a day, if you count e-mail. Each is an opportunity to advance the company\rquote s agenda. We found that many executives brush these in-teractions aside because they\rquote re too busy trying to get the \ldblquote real work\rdblquote done. But this {\i is} the real work, and it}\par} }\column { {\pard\plain \li0\sl286\slmult1 \ri0\nooverflow\qj{\f20\fs20 can\rquote t talk to people; you have to dis-criminate. But if you manage three encounters better today than you did yesterday, every day, you can fundamentally change the trajectory of your leadership profile. And we\rquote ve found that people who take on this discipline, just one interaction at a time, start to improve their ability to contribute.}\par} } {\pard\sl-9\slmult0\par {\pard\plain \li0\sl270\slmult1 \ri0\nooverflow\qj\fi360 {\f20\fs21 Once you get good at paying at-tention to people on the fly, you learn to deal with people\rquote s issues with empathy and efficiency. You raise your contribution profile and start to advance in the company. Ul-timately, the way you show up in any given moment, moment after moment, is the behavior that defines your legacy. {\b \cf5 \fs23 \f38 +}}\par} } {\pard\sl-50\slmult0\par {\pard\plain \li1820\ql{\f39\fs14 Reprint No. 00128}\par} }\column {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par
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edge, ensuring successful implementation of custom corporate education programs.}\par} } {\pard\sl-200\slmult0\par \pard\sl-389\slmult0\par {\pard\plain \li1640\sl239\slmult1 \ql{\f40\fs22 Source: White Papers {\endash } {\field {\*\fldinst {\cs15 HYPERLINK "http://www.bigspeak.com/consulting/whitepapers" }} {\fldrslt {\cs15 \ul {\ul \cf2 www.bigspeak.com/consulting/whitepapers}}}}}\par} } {\pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-200\slmult0\par \pard\sl-238\slmult0\par {\pard\plain \li220\ql{\f2\fs20 BigSpeak Speakers Bureau, Santa Barbara, CA {\fs40 \f3 \super \u-3929 ?} (805)965-1400 {\fs40 \f3 \super \u-3929 ?} info@bigspeak.com {\fs40 \f3 \super \u-3929 ?} www.bigspeak.com}\par} }}