Marico, the Indian consumer-goods company I founded and still lead as chairman, was conceived around product innovation. I was a young man working at Bombay Oil Industries, the family firm that my father and grandfather had incorporated in 1948, which made and sold edible oils, oleo chemicals, and spice extracts in bulk.
This ethos helped me transform a small family-firm division with early annual sales of about $61,000 into an independent, professionally run, and publicly traded entity with dozens of leading brands and a market capitalization of more than $8 billion. More important, I believe I’ve created an organization where innovation will carry on long after I’ve retired.
That led to our next packaging innovation. Our tin containers weren’t very attractive or easy to use: You had to puncture the tin or cut open foil to get the oil out. I realized that plastic receptacles with spouts would be more aesthetically pleasing and make pouring easier. They would also cost less, allowing us to lower our prices while accruing extra profits to further invest in the brand.
I was also clear about the organization I wanted: one with decentralized decision-making and competent professionals filling the ranks from the top team to the front lines. I knew that my first Marico hire had to be an HR leader who would add credibility and value to our hiring strategy.
All the while, our product and packaging innovation continued apace. We launched Marico’s Hair & Care, a premium, lightly perfumed hair oil, and Revive, a cold-water-soluble instant fabric starch. To thwart Parachute counterfeiters, we introduced a pilfer-proof cap. For the Saffola brand we created a heart-shaped, easy-pour container; new blends; low-sodium table salt; and a high-fiber wheat flour mix.
Another relatively recent triumph came from innovation in our business model: selling services as well as products. Hair-removal clinics had become hugely popular in the United States and the UK, and we thought Indian consumers would flock to them. But we didn’t want to get into a business that could easily be copied and commoditized. So we began researching and prototyping an upscale, high-tech clinic that would offer an array of skin-care treatments.
ChiguireBipolar
Making decisions is only one aspect of successful leadership. By listening, levelling the playing field, and uniting people around a common goal, leaders can successfully build a culture that encourages innovation.
Creating multiple paths for innovation is what makes so many businesses naturals at business transformation efforts. Each path looks different, and it's up to business leaders to find what works for their company.