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1、The best performersorganize around four separatedevelopmentmissionsNew products andline extensionsrequire diferentprocesses anddiferentperformance metricsA common mistake:not setting prioritiesacross productgroups THE McKINSEY QUARTERLY 1997 NUMBER 2 91OVER THE PAST DECADE, many packaged goodscompan
2、ies have been able to increase theirearnings without substantially increasing theirunit volumes. They have achieved this by raising prices,improving productivity, cutting product costs, andsimplifying promotions. Meanwhile, most productdevelopment activity has focused on line extensionsrather than o
3、n new products. Unfortunately, thisapproach is now failing to deliver the expected pro ts.In the next few years, overall packaged food andbeverage sales are expected to grow by less than 2percent and most of this growth is likely to come fromnon-traditional food service channels. With food andbevera
4、ge expenditure virtually at, competition amongproducers is sure to intensify. We believe that successwill increasingly be determined by a player s ability toexpand sales through new product development andcommercialization. To test this belief, we conducted ajoint study with 13 packaged food and bev
5、eragecompanies to see how they go about developing andcommercializing new products, and how theirperformance compares (see text panel).Our research shows that most companies need to decidewhat role product development should play in achievingtheir overall business goals, and to set clear, output-ori
6、ented aspirations for product development andJohn Cook is a director and Pantelis Georgiadis is a consultant inMcKinsey s Chicago o ce. Copyright 1997 McKinsey &Company. All rights reserved.John D. CookPantelis A. Georgiadiscommercialization (PD&C). Once a company has established a clear objective,i
7、t should assess its level of performance in those dimensions that appear todistinguish the most capable companies from the rest, and incorporate provenbest practices into its product development approach. Our research revealedseven key lessons that could help companies build the capabilities they ne
8、ed torealize their aspirations:Lesson 1: Understand what capabilities drive PD&CperformanceOur research shows that strength in product development and commerciali-zation contributes to top-line growth (Exhibit 1), and that world-class PD&Ccan be recognized by excellence in nine key areas (Exhibit 2)
9、. However,PACKAGED GOODS: IT S TIME TO FOCUS ON PRODUCT DEVELOPMENT92 THE McKINSEY QUARTERLY 1997 NUMBER 2During 1996, McKinsey led an extensivebenchmarking effort with the seniormanagement teams of 20 US divisions of 13 leading food and beverage companies:Campbell, ConAgra, Frito-Lay, General Mills
10、,Heinz, Kraft, Nabisco, Nestl, Pepsi, Pillsbury,Quaker, Ralston-Purina, and Sara Lee. The objective of the project was to identifybest practices and key performanceimprovement levers in product developmentand commercialization. Each business wastypically represented by at least six managers:the pres
11、ident, the heads of marketing,product development, manufacturing, andfinance, a product development projectmanager, and in some cases representativesfrom sales and market research. The researchteam held one-to-one interviews with andsubmitted a questionnaire to a total of over130 general and senior
12、functional managers.All provided personal assessments of theircompanies capabilities and performance, aswell as supplying extensive functional data on PD&C inputs, throughput, and results.By combining this crossfunctional data with external comparisons of new productperformance from IRI, with other
13、McKinseyresearch on PD&C best practices in a range of industries, and with US consumer eatinghabits and expenditure trends, the researchteam was able to gain insights into thechallenges facing the industry and identifyoperating-level PD&C best practices.ABOUT THE RESEARCHExhibit 1Top-line growth by
14、capability groupPercent CAGR; group averages, 199195* Excludes effect of acquisitions and divestituresTotal internal growth* Growth relative to category2.16.34.62.52.11.6Top capabilityCRgroupMiddle capabilityCRgroupBottom capabilityCRgroupPACKAGED GOODS: IT S TIME TO FOCUS ON PRODUCT DEVELOPMENTTHE
15、McKINSEY QUARTERLY 1997 NUMBER 2 93Exhibit 2Nine capabilities that drive performanceCapability Low performance Medium performance High performanceClear role for HTPD&C within overall business strategyPD&C s role in the overall business strategy is not articulated or understood anywhere in the organi
16、zationPD&C s role in the overall business strategy is clearly articulated and understood at the top of the organizationPD&C s role in the overall business strategy is clearly articulated throughout the organization, and shapes day-to-day decision makingPersonal involvement of senior managementSenior management is detached from PD&C activities and decisionsSenior management provides broad direction and monitors top-level performance, but is not personally involved in key pr
