Leading with Trust: The Blueprint for Transparency and Authenticity
John Elliott • Apr 19, 2023

As consumers become increasingly informed about the products and services they purchase, they demand more transparency from the companies they do business with. This is particularly true for FMCG and Food/Beverage businesses, who face mounting pressure to be transparent about their operations. The days of keeping information under wraps and relying on traditional marketing tactics are over.


The rise of social media and online reviews has given consumers a voice and the power to impact a company's reputation with just a few clicks. In this new age of consumer empowerment, transparency and authenticity have become non-negotiables for executive leaders who want to build trust with their customers.



So, what exactly do transparency and trust mean for FMCG and Food/Beverage businesses?

For starters, it means openly and honestly sharing information about product ingredients, sourcing, manufacturing processes, and supply chain operations. Consumers are more interested in knowing where their food comes from, how it's grown, and what ingredients are used. They are also more interested in knowing about the ethical and sustainable practices that businesses use in their operations. According to a survey conducted by Label Insight, 94% of consumers are more likely to be loyal to a brand that offers complete transparency.


Transparency isn’t just about clear labelling and ingredient lists, it also extends to a company's values, mission, and culture. Stakeholders want to support companies that align with their personal beliefs and values.


Trust, on the other hand, is the foundation of any successful business and is achieved through a company's ability to deliver on its promises and to act with integrity. Trust is earned over time through consistent and transparent actions. Once trust is established, it can lead to customer loyalty, positive word-of-mouth, and increased profits. Yet this vital aspect of a business is fragile and once broken can have significant consequences and result in lasting reputational damage for organisations. 


For instance, the 2015 E. Coli outbreak associated with Chipotle Mexican Grill led to a significant drop in sales and stock price, highlighting the importance of trust and transparency in the food industry. 


Whilst food safety remains an ongoing focus for the food and beverage industry, the recent explosion of cyber attacks has, more than any other type of scandal, called into question the concept of trust and transparency among organisations. In February 2021, Coles Group and Latitude Financial were hit by a cyber attack that exposed the personal information of thousands of customers. The breach was a wake-up call for these companies and the industry as a whole, highlighting the need for robust cybersecurity measures and increased transparency.


The fallout from a cyber attack can be severe, causing irreparable reputational damage to a business. Customers expect their personal information to be kept secure, and when that trust is broken, it can be challenging to win it back. In this context, transparency is vital for executive leaders who want to maintain trust with their stakeholders. By being open and honest about a breach and taking swift action to remedy it, companies can demonstrate their commitment to customer safety and security. Ignoring or downplaying the issue will only exacerbate the damage and erode trust further.



Transparency: The Path to Maintaining and Restoring Trust

Transparency starts at the top. Executive leaders must be transparent in their communication with employees, customers, and stakeholders. This means being open and honest about company performance, challenges, and goals. 


For example, embracing transparency and authenticity in the aftermath of a cyber attack can be a challenging but necessary step for executive leaders. Customers want to know what happened, what steps are being taken to prevent future breaches, and how their information will be protected moving forward. In some cases, a cyber attack may even present an opportunity for companies to showcase their commitment to security and transparency, providing a competitive advantage over rivals who may be less forthcoming with information.


Executive leaders should also be accessible to employees and customers, responding to questions and concerns in a timely and respectful manner. By creating an environment of open communication, executive leaders can build trust and establish a positive company culture.


Another way executive leaders can maintain trust is by taking responsibility for mistakes and working to correct them. No company is perfect, and mistakes will inevitably happen. However, how a company responds to those mistakes is what matters. Executive leaders must be willing to admit fault, apologise, and take steps to prevent similar mistakes from happening in the future. This shows consumers and stakeholders that the company is committed to transparency and accountability.



Transparent Communication: The Essential Ingredient in Creating Consumer Appeal and a Positive Company Culture

Transparent communication means being open and honest in all aspects of business. This includes providing clear and accurate information about products and services, as well as the company's values, mission, and culture. Transparent communication also means listening to feedback from customers and stakeholders and taking action to address their concerns.

Transparent communication is essential in creating consumer appeal because it builds trust and establishes a positive reputation. Consumers want to support companies that are transparent about their products and services. They also want to know that the company is committed to ethical and sustainable practices. By communicating transparently, companies can attract and retain loyal customers.


Transparent communication is also crucial in creating a positive company culture. Companies can create a more engaged and motivated workforce by fostering open communication and feedback. Employees who feel heard and valued are more likely to be productive and committed to the company's success.



The Role Technology and Data are Playing in Helping Organisations to Become More Transparent

Technology and data are increasingly important in helping organisations become more transparent. For example, blockchain technology can be used to track products from farm to table, providing consumers with information about where their food comes from and how it's produced. Data analytics can also track and measure company performance, allowing for more transparent reporting and accountability.


Social media and online reviews have also made it easier for consumers to share their experiences and opinions about companies. While this can be a double-edged sword for businesses, it also provides an opportunity for companies to respond to feedback and demonstrate their commitment to transparency and customer satisfaction.


Companies can also use technology to improve communication with customers and stakeholders. Chatbots, for example, can be used to provide quick and accurate responses to customer inquiries. In contrast, social media platforms can be used to engage with customers and share information about the company's products and values.



Why Reputation Matters

Reputation is everything in the FMCG and Food & Beverage industries. A company's reputation can take years to build, but can be destroyed in a matter of days by a scandal or negative publicity. That's why it's essential for companies to hire executive leaders who are committed to transparency and authenticity.


At ELR Executive, we specialise in helping FMCG and Food & Beverage companies identify and hire executives who lead with authenticity and can build trust during times of uncertainty. We believe that executive leadership is key to establishing and maintaining trust with consumers and stakeholders. We leverage highly customised search, selection, and assessment techniques, informed by more than 20 years of experience in our field. This is our SELECT methodology, a proven approach to identifying candidates who have the skills and qualities needed to lead in today's fast-paced and complex business environment.


We also recognise that authenticity is essential in building trust. That's why we look for candidates who are committed to transparency and who have a track record of acting with integrity. We believe that by hiring executives who are authentic and transparent, companies can establish a positive reputation and build trust with customers and stakeholders.

If you'd like to learn more about how we can help you hire the right leadership talent, who can navigate your business forward, securing its competitive advantage to thrive in today’s challenging business environment, speak to us today.


Executive introducing new leader as part of executive onboarding process

Executive Onboarding in Food & Beverage: The Blueprint for Success

By John Elliott • 09 Apr, 2024
The arrival of a new executive heralds a period of opportunity, transformation, and, inevitably, challenge. The process of integrating this new leader – onboarding – is a critical, often under-emphasised phase that can significantly influence the trajectory of both the individual's and the company's future. So why do so many organisations fail to get executive onboarding right? The High Stakes of Executive Onboarding The adage "well begun is half done" resonates profoundly in executive onboarding. Harvard Business Review reveals a startling statistic: as many as 40-50% of new executives fail within the first 18 months of their appointment. This failure rate is not just a personal setback for the executives; it represents a substantial cost to the company – often up to five times the executive's salary. The reasons for failure? Poor cultural fit, unclear expectations, and inadequate onboarding support top the list. But what makes the consumer goods industry particularly challenging for new executives? It's a dynamic sector where consumer preferences shift rapidly, supply chains are complex, and competition is intense. Here, more than anywhere else, an executive's ability to adapt and lead effectively from the outset is paramount. The Multifaceted Challenges in Onboarding The failure of many organisations in the consumer goods industry to effectively onboard new executives is multifaceted: 1. Tailored Onboarding Versus Standard Processes The provided text emphasises the necessity of a tailored onboarding process for executives, distinct from standard employee onboarding. This is particularly relevant in the consumer goods industry, where executives must navigate unique market dynamics, consumer trends, and complex supply chains in Australia. Tailoring the onboarding process to address these specific industry challenges ensures that executives can hit the ground running with a clear understanding of the landscape they will operate in. 2. The Role of a Dedicated Onboarding Team The concept of a dedicated project team for executive onboarding, as implemented by Palo Alto Networks, could be highly effective in the consumer goods sector. Such a team could focus on providing industry-specific insights, facilitating connections with key stakeholders, and ensuring that new executives understand the nuances of the Australian consumer market. This team would act as a bridge between the executive and the unique aspects of the Australian consumer goods landscape. 3. Engagement During the Notice Period In the consumer goods industry, where market trends and consumer preferences can shift rapidly, keeping executives engaged during their notice period is crucial. This period can be used to familiarise them with current market analyses, consumer behaviour trends, and ongoing projects. This proactive approach ensures that the executive is well-informed and ready to contribute from day one. 4. Cultural Orientation and Familiarity Building a strong cultural connection is vital in any industry but takes on added importance in consumer goods, which often relies on understanding and adapting to cultural nuances to succeed. Regular touchpoints that orient the new executive to the company's culture, values, and consumer-centric approach can help in crafting strategies that resonate with the Australian market. 5. Collaboration Among Various Teams The need for collaboration between HR, Reward, Performance, and Talent teams is pertinent in the consumer goods sector. This collaboration can ensure a unified approach to addressing the specific challenges and opportunities an executive might face in this dynamic industry. For instance, understanding the compensation frameworks and performance indicators specific to different departments within a consumer goods company can aid an executive in making more informed decisions. 6. 'Just-in-Time' Resources The idea of providing ‘just-in-time’ resources is particularly beneficial for executives in the fast-moving consumer goods sector. Given the rapid pace of change in consumer preferences and market trends, having access to real-time data and concise, relevant information can be invaluable. This approach allows executives to stay agile and make decisions based on the latest market insights. 7. Understanding of Performance Cycles In the consumer goods industry, understanding the timing and nuances of performance cycles is critical. This is especially true in a market like Australia, where seasonal trends and events can significantly impact consumer behaviour. The onboarding process should include education on these cycles, preparing executives to plan and execute strategies effectively in sync with these fluctuations. The Role of the Board in Facilitating Successful Onboarding The board of directors plays a pivotal role in the onboarding process. Their actions, or lack thereof, can set the tone for the new executive’s tenure. What should they be doing? Pre-Onboarding Engagement: The process starts before the executive's first day. Boards must ensure clear communication about the company's vision, challenges, and expectations. This early dialogue helps align the executive’s mindset with the company's strategic goals. Structured Onboarding Plan: Developing a comprehensive, customised onboarding plan is crucial. This should cover not just the operational aspects of the role but also the cultural and interpersonal dynamics of the organisation. Mentorship and Networking Support: Assigning a mentor from the board or senior leadership can accelerate the integration process. Additionally, facilitating introductions and networking opportunities within and outside the company is invaluable. Regular Check-Ins and Feedback: Ongoing support doesn’t end after the first week or month. Regular check-ins to provide and receive feedback ensure any issues are addressed promptly. Performance Metrics: Clear, early-established metrics for success help the new executive understand how their performance will be measured. Enhancing Executive Performance through Effective Onboarding The correlation between effective onboarding and enhanced executive performance is well-established. A study by McKinsey found that executives who had a successful onboarding experience were 1.9 times more likely to exceed performance expectations. Furthermore, these executives reported feeling more integrated into the company culture and more effective in their roles earlier than their peers who experienced less structured onboarding. Effective onboarding leads to better decision-making, faster strategy implementation, and a more cohesive leadership team. It builds a foundation of trust and understanding that is crucial in the high-stake, rapidly evolving consumer goods market. Onboarding as a Strategic Imperative Effective executive onboarding goes beyond mere orientation – it is a strategic process that lays the groundwork for long-term success. As we've seen in the consumer goods industry in Australia, a well-planned and executed onboarding process can be the difference between a flourishing leadership tenure and a costly misstep. In an era where the cost of failure is high and the speed of change is relentless, consumer goods companies must view executive onboarding not as a perfunctory checklist but as a fundamental building block of sustainable leadership and organisational success. Remember, your new executive's journey is a reflection of your organisation's commitment to leadership excellence. Invest in their onboarding, and you're investing in the future of your company.
two men are sitting at a table with a laptop and talking to each other .

Talent Acquisition: Internal Strategies vs. Executive Search Partnerships in Australia's Beverage Industry

By John Elliott • 18 Mar, 2024
Explore the pivotal choice between internal talent acquisition and hiring via executive search firms in the food and beverage industry for optimal growth.
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