$240 Billion Food CEO: Here’s My Difficult Management Rule

Nestlé has been around for 160 years. The company’s CEO, Philipp Navratil, joined in 2001 and held various positions at the $240 billion food and drink giant before taking the top job last year.

Now Navratil is offering a sneak peek into his leadership style. According to a recent report from Business Insider, the CEO changed how he managed direct reports early in his career after realizing that he needed to give candid feedback. 

Overseeing the company behind dozens of billion-dollar brands, including Gerber and KitKat, requires difficult conversations behind closed doors. But for Navratil, delivering feedback didn’t come naturally. He struggled to tell employees when their work wasn’t meeting expectations. He wasn’t able to go beyond encouragement and clearly explain where they needed to improve.

“It’s easy to tell someone ‘Great job, well done,’” Navratil said in an interview with Business Insider. 

He said the real test of leadership comes when performance slips and a manager has to address it. Navratil tries to be “as direct as possible” in those conversations, leaving little room for confusion about what isn’t working.

He said that softening the message too much may result in employees walking away without understanding the problem or recognizing that something needs to change. 

“It’s much more valuable for them to receive it that way because it’s clear,” Navratil said.

He now views feedback as an integral part of a leader’s job because it’s an opportunity to strengthen the business while helping employees develop. 

The conversation starts with Navratil pointing out where someone is falling short. After explaining the problem, he devotes more time to what comes next: how the employee can improve and the support he can provide. The goal is to make the issue clear, then give the person a practical way forward.

Navratil also shared with Business Insider how workers can respond to candid feedback and get promoted. He said several traits set overperforming employees apart from the rest. 

The first quality is curiosity, or a willingness to keep building knowledge. That could mean learning a skill on their own or turning to colleagues, managers and mentors for advice on what to do next. 

Reaching the top hasn’t stopped Navratil from learning from people earlier in their careers. He said a junior colleague now serves as his “reverse-mentor,” teaching him how to program AI agents.

Navratil’s commitment to learning stretches back to his years as a Nestlé sales representative in Panama, where he worked from 2005 to 2009. During that period, he recognized that he had grown too comfortable in his job. His manager urged him to take a different role and go beyond familiar work, and he did. 

Navratil said another trait that gets employees promoted is drive, or the determination to improve things rather than simply do the job as it stands. An employee who is eager to make a difference has a better chance of success than someone with the right skills but little motivation. 

“Humbleness, be hungry, and be curious,” Navratil said. “Just keep learning every day.”

Nestlé has been around for 160 years. The company’s CEO, Philipp Navratil, joined in 2001 and held various positions at the $240 billion food and drink giant before taking the top job last year.

Now Navratil is offering a sneak peek into his leadership style. According to a recent report from Business Insider, the CEO changed how he managed direct reports early in his career after realizing that he needed to give candid feedback. 

Overseeing the company behind dozens of billion-dollar brands, including Gerber and KitKat, requires difficult conversations behind closed doors. But for Navratil, delivering feedback didn’t come naturally. He struggled to tell employees when their work wasn’t meeting expectations. He wasn’t able to go beyond encouragement and clearly explain where they needed to improve.