2. Increase revenue growth to 5% per annum
Increase operating margin from 10% to 15% by 2004
Deliver an incremental €2.7billion in operating profit by 2004Path to Growth identifies what we will do to deliver on our promises to shareholders:Provide Unilever with the platform to deliver sustainable growthNote: Figures do not include Bestfoods
3. UnileverPeer GroupUnilever Share Price Performance v Peer Group “Shadow”(Based on Quarterly Average Share prices)Why do we need the Path to Growth?The Market is concerned about our ability to execute our strategyPeer Group:
Beiersdorf,Avon, Cadbury, Clorox, Coca Cola, Colgate, Danone, Eridania, Gillette, Heinz, Kao, Lion, L’Oreal, Nestle, P&G, Philip Morris, Reckitt Benckiser, Sara Lee, Shiseido, PepsicoUnilever Share Price Performance v Peer Group “Shadow”
4. Path to Growth -- 6 primary strategic thrusts
5. What is our strategy for the Path to Growth?
6. World Class Supply ChainWe aim to:
Close the gap to world class in supply chain within three years
By:
Establishing a Global Buying programme
Establishing a world class manufacturing programme
Resulting in (approximately):
100 fewer manufacturing sites
€€1.6 billion buying savings by end 2002
€€0.5 billion manufacturing savings per annum
7. “The only way to safeguard our position is to perform, to deliver, and to grow our business.”
8. Depth and breadth of the Supply Chain Professional Skills
An excellent overall understanding of the business, it’s processes and their linkages
Business behaviours
Outstanding performanceSupply Chain - What does it take to succeed?
9. The Supply Chain Process ModelPlanSourceMakeDeliverSupply Chain Mission & Strategy Brand Development Brand DevelopmentCustomerDevelopmentCustomerDevelopmentSuppliersSuppliersConsumers&CustomersConsumers&CustomersInformation ManagementHuman Resource ManagementQuality & Business ExcellenceFinance ManagementSafety, Health & EnvironmentTechnology Management
10. Supply Chain - the Heart of OperationsPlan/Source
Plan/Make
Plan/Deliver
Planning links the processes together
11. Driving Value Creation in the Supply Chain‘Beating the Fade’:
continuous innovation and cost savings
Growth through:
making new products available
improved distribution
better customer service
Increased margins through:
cost savings along the supply chain
overhead cost reduction
reducing complexity
Capital efficiency improvements:
minimising investment in plant & equipment and inventories
These elements together contribute more than 50% of Unilever’s total Value Creation
12. Organisational DevelopmentBusiness has moved, and continues to move, towards process management
Emergence of Supply Chain process roles
A career in the Supply Chain requires development of breadth and depth of skills, Leadership competencies, and experience
13. What do Supply Chain people in Unilever do?Roles in different parts of the organisation
factories
regional supply chains
business groups
corporate centre
Roles:
with strategic focus
in a more operational environment,
Roles in various parts of the supply chain: Plan–Source–Make–Deliver
Roles which focus on
the multi-local aspects of the business at a national or regional level
the multinational aspects
Roles in related professions, e.g. R&D, Customer Management
Roles in QA, SHE and Technical Management
14. Building Successful Careers Focuses On:Processes and tools used in career development
Key career building blocks
Career phases
The need for breadth and depth of skills and experience
The impact of each individual’s potential
The importance of tactical and strategic career planning
The need for a global perspective
Planning life and career
15. Building Careers - Key PrinciplesSuccessful careers are based on outstanding performance founded on skills, competencies and experienceExperienceProfessional
SkillsLeadership
CompetenciesPerformance
16. Building Careers - Key PrinciplesSuccessful careers are based on outstanding performance founded on skills, competencies and experienceExperienceProfessional
SkillsLeadership
CompetenciesPerformance
17. The Leadership Growth Competencies
18. Focus on Growth (in every sense)
19. What is the Leadership Growth Profile?It is :
A leading edge competency model that focuses on driving growth throughout the business
A tool for development and assessment of performance
By helping our leaders grow, we will grow our business
Applicable to everyone at WL2 and above
20. Why we need to develop Competencies?SUPERIOR JOB PERFORMANCECompetenciesKnowledge & SkillsPersonal characteristics (values, traits, motives) shaping HOW the job is undertaken
Measured by clearly observable behaviourTransferable knowledge and abilities (professional and general) to do WHAT is required by the job
Measured by demonstrated capability
21. What are Competencies?“ … underlying characteristics that are directly related to superior performance in a given role”
skills - what you know how to do e.g. make an effective presentation
knowledge - what you know e.g. theories of effective presentation
self image - how you see yourself e.g. public speaker
values - what you think is important e.g. achieving excellence
traits - relatively enduring characteristics e.g. self-control ‘big picture’ thinking
motives - the unconscious factors that drive behaviour; they are intrinsically satisfying and rewarding e.g. achievement
22. The Iceberg ModelNecessary but
not sufficientDistinguish
effective
performance }SkillKnowledgeValuesSelf-ImageTraitsMotives}Acquired
capabilityDeeper seated
traits and
motivesA competency: any characteristic of a person that differentiates outstanding from more typical performance in a given job, role, organization or culture.
23. Competencies are: observable and measurable
behavioural characteristics that can be developed
based on the business needs of today and tomorrow
factors which drive superior performance in a given job
24. How was the LGP developed?Step 1:
Was developed by a rigorous research process:
Assessment of Unilever’s business context, the challenges facing leaders and the capabilities needed to achieve growth
In-depth research of 39 Unilever ‘growth’ leaders
Interviews and feedback from colleagues
Comparison of the Unilever ‘growth’ leadership characteristics to a world-class benchmark sample
Large international organisations
Achieved substantial growth in own sectors
Result: LGP was rolled out to WL6 and 5 in 2000
25. How was the LGP developed?Step 2:
Focus groups and interviews with WL2, 3 and 4 in 14 countries around the world
Tested relevance and made relevant adjustments
Result: Now rolling out to all WL2+ managers across Unilever
26. How were the Criteria Established? Original Research Compared and Contrasted Two GroupsCurrent
Superior
Leaders Current
Outstanding
Leaders “Baseline”
Competencies
Both groups show “Distinguishing”
Competencies
Only outstanding show
27. How were the External Benchmarks used? Compared both groups to competencies required to meet the future strategy and against the external benchmark population
External
benchmark
of ‘world
class’
leadersCurrent
Superior
Leaders “Baseline”
Competencies “Distinguishing”
CompetenciesPotential
Vulnerabilities
Even the best needto show moreCurrent
Outstanding
Leaders
28. What makes a world-class leader of growth?World-class leaders of growth:
Driven by bigger ambition and drive for step change
Generate and encourage ‘big’ thinking
Are highly ‘street smart’ and savvy
Think and act over a longer term perspective
Energise others for significant change
Demonstrate a greater focus on individuals - developing, empowering and holding them accountable
Use highly effective influencing strategies to gain support: they know how to orchestrate the organisation - colleagues, bosses, their teams
How does Unilever measure up?
Although the best of the Unilever sample demonstrates these behaviours and creates growth orientated climates, we are often still more ‘controllers’ than ‘enablers’ in our leadership style.
We are good, but we know we can be better
29. How is the LGP different?Directly related to our current business agenda - Growth
Externally benchmarked against the best
One set of competencies for all levels
Creates a focus on development of outstanding leaders at every level
It is easily modified to support future new business goals
As a result, LGP will replace the ‘Effective Unilever Manager’ competencies
30. Achieves through integrity, teamwork and learningSelf Confident Integrity
Team Commitment
Learning from Experience Possesses the intellectual power to determine directionEnsures that direction is market drivenDelivers through peopleActs decisively to improve performanceClarity of Purpose
Practical Creativity
Objective Analytical PowerMarket OrientationLeading Others
Developing Others
Influencing OthersEntrepreneurial Drive Builds Commitment to Growth
Strategic Influencing
Team Commitment
Team LeadershipDrives for Growth
Seizing the Future
Change Catalyst
Developing Self & Others
Holding People -Accountable
Empowering OthersCreates a Growth Vision
Passion for Growth
Breakthrough Thinking
Organisational AwarenessSupply Chain - What does it take to succeed?Leadership Growth Competencies
31. LGP - The LevelsFour levels:
Foundational
Developing
Growth
World Class
Example: Passion for Growth
Are highly motivated to achieve their personal targets in order to contribute to the sustainable profitable growth of the businessAre ambitious for excellence and constantly search for opportunities to improve the businessSet challenging growth goals for themselves and others and put into place plans to achieve theseTake significant entrepreneurial action and ask “what is possible?” to ensure growth opportunities are realisedFoundation LevelDeveloping LevelGrowth LevelWorld Class Level
32. LGP - The Levels (continued…)Behaviours needed to demonstrate World Class are very stretching
This reflects our business targets
We can’t have significant growth without an incremental shift in behaviour
But…..
These behaviours are not beyond our capabilities
We need to make our people development a higher priority
To help people assess their performance against the profile, target criteria have been established for each work level
33. Passion for GrowthDoes this person DEMONSTRATE DRIVE BEYOND EXPECTATION TO DELIVER outstanding results?Measure performance against internal and external benchmarks
Make specific changes to improve performance (e.g. re-engineer processes to be faster, more efficient)
Focus on raising quality and customer and consumer satisfaction
Stimulate and encourage others to bring about performance improvement for the businessCreate stretching but achievable goals to align own activities with growth initiatives
Aim to find and realise new growth opportunities
Align own activities and goals with growth initiatives
Aim for performance excellence through own efforts
Stimulate growth by bringing about step change improvements
Aim to make the impossible possible
Entrepreneurially commit significant investments to reap major rewards
Defy conventional wisdom and internal opposition to achieve major growth
Create new markets by exploiting growth opportunities
Obsess with growth and focus on delivering new ways to gain competitive advantage
Ambitious to hit set targets and standards
Deliver on commitments made to others
Persist in overcoming obstacles to success
Take full responsibility for delivering their contribution to the businessAre highly motivated to achieve their personal targets in order to contribute to the sustainable profitable growth of the businessFocus on business improvement and are ambitious for excellence, constantly search for opportunities to improve the businessSet challenging growth goals for themselves and others and put into place plans to achieve theseTake significant entrepreneurial action, and ask “what is possible?” to ensure growth opportunities are realisedFoundation LevelDeveloping LevelGrowth LevelWorld Class Level
Outstanding individuals radiate a Passion for Growth, the personal drive that enables individuals to go the extra mile in delivering excellent performance. They recognise that everyone has a contribution to make to ensure that Unilever achieves its growth objectives. Outstanding individuals constantly push the boundaries of excellent business, ask big questions about what is possible and then take significant entrepreneurial action over time to expand the horizons of the business. Success is the delivery of sustainable profitable growth. .Negative Indicators:
Too busy dealing with immediate, urgent issues to look for new growth opportunities
Settle for the status quo - take no action to improve mediocre performance
Easily side-tracked from important growth goals
Unconcerned about missing deadlines or failing to meet business objectives
Do not take responsibility for contributing to growth objectivesLinks with: Organisational Awareness
34. LGP Guideline criteria for work levelsWL6Meets WL4 target and has at least one World Class competency in each clusterWL5Meets WL4 target and has one World Class competency in each of two clusters
WL4WL3WL2Two in each cluster at Growth including one of Seizing the Future and Change Catalyst and one other from the same cluster
No negative indicatorsMost competencies at Developing level. At least one competency in each cluster at Growth level
More competencies at Developing level than at Foundation
35. Using the LGP and CompetenciesTalent
ManagementCoaching &
MentoringReward for
GrowthRanking ListingPDP/
DevelopmentLeadership
Growth
Profile
36. Where has LGP been used so far?Already used for:
Assessment of all WL5 and WL6
Personal development planning for WL5/6
Executive selection
One element of WL4 assessment in Unilever/Bestfoods merger
37. Going Forward - Future Uses of LGPThe LGP will be used in:
PDP - in all organisations for WL2 and above by 2002/2003 PDP cycle
Individual performance and capability will be assessed against the LGP competencies based on previous 2 - 3 years’ data
Self-assessment and personal development planning
Listing
Ranking for WL4 (others may follow)
Assessment, selection and recruitment of all posts at Graduate level and above
38. Next Steps for youAccess the ‘How good can I be?’ document on the HR website [address] to understand the model, the competencies within it and how to use the model
Study the target criteria for your role and work level in the document
Consider your strengths and development needs against the model
Work with your manager and your employees (either in the PDP process or independently) to identify critical gaps to close - and build and implement an action plan
39. Building Careers - Key PrinciplesSuccessful careers are based on outstanding performance founded on skills, competencies and experienceExperienceProfessional
SkillsLeadership
CompetenciesPerformance
40. Supply Chain Professional SkillsJob Skills Profile
Abilities to do the job well
now + future.Person Skills Profile
My current abilities. DifferencePersonal
Development
PlanGAP ANALYSIS
41. 2. Integrated Supply Chain Modelling and DesignIntegrated/CollaborativeSupply Chain Planning
Operational Planning & Forecasting
Materials ManagementSupply Intelligence & StrategyDevelopment
Contract Agreement/Arrangement& Management
Integrating Supplier Value into the BusinessDriving ProductionPerformance Improvement
Influencing & Implementing Product& Process Innovation
Maintenance & Project EngineeringCustomer Service Development& Management
Warehousing and Distribution Management
Channel Logistics DevelopmentThe New Skills Framework for Supply ChainPlanMakeDeliverSourceKey GeneralBusiness Economics
Negotiation & Influencing
Supporting Sustainable Development
Using Information Technology
People Management
Project Management(HR) Employee Relations
R & D Development Skills1. Extended Supply Chain Strategy Development & Deployment3. Supplier (& Contractor) Relationship 4. Developing & Implementing
/Economic Management Supply Chain Innovation6. Managing Quality, Safety (& Environment) 5. Formulation, Process &
Packaging Knowledge7. Optimising Supply Chain Operations PerformanceCore
42. at least 2 of the 4 Supply Chain sub-processes (Plan, Source, Make, Deliver).
(especially those with Finance/Business backgrounds): Technology as a Supply Chain enabler.Building a Supply Chain careerLearn the TradeCareer Building Blocks Experience - WL2
43. Career Building Blocks Experience - WL3Building a Supply Chain careerAct as a BusinessmanAs a Supply Chain leader at WL3 you will need to gain experience in:
managing in an integrated SC
leading a SC sub-process at regional level
44. Career Building Blocks Experience - WL4Building a Supply Chain careerStrategy into ActionAs a Supply Chain Director at WL4 you will need to gain experience in:
operational management of integrated supply chains
leading strategic development of Supply Chain or sub- processes at regional/international level (BG/ Corporate/Category)
45. The Supply Chain Career Platform: My Professional DevelopmentThere are Supply Chain jobs at every level in Unilever
Progress to senior levels by moving through challenging jobs.
Unique experience of working in positions of different types
Work alongside other business processes, including:
Financial Management
Customer Development
Brand Development.
46. The bottom line: Unilever is a MeritocracyUnilever’s focus on performance, and the use of objective means by which to assess skills, experience, competencies and potential,
will lead the best managers to reach the most senior levels in the business.Whatever the career route, Supply Chain managers can
be assured that:
47. What do you do next?Use PDP to develop skills and competencies
Use each career step as a learning experience
Be realistic about your own potential
Deliver outstanding performance