1、l Increase revenue growth to 5%per annuml Increase operating margin from 10%to 15%by 2004l 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 Provide Unilever
2、with the platform to deliver sustainable growthsustainable growthUnileverNote:Figures do not include Bestfoods100120140160180200Q4 97Q1 98Q2 98Q3 98Q4 98Q1 99Q2 99Q3 99Q4 99Q1 00Q2 00Q3 00UnileverUnileverPeer GroupPeer GroupUnilever Share Price Performance v Peer Group“Shadow”Unilever Share Price Pe
3、rformance v Peer Group“Shadow”(Based on Quarterly Average Share prices)Why do we need the Path to Growth?Why do we need the Path to Growth?The Market is concerned about our ability to execute our strategyThe Market is concerned about our ability to execute our strategyPeer Group:Beiersdorf,Avon,Cadb
4、ury,Clorox,Coca Cola,Colgate,Danone,Eridania,Gillette,Heinz,Kao,Lion,LOreal,Nestle,P&G,Philip Morris,Reckitt Benckiser,Sara Lee,Shiseido,PepsicoUnilever Share Price Performance v Peer Group“Shadow”Unilever Share Price Performance v Peer Group“Shadow”Path to Growth-6 primary strategic thrusts Path to
5、 Growth-6 primary strategic thrustsWhat is our strategy for the Path to What is our strategy for the Path to Growth?Growth?lusi ng consum er i nsi ght t odel i ver superi or consum erbenef i t sla sharpl y f ocused brandport f ol i olnew,al t ernat i ve channel slsi m pl i f yi ng our processesand s
6、t ruct ureldri vi ng synergi es andef f i ci enci es across t hesuppl y chai nC ent ral t o t hi s i s an Ent erpri se C ul t ure,w hi ch f ost ersl passi on f or w i nni ng l connect ed creat i vi t y l l i berat i ng ri gourI ncrease revenue grow thI ncrease revenue grow th byI ncrease operati ng
7、m argi nI ncrease operati ng m argi n byal l ow i ng us to focus our i nvestm ent onal l ow i ng us to focus our i nvestm ent onadverti si ng and devel opm entadverti si ng and devel opm ental l ow i ng us to reduce costs andal l ow i ng us to reduce costs andi ncrease i nvestm entsi ncrease i nvest
8、m entsWorld Class Supply ChainWe aim to:l Close the gap to world class in supply chain within Close the gap to world class in supply chain within three yearsthree yearsBy:l Establishing a Global Buying programmeEstablishing a Global Buying programmel Establishing a world class manufacturing programm
9、eEstablishing a world class manufacturing programmeResulting in(approximately)(approximately):-100 fewer manufacturing sites100 fewer manufacturing sites-1.6 billion buying savings by end 20021.6 billion buying savings by end 2002-0.5 billion manufacturing savings per annum0.5 billion manufacturing
10、savings per annum“The only way to safeguard our position is to perform,to deliver,and to grow our business.”Depth and breadth of the Supply Chain Professional SkillsAn excellent overall understanding of the business,its processes and their linkagesBusiness behavioursOutstanding performanceSupply Cha
11、in-What does it take to succeed?The Supply Chain Process ModelPlanSourceMakeDeliverSupply Chain Mission&Strategy Brand Development Brand DevelopmentCustomerDevelopmentCustomerDevelopmentSuppliersSuppliersConsumers&CustomersConsumers&CustomersInformation ManagementHuman Resource ManagementQuality&Bus
12、iness ExcellenceFinance ManagementSafety,Health&EnvironmentTechnology ManagementSupply Chain-the Heart of OperationsPlan/SourcePlan/MakePlan/DeliverPlanning links the processes togetherDriving Value Creation in the Supply ChainBeating the Fade:continuous innovation and cost savingsGrowth through:mak
13、ing new products availableimproved distributionbetter customer serviceIncreased margins through:cost savings along the supply chainoverhead cost reductionreducing complexityCapital efficiency improvements:minimising investment in plant&equipment and inventoriesThese elements together contribute more
14、 than 50%of Unilevers total Value CreationOrganisational DevelopmentBusiness has moved,and continues to move,towards process managementEmergence of Supply Chain process rolesA career in the Supply Chain requires development of breadth and depth of skills,Leadership competencies,and experienceWhat do
15、 Supply Chain people in Unilever do?Roles in different parts of the organisationfactoriesregional supply chainsbusiness groupscorporate centreRoles:with strategic focusin a more operational environment,Roles in various parts of the supply chain:PlanSourceMakeDeliverRoles which focus onthe multi-loca
16、l aspects of the business at a national or regional levelthe multinational aspectsRoles in related professions,e.g.R&D,Customer ManagementRoles in QA,SHE and Technical ManagementBuilding Successful Careers Focuses On:Processes and tools used in career developmentKey career building blocksCareer phas
17、esThe need for breadth and depth of skills and experienceThe impact of each individuals potentialThe importance of tactical and strategic career planningThe need for a global perspectivePlanning life and careerBuilding Careers-Key PrinciplesSuccessful careers are based on outstanding performance fou
18、nded on skills,competencies and experienceExperienceProfessionalSkillsLeadershipCompetenciesPerformanceBuilding Careers-Key PrinciplesSuccessful careers are based on outstanding performance founded on skills,competencies and experienceExperienceProfessionalSkillsLeadershipCompetenciesPerformanceThe
19、Leadership Growth CompetenciesFocus on Growth(in every sense)What is the Leadership Growth What is the Leadership Growth Profile?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 le
20、aders grow,we will grow our business Applicable to everyone at WL2 and aboveWhy we need to develop Competencies?Why we need to develop Competencies?CompetenciesKnowledge&SkillsPersonal characteristics(values,traits,motives)shaping HOW the job is undertakenMeasured by clearly observable behaviourTran
21、sferable knowledge and abilities(professional and general)to do WHAT is required by the jobMeasured by demonstrated capabilityWhat 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 prese
22、ntationknowledge-what you know e.g.theories of effective presentation self image-how you see yourself e.g.public speakervalues-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 d
23、rive behaviour;they are intrinsically satisfying and rewarding e.g.achievement The Iceberg ModelSkillSkillKnowledgeKnowledgeValuesValuesSelf-ImageSelf-ImageTraitsTraitsMotivesMotives Acquired capabilityDeeper seated traits and motivesA competency:any characteristic of a person that differentiates ou
24、tstanding from more typical performance in a given job,role,organization or culture.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 jobHow was the LGP de
25、veloped?Step 1:Step 1:Was developed by a rigorous research process:Was developed by a rigorous research process:Assessment of Unilevers business context,the Assessment of Unilevers business context,the challenges facing leaders and the capabilities needed challenges facing leaders and the capabiliti
26、es needed to achieve growthto achieve growthIn-depth research of 39 Unilever growth leadersIn-depth research of 39 Unilever growth leaders Interviews and feedback from colleaguesInterviews and feedback from colleaguesComparison of the Unilever growth leadership Comparison of the Unilever growth lead
27、ership characteristics to a world-class benchmark samplecharacteristics to a world-class benchmark sample Large international organisationsLarge international organisations Achieved substantial growth in own sectorsAchieved substantial growth in own sectorsResultResult:LGP was rolled out to WL6 and
28、5 in 2000 LGP was rolled out to WL6 and 5 in 2000How was the LGP developed?Step 2:Step 2:Focus groups and interviews with WL2,3 and 4 in 14 Focus groups and interviews with WL2,3 and 4 in 14 countries around the worldcountries around the worldTested relevance and made relevant adjustmentsTested rele
29、vance and made relevant adjustmentsResult:Result:Now rolling out to all WL2+managers across Now rolling out to all WL2+managers across UnileverUnileverHow were the Criteria Established?How were the Criteria Established?Original Research Compared and Contrasted Two GroupsCurrent SuperiorLeaders“Basel
30、ine”CompetenciesBoth groups show“Distinguishing”CompetenciesOnly outstanding showHow were the External Benchmarks used?How were the External Benchmarks used?Compared both groups to competencies required to meet the future strategy and against the external benchmark populationCurrent SuperiorLeaders“
31、Baseline”Competencies“Distinguishing”CompetenciesPotentialVulnerabilitiesEven the best needto show moreWhat makes a world-class leader of growth?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 thin
32、king Are highly street smart and savvyThink and act over a longer term perspectiveEnergise others for significant change Demonstrate a greater focus on individuals-developing,empowering and holding them accountableUse highly effective influencing strategies to gain support:they know how to orchestra
33、te the organisation-colleagues,bosses,their teamsHow 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 bett
34、erHow is the LGP different?Directly related to our current business agenda-GrowthExternally benchmarked against the bestOne set of competencies for all levelsCreates a focus on development of outstanding leaders at every levelIt is easily modified to support future new business goalsAs a result,LGP
35、will replace the Effective Unilever Manager competenciesAchieves through integrity,teamwork and learning Self Confident Integrity Team Commitment Learning from Experience Possesses the intellectual power to determine directionEnsures that direction is market drivenDelivers through peopleActs decisiv
36、ely to improve performance Clarity of Purpose Practical Creativity Objective Analytical Power Market Orientation Leading Others Developing Others Influencing Others Entrepreneurial Drive Builds Commitment to Growth Builds Commitment to Growth Strategic Influencing Strategic Influencing Team Commitme
37、nt Team Commitment Team Leadership Team LeadershipDrives for GrowthDrives for Growth Seizing the Future Seizing the Future Change Catalyst Change Catalyst Developing Self&Others Developing Self&Others Holding People-Accountable Holding People-Accountable Empowering Others Empowering OthersCreates a
38、Growth VisionCreates a Growth Vision Passion for Growth Passion for Growth Breakthrough Thinking Breakthrough Thinking Organisational Awareness Organisational AwarenessSupply Chain-What does it take to succeed?LGP-The Levels Four levels:Foundational Developing Growth World ClassExample:Passion for G
39、rowthAre 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
40、 plans to achieve theseTake significant entrepreneurial action and ask“what is possible?”to ensure growth opportunities are realisedFoundation LevelDeveloping LevelGrowth LevelWorld Class LevelLGP-The Levels(continued)Behaviours needed to demonstrate World Class are very stretchingThis reflects our
41、business targetsWe cant have significant growth without an incremental shift in behaviourBut.These behaviours are not beyond our capabilitiesWe need to make our people development a higher priorityTo help people assess their performance against the profile,target criteria have been established for e
42、ach work levelPassion 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 qualit
43、y 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 opportunitiesAlign own activities and goals with gr
44、owth initiativesAim for performance excellence through own effortsStimulate growth by bringing about step change improvementsAim to make the impossible possibleEntrepreneurially commit significant investments to reap major rewardsDefy conventional wisdom and internal opposition to achieve major grow
45、thCreate new markets by exploiting growth opportunitiesObsess with growth and focus on delivering new ways to gain competitive advantageAmbitious to hit set targets and standardsDeliver on commitments made to othersPersist in overcoming obstacles to successTake full responsibility for delivering the
46、ir 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 g
47、rowth 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 LevelOutstanding individuals radiate a Passion for Growt
48、h,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 q
49、uestions 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:lToo busy dealing with immediate,urgent issues to look for new growth opportunitieslSettle fo
50、r the status quo-take no action to improve mediocre performancelEasily side-tracked from important growth goalslUnconcerned about missing deadlines or failing to meet business objectiveslDo not take responsibility for contributing to growth objectivesLinks with:Organisational AwarenessLGP Guideline
