Micro-Innovation in FMCG: How Small Changes Can Lead to Big Wins
Debbie Morrison • May 28, 2023

In the fast-paced world of Fast-Moving Consumer Goods (FMCG), innovation is the lifeblood of success. Companies constantly strive to bring new and exciting products to market, but often, the focus is on grand, game-changing innovations that promise revolutionary outcomes.


While these transformative breakthroughs certainly have their place, it's important not to overlook the power of micro-innovation - the small, incremental changes that can lead to significant gains. In this article, we will explore the concept of micro-innovation, why small gains (and small failures) can be advantageous, and why it is crucial to look for leaders who embrace these qualities when hiring.



What is Micro-Innovation?

Micro-innovation can be defined as the process of making small, incremental improvements or adjustments to existing products, processes, or services. It involves identifying and addressing pain points, inefficiencies, or areas for enhancement on a micro level. Instead of reinventing the wheel, micro-innovation focuses on fine-tuning the existing systems and processes to drive continuous improvement.


Consider the example of a leading FMCG company that manufactures bottled beverages. While a grand innovation may involve developing a completely new line of beverages with unique flavours and packaging, micro-innovation could involve small changes in the formulation, packaging design, or even the cap mechanism of an existing product. These small adjustments may seem inconsequential at first glance, but they can make a substantial difference in terms of customer satisfaction, operational efficiency, and ultimately, financial success.


Small Gains: The Power of Marginal Improvements

One might argue that seeking small gains is not as exciting as pursuing radical breakthroughs, but overlooking the power of marginal improvements would be a grave mistake. In fact, numerous success stories demonstrate how small gains can lead to big wins.


Take the example of Toyota, a company renowned for its continuous improvement philosophy. The concept of "kaizen," which means "change for the better," lies at the heart of Toyota's success. By encouraging every employee to contribute to small improvements in their daily work, Toyota has achieved remarkable results. Over time, these incremental changes add up, leading to enhanced quality, increased efficiency, and reduced costs. By embracing micro-innovation, Toyota became one of the world's leading automotive manufacturers.


Similarly, in the FMCG industry, Procter & Gamble (P&G) is known for its commitment to micro-innovation. P&G's researchers and scientists constantly work to make small, incremental improvements to their products, from laundry detergents to skincare solutions. These micro-innovations might include optimising the ingredients, refining the packaging, or enhancing the user experience. By focusing on small gains, P&G has built a portfolio of household brands that consistently deliver value to their customers.


Small Failures: Lessons in Innovation

While the concept of small gains is enticing, it is essential to recognize that micro-innovation is not a guaranteed path to success. Small failures are an inevitable part of the innovation process, but they can also be advantageous if approached with the right mindset.


Failure is often viewed as a taboo in corporate culture, with a focus on avoiding mistakes at all costs. However, embracing small failures as learning opportunities can foster a culture of innovation and growth. When leaders encourage their teams to experiment, take calculated risks, and learn from failures, they create an environment that promotes continuous improvement.


One of the most famous examples of learning from failure comes from Thomas Edison, the inventor of the electric light bulb. When asked about his numerous failed attempts, he famously responded, "I have not failed. I've just found 10,000 ways that won't work." Edison's persistence and willingness to embrace small failures ultimately led to the breakthrough that revolutionised the world.


In the FMCG industry, the concept of embracing small failures is exemplified by companies like Coca-Cola. Despite being a global beverage giant, Coca-Cola has had its fair share of unsuccessful product launches. One notable example is the introduction of "New Coke" in 1985, which was met with strong consumer backlash. Rather than retreating and abandoning the idea of innovation altogether, Coca-Cola listened to its customers, quickly acknowledged the failure, and reintroduced the classic formula as "Coca-Cola Classic." This strategic move not only helped the company regain consumer trust but also demonstrated the power of learning from small failures and adapting accordingly.


Leaders Who Embrace Micro-Innovation: A Valuable Asset

In a rapidly evolving business landscape, leaders who embrace the concepts of micro-innovation, small gains, and small failures are invaluable assets to any organisation. They possess the vision to recognize the potential in incremental improvements and the resilience to learn from setbacks. When hiring, it is crucial to seek out these qualities in potential leaders.


First and foremost, leaders who champion micro-innovation have a keen eye for detail. They understand that success lies in the fine-tuning of existing systems and processes, rather than solely relying on big, disruptive changes. Their ability to identify areas for improvement on a micro level allows them to make calculated adjustments that have a significant impact on overall performance.


Furthermore, leaders who embrace small gains possess a growth mindset. They see failures not as roadblocks, but as stepping stones to success. Their openness to experimentation and willingness to learn from setbacks create a culture of continuous improvement within their teams. They inspire others to think creatively, take risks, and pursue innovation, knowing that even small steps forward can lead to significant breakthroughs.


Consider the case of Satya Nadella, the CEO of Microsoft. Since taking the helm in 2014, Nadella has been a strong advocate of micro-innovation within the company. Under his leadership, Microsoft has shifted its focus towards cloud computing and subscription-based services, making small, strategic changes to its business model. This approach has resulted in remarkable growth and profitability for the company, propelling it to the forefront of the technology industry.


In addition to their attention to detail and growth mindset, leaders who embrace micro-innovation are exceptional collaborators. They understand the importance of engaging diverse perspectives and fostering cross-functional teamwork to drive innovation. By encouraging employees from various departments to contribute their insights and ideas, these leaders create a culture of collaboration that fuels continuous improvement.


When hiring, it is crucial to assess candidates not only for their technical skills but also for their ability to embrace micro-innovation and lead others in doing so. Look for individuals who have a track record of implementing small, impactful changes, who are not afraid to take risks and learn from failures, and who inspire collaboration and creativity within their teams.


While grand innovations may capture headlines and attention, the power of micro-innovation should not be underestimated. Small gains and small failures play a vital role in driving continuous improvement and long-term success in the FMCG industry. Leaders who embrace these concepts possess the vision, resilience, and collaborative spirit necessary to navigate the complex landscape of innovation. By prioritising micro-innovation and seeking leaders who embody its principles, organisations can unlock the potential for significant wins and stay ahead in a competitive market.


So, the next time you consider innovation strategies for your FMCG company, remember the profound impact of small changes. Embrace micro-innovation, encourage small gains, and learn from small failures. In doing so, you'll be paving the way for remarkable success and solidifying your position as an industry leader.

Your Culture Report Won’t Show You This

By John Elliott • June 6, 2025
On paper, they were fully resourced. No complaints logged. No formal red flags. Delivery metrics holding steady. But behind closed doors, the signs were there. Delays. Fatigue. Silence in meetings where pushback used to live. And a growing sense that key people were leaning out, emotionally, if not yet physically. When the cracks finally showed, the conclusion was predictable: “We need more people.” But that wasn’t the real problem. The problem was trust. And most organisations never see it until it’s too late. The Hidden Cost of Disengagement In Gallup’s 2023 global workplace report , only 23% of employees worldwide reported being actively engaged at work. A staggering 59% identified as “quiet quitting”, psychologically detached, going through the motions, doing only what their job description demands. Source: Gallup Global Workplace Report 2023 Disengagement is expensive. But it’s also quiet. It doesn’t show up on a balance sheet. It doesn’t send a Slack message. Disengagement isn’t new, just silenced. And in executive teams, it looks different. It looks like polite agreement in strategy meetings. It looks like leaders shielding their teams from unrealistic demands, instead of confronting the system causing them. It looks like performance metrics still being met… while people emotionally check out. The issue isn’t always capability. It’s safety. Psychological, political, and professional. Many senior leaders don’t raise concerns, not because the problem isn’t real, but because they don’t believe they’ll be heard, supported, or protected if they do. And this is where the failure begins. The Leadership Lie No One Talks About We talk a lot about leadership capability. About experience, commercial acumen, execution strength. But we don’t talk enough about context. Every leadership hire walks into a culture they didn’t create. They inherit unwritten rules, quiet alliances, and legacy power structures. If those dynamics are broken, or if trust is fractured at the top, no amount of capability will compensate. According to a 2022 Deloitte mid-market survey, 64% of executives said culture was their top strategic priority. But only 27% said they actually measured it in a meaningful way. We say culture matters. But we rarely structure around it. And so new leaders walk in with pressure to perform, but little real insight into what the role will cost them emotionally, politically, or personally. We Don’t Hire for Trust. And It Shows. In executive search, the conversation is often dominated by pedigree and “fit.” But fit is often a euphemism for sameness. And sameness doesn't build trust, it maintains comfort. We rarely ask: Does this leader know how to build trust vertically and horizontally? Can they operate in a low-trust environment without becoming complicit? Will they challenge inherited silence, or unconsciously uphold it? Instead, we hire for confidence and clarity, traits that often mask what’s broken, rather than reveal it. And when those hires fail? We call it a mismatch. Or we cite the usual: “lack of alignment,” “wasn’t the right time,” “they didn’t land well with the team.” But the truth is often uglier: They were never set up to succeed. And no one told them until it was too late. The Cultural Infrastructure Is Missing One of the most damaging myths in leadership hiring is that great leaders will “make it work.” That if they’re tough enough, experienced enough, skilled enough, they’ll overcome any organisational dysfunction. But high-performance isn’t just personal. It’s systemic. It requires psychological safety. A clear mandate. The backing to make hard decisions. The freedom to speak the truth before it becomes a PR problem. When that infrastructure isn’t there, when the real power dynamics are unspoken, good leaders stop speaking too. And the silence spreads. What Trust Breakdown Really Looks Like Often, the signs of a trust breakdown don’t show up in dramatic ways. They surface subtly in patterns of underperformance that are easy to misread or excuse. You start to notice project delays, but no one flags the root cause. Teams keep things moving, quietly compensating for the bottlenecks rather than surfacing them. Not because they’re careless, but because they’ve learned that early honesty doesn’t always earn support. New leaders hesitate to make bold calls. Not because they lack conviction, but because the last time they did, they were left exposed. Board reports look flawless. Metrics track nicely. But spend five minutes on the floor, and the energy tells a different story. These are not resource issues. They’re relationship issues. And the data backs it. According to Gallup’s 2023 State of the Global Workplace report , just 23% of employees worldwide are actively engaged. Worse, around 60% are “quiet quitting.” That’s not just disengagement. It’s people doing only what’s safe, only what’s required, because trust has quietly eroded. Gallup also found that managers account for 70% of the variance in team engagement, a staggering figure that reinforces just how pivotal leadership trust is. When people don’t feel psychologically safe, they shut down. Not dramatically. Quietly. Invisibly. What’s breaking isn’t the org chart. It’s the ability to speak plainly and be heard. And by the time it’s visible? The damage is already done, and someone calls for a restructure. “Low engagement is estimated to cost the global economy $8.8 trillion, 9% of global GDP.” Gallup, State of the Global Workplace 2023 So What’s the Real Takeaway? If you’re seeing performance issues, before you jump to headcount, ask a different question: Do the leaders in this business feel safe enough to tell the truth? Because if they don’t, the data you’re reading isn’t real. And if they do, but you’re not acting on it, then they’ll stop telling you. Leadership doesn’t fail in obvious ways anymore. It fails in the gap between what people know and what they’re allowed to say. And the price of that silence? Missed opportunity. Reputational damage. Cultural decay. Sometimes, the problem isn’t who you hired. It’s what you’ve made it unsafe to say.

The Energy’s Gone, But Everything Still Looks Fine

By John Elliott • May 27, 2025
Why Culture Decay in FMCG Is a Silent Threat to Performance It doesn’t start with resignations. It starts with something much quieter. A head of operations stops raising small problems in weekly meetings. A sales lead no longer defends a risky new SKU. A team member who used to push ideas now just delivers what they’re asked. Nothing breaks. Nothing explodes. It just... slows. And from the outside, everything still looks fine. The illusion of stability In food and beverage manufacturing, where teams run lean and pressure is constant, performance often becomes the proxy for culture. If products are shipping, if margins are intact, if reviews are clean, the assumption is: we're good. But that assumption is dangerous. According to Gallup's 2023 global workplace report, only 23% of employees worldwide are actively engaged, while a staggering 59% are "quiet quitting ", doing just enough to get by, with no emotional investment. And in Australia? Engagement has declined three years in a row. In a mid-market FMCG business, those numbers rarely show up on dashboards. But they show up in other ways: New ideas stall at the concept phase Team members stop challenging assumptions Execution becomes rigid instead of agile Everyone is "aligned" but no one is energised And by the time the board sees a drop in revenue, the belief that once drove the business is already gone. The emotional cost of cultural silence One thing we don’t talk about enough is what this does to leadership. When energy drains, leaders often become isolated. Not because they want to be, but because the organisation has lost the instinct to challenge, question, or stretch. I’ve seen CEOs second-guessing themselves in rooms full of agreement. Seen GMs miss red flags because nobody wanted to be "the problem". Seen founders mistake quiet delivery for deep buy-in. The emotional toll of unspoken disengagement is real. You’re surrounded by people doing their jobs. But no one’s really in it with you. And eventually, leaders stop stretching too. We train people to disengage without realising it Here’s the contradiction that most organisations won’t admit: We say we want initiative, but we reward obedience. The safest people get promoted The optimists get extra work The truth-tellers get labelled difficult So people learn to conserve energy. They learn not to challenge ideas that won’t land. They learn not to flag risks that won’t be heard. And over time, they stop showing up with their full selves. This isn't resistance. It's protection. And it becomes the default when innovation is punished, risk isn't buffered, and "alignment" becomes code for silence. Boards rarely see it in time Boards don’t ask about belief. They ask about performance. But belief is what drives performance. When culture begins to fade, it doesn't look like chaos. It looks like calm. It looks like compliance. But underneath, the organisation is hollowing out. By the time a board notices the energy is gone, it’s often because the financials have turned, and by then, the people who could've helped reverse the trend have already left. In a 2022 Deloitte study on mid-market leadership, 64% of executives said culture was their top priority, yet only 27% said they measured it with any rigour . If you don’t track it, you won’t protect it. And if you don’t protect it, don’t be surprised when it disappears. The real risk: you might not get it back Here’s what no one likes to admit: Not all cultures recover. You can try rebrands. You can run engagement campaigns. You can roll out leadership frameworks and off-sites and feedback platforms. But if belief has been neglected for too long, the quiet ones you depended on, the culture carriers, the stretchers, the informal leaders, they’re already checked out. Some have left. Some are still there physically but not emotionally. And some have started coaching others to play it safe. Once that happens, you're not rebuilding. You're replacing. So what do you do? Don’t listen for noise. Listen for absence. Absence of challenge. Absence of stretch. Absence of belief. Ask yourself: When was the last time someone in the business pushed back? Not rudely, but bravely? When did someone offer an idea that made others uncomfortable? When did a leader admit they were unsure and ask for help? Those are your indicators. Because healthy culture isn’t silent. It’s alive. It vibrates with tension, disagreement, contribution and care. If everything looks fine, but no one’s really leaning in? That’s your problem. And by the time it shows up in the numbers,t might already be too late.