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      Article

      RGM Reset: Capabilities for a Competitive Edge

      RGM Reset: Capabilities for a Competitive Edge

      With AI as a force multiplier, our fully integrated approach helps you build a single, cohesive engine that turns complexity into clarity—and action.

      By Flavio Mologni and Marco Caldarelli

      • min read

      Article

      RGM Reset: Capabilities for a Competitive Edge

      The stability of the past two decades is over. With the resurgence of inflation, many organizations have found themselves unprepared for a new era—one in which inflation erodes consumer purchasing power and squeezes profit pools. Volumes have declined, even as consumer expectations continue to rise.

      Traditional revenue growth management (RGM) setups are no longer sufficient. Today’s environment demands faster, more effective decision making. This requires lean, cross-functional collaboration and minimal organizational complexity. RGM is no exception. As the chief commercial officer of a leading consumer products company noted, success comes when “the whole organization applies RGM actions without even realizing it.”

      Furthermore, for decades, consumer packaged goods companies (CPGs) have oscillated between two extremes: overly complex “black box” solutions that promise precision but lack scalability, and simplistic dashboards that achieve adoption but are too fragile to handle today’s dynamic market environment. The result? Costly systems that are abandoned shortly after implementation—often as soon as the consultants exit—or tools that persist without driving real growth. To be future-ready, CPGs must abandon this false choice. Their RGM approach must marry advanced analytical capability with a simple, accessible interface and full integration across planning, execution, and performance management.

      Our five-pillar framework

      Our next-generation approach to RGM is not a standalone initiative but a strategic capability that enables profit pool growth of a category and secures a fair share through excellent management of commercial investments. We help organizations rethink their RGM approach through five core capability pillars (see Figure 1).

      1. Operating model

      The RGM lead’s role is to drive alignment and decision making with profit and loss owners. This individual should sit in an established, commercially grounded function, with a direct line to the general manager. There are many options depending on operating model, but adding responsibilities to existing functions is better than creating new layers of complexity. This approach strengthens specialist retention, fosters cross-functional capability building, and lays the foundation for a true RGM mindset across the organization.

      2. Data and technology

      Teams should spend time acting on insights—not mining data. Our approach hinges on establishing a single source of truth, underpinned by an integrated data model and modular and scalable tech and agentic AI enabled solution.

      • Data first: A comprehensive data model is the foundation for any successful solution. In our experience, the majority of CPGs believe they are well set up on data only to realize too late that they are not. This typically leads to loss of traction and adoption of RGM solutions.
      • Human plus AI: The next frontier is agentic AI in service of RGM professionals—technology that doesn’t just crunch numbers but works for humans by engineering context, surfacing insights, and guiding decisions at speed so teams can act with confidence, impact, and unprecedented efficiency.
      • Build-and-buy approach: Off-the-shelf solutions rarely fit. The ideal approach strikes a balance between custom-built and pre-packaged tools—flexible and modular enough to be effective and adopted across geographies yet standardized enough for cost efficiency and speed.
      • Start simple, scale fast: Begin with what’s available to create immediate business impact. For example, instead of waiting for full promotion ROI models, equip teams with gross profit insights from sell-in data. Precision is often the enemy of speed. Many companies stall because of overly complex, perfectionist requirements.

      3. Workflow and KPIs

      Most organizations lack formalized and harmonized workflows and shared key performance indicators (KPIs) for commercial decision making involving RGM levers. This undermines cross-functional collaboration and reduces the effectiveness of technological solutions. After poor data models, the second most common reason RGM efforts fail is inconsistent workflows. We can help you establish clear decision rights, routines, and success metrics to unlock RGM’s full potential—building on (and not reinventing) your company’s culture and way of working.

      Figure 1
      RGM capabilities accelerate commercial performance and generate a competitive advantage

      Notes: KPIs stands for key performance indictors; CoE stands for Center of Excellence; RGM stands for revenue growth management

      Source: Bain & Company

      4. Approach and skills

      RGM’s true purpose is to grow the category profit pool. Success is achieved with the “triple win”: maximizing profitability for the manufacturer and the retailer, and increasing shopper penetration. To get there, we help your organization shift from siloed goals to a shared lens—combining sell-in, sell-out, and penetration data in every decision.

      The path forward doesn’t require starting from scratch but rather elevating existing capabilities with simple (but not simplistic) enhancements. Reinventing the wheel alienates teams; building on current strengths drives adoption.

      5. Change management

      Capability transformations often fall short—and RGM is no exception. Companies spend more than $370 billion globally each year on capability building, but only 10% of programs show measurable impact. We partner with you to map out a three- to-four-year journey with change management embedded from the start, not bolted on at the end. Four enablers make the difference:

      • Visible leadership: Senior leaders must actively champion the transformation.
      • Clear communication and feedback loops: Engage stakeholders continuously and listen to users to shape the evolution.
      • Targeted, practical training: Move from classroom learning to “learning by doing” with capability champions and real business use cases.
      • Value assurance: Track adoption and business outcomes in real time and align efforts with tangible performance improvements.

      What it takes to win

      When it comes to future-proofed RGM, only 5% of CPGs are getting it right. These leaders are forging a new path, leveraging the strengths of a broader ecosystem of business and technology partners, and applying hard-earned lessons from years of underwhelming RGM implementations. By guiding you through the five core pillars, we help you join their ranks and achieve sustainable-long term value creation.

      The time to start is now. Building a sustainable advantage takes time, but the path is clear:

      1. Design: Assess your current RGM maturity vs. CPG benchmarks, define your end-state, and outline the future RGM model across the five capability pillars.
      2. Implement: Set up RGM capabilities in pilot markets to create a globally scalable framework based on archetypes that are customized to local needs.
      3. Execute and expand: Deliver measurable results in pilots, then scale to key markets and categories.

      When in doubt, keep it simple 

      While a full RGM transformation involves many moving parts, the most important principle is this: Start small and build momentum. Focus on a few high-impact initiatives, integrate them into daily commercial routines, and get quick wins.

      We help you master the basics first, then deploy core capabilities at scale before adding complexity. With the right operating model, tools, and mindset, you can move from data paralysis to insight-driven action and unlock faster, more effective ways of working.

      In our experience across hundreds of RGM transformations, the results are compelling:

      10%+

      gross profit uplift

      21%

      increase in category profit pool

      10x

      return on investment

      The future of RGM isn’t a program. It’s how your business runs. And when done right, it becomes invisible, woven into the fabric of how your organization works every day. That’s when the magic happens.

       

      Authors
      • Headshot of Flavio Mologni
        Flavio Mologni
        Партнер, Milan
      • Headshot of Marco Caldarelli
        Marco Caldarelli
        Партнер, Milan
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