The Bouillon Soup Lesson: You Cannot Innovate Alone

It is often in the commencement of one’s career that simple mistakes are made. Whether it’s a result of inexperience, blinding enthusiasm or fearlessness doesn’t really matter, as long as the lesson learned serves you, and others, well. Gijs van Wulfen shares a constructive experience from his first innovation position.

My first innovation job after graduating was as a marketer of dried soups, at the Dutch market leader called Honig. We sold around 50 million consumer packages per year. Not bad for a country with only 16 million people. Honig had a market share of more than sixty percent. There was only one problem. The dried soups market was not growing anymore.

As ‘new kid on the block’, I was invited to give fresh input on the marketing and innovation strategy. Together with the senior managers we were out in the market discovering customer insights on how people use our soups, researching consumer trends, investigating what competitors like Unilever and Knorr were working on and looking into new technologies. We concluded our present market would not be able to generate growth. So we knew we had to innovate and do something really different. This was in the era that the microwave hit Europe, end of the eighties. A lot of colleague food producers were innovating in fresh chilled or refrigerated foods, which could be prepared in the microwave in seconds. And we had to be part of this we believed.

Next to being involved in strategy, senior management gave me a hands-on innovation assignment. Increase the long term sales of the worst selling soup item in our assortment. It was on place 54: The ‘vermicelli bouillon soup’, which sold 750.000 packages per year. It’s a clear soup with lots of vermicelli, which is a kind of old-fashioned spaghetti type soup pasta. Studying the world of bouillons, one thing struck me. Clear bouillon blocks were a success. Clear drink bouillons were a success. And our Bouillon filled with vermicelli not. Why didn’t we get rid of the vermicelli? And that’s exactly what we did. We re-launched the soup as the first clear bouillon soup. And what happened? Sales doubled within 1 year to 1.5 million packages and margins rose by 50 percent because we saved the costs of producing vermicelli and the packaging costs of it.

You need an awful lot of colleagues and bosses to share your vision before a big change will really happen.

Meanwhile we discussed our strategic chilled soups plan with our colleagues of R&D, logistics and production on a middle management level. They did not like our intention to take Honig into ready-made wet soups. We didn’t have the recipe expertise nor the R&D capabilities. And we had not any clue of chilled logistics, which would be necessary to get it into the supermarkets. We thought our colleagues were fools resisting change, as always! And decided to take our plans up to the top, getting a two hour time slot in the board room of Honig. We presented our chilled soups plan outside in. We showed the board all the consumer food trends and growth figures of microwave products in the world. We even gave a demonstration of fresh chilled competitive products from the microwave and let them taste. The board was really enthusiastic, until the moment we discussed the business case. This was only going to be profitable after five years in the most optimistic scenario. Both the costs and risks were huge because we had to start a chilled soups factory. And I will never forget the sentence the CEO spoke to me to finalise the strategic innovation discussion: “Gijs, without any risk you doubled profits with our 54th taste of dried soup. Innovate the 53rd and you realise more profits than with chilled soups the coming five to ten years”… And that’s what Honig did. It stayed a very successful market leader in dried soups and never diversified into other soup categories. Fifteen years later H.J. Heinz bought the brand.

The wise lesson I learned as a young marketer is that in an organisation is you cannot innovate alone. You need an awful lot of colleagues and bosses to share your vision before a big change will really happen. So you have to wait for the right moment, because you can only launch a proposal once for the 1st time. Look for moments when there’s a sense of urgency at the middle and top management to do something different. And you have to let them discover themselves which different paths are possible, can be developed, and are realistic to be chosen.  This practical wisdom I used twenty years later as on of the fundamentals of the FORTH innovation method, which I developed to ideate innovative products, services and business models.

If you want to be effective as innovator, do not make my mistake. Remember the bouillon soup lesson: you cannot innovate alone. Look for the right moment to involve top management.

By Gijs van Wulfen

About the author:

Gijs van Wulfen (The Netherlands, 1960) is the founder of the FORTH innovation method. FORTH is an effective and structured method for ideating innovative products and services. The method is published in his inspiring and practical book Creating Innovative Products and Services’ (Gower, 2011).

He helps organisations to kick start innovation by facilitating the FORTH innovation method and advising companies on their innovation strategy, process and organisation. His clients are international companies in industry and services, as well as non-profit organisations in government and health. Gijs also trains facilitators in his method. His dream is to make FORTH the most used method for the front end of innovation around the world.

Gijs is a both presenter and chairman at several (international) innovation conferences, like the ISPIM Conferences and the European Conference on Creativity and Innovation. He is also founder of the yearly Dutch Innovation Conference on creating new products: ‘Nieuwe Producten Bedenken’.
  • http://havemind-willinnovate.blogspot.in/ Pankaj Vora

    Having common sharing of all stakeholders is absolutely essential before you can make any attempts to innovation is our last ten years experience for sure. You are dead right on this…

    You can grow by adding resources and that is easy part, removing resources and growing that is sure innovation, yet difficult as you need to have all stakeholders common sharing to make it success.

  • Ijones9

    Not everything has to been seen at eye to eye to begin with. Speak your mind and be honest and discuss the issue.  Leaving your thoughts until the end might all of it been at the very beginning.

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