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HOW DIAGEO CHANGED ITS CULTURE--AND YOU CAN, TOO Schultz, E J . Advertising Age ; Chicago Vol. 87, Iss. 22, (Nov 14, 2016): n/a. ProQuest document link ABSTRACT DURING HIS FIRST TWO months as Diageo's North American chief marketing and innovation officer, James Thompson counted every single presentation slide he was exposed to in meetings.

The final tally was 12,000, which to him was way too many. FULL TEXT DURING HIS FIRST TWO months as Diageo's North American chief marketing and innovation officer, James Thompson counted every single presentation slide he was exposed to in meetings. The final tally was 12,000, which to him was way too many. "It stops conversation. It makes people feel secure they've communicated what they wanted to.

But, in fact, it doesn't move anything on," he said. So he has instituted a PowerPoint ban in some meetings. "Just talk to me, please" is his plea. His goal is to ensure his marketing team is "not totally buttoned-up all the time," he said. "We just want people to be at their best, and that is usually when they are able to think and respond and build rather than sell." It is one of the many cultural changes Mr.

Thompson has instilled since August 2015, when he became CMO at Diageo, the marketer of brands including Smirnoff, Johnnie Walker, Cà®roc vodka and Don Julio tequila. Mr. Thompson is hardly an outsider. He joined Diageo in 1994 from Unilever and has held multiple roles at the company, including six years as CMO for Asia-Pacific. But when he took the North American role, he realized changes needed to be made, including recruiting new and more diverse talent into Diageo's marketing department.

When he arrived, "it was frustratingly difficult to attract great talent to come want to join us," he said. "Not only had we had a difficult couple of years, which were well publicized, we hadn't created in those couple of years the sort of marketing or innovation that spans out and people go, 'Wow, I really want to work for that organization.'" But by looking outside of Diageo's historical recruiting pipeline of MBA programs and other spirits companies, Mr. Thompson has been able to assemble a new team, including recently luring some high-profile talent. Of the roughly 100 people on the marketing team, all are either new to Diageo or have moved into a new role in the past year, he said. "I've got nothing against MBA programs," Mr.

Thompson said. But Diageo's recruiting strategy had "too much conformity to a single source of talent where people came into the organization in a very conventional way and worked their way up in a very conventional way. And that didn't seem to reflect our consumer base." Campaigns emerging from Mr. Thompson's new team include a Spanish-language spot for Buchanan's whisky that got general-market airplay during the World Series. In June, Smirnoff broadcast a same-sex wedding on Facebook Live from a Las Vegas electronic dance music festival.

And last week as election news spiked, Johnnie Walker drew headlines when it debuted an ad called "Keep Walking, America" that set a reading of Woody Guthrie's classic folk tune "This Land Is Your Land" against scenes of hardworking modern citizens. The changes appear to be working. In a report to investors last month, CLSA noted that while Diageo's U.S. share of spirits remains "pressured by newer brands like Tito's vodka and Fireball liqueur," organic sales grew 3% in the year through June, turnabout from a 2% decline the year prior. In July, Diageo lured former Procter &Gamble marketer Vince Hudson from Samsung, where he had been VP-U.S. marketing and mobile business unit. He is now global brand director for Smirnoff vodka.

Another former P&G marketer, Jay Sethi, joined the liquor marketer several months ago as VP of Smirnoff. Then in September, Diageo made a splash with its hire of Sophie Kelly, the former CEO of digital agency the Barbarian Group, as senior VP-marketing for whiskey brands in North America. Her arrival marked a shift for Diageo, which had traditionally shied away from hiring agency executives for top roles because there had "been a suspicion that they might have only been able to do half the job," Mr. Thompson said. But "we asked her to come and help lead a complete change in how we do marketing and the culture of our marketing department--a culture which is more entrepreneurial, more experimental, does not fear failure," he said.

Mr. Thompson has also stripped away layers of bureaucracy, saying "nobody is more than three reports away from me." He asked brand leaders to earmark 5% of their budgets for marketing experimentation. "As long as they learn, they can fail as much as they like," he said, adding that "I've been quite open in talking about my own failures." Sarah Van Dyck, a consultant with executive search firm Egon Zehnder, which has placed candidates at Diageo, said the company has sought marketers that have a "general manager mindset, as opposed to marketing as a creator of creative assets." When interviewing, Diageo ensures that at least one candidate is a woman or is ethnically diverse, and the company makes certain that at least one interviewer has those same traits.

Mr. Thompson says he is involved in every new hire. He puts a premium on curiosity, looking for people "who are open to the world, who are interested in things and don't have to be right all the time." DETAILS Subject: Marketing; Liquor industry; Meetings People: Thompson, James Company / organization: Name: Diageo North America Inc; NAICS: 312140 Publication title: Advertising Age; Chicago Volume: 87 Issue: 22 Publication year: 2016 Publication date: Nov 14, 2016 Publisher: Crain Communications, Incorporated Place of publication: Chicago Country of publication: United States, Chicago LINKS Check for full text in other resources Publication subject: Advertising And Public Relations, Business And Economics--Marketing And Purchasing ISSN: CODEN: ADVAAQ Source type: Trade Journals Language of publication: English Document type: Feature ProQuest document ID: Document URL: Last updated: Database: ProQuest Central Bibliography Citation style: APA 6th - American Psychological Association, 6th Edition Schultz, E. (2016).

HOW DIAGEO CHANGED ITS CULTURE--AND YOU CAN, TOO. Advertising Age, 87(22), 34-n/a. Retrieved from Terms and Conditions Contact ProQuest HOW DIAGEO CHANGED ITS CULTURE--AND YOU CAN, TOO Bibliography

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How Diageo Changed Its Culture and How You Can Too
In recent years, Diageo, a prominent player within the spirits market, has adopted a series of innovative approaches to change its corporate culture. With James Thompson at the forefront as North America's Chief Marketing Officer (CMO), the organization has embraced significant transformations that modern companies can learn from (Schultz, 2016). In this assignment, we will explore how Diageo's cultural overhaul can serve as a blueprint for other organizations aiming to adapt to contemporary business challenges.

Understanding the Need for Cultural Change

When James Thompson joined Diageo as CMO, he recognized an urgent need to modernize the company’s marketing approach. Initial observations revealed a heavy reliance on traditional presentation methods, with an astonishing count of 12,000 presentation slides in just two months of meetings (Schultz, 2016). This culture discouraged open conversations and innovative thinking, leaving employees feeling secure without actually fostering communication or progress. Easy solutions were not sustainable; rather, a cultural shift was necessary to encourage creativity and adaptability.

Banning PowerPoint Presentations

One of Thompson's first actionable changes was instituting a ban on PowerPoint presentations in select meetings, pushing for more direct communication (Schultz, 2016). This move aimed to promote discussion and collaboration rather than stifle them with rigid, formulaic presentations. Organizations can benefit from understanding that simplicity and transparency in communication are keys to fostering a more productive environment. Encouraging direct conversations can not only improve team dynamics but also stimulate innovative ideas.

Recruitment for Diversity and Innovation

Recruiting diverse talent was another critical aspect of Thompson's strategy. Historically, Diageo sourced talent predominantly from MBA programs and similar backgrounds, which limited their scope of innovation (Schultz, 2016). By prioritizing inclusivity and diversity, Diageo aimed to build a marketing team reflective of its diverse consumer base. Research supports the notion that diversity leads to better problem-solving and greater creativity (Page, 2007). Organizations should consider broadening their talent acquisition strategies by looking beyond conventional pathways.

Embracing Failure as a Learning Tool

Thompson changed not just who was hired but the mindset of the existing workforce towards innovation. He encouraged employees to earmark a portion of their budget for marketing experimentation, advocating that as long as they learn from failures, they should not fear them (Schultz, 2016). This idea aligns with the principle that innovation often stems from trial and error (Kelley & Kelley, 2012). Organizations can establish a culture where failure is not penalized but embraced as a means of learning and growth, which is particularly crucial in fast-evolving industries.

Empowering Employees

Instructing his team that no individual should be more than three reports away from him streamlined communication and empowered employees (Schultz, 2016). Similar structures can benefit companies that traditionally have multiple bureaucratic layers, which often create information silos and inhibit agility. This approach not only enhances collaboration but also fosters a sense of ownership among employees; they feel their voices can contribute meaningfully to decision-making processes.

Fostering a General Manager Mindset

Sarah Van Dyck from Egon Zehnder pointed out that Diageo sought marketers with a "general manager mindset" instead of just traditional marketing skills (Schultz, 2016). Such an approach resonates highly with modern organizational structures, where interdisciplinary collaboration plays a significant role in success. Companies should focus on recruiting individuals who possess a broad understanding of business, enhancing the synergies between departments, and creating a more dynamic work environment.

Involving Leadership in Hiring

Thompson has also made significant strides by directly involving himself in new hires, emphasizing curiosity and an eagerness to learn (Schultz, 2016). This hands-on approach from leadership fosters greater investment in the company culture and reinforces the characteristics they wish to instill in their teams. Leadership should strive to take an active role in hiring decisions, aligning new talent with the core values and mission of the organization.

Changing Perceptions of Marketing

Under Thompson's leadership, Diageo has embrace modern marketing tactics, including the use of social media for brand storytelling and campaign launches (Schultz, 2016). By adapting to the changing landscape of digital marketing and consumer engagement, Diageo has set itself apart from competitors. Organizations should recognize the importance of agility in adopting new marketing strategies that resonate with current audiences.

Conclusion

The cultural shift within Diageo under James Thompson has shown significant promise in revitalizing its marketing approach, ultimately leading to growth and renewed interest from consumers. By banning conventional presentation styles, recruiting diverse talent, embracing failure, empowering employees, adopting a general manager mindset, involving leadership in hiring, and changing perceptions of marketing, Diageo has become a relevant and innovative brand in the spirits market. Other organizations can learn valuable lessons from Diageo’s transformation, embracing similar strategies in pursuit of cultivating a culture of innovation and adaptability.

References

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2. Page, S. E. (2007). The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Princeton University Press.
3. Schultz, E. J. (2016). How Diageo Changed Its Culture – And You Can, Too. Advertising Age, 87(22), 34-n/a. Retrieved from ProQuest.
4. Diageo. (2021). Annual Report. Retrieved from Diageo's official website.
5. Harvard Business Review. (2016). Why Diverse Teams Are Smarter. Retrieved from Harvard Business Publishing.
6. Forbes. (2019). The Importance of Diversity in Talent Acquisition. Retrieved from Forbes Online.
7. McKinsey & Company. (2018). Delivering Through Diversity. Retrieved from McKinsey's official site.
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10. HBR. (2014). The Innovative Power of Collaborative Teams. Retrieved from Harvard Business Review site.
This comprehensive exploration of Diageo's cultural change provides actionable insights for any organization aiming to adapt and thrive in today's dynamic business environment.