Unilever's New CEO Revamps Leadership with Rigorous Changes at the Top: 'We Are Done Tolerating Mediocrity'

The trend isn't exclusive to tech firms—leading consumer brands are making bold moves too.

Fernando Fernandez, the newly appointed CEO of Unilever, is radically altering the company's upper management, potentially revitalizing as much as 25% of its top 200 executives.

Speaking at the Barclays Global Consumer Staples Conference on Wednesday, Fernandez revealed that leadership assessments are being conducted individually to evaluate their adequacy: 'Do they meet the standards Unilever demands?'

This multinational company, known for its wide array of products from Dove to Vaseline and Ben & Jerry's, has already trimmed around 18% of its salaried staff over the past year and a half, according to Fernandez. This initiative is part of their focus on 'ensuring accountability.'

These reductions are occurring alongside a strategic overhaul, transitioning from a locally-based framework to a category-centered one. This means overseeing brands and items as complete business entities, rather than segmenting them according to regional markets.

Having previously been the CFO, Fernandez stepped into the CEO role in March, identifying numerous areas within Unilever that he describes as 'mediocre,' necessitating urgent action.

A Culture of Accountability

Fernandez stated, 'There is now unequivocal responsibility within the company. With four business group presidents and 44 profit and loss units, I have direct access to their contacts. No one can go unnoticed.'

Fernandez asserts that reducing the decision-making body will foster quicker decision-making, even with incomplete information, requiring leaders to embrace risks more readily.

Accelerating Decisions in a Competitive Market

'We make choices with 70% certainty,' explained Fernandez. 'If you wait for 90% or even total certainty, you've missed the boat. In the fast-paced world of consumer goods, delays are unacceptable.'

This shift mirrors a trend seen across many sectors, with CEOs like Amazon's Andy Jassy, Meta's Mark Zuckerberg, and AT&T's John Stankey demanding greater dedication and superior outcomes from their workforce.

Jassy remarked earlier this year, 'We aim to run the most substantial startup ever at our scale—an unprecedented challenge, yet achievable.'

Innovation and Incentivization

Amazon has introduced a 'bureaucracy mailbox' for staff to voice concerns about redundant procedures, claiming this tool has prompted 375 process improvements.

Likewise, Fernandez emphasizes offering motivation alongside discipline.

Unilever is actively recruiting and advancing new talent, enhancing performance-related rewards up to 200%, and offering 'hard currency' incentives.

'Our goal is cultivating a winning culture, where substantial incentives for leadership are a reality, ensuring Unilever never reverts to a closed-off operation,' Fernandez affirmed.