Faced with changing consumer preferences, accelerating technology change, and competition from nimble startups, today’s consumer products (CP) companies know they need to make major changes to their operations within the next half-decade to remain successful. But while many have started down the path of transformation, progress is uneven, with some companies stalled by a combination of conflicting leadership priorities and a shortage of the talent and capabilities needed to make change happen. Unless companies find ways to overcome these hurdles in the near future, they will fail to achieve their transformation goals and grow increasingly out of step with the demands of tomorrow’s consumers rather than becoming the models of efficiency and responsiveness they wish to be.

These are among the findings in a new MIT SMR Connections/EY LLP Global Consumer Industries research study based on a survey of 370 CP business leaders in 10 countries. Conducted in June and July 2021, the survey asked these leaders about the challenges they face as they endeavor to make major changes in operations ranging from manufacturing and supply chain to finance, marketing, and talent acquisition to meet changing consumer needs.

A multi-disciplinary team of advisors and academics then sliced and diced the results of the survey, identified patterns, and provided provocative recommendations.

“The way business models are architected in the large consumer goods companies, the way they account for profitability and marketing expenses, needs to change. They need to rethink the entire measurement system so they can get a more holistic view of the relationship between them and the customer.”
Len Schlesinger
Baker Foundation Professor, Harvard Business School

Published in a series of Sloan Management Review Articles, a (downloadable) paper and a summary infographic:

Is Your Company’s Operating Model Trailblazing — or Trail-Gazing?
September 2021

3 Priorities for Accelerating Your Operating Model Transformation
October 2021

Becoming Future Fit: Challenges and Opportunities for Today’s Consumer Products Companies
December 2021

Optimizing Operations for Now — and the Future
December 13, 2021