Dreyer Training and Learning at Nestl

Selecting and Developing Talents in Innovation and R&Dan example at Nestlé

"Innovation is the process of turning ideasinto manufacturable and marketable form."Watts Humprey

Marc DREYERHead, Training & Learning, Nestlé Corporate Innovation, Technology and R&D

Disclaimer: this presentation reflects the views of the presenter only, and not necessarily those of the company

What Innovation means to us?What are our challenges in R&D?How do we then address talents developments?

Selecting and DevelopingTalents in Innovation and R&D:

Innovation has to support ourbusiness model: RIG of +4%/y

Why is Innovation important?What is our Problem?How to address it?

2 Research Centers(700 people)• NRC• Nestlé Institute of

Health Sciences

27 Product TechnologyCentres & R&D Centres (3.100 people)

Global Innovation, Technology and R&D network: 29 locations

2 Research Centers(700 people)• NRC• Nestlé Institute of

Health Sciences

> 320Application Groups

(1.650 people)

27 Product TechnologyCentres & R&D Centres (3.100 people)

Local: more than 320 Application Groups in markets

Why is Innovation important?What is our Problem?How to address it?Business Diversity: Innovations in 2011

One Challenge:Adressing Diversity!!

Diversity of our R&D:• 29 centres• 6000 persons

Diversity of Functions, Products• R&D, Regulatory, Patents, • Manufacturing, Engineering• Marketing, Sales

CONSUMER GOOD: Consumers first!!• Marketing is local, • Technology is global

The fuzzy front-end Discipline in Execution

Stagegate

Concepts Development

Var

iab

ility

Cre

ativ

ity

Execution

Why is Innovation important?What is our Problem?How to address it?How we address it:

Our Innovation/R&D Process

The Polarity of Innovation:What Behavior?

Deployment of Products

• Reduce variability

• Eliminating Risks: Compliance

• Work based on physical objects

• Bounded in Fixed Requirements

• Driven by cost

R&D and Innovation

• Fail often/Fail early

• Managing Risks

• Work based on Information

• Unbounded in Creative flexibility

• Driven by cycle-time


Maximise opportunitiesor minimise risks?

1) Analysis of 261 products launched in US 2000-2004 in 18 high growth categories, ACV>5%

Source: McKinsey Quarterly, November 2006

# of consumer goods products launched1

Average sales within category, percent

89

42

3

Line extension

Incremental innovation

Breakthrough innovation

1.0

4.0

25.9

Ease & speed

High

Low

Stage-gate management:-The art of Portfolio Management!-The heart of R&D effectiveness!!

Concepts Development Execution

Stagegate

Stage-gate management

The dilemna:- "The best way to have a good idea is to have a lot of ideas.“ Dr. Linus Pauling- “The main thing is to keep the main thing the main thing.” Larry James

Creating shared value &

SustainabilityCan we create

value for society and Nestlé?

Innovation Sweet-spot

ConsumerWhat are the benefits for our

consumers?

CommercialDo we have the commercial

capabilities to do this?

Science & TechnologyDo we have new

technologies to find solutions?

The Nestlé Model

• 5-6% Organic Growth

• Sustainable increase in profitability

How we address it: Our R&D Model

Innovation is all about thinking differently& people leadership!

FRONTEND:Foster an Innovative

Environment

INDUSTRIALIZATION:Ensuring Discipline in Execution

STAGE GATES: Business Alignment

Creativity

Break the rules

Encourage a healthy disrespect for hierarchies and rules

Search for non-activated customer needs

Acceptance of risks and failures

Courage to stop non promising projects and flair to persist...

Talent to build winning teams

High conflict & high respect

Passionate with + open to new ideas

Discipline in execution

Manuals / Documentation

Process standardization

Compliance

Want to commercialize products


Our Training is mostly:Decentralized and Hands-on!

PRINCETON LEARNING MODEL

On the Job Coaching, Feedback Formal

70% 20% 10%

Leadership

Functional

Training and Learning: Our 3 Pillars

LEADERSHIP INNOVATION FUNCTIONAL

SENIORS/EXPERTS Leading Managers Business Integration

Science/trendwatching

SPECIALISTS Managing Others Do the right things

Optimize ValueChain

JUNIORS/ASSOCIATES

Managing Self Do the thingsright

Master Best Practices


Nestlé Central Training Center


Mastering Innovation Process

Connect Leading InnovationInnovation StrategyBusiness Schools

Do the right things Portfolio ManagementIntellectual AssetsValue CreationScience/Technology Watch

Do the things right Project Management ConsumersCompliance


Core /Strategic Technologies

« Functional » Training

Transform Expert

Optimize Value Chain Optimization Teams Projects

Master Best Practices Hands-on Training

Packaging

Engineering

Product Technology

MaterialsProcessesProducts


Selection and Recruitment

• Define:

– Job Description

– Job Success Profile

– Selection Process (Team, Criteria, Interviews)

• Interviewing/Assessment day

• Screening, based on

– Job Success Profile (i. Skills)

– Nestlé Corporate Values

Selecting and Developing Talents in Innovation and R&D:

An enabler of the Innovation Process!

Generate ideas Screen Wisely Implement Correctly

Summary of Mission of Training and Development in Innovation and R&D

• Support mission of R&D as enabler to RIG

=> Business Understanding

• Alignment and collaboration is key for successful innovation.

=> Understanding of Corporate values and Common Practices

• Leadership and “Thinking Differently”

=> Leadership and Management training

• Product and Process Mastership:

=>Functional Training

• Creating the Future:

=> Managing Technologies

Thank you

Dreyer Training and Learning at Nestl

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