Mergers and acquisitions in the poultry processing industry require careful assessment of innovation maturity to ensure success. This model provides a framework for evaluating an organization’s innovation capabilities across five levels, guiding strategic decisions and integration planning.
In rapidly consolidating global protein markets, poultry processors pursue M&A to gain scale, optimize production, and increase market access. However, clashing corporate cultures, disruptive changes, and lack of innovation focus often derail integration. By benchmarking innovation maturity pre-deal, companies can devise customized roadmaps to capture synergies, empower talent, and spur growth.
Specialist roles benefiting include:
- VP of Innovation
- Head of R&D
- Director of New Product Development
- Head of Digital Transformation
- Chief Technology Officer
- VP of Business Development
- VP of Strategy
- VP of Supply Chain
- VP of Sustainability
- VP of Brand Marketing
Underlying Principles for Poultry Industry M&A Innovation Maturity
This Maturity Model is driven by five core principles:
- Innovation culture – Fostering an agile, creative, and empowered workforce
- Technology adoption – Integrating advanced solutions across operations
- Collaboration – Internal and external partnerships driving co-creation
- Consumer centricity – Aligning innovation with emerging consumer needs
- Sustainability – Embedding social and environmental stewardship into innovation
Example Model for Poultry Industry M&A Innovation Maturity
| Maturity Level | Description |
|---|---|
| Level 5: Cutting Edge | Globally recognized industry leader in innovation. Widely empowers breakthrough solutions and rapidly scales impact. |
| Level 4: Advanced | Strategic focus on innovation investment. Agile processes enable experimentation and commercialization. |
| Level 3: Developing | Building innovation capabilities and infrastructure. Piloting projects to prove value and build momentum. |
| Level 2: Basic | Ad hoc innovation efforts. Lacks organizational structures or strategic alignment. |
| Level 1: Initial | Minimal innovation investment or activities. |
Level 1: Initial
Assessment Criteria
- No formal innovation function, strategy or budget
- Minimal R&D investment (<0.5% of revenue)
- No pipeline of innovative products/solutions
Progressive Elements
At this level, poultry processors lack internal innovation capabilities and external partnerships. Developing a strategy, allocating resources, and launching foundational initiatives are critical first steps.
Suggested Benchmarks / Metrics
- R&D spending as % revenue (R&D Spend / Total Revenue) Example: Company A spends $2 million on R&D with $500 million in revenue = 0.4%
- Pipeline projects (# of innovation projects under development) Example: Company B has 2 new product prototypes underway
- Strategic partnerships (# of research institutions/startups engaged) Example: Company C partners with 2 universities on automation research
Action Plan
- Appoint innovation leadership
- Conduct landscape analysis of opportunities
- Define innovation strategy and start budget
- Begin building partnerships and piloting projects
- Establish governance model and simple processes
Level 2: Basic
Assessment Criteria
- Small innovation team and budget (<2% revenue)
- Minimal structure or strategic alignment
- Few successful innovations annually
Progressive Elements
At this level, building organizational muscle and strategic focus is key. Developing talent, streamlining governance, and commercializing successfully are critical steps forward.
Suggested Benchmarks / Metrics
- Innovation ROI
(Revenue from new products/services launched in past 3 years / Innovation Spend in past 3 years) Example: Company D generated $20M revenue from new products while spending $10M over 3 years = 2.0x ROI - New Product Success Rate (# Successful launches / # Attempted launches in past year)
Example: Company E launched 2 successful new products from 5 attempts last year = 40% success rate - Innovation Employee Engagement Score (Annual innovation survey results on 5-point scale) Example: Company F received a 3.8/5 employee engagement score on innovation
Action Plan
- Structure innovation team with clear roles
- Build Stage-Gate product development process
- Develop innovation skills training
- Set targets for innovation metrics
- Increase strategic partnerships
- Incentivize employee idea generation
Level 3: Developing
Assessment Criteria
- Dedicated innovation team and budget (2-5% revenue)
- Stage-Gate product development process
- Cross-functional input into innovation strategy
- Digital strategy to enhance innovation
Progressive Elements
At this level, building digital capabilities and analytics to strengthen innovation is critical. A stage-gate process enables greater structure and rigor to drive pipeline velocity and quality.
Suggested Benchmarks / Metrics
- Time-to-Market (Average time from concept to launch for new products) Example: Company G takes 11 months on average to launch new products
- Digital Adoption Score (% of information and processes digitized across the business) Example: Company H has digitized 45% of its operations
- Open Innovation Contribution
(% of product launches with external partner contribution) Example: 60% of Company I’s new products involved partners
Action Plan
- Develop innovation analytics and digital systems
- Train employees on innovation methods/tools
- Refine Stage-Gate process with faster iteration
- Incentivize open innovation and partnering
- Increase focus on consumer needs and trends
Level 4: Advanced
Assessment Criteria
- Large innovation budget (5-10%+ revenue)
- Agile product development with rapid prototyping
- Dedicated digital and analytics teams
- C-suite leadership driving innovation strategy
Progressive Elements
At this level, building a culture of experimentation and agile development is crucial. Innovation is firmly embedded into corporate strategy and priorities.
Suggested Benchmarks / Metrics
- Speed to Prototype (Average time from idea to prototype for new products) Example: Company J can develop prototypes in 4 weeks
- Leadership Innovation Commitment Score
(Annual survey on leadership support for innovation on 5-point scale) Example: Company K received a 4.2/5 score last year - Automation Efficiency Gains
(Processing labor costs reduced through automation) Example: Company L cut labor costs by 18% last year via automation
Action Plan
- Develop agile innovation processes
- Provide innovation training for leaders
- Set stretch goals for speed and efficiency
- Incentivize commercialization of new ideas
- Curate an external network of innovators
- Increase focus on sustainability
Level 5: Cutting Edge
Assessment Criteria
- Industry-leading innovation investment (>10% revenue)
- Breakthrough innovations and IP generation
- Flexible partnerships and open ecosystem
- Purpose-driven innovation aligned to sustainability
Progressive Elements
At the cutting edge, poultry processors lead global disruption through breakthroughs. Open and agile ecosystems deliver purpose-driven innovation.
Suggested Benchmarks / Metrics
- Global Innovation Awards Won (# of awards received for breakthrough innovation) Example: Company M won 3 innovation awards last year
- Sustainability Impact Score
(3rd party rating of sustainability innovation impact) Example: Company N received a top-tier sustainability score - IP Generation
(# of patents filed annually) Example: Company O filed 28 patents last year
Action Plan
- Develop global innovation hubs
- Curate external networks of startups, universities, etc.
- Incentivize IP development
- Invest in moonshot innovation labs
- Lead industry sustainability coalitions
- Become the acquirer of choice for innovation
How can poultry processors ignite innovation maturity to drive M&A success?
This maturity model provides a framework for poultry companies to evaluate and advance their innovation capabilities, especially during pivotal M&A activities. By embracing agile processes, digital adoption, collaboration, consumer centricity, and sustainability, organizations can craft powerful integration strategies to capture synergies, energize talent, and accelerate growth. The path forward begins with an honest assessment of current maturity, followed by purposeful steps to reach the next level.
