The State of Organizations 2023 - Flipbook - Page 26
CHAPTER 2: LESSONS FROM LEADERS
Listen with your head
and heart: How Mars
anchors on principles
and people
core is no longer relevant. We need to
build for communities, not for hierarchies.
Third, sustainability must be embedded
throughout the organization—not in
a single department, but as part of
everything we do.
We need to get all three of these
imperatives right. Nobody has all the
answers, but we can take meaningful
steps towards these objectives every
year, measure our progress, and hold
ourselves accountable.
Poul Weihrauch, CEO of Mars, Incorporated,
on prioritizing what matters and preparing
for the challenges of tomorrow.
W
ith more than 140,000
associates across 80
countries, Mars is one of
the largest privately-owned businesses
in the world. A global leader in pet care,
confectionery, and food, the company
attributes much of its success to its
enduring principles and forward-looking
purpose: “The world we want tomorrow
starts with how we do business today.”
We spoke with CEO Poul Weihrauch
about his commitment to the company’s
people, principles, and purpose—and
what executives need to get right to
compete in an increasingly volatile world.
What are the key ingredients to
Mars’ success?
I would say three main things: our focus
on people, our Five Principles, and both
the freedom and willingness to transform.
We have always been 100% committed
to all our people—from line managers to
top executives—and their development.
We call them Associates, not employees,
as the relationship is of a higher order.
Since joining the company more than
twenty years ago, I have had far more
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access to training and mentorship than I
have experienced at any other company.
It’s our core competency.
as needed. That empowers our
Associates to innovate, act, and grow in
service of our common goals.
Our Five Principles—Quality,
Responsibility, Mutuality, Efficiency, and
Freedom—are at the center of every
decision we make. Mutuality has been
a cornerstone of our company since
1947 when Forrest Mars Sr wrote that
the objective of a company is to create a
mutuality of benefits for a broad range
of different groups. Today, you would
call it a stakeholder approach. We care
deeply about creating value for our
customers, Associates, our owners
(the Mars Family), and the communities
in which we operate. It’s important to
me that I can stand before any group
of Mars Associates and share how
the Mars family is contributing to the
community and the planet.
What are the biggest challenges
and opportunities that you see in the
coming years?
Finally, as a privately-owned family
business, we have the freedom to shape
our future. Our owners take a long-term
perspective when it comes to investing in
our people and business—and they are
prepared to transform the organization
The State of Organizations 2023
Some things will continue to change
significantly— the geopolitical situation,
the technology landscape, workforce
demographics, as well as the state of our
planet. Other things will remain the same.
Humans will continue to seek connection
and meaning in their lives. Empathy will
matter more than ever, especially in an
increasingly polarized world. Businesses
must focus on its customers and
consumers—the minute you lose that,
you’re out of the game.
What does this mean for us? First, our
values and purpose must continue
to serve as our moral compass. We
could organize our company a hundred
different ways, but our purpose is what
tells us whether we’re moving in the right
direction. Second, the organization chart
of the 1850s that had hierarchy at its
Having led a successful transformation,
what advice would you give other
leaders who want to transform their
organization and operating model?
To start, the transformation must
be anchored in the purpose of the
organization. That purpose has to be
built on an intrinsic truth, not just a
slogan on the wall. For example, when
we transformed our pet care business,
we organized our operating model
around the purpose of creating a better
world for pets.
Next, I would ask CEOs, “Are you ready
to transform?” We sometimes delegate
transformations to HR or others, but
that doesn’t work. As a CEO, you must
personally lead transformation and be
willing to transform yourself. Only then will
the rest of the company follow your lead.
Poul
Weihrauch
CEO of Mars, Incorporated
I would also tell CEOs to listen to the next
generation. Listen with your head and
heart. During our pet care transformation,
we went a few levels down to our more
junior managers and asked them to share
their insights and help shape the future
organization. We asked them to travel the
world and visit the best run organizations.
One of the key ingredients they came
back with was purpose. The source of our
success sits within our own ranks.
Finally, I would advise organizing the
business around a set of very clear
assumptions, which provide a clear North
Star that does not change throughout
the transformation. Your people, your
customers, and your purpose should be
at the center of this and shine a light on
the transformation path ahead.
‘Businesses must focus
on its customers and
consumers—the minute
you lose that, you’re out
of the game.’
March 2023
More about
Poul Weihrauch became CEO of Mars,
Inc. in September 2022. In his more
than 20 years with the company, he has
worked across all business segments
and is known for his commitment to
associates and merging purpose and
sustainability into a strategy to drive
growth, performance, and positive
impact. Previously, as president of Mars
Petcare (from 2014 on), Poul led the
evolution of Mars, Inc. into a true pet
care company, making Mars the world’s
largest provider of veterinary services
and doubling the size of the business.
Before joining Mars, Inc., Poul worked
for Nestlé in various sales and marketing
positions in the Nordics and Belgium,
as well as confectionery for Africa,
Oceania, and Asia regions. He started
his career with Stimorol Chewing Gum in
his native Denmark and has since lived
and worked in six countries.
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