New thinking in short supply

In the next couple of years, retailers expect to have to come up with new ideas if they are going to achieve even modest growth.

But research among more than 60 retail chief executives and board members from around the world has identified that a skills gap is developing, with few senior executives having competency in innovation management.

The research was conducted by talent management consultancy Korn Ferry International into leadership talent issues. Korn Ferry Whitehead Mann senior client partner Sally Elliott says: “When you ask retail chief executives what are the skills they need to take the business forward a significant number talked about the need to create the new and different.”

This is certainly the experience of Kingfisher group chief executive Ian Cheshire, who contributed to the research. He told Retail Week: “We are looking for people who can keep pushing ideas in and delivering them.”

In late 2009 Kingfisher appointed Andy Wiggins as its group innovation director, which Cheshire says was necessary to ensure that innovation is delivered.

During the downturn, retailers have been operationally focused and are now at a point where it would be difficult to re-engineer their businesses any further. Even if there is only flat or modest growth, demand for innovation will be high.

Elliott says: “Staying one step ahead of the customer and differentiating your offer is critical. Leaders need to be able to innovate but our research shows that innovation management is one of the least prevalent skill sets in the executive population at large, and one of the hardest to develop.”

She adds exposure to roles leading organisational change, such as starting-up a new market or channel provides the opportunity for retail leaders to develop these skill sets.

Cheshire says Kingfisher wants to develop these skills in people within its business, but he recognises the need to add “new DNA to the mix”, with people from consulting and a consumer goods background moving into retail. Innovators need the kind of temperament where they can look five years ahead, he adds.

Leadership talent is a key part of delivering the business strategy and so is firmly a chief executive and board issue. “If you don’t have the leaders in place with the right skill sets to deliver the business plan, the plan doesn’t happen,” says Elliott.

She concludes: “One of the important things to retain leadership talent, is to tell people they are the future. There is no point telling someone they are high-potential at their leaving party.”

To download the full report visit

www.kornferryinstitute.com.