To be nominated as an Australian executive of the year is high praise for any company leader. To win puts you in a class of your own. In the competitive manufacturing sector, it was CEO of packaging distribution company Orora, Nigel Garrard, who stood out.
Garrard not only won 'Manufacturing Executive of the Year' he also achieved Highly Commended in the overall CEO of the Year awards, alongside runner up Christine Holgate, CEO of Blackmores and winner, Stephen Cornelissen, Group CEO of Mercy Health.
PKN caught up with Garrard shortly after the announcement. For those in the industry who know him, it will come as no surprise that Garrard attributes his win not to any particular personal achievement, but rather to the people at Orora who have worked to create a company culture focused on the customer and on innovation since the company gained independence from Amcor in 2013.
ON WINNING
“No one person can achieve this on their own,” Garrard said. “This is recognition for the entire company; for our brand and for our business.”
At the awards ceremony held in Sydney on 24 November, The CEO Magazine acknowledged Garrard's leadership in rolling out an app across the organisation for team members to share news and interact across state and country borders, demonstrating the value the company puts in the voices of its team members.
Garrard told PKN the idea for the app came from his children, who told him “no-one uses email any more”, and that he needed to find a more contemporary way of communicating.
So Garrard took the idea to his team. The app was developed internally and rolled out with huge success, enabling everyone in Orora to know what's going on in the business in real time, sharing photos, videos and information. The app has now been further developed to give any interested external parties access.
“This is a great example of the level of innovation that we're driving through the business,” Garrard said.
“We've also recently implemented a crowd-sourcing initiative, inviting employees to come up with ideas for improving the business and driving innovation. In three weeks we had over 1500 ideas, proving what a rich resource we have in the Orora people, and how everyone has truly bought into our culture of innovation.”
ON ACHIEVEMENTS
Asked what achievement in 2016 he is most proud of, Garrard responded: “Apart from the obvious financial performance measures, I have three.
“The first is the way we have stepped up or focus on innovation [the company announced a group-wide $45m innovation fund earlier this year].
“The second is the preparedness of Orora people to take risks and think outside the box.
“And the third is the significant improvement in our feedback from customers, which we measure through our regular customer engagement survey.”
ON CHALLENGES
Commenting on challenges facing the Australian manufacturing and packaging industry as a whole, Garrard said the continuing increase in energy prices is one of the biggest cost pressures to the business and its customers' businesses. He said the company would have to start looking at alternative energy sources.
Another challenge for Australian manufacturers, he says, is to establish where the most appropriate place is for growth to continue; where the most profitable growth will come from.
“This means we have to look at our business differently, and see where we can best create competitive advantage, for ourselves and for our customers. It requires a targeted approach. You can no longer be all things to all people.”
He cites the fruit and produce market as an example. “This is not a homogenous market, you can't adopt a one-size-fits-all approach. The diversity of products and end use markets demands a diversity of pack sizes, shelf-life and temperature and moisture control, to mention just a few requirements.”
Orora's recent investment in X-Sense cold chain monitoring technology, is an example of how the company is meeting market requirements with a differentiating solution, giving both Orora and its customers a competitive advantage.
ON TRENDS
Commenting on consumer trends that will be driving growth for the packaging business, Garrard says there are two key trends: demand for convenience products such as prepared-or semi-prepared meals, and the shift to smaller pack sizes as consumers seek both portion control and product diversity, and the spread of offerings in-store continues to expand.
ON PLANS
What's next on the drawing board for Orora – innovation, investment, acquisition? Well, all of the above, says Garrard.
“Our focus on innovation will continue with the backing of our innovation fund, and you can also expect further expansion in the North American market, where we have a relatively small share of a fragmented sector, so we can help drive consolidation in that market."
On the local business operations, he said: “I always maintain that if you're going to manufacture in Australia and New Zealand you must continue to invest in manufacturing technology in Australia and New Zealand, so there will be further plant investment and manufacturing efficiency improvements in store.”
