* Increaserevenuegrowthto5%perannum Increaseoperatingmarginfrom10%to15%by2004 Deliveranincremental€2.7billioninoperatingprofitby2004PathtoGrowthidentifieswhatwewilldotodeliveronourpromisestoshareholders:ProvideUnileverwiththeplatformtodeliversustainablegrowthNote:FiguresdonotincludeBestfoods*UnileverPeerGroupUnileverSharePricePerformancevPeerGroup“Shadow”(BasedonQuarterlyAverageShareprices)WhydoweneedthePathtoGrowth?TheMarketisconcernedaboutourabilitytoexecuteourstrategyPeerGroup:Beiersdorf,Avon,Cadbury,Clorox,CocaCola,Colgate,Danone,Eridania,Gillette,Heinz,Kao,Lion,L’Oreal,Nestle,P&G,PhilipMorris,ReckittBenckiser,SaraLee,Shiseido,PepsicoUnileverSharePricePerformancevPeerGroup“Shadow”*PathtoGrowth--6primarystrategicthrusts*WhatisourstrategyforthePathtoGrowth?*WorldClassSupplyChainWeaimto:ClosethegaptoworldclassinsupplychainwithinthreeyearsBy:EstablishingaGlobalBuyingprogrammeEstablishingaworldclassmanufacturingprogrammeResultingin(approximately):100fewermanufacturingsites€€1.6billionbuyingsavingsbyend2002€€0.5billionmanufacturingsavingsperannum *“Theonlywaytosafeguardourpositionistoperform,todeliver,andtogrowourbusiness.”* DepthandbreadthoftheSupplyChainProfessionalSkills Anexcellentoverallunderstandingofthebusiness,it’sprocessesandtheirlinkages Businessbehaviours OutstandingperformanceSupplyChain-Whatdoesittaketosucceed?*Slide15.WhatdoesittaketosucceedintheSupplyChain?Secondly,inadditiontotheCompetencies,ittakesdepthandbreadthoftheSCProfessionalskillsacquiredovertimebyworkinginarangeofSCjobs(moreonthatinafewmoments).Howeverittakesmorethanjustcompetenciesandskills.IttakesanoverallunderstandingofthebusinessanditsprocessesandanabilitytoactnotjustasaSCprofessional,butalsoasabusinessman.Businessawarenessgivesinsighttobreakexistingparadigmsandcreategrowthopportunities.ThisisessentialtoprogresstomoreseniorlevelsintheSC.Lastly,butbynomeansleast,tosucceedintheSCtakesatrackrecordofoutstandingperformanceateachlevel.TheSupplyChainProcessModel*SupplyChain-theHeartofOperations Plan/Source Plan/Make Plan/Deliver Planninglinkstheprocessestogether*Slide11.TheHeartofoperationsEachSCsub-processrequiresplanning.Planningalsolinksthesub-processestogether.ItisthereforecriticaltooptimisationofSCperformance.BecauseItguidesoureverydaylifeworkingintheSCrequiresathoroughknowledgeoftheplanningprocess.DrivingValueCreationintheSupplyChain ‘BeatingtheFade’:continuousinnovationandcostsavings Growththrough:makingnewproductsavailableimproveddistributionbettercustomerservice Increasedmarginsthrough:costsavingsalongthesupplychainoverheadcostreductionreducingcomplexity Capitalefficiencyimprovements:minimisinginvestmentinplant&equipmentandinventoriesTheseelementstogethercontributemorethan50%ofUnilever’stotalValueCreation*OrganisationalDevelopment Businesshasmoved,andcontinuestomove,towardsprocessmanagement EmergenceofSupplyChainprocessroles AcareerintheSupplyChainrequiresdevelopmentofbreadthanddepthofskills,Leadershipcompetencies,andexperience*Slide5.OrganisationalDevelopmentsBeforewefocusoncareermanagement,itisworthwhilespendingafewminutestoreviewtheorganisationaldevelopmentsagainstwhichanydiscussionaboutcareershastotakeplace.Themovetowardsprocessmanagement,theemergenceofsingleintegratedsupplychainstructures,regionalsourcingande-commercehavechangedandenhancedtheroleoftheSupplyChain.Toequipourselvesforthisnewrolewemustbuildourprofessionalismtohigherlevels.WhatdoSupplyChainpeopleinUnileverdo? Rolesindifferentpartsoftheorganisation factories regionalsupplychains businessgroups corporatecentre Roles: withstrategicfocus inamoreoperationalenvironment, Rolesinvariouspartsofthesupplychain:Plan–Source–Make–Deliver Roleswhichfocuson themulti-localaspectsofthebusinessatanationalorregionallevel themultinationalaspects Rolesinrelatedprofessions,e.g.R&D,CustomerManagement RolesinQA,SHEandTechnicalManagement*Slide13.WhatdoSupplyChainpeopleinUnileverdo?SCmanagersworkinawidevarietyofroles.Theycoverbothoperationalandstrategicactivities.Theycanbeinoneofthemainsub-processes(Plan,Source,MakeorDeliver)orinenablingprocessessuchasQA,TechnologyandSHE.ThetrendinistowardintegratedmanagementoftheSCinwhichSCmanagersdelivervaluebyleveragingtheirprofessionalcapabilitiesandbusinessunderstanding.ThecontentandfocusofSCrolesvaryaccordingtospecificorganisationalandbusinessenvironments.SCmanagerscanexpectto(andshould)undertakeanumberofdifferenttypesofroleduringtheircareer.BuildingSuccessfulCareersFocusesOn: Processesandtoolsusedincareerdevelopment Keycareerbuildingblocks Careerphases Theneedforbreadthanddepthofskillsandexperience Theimpactofeachindividual’spotential Theimportanceoftacticalandstrategiccareerplanning Theneedforaglobalperspective Planninglifeandcareer*Slide7.BuildingsuccessfulcareersThegeneralbooklet“BuildingSuccessfulCareers”focusesontheeightmajorcomponentsofcareermanagement.Someoftheseareprocessesandtools;someareguidanceaboutthegeneralrequirementsthebusinesshassetdown;andsomearepersonaltoeachindividual.BuildingCareers-KeyPrinciplesSuccessfulcareersarebasedonoutstandingperformancefoundedonskills,competenciesandexperienceExperienceProfessionalSkillsLeadershipCompetenciesPerformance*BuildingCareers-KeyPrinciplesSuccessfulcareersarebasedonoutstandingperformancefoundedonskills,competenciesandexperienceExperienceProfessionalSkillsLeadershipCompetenciesPerformance*TheLeadershipGrowthCompetencies*FocusonGrowth(ineverysense)*WhatistheLeadershipGrowthProfile?Itis:AleadingedgecompetencymodelthatfocusesondrivinggrowththroughoutthebusinessAtoolfordevelopmentandassessmentofperformanceByhelpingourleadersgrow,wewillgrowourbusinessApplicabletoeveryoneatWL2andabove*WhyweneedtodevelopCompetencies?SUPERIORJOBPERFORMANCECompetenciesKnowledge&SkillsPersonalcharacteristics(values,traits,motives)shapingHOWthejobisundertakenMeasuredbyclearlyobservablebehaviourTransferableknowledgeandabilities(professionalandgeneral)todoWHATisrequiredbythejobMeasuredbydemonstratedcapability*WhatareCompetencies?“…underlyingcharacteristicsthataredirectlyrelatedtosuperiorperformanceinagivenrole”skills-whatyouknowhowtodoe.g.makeaneffectivepresentationknowledge-whatyouknowe.g.theoriesofeffectivepresentationselfimage-howyouseeyourselfe.g.publicspeakervalues-whatyouthinkisimportante.g.achievingexcellencetraits-relativelyenduringcharacteristicse.g.self-control‘bigpicture’thinkingmotives-theunconsciousfactorsthatdrivebehaviour;theyareintrinsicallysatisfyingandrewardinge.g.achievement*TheIcebergModelNecessarybutnotsufficientDistinguisheffectiveperformance}AcquiredcapabilityDeeperseatedtraitsandmotivesAcompetency:anycharacteristicofapersonthatdifferentiatesoutstandingfrommoretypicalperformanceinagivenjob,role,organizationorculture.*Competenciesare: observableandmeasurable behaviouralcharacteristicsthatcanbedeveloped basedonthebusinessneedsoftodayandtomorrow factorswhichdrivesuperiorperformanceinagivenjobHowwastheLGPdeveloped?Step1:Wasdevelopedbyarigorousresearchprocess:AssessmentofUnilever’sbusinesscontext,thechallengesfacingleadersandthecapabilitiesneededtoachievegrowthIn-depthresearchof39Unilever‘growth’leadersInterviewsandfeedbackfromcolleaguesComparisonoftheUnilever‘growth’leadershipcharacteristicstoaworld-classbenchmarksampleLargeinternationalorganisationsAchievedsubstantialgrowthinownsectorsResult:LGPwasrolledouttoWL6and5in2000HowwastheLGPdeveloped?Step2:FocusgroupsandinterviewswithWL2,3and4in14countriesaroundtheworldTestedrelevanceandmaderelevantadjustmentsResult:NowrollingouttoallWL2+managersacrossUnilever HowweretheCriteriaEstablished?OriginalResearchComparedandContrastedTwoGroupsCurrentSuperiorLeadersCurrentOutstandingLeaders“Baseline”CompetenciesBothgroupsshow“Distinguishing”CompetenciesOnlyoutstandingshowHowweretheExternalBenchmarksused?ComparedbothgroupstocompetenciesrequiredtomeetthefuturestrategyandagainsttheexternalbenchmarkpopulationExternalbenchmarkof‘worldclass’leadersCurrentSuperiorLeaders“Baseline”Competencies“Distinguishing”CompetenciesPotentialVulnerabilitiesEventhebestneedtoshowmoreCurrentOutstandingLeadersWhatmakesaworld-classleaderofgrowth?World-classleadersofgrowth:DrivenbybiggerambitionanddriveforstepchangeGenerateandencourage‘big’thinkingArehighly‘streetsmart’andsavvyThinkandactoveralongertermperspectiveEnergiseothersforsignificantchangeDemonstrateagreaterfocusonindividuals-developing,empoweringandholdingthemaccountableUsehighlyeffectiveinfluencingstrategiestogainsupport:theyknowhowtoorchestratetheorganisation-colleagues,bosses,theirteamsHowdoesUnilevermeasureup?AlthoughthebestoftheUnileversampledemonstratesthesebehavioursandcreatesgrowthorientatedclimates,weareoftenstillmore‘controllers’than‘enablers’inourleadershipstyle.Wearegood,butweknowwecanbebetterHowistheLGPdifferent?Directlyrelatedtoourcurrentbusinessagenda-GrowthExternallybenchmarkedagainstthebestOnesetofcompetenciesforalllevelsCreatesafocusondevelopmentofoutstandingleadersateverylevelItiseasilymodifiedtosupportfuturenewbusinessgoalsAsaresult,LGPwillreplacethe‘EffectiveUnileverManager’competencies Achievesthroughintegrity,teamworkandlearning SelfConfidentIntegrity TeamCommitment LearningfromExperiencePossessestheintellectualpowertodeterminedirectionEnsuresthatdirectionismarketdrivenDeliversthroughpeopleActsdecisivelytoimproveperformance ClarityofPurpose PracticalCreativity ObjectiveAnalyticalPower MarketOrientation LeadingOthers DevelopingOthers InfluencingOthers EntrepreneurialDriveBuildsCommitmenttoGrowth StrategicInfluencing TeamCommitment TeamLeadershipDrivesforGrowth SeizingtheFuture ChangeCatalyst DevelopingSelf&Others HoldingPeople-Accountable EmpoweringOthersCreatesaGrowthVision PassionforGrowth BreakthroughThinking OrganisationalAwarenessSupplyChain-Whatdoesittaketosucceed?LeadershipGrowthCompetenciesLGP-TheLevelsFourlevels:FoundationalDevelopingGrowthWorldClassExample:PassionforGrowthArehighlymotivatedtoachievetheirpersonaltargetsinordertocontributetothesustainableprofitablegrowthofthebusinessAreambitiousforexcellenceandconstantlysearchforopportunitiestoimprovethebusinessSetchallenginggrowthgoalsforthemselvesandothersandputintoplaceplanstoachievetheseTakesignificantentrepreneurialactionandask“whatispossible?”toensuregrowthopportunitiesarerealisedFoundationLevelDevelopingLevelGrowthLevelWorldClassLevelLGP-TheLevels(continued…)BehavioursneededtodemonstrateWorldClassareverystretchingThisreflectsourbusinesstargetsWecan’thavesignificantgrowthwithoutanincrementalshiftinbehaviourBut…..ThesebehavioursarenotbeyondourcapabilitiesWeneedtomakeourpeopledevelopmentahigherpriority Tohelppeopleassesstheirperformanceagainsttheprofile,targetcriteriahavebeenestablishedforeachworklevelPassionforGrowthDoesthispersonDEMONSTRATEDRIVEBEYONDEXPECTATIONTODELIVERoutstandingresults? Measureperformanceagainstinternalandexternalbenchmarks Makespecificchangestoimproveperformance(e.g.re-engineerprocessestobefaster,moreefficient) Focusonraisingqualityandcustomerandconsumersatisfaction Stimulateandencourageotherstobringaboutperformanceimprovementforthebusiness Createstretchingbutachievablegoalstoalignownactivitieswithgrowthinitiatives Aimtofindandrealisenewgrowthopportunities Alignownactivitiesandgoalswithgrowthinitiatives Aimforperformanceexcellencethroughownefforts Stimulategrowthbybringingaboutstepchangeimprovements Aimtomaketheimpossiblepossible Entrepreneuriallycommitsignificantinvestmentstoreapmajorrewards Defyconventionalwisdomandinternaloppositiontoachievemajorgrowth Createnewmarketsbyexploitinggrowthopportunities Obsesswithgrowthandfocusondeliveringnewwaystogaincompetitiveadvantage Ambitioustohitsettargetsandstandards Deliveroncommitmentsmadetoothers Persistinovercomingobstaclestosuccess TakefullresponsibilityfordeliveringtheircontributiontothebusinessArehighlymotivatedtoachievetheirpersonaltargetsinordertocontributetothesustainableprofitablegrowthofthebusinessFocusonbusinessimprovementandareambitiousforexcellence,constantlysearchforopportunitiestoimprovethebusinessSetchallenginggrowthgoalsforthemselvesandothersandputintoplaceplanstoachievetheseTakesignificantentrepreneurialaction,andask“whatispossible?”toensuregrowthopportunitiesarerealisedFoundationLevelDevelopingLevelGrowthLevelWorldClassLevelOutstandingindividualsradiateaPassionforGrowth,thepersonaldrivethatenablesindividualstogotheextramileindeliveringexcellentperformance.TheyrecognisethateveryonehasacontributiontomaketoensurethatUnileverachievesitsgrowthobjectives.Outstandingindividualsconstantlypushtheboundariesofexcellentbusiness,askbigquestionsaboutwhatispossibleandthentakesignificantentrepreneurialactionovertimetoexpandthehorizonsofthebusiness.Successisthedeliveryofsustainableprofitablegrowth. .NegativeIndicators: Toobusydealingwithimmediate,urgentissuestolookfornewgrowthopportunities Settleforthestatusquo-takenoactiontoimprovemediocreperformance Easilyside-trackedfromimportantgrowthgoals Unconcernedaboutmissingdeadlinesorfailingtomeetbusinessobjectives DonottakeresponsibilityforcontributingtogrowthobjectivesLinkswith:OrganisationalAwarenessLGPGuidelinecriteriaforworklevelsWL6MeetsWL4targetandhasatleastoneWorldClasscompetencyineachclusterWL5MeetsWL4targetandhasoneWorldClasscompetencyineachoftwoclustersWL4WL3WL2TwoineachclusteratGrowthincludingoneofSeizingtheFutureandChangeCatalystandoneotherfromthesameclusterNonegativeindicatorsMostcompetenciesatDevelopinglevel.AtleastonecompetencyineachclusteratGrowthlevel MorecompetenciesatDevelopinglevelthanatFoundationUsingtheLGPandCompetenciesTalentManagementCoaching&MentoringRewardforGrowthRankingListingPDP/DevelopmentLeadershipGrowthProfileWherehasLGPbeenusedsofar?Alreadyusedfor:AssessmentofallWL5andWL6PersonaldevelopmentplanningforWL5/6ExecutiveselectionOneelementofWL4assessmentinUnilever/BestfoodsmergerGoingForward-FutureUsesofLGPTheLGPwillbeusedin:PDP-inallorganisationsforWL2andaboveby2002/2003PDPcycleIndividualperformanceandcapabilitywillbeassessedagainsttheLGPcompetenciesbasedonprevious2-3years’dataSelf-assessmentandpersonaldevelopmentplanningListingRankingforWL4(othersmayfollow)Assessment,selectionandrecruitmentofallpostsatGraduatelevelandaboveNextStepsforyouAccessthe‘HowgoodcanIbe?’documentontheHRwebsite[address]tounderstandthemodel,thecompetencieswithinitandhowtousethemodelStudythetargetcriteriaforyourroleandworklevelinthedocumentConsideryourstrengthsanddevelopmentneedsagainstthemodelWorkwithyourmanagerandyouremployees(eitherinthePDPprocessorindependently)toidentifycriticalgapstoclose-andbuildandimplementanactionplanBuildingCareers-KeyPrinciplesSuccessfulcareersarebasedonoutstandingperformancefoundedonskills,competenciesandexperienceExperienceProfessionalSkillsLeadershipCompetenciesPerformanceSupplyChainProfessionalSkillsJobSkillsProfileAbilitiestodothejobwellnow+future.PersonSkillsProfileMycurrentabilities.DifferencePersonalDevelopmentPlan2.IntegratedSupplyChainModellingandDesign Integrated/CollaborativeSupplyChainPlanning OperationalPlanning&Forecasting MaterialsManagement SupplyIntelligence&StrategyDevelopment ContractAgreement/Arrangement&Management IntegratingSupplierValueintotheBusiness DrivingProductionPerformanceImprovement Influencing&ImplementingProduct&ProcessInnovation Maintenance&ProjectEngineering CustomerServiceDevelopment&Management WarehousingandDistributionManagement ChannelLogisticsDevelopmentTheNewSkillsFrameworkforSupplyChainPlanMakeDeliverSourceKeyGeneral BusinessEconomics Negotiation&Influencing SupportingSustainableDevelopment UsingInformationTechnology PeopleManagement ProjectManagement (HR)EmployeeRelations R&DDevelopmentSkills1.ExtendedSupplyChainStrategyDevelopment&Deployment3.Supplier(&Contractor)Relationship 4.Developing&Implementing/EconomicManagement SupplyChainInnovation6.ManagingQuality,Safety(&Environment) 5.Formulation,Process& PackagingKnowledge7.OptimisingSupplyChainOperationsPerformanceCore atleast2ofthe4SupplyChainsub-processes(Plan,Source,Make,Deliver). (especiallythosewithFinance/Businessbackgrounds):TechnologyasaSupplyChainenabler.BuildingaSupplyChaincareerLearntheTradeCareerBuildingBlocksExperience-WL2CareerBuildingBlocksExperience-WL3BuildingaSupplyChaincareerActasaBusinessman AsaSupplyChainleaderatWL3youwillneedtogainexperiencein: managinginanintegratedSC leadingaSCsub-processatregionallevelCareerBuildingBlocksExperience-WL4BuildingaSupplyChaincareerStrategyintoAction AsaSupplyChainDirectoratWL4youwillneedtogainexperiencein: operationalmanagementofintegratedsupplychains leadingstrategicdevelopmentofSupplyChainorsub-processesatregional/internationallevel(BG/Corporate/Category)TheSupplyChainCareerPlatform:MyProfessionalDevelopment ThereareSupplyChainjobsateverylevelinUnilever Progresstoseniorlevelsbymovingthroughchallengingjobs. Uniqueexperienceofworkinginpositionsofdifferenttypes Workalongsideotherbusinessprocesses,including:FinancialManagementCustomerDevelopmentBrandDevelopment.*Slide20.YourProfessionaldevelopmentThereareSCjobsateverylevelinUnileverandthereforethereiseveryopportunitytoprogresstoseniorlevelsbymovingthroughchallengingjobs.TheSCalsoofferstheopportunitytoworkinmanydifferenttypesofenvironmentsandincreasinglywithotherbusinessprocessessuchasCustomerManagementandBrandDevelopment.Andsomemanagers,giventheirbreadthofexperienceintheSCandGeneralskills,willusetheirbackgroundasabasisformovinginto“unitgeneralmanagement”,e.g.acompanychairmantypeofrole.Thebottomline:UnileverisaMeritocracy Unilever’sfocusonperformance,andtheuseofobjectivemeansbywhichtoassessskills,experience,competenciesandpotential, willleadthebestmanagerstoreachthemostseniorlevelsinthebusiness.Whateverthecareerroute,SupplyChainmanagerscanbeassuredthat:Whatdoyoudonext? UsePDPtodevelopskillsandcompetencies Useeachcareerstepasalearningexperience Berealisticaboutyourownpotential Deliveroutstandingperformance*Slide22.Whatdoyoudonext.Thesearethefourguidingprincipleswhichyoushouldkeepinmindtogiveyouthebestchanceofmaximisingyourownpotential.*usePDPtodevelopskillsandcompetencies*useeachcareerstepasalearningexperience*berealisticaboutyourownpotential,and*deliveroutstandingperformance.Finally:Ifyoudeliveryourtargetsyouwillalwaysgetnoticed.Andifyouconsistentlymeettoughtargetsyoucanbeassuredthatyourcareerwillprosper.********Slide15.WhatdoesittaketosucceedintheSupplyChain?Secondly,inadditiontotheCompetencies,ittakesdepthandbreadthoftheSCProfessionalskillsacquiredovertimebyworkinginarangeofSCjobs(moreonthatinafewmoments).Howeverittakesmorethanjustcompetenciesandskills.IttakesanoverallunderstandingofthebusinessanditsprocessesandanabilitytoactnotjustasaSCprofessional,butalsoasabusinessman.Businessawarenessgivesinsighttobreakexistingparadigmsandcreategrowthopportunities.ThisisessentialtoprogresstomoreseniorlevelsintheSC.Lastly,butbynomeansleast,tosucceedintheSCtakesatrackrecordofoutstandingperformanceateachlevel.**Slide11.TheHeartofoperationsEachSCsub-processrequiresplanning.Planningalsolinksthesub-processestogether.ItisthereforecriticaltooptimisationofSCperformance.BecauseItguidesoureverydaylifeworkingintheSCrequiresathoroughknowledgeoftheplanningprocess.**Slide5.OrganisationalDevelopmentsBeforewefocusoncareermanagement,itisworthwhilespendingafewminutestoreviewtheorganisationaldevelopmentsagainstwhichanydiscussionaboutcareershastotakeplace.Themovetowardsprocessmanagement,theemergenceofsingleintegratedsupplychainstructures,regionalsourcingande-commercehavechangedandenhancedtheroleoftheSupplyChain.Toequipourselvesforthisnewrolewemustbuildourprofessionalismtohigherlevels.*Slide13.WhatdoSupplyChainpeopleinUnileverdo?SCmanagersworkinawidevarietyofroles.Theycoverbothoperationalandstrategicactivities.Theycanbeinoneofthemainsub-processes(Plan,Source,MakeorDeliver)orinenablingprocessessuch