Micro-Innovation in FMCG: How Small Changes Can Lead to Big Wins

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.

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Why You Should Be Hiring Leaders Who Embrace Discomfort

By John Elliott • April 6, 2025

Comfort has become the silent killer of executive performance. In an era defined by disruption, volatility, and shrinking margins, too many leadership teams are still optimising for control, not adaptability. They talk about transformation, but build cultures of stability. They prize clarity, yet avoid the ambiguity where real growth lives. The problem isn’t capability. It’s discomfort intolerance. The solution? Start hiring and promoting leaders who deliberately seek discomfort—not just those who can tolerate it when it arrives. Growth Mindset Isn’t Enough Anymore You’ve heard the term "growth mindset" countless times. It’s become a leadership cliché. But it’s not wrong—it’s just incomplete. A growth mindset says, "I believe I can learn." Discomfort-driven leadership says, "I will actively seek out the hardest experiences because that’s where I’ll grow fastest." The distinction matters. Leaders with a growth mindset tend to thrive when external change forces them to adapt. But leaders who embrace discomfort create those conditions on purpose. They invite hard feedback. They question their own success. They take action before external pressure arrives. According to a 2023 study by Deloitte, only 22% of executives say their leadership team is “very prepared” for the future—despite record spending on transformation programmes (Deloitte Human Capital Trends, 2023). That gap exists because most teams are trained to manage change , not lead into uncertainty . Ask yourself: Are you hiring leaders who wait for disruption—or ones who walk towards it? Discomfort Is the Driver of Strategic Advantage Companies don’t fall behind because they make bad decisions. They fall behind because their leaders avoid the hard ones. In high-stakes industries like FMCG, where regulatory pressure, margin compression, and shifting consumer loyalty are accelerating, comfort is dangerous. It fosters: Short-termism Decision paralysis Lack of innovation Cultural stagnation McKinsey found that organisations with a strong tolerance for ambiguity—where leaders frequently challenge their own assumptions—are 2.4x more likely to be top-quartile performers on total shareholder returns (McKinsey & Company, 2022). In other words: embracing discomfort isn’t a trait—it’s a multiplier. Let’s take an example. When COVID hit, Lion Brewery—one of Australia's largest beer producers—was forced to rethink logistics and supply overnight. But smaller craft breweries who had already diversified through direct-to-consumer models adapted faster. Why? Their founders had already been operating in discomfort. They were trained for volatility. What Discomfort-Driven Leaders Actually Do Differently You can spot these leaders. They don’t always look like the most confident in the room—but they’re always the most effective in a storm. They: Seek feedback from critics, not fans Prioritise strategy over popularity Tackle underperformance head-on—even if it means conflict Ask hard questions that slow down groupthink Regularly step out of their functional lane to challenge assumptions They also act . Not rashly—but decisively. In a recent Australian Institute of Company Directors (AICD) survey, directors ranked “resilience and adaptability” as the #1 trait they now seek in new appointments—outranking experience for the first time (AICD, 2024). That’s not a trend. It’s a shift in what leadership now demands. The Real Cost of Hiring for Comfort Not hiring discomfort-driven leaders isn’t just a missed opportunity—it’s a risk. Here’s what it’s costing you: Strategic Drift: Without challenge, strategies become stale. Your team optimises yesterday’s model. Talent Exodus: Top performers disengage when they see leadership avoiding tough calls. Innovation Bottlenecks: Safe cultures don’t take smart risks. New ideas die in committee. Crisis Fragility: Leaders who haven’t been tested won’t perform when stakes are high. Bain & Company found that companies with decision-making cultures built around speed and tension—not consensus—were 95% more likely to deliver sustained value creation (Bain, 2023). Ask yourself: Is your executive team equipped for bold calls—or just built for calm waters? How to Identify Discomfort-Driven Leaders in Interviews Everyone talks a good game in interviews. But few have the scar tissue that comes from operating in real discomfort. The trick is to go beyond surface-level success stories. Here’s how: Ask Better Questions: “What’s the most uncomfortable decision you’ve made in the last 12 months—and how did it play out?” “Tell me about a time you got strong pushback from your team. What did you do?” “What’s a belief you held strongly that you’ve now abandoned?” “When have you chosen a path that was harder in the short term, but better long term?” Look for: Specificity (vagueness = theory, not lived experience) Self-awareness without self-promotion Signs of humility: they talk about learning, not just winning Evidence of risk-taking: role changes, cross-functional moves, or failed experiments Pro tip: Ask referees how the leader handles ambiguity. Not just performance. This will tell you more about how they lead under pressure. What to Do Now: Practical Actions for Executive Teams If you want to build a leadership culture of discomfort, you have to engineer it. It won’t happen organically in high-performing, risk-averse teams. Here’s how to start: Audit Your Current Team: When was the last time each leader took on something that scared them? Rethink Talent Criteria: Shift from stability and experience to adaptability and action under pressure. Redesign Development: Stretch your execs with ambiguous, cross-functional challenges—not just workshops. Model It at the Top: If the CEO isn’t embracing discomfort, no one else will. You don’t need to create chaos. You just need to stop insulating your leaders from discomfort—and start asking them to seek it. The Discomfort Dividend You can’t build a future-ready business with comfort-first leadership. The next generation of strategic advantage will come not from better processes or faster tech—but from bolder human decisions. From leaders who are willing to feel awkward, wrong, or out of their depth—because they know that’s where the value is. So next time you're hiring a leader, ask yourself: Are they looking for clarity—or ready to lead without it? Do they want the role—or are they ready for the risk that comes with it? Are they seeking comfort—or prepared to create discomfort for progress? Because in 2025, comfort is a luxury your business can’t afford .

Are You Hiring for Emotional Intelligence — or Emotional Avoidance?

By John Elliott • March 24, 2025

Emotional intelligence is one of the most valued traits in executive leadership today. It’s also one of the most misunderstood. In interviews, every candidate knows how to speak about empathy, collaboration, and “bringing people on the journey.” But when does that emotional intelligence start to look more like emotional avoidance? If you’re hiring into a senior role in consumer goods or food and beverage manufacturing, this distinction matters. Hiring someone who avoids hard conversations risks building a culture that performs around problems, not through them. The leaders delivering the best outcomes in 2025 understand how to build trust and rapport — without dodging the accountability that comes with real leadership. Emotional Intelligence: What It Gets Right In complex, fast-paced industries like FMCG and food production, leaders need more than technical expertise. They must influence, de-escalate tension, manage change, and build alignment across functions. That’s where emotional intelligence shines. High-EQ leaders are more likely to: Retain talent through strong, trust-based relationships Remain composed in high-stakes environments Reduce conflict through proactive, clear communication Drive psychological safety while still pushing for results The research backs this up. According to a 2024 EHL Insights report , emotionally intelligent leaders improve employee satisfaction, engagement, and collaboration — all essential in manufacturing settings where coordination between departments is critical. But there’s a fine line between emotional intelligence and emotional overcorrection. When Emotional Intelligence Becomes Emotional Avoidance The risk is subtle: leaders who over-index on empathy may begin to avoid the discomfort of conflict altogether. That looks like: Letting underperformance linger to “keep the peace” Over-relying on collaboration instead of making firm decisions Avoiding direct feedback Prioritising harmony at the expense of clarity A 2024 Forbes article described how emotionally avoidant leaders — despite good intentions — often undermine the very culture they’re trying to protect. Accountability erodes, decisions slow down, and high performers become disengaged. We’ve seen this play out in executive search mandates across the sector. On paper, a candidate may appear ideal: emotionally intelligent, highly personable, well-liked. But dig deeper, and a pattern emerges — reluctance to address performance issues, vague language around past team challenges, and a track record of avoiding direct confrontation. That’s not emotional intelligence. That’s fear, dressed as empathy. Emotional Intelligence Is a Must — But It’s Not the Full Picture More organisations are making emotional intelligence a key leadership trait in hiring — and for good reason. In high-change environments, emotionally intelligent leaders: Build trust across teams quickly Navigate transformation without losing people along the way Stay composed under pressure Handle interpersonal complexity with clarity But some of the most costly mis-hires we see come from leaders who present as highly empathetic, but struggle to lead through tension. Not because they lack EQ — but because they confuse it with keeping everyone comfortable. The difference? The leaders delivering the best outcomes in 2024 and 2025 are doing both: Holding people accountable while building engagement Delivering hard feedback without defensiveness Balancing calm with courage These are the leaders who retain high performers, protect standards, and still earn trust across the business. Hiring Outcomes Are Better When EQ Is Tested in Context The most effective hiring processes we’re seeing in the market today aren’t just asking, “Is this leader emotionally intelligent?” They’re asking: Can this person hold accountability and empathy at the same time? Have they delivered under pressure without letting performance slide? Do they create safe cultures that are also high-performing? The difference in outcomes is clear: More resilient leadership teams Better cultural fit Fewer surprises post-placement What to Look for in Executive Interviews Hiring emotionally intelligent leaders isn’t just about what they say — it’s about how they’ve acted in real moments of challenge. The most effective hiring panels are getting beyond rehearsed narratives by asking sharper questions: To probe real emotional intelligence: “Tell me about a time you had to lead a team through a change that wasn’t popular.” “How do you approach a conversation when someone on your team is underperforming?” “Describe a time you disagreed with your CEO or board. What did you do?” Watch for signals: Are they clear and specific, or vague and diplomatic? Do they show respect and resolve? Do they accept responsibility, or redirect it elsewhere? In reference checks, ask: “How did they manage pressure or uncertainty?” “Were they able to deliver difficult feedback directly?” “Did they avoid difficult decisions in the name of team cohesion?” When emotional intelligence is genuine, it shows up in results — not just relationships. Why This Matters Now Organisations in the consumer goods and food manufacturing sectors are undergoing constant disruption — from digitisation to regulatory shifts to cost pressures. In this environment, leadership soft skills aren’t optional. But it’s not enough to hire likeable leaders. The ones delivering real impact are those who bring empathy and edge. They’re able to sit with discomfort, hold the mirror up, and still bring people with them. That’s what true emotional intelligence looks like in 2025. So when you’re hiring your next senior leader, don’t just ask if they care. Ask if they can care and confront — with courage, with clarity, and with conviction. Because your culture doesn’t need more harmony. It needs more truth.

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