Reinforcing Corporate Governance in the FMCG Sector
Context
A leading FMCG company operating in the packaged food and salty snacks segment, holding the second-largest market share in its category, faced governance challenges including centralized decision-making, limited external strategic perspective, periodic reporting, and misalignment among family members on the long-term interconnectedness of business and family. The organization sought LOGIC’s support to establish an effective governance system through a tailored governance code and a comprehensive family constitution.
How LOGIC Supported
LOGIC delivered a structured governance engagement combining governance diagnostics, board design, control strengthening, and family governance institutionalization:
1. Governance Sustainability Assessment
We conducted a sustainability assessment using the LSI tool, identifying gaps across the organization, and developing improvement plans.
2. Board Design & Governance Code Development
We designed the Board of Directors composition, nominations, and dynamics, developed governance charters and an authority matrix, and delivered the company’s governance code.
3. Control Environment Strengthening
We established a strengthened “control” environment and developed a reporting tool for the board to support decision-making.
4. Family Constitution Formulation
We formulated the Family Constitution, including the family’s mission and vision, along with critical family policies such as hiring, exiting, and education.
The Impact
LOGIC’s intervention generated measurable governance maturity and organizational resilience through:
● Establishing a clear governance code that segregated authorities among stakeholders, fostering strategic discussion and decentralizing decision-making
● Activating the Internal Audit function and Audit Committee that strengthened the control environment and ensured operational security
● Delivering a Family Constitution that served as a key reference for family members and provided solutions to sensitive matters impacting business and family relations
Key Takeaway
Strong Governance Protects Both Performance and Legacy
In family-influenced businesses, long-term continuity depends on clear decision rights, independent oversight, and disciplined control. By institutionalizing governance structures and codifying family-business principles, organizations reduce reliance on individuals, strengthen accountability, and safeguard both enterprise value and family unity across generations.
