Steve Lykken began his career at Hormel Foods in 1992 as a sales account executive. He held senior executive positions with Jennie-O Turkey Store beginning in 2003, then became chief operating officer of Applegate Farms in 2015 and rose to president in 2016. He returned to Jennie-O Turkey Store in 2017 and assumed his current role of group vice president, supply chain in 2024.
Lykken served the United Way of West of Central Minnesota for nine years as both a board member and past president. He currently serves as chairman of the National Turkey Federation and is on the governance board of the YMCA of Kandiyohi County.
Lykken holds an international business degree from Minnesota State University Moorhead and is a graduate of the University of Minnesota – Carlson School of Management Minnesota Executive Program.
Q&A
Can you describe your role at Hormel Foods and how it supports the Originate Initiative and innovation efforts?
I think when people think of Originate and innovation, they tend to think of new products and new product development, but what’s really compelling for me is seeing it happen across all parts of the organization. Innovation is all about people and process and technology, and we’re in the middle of that right now as we’ve introduced the Transform and Modernize initiative. It’s been really exciting to see that work.
Can you discuss how Hormel Foods fosters a culture of innovation?
Earlier in my career, people typically thought of innovation in the new product and product development sense, but it’s been amazing as we’ve embarked on the concept to transform and modernize, to see innovation affect everything we do. It’s in how we make our products, how we move them around, how we plan for them, and everything that is coming together with that work, including how we invest in technology. I think we’re at a relatively mature level regarding how we’ve invested in innovation. Now it’s more about ensuring that we have a really curious culture.
How do the areas of the supply chain work together to solve problems? Is there an example of innovation building on each other?
It’s been a work in progress for us to present to the customer with one voice. That’s been a priority for us for about the last five years, even from just a sales perspective. Sometimes we would have lots of different trucks showing up in the same lot. And our customers could see that that wasn’t the most efficient way to go to market. We’re well on our way to changing that.
We’re using technology like o9 (AI solutions company), which is end-to-end planning that is going to dramatically change how our plants respond to consumer demand. We’re using machine learning and AI and everything you could imagine that we could bring to the table as an organization.
What role does the continuous improvement team play in innovation in operations?
Continuous improvement is in our DNA. It even gets back to the Hormel Foods production system that we’re implementing, where we bring standardization and rigor to every plant. There are so many more expectations coming from consumers and customers relative to quality control that this emphasis, in the plants and in the workplace, is now going to be part of our production system.
Imagine being a plant manager and stepping into a Level 3 or Level 4 meeting at a completely different facility. No matter what they make at that facility, they’re talking about the same things, the same action items. As long as we can prove that out consistently, we’re going to move in that direction, and we’re going to do it the same way everywhere. A simple example like center lining equipment to make sure our startups are always on time and we’re minimizing downtime through standardization is what’s starting to create a flywheel effect for us in cost savings.
Can you talk about the supply chain and how it helps drive innovation?
We learned a lot through Covid and subsequent supply chain snarls, and we’ve moved far beyond that now. I could go on for a long time about this. I mean, it’s the most exciting work that I’ve been part of with the company. And I think it’s the most important work the company has ever done, quite frankly. I say that because it’s the most clear trajectory to transform the company and future-fit us for the work that needs to be done so we can compete as a Fortune 300 company.
