1

HUMAN CAPITAL

Importance of Financial

Acumen

@

Sara Lee Coffee & Tea

2

Coffee & Tea will face increasing competitiveness

Define or declining

Market

Investment on:

Competencies

Entrepreneurial

Creative mindset

Relentless pursuit

- Market Share

- Volume

* Innovation* Product Development• Financial Mgt Systems• Information Technology

*Best in Class Sales & Marketing * New channels/ E-commerce•Customer Service Focus •Trade Management

3

We need to change the way we run the Company

• Maintaining Status Quo

• Vertical communication

• Success through risk

avoidance

• Remain constant

• Little change

• Coffee Authority

• “Employer of Choice”

• Constant enhancement

• Vertical & Horizontal

communication

• Success through leadership,

courage and risk taking

• Management processes are

competitive advantage

• Speed to react

Entitlement Culture - little at risk

Results Culture- we deserve what we earn

4

Coffee & Tea needs to be driven by LEADERSLEADERS

Leadership Vision Performance Driven

• Very high aspiration to

be the best

• Demanding and will not

accept “second best”

• Effective teambuilding

• Ability to penetrate to

micro-level

• Single-minded adherence

to simple, clear success

measures

• Productive “fear” of

failure

• Highly motivated, if not

inspiring “can do attitude”

• Orientation – “Best Practices”

• Passionate about and understand

• - the Coffee business,

- how it works in detail,

- what customer want

- and what competitor

can-do

- and how things

change

• Persuasive, occasionally

pushy

• Real and effective follow

through

• Aggressively learn from

others who are better

• Good place to work but

not always comfortable

• Performance shortfalls

are held accountable

• Rewarded by being part

of a Winning Team

5

Coffee & Tea needs to be driven by LEADERSEADERS

•Uncomplicated line of communication and approval

•Clear focus on performance through rewards and recognition

• Do many things well but at least 1 function at world-class

level

• Leaders have “informed” view of Key Financial Indicators

•,View Human Capital as real competitive advantage

• Best people/teams in most critical/demandingpositions

• Bench strength is top priority

•Grow people Grow Business

Simple Organization

Based on World Class competencies

Develop People

6

…..in support of becoming a High Performance Driven Organisation

• Building Leadership and Capability strength• Performance and Results Driven Culture• Align/Simplify infrastructure and systems

MANAGERS MUST CHANGE: FROM TO

CONTROL

•Policies/procedures/

systems

• Accounting & Reporting

• Caretaker

GROW

• Performance auditor/

coach

– removing barriers

– benchmark practices

• Team Leaderships

DEVELOP

• Development of

– Financial Management

core processes

– Support Management

– Self-renewal

. . . being the Best!

–Transfer of knowledge

– Retain talent

7

The most important practices are as follows:

Financial Plans driven by Business Strategies

Behaving in a way that leads others to trust YOU

Designs high performing Financial systems to support and drive

business culture and performance

Keeping personal commitments and follow-up

Communicating views openly, honestly and directly without

fear of failure

OVERALL RATING SHOULD BE WORLD CLASS

8

Most important for Coffee & Tea Professionals

Establishing a climate of openness and trust

Being open and candid with people rather than being vague or indirect

High levels of integrity in day to day dealings

Honestly and directly confronting conflict

Take responsibility for decisions and actions

Establish clear performance goals and standards

9

This mix of Success Factors change as yourise-up the company…

DELIVERSTRATEGIES

BUSINESSLEADERSHIP

FINANCIALMGT.

DELIVERRESULTS

BUSINESSLEADERSHIP

FINANCIAL MGT.

DELIVER PROGRAMBUSINESS

LEADERSHIPFINANCIAL

MGT.

TOP:

MIDDLE:

ENTRY:

10

Management’s commitments required today

DRIVE VALUESDRIVE VALUES

FINANCIAL MANAGEMENT STANDARDS

CONSISTENT FEEDBACK

TOUGHEN UP PERFORMANCE STANDARDS

11

DO YOU KNOW WHAT THIS MEANS?

DSO ITO

ROIROIC

IRR

CF

OP

GM

GP

GSVNSV

LRP

AOPAPP

ICP

IPO

OLI

DMC

ANP

A&P

T&E

FMO