Good Food, Good Life The World is Flat “Globalisation? It means primarily creation of horizontal...

Good Food, Good Life

The World is Flat

“Globalisation? It means primarily creation of horizontal networks and increasing role of co-operation and mutual trust …“

Thomas L. Friedman – The World is FlatA Brief History of the Twenty-First Century


Change in the Mindset

FROM

RESULT ORIENTATIONTASK ORIENTATION

TOHierarchy Network

AlignmentCommandExperience InsightCompeting Co-operation

Discipline InitiativeNational - Functional Cross-border/Cross-functional


The Develop People Initiative

Core elements:

1. Holding an effective performance and development dialogue in an agreed performance and career management process

2. Applying 13 behaviours from the Nestlé Leadership Framework

3. Planning succession


Management developmentScope & working principles

Competency based recruitment

Definition of Key positions at local / regional / Group levels

Succession planning for Key positions with target of 2 successors per position

Performance assessment using competency based:

- Progress & Development Guide (appraisal form)- 360o Feedback - Training and development

Expansion of Talent pool based on new definitions


Management developmentSourcing

ManagementDevelopment& Sourcing

Man

agem

ent

Devel

opmen

t Sourcing

Internalsourcing

&People

developmentfor

Key positions


Develop People – different from current performance management systems

FROM TO

• No consistency across markets • One consistency standard across the world

• Seldom applied to top management

• Starts with and is led by top management

• The focus was on ‘what’ people achieved

• The focus is on ‘what’ people achieve, and ‘how’ they do it

• Performance and Competencies were rated in an inconsistent way

• Salary increases generally based on performance

• Salary increases based on 5 criteria:- performance, potential, market forces, fairness and salary history

• Move away from ratings to the language of performance


Division

Department

Individual/Team Action Plan

CompanyO S M

O S M

O S M

O S M

The company strategy becomes the divisional

objective and the divisional strategy

becomes the department objectives

and so on

Cascading objectives(O), strategies(S) & measures(M)


Nestlé Leadership framework Progress & Development Guide

Flat and Flexible Structures

Flat and Flexible Structures

Inspiring Management

Inspiring Management

Long-term Development

Long-term Development

Dynamic Compensation

Dynamic Compensation

Life-long LearningLife-long Learning

Part 1:Achievements

Part 2: Career &DevelopmentPlan

Part 1: Achievements

Progress and Development Guide

Name: Current position:

ReviewPeriod:

Date of lastreview:

Objectives: Results:

Annual BusinessObjectives

Long TermDevelopmentObjectives

Leadership Framework

ADDING VALUE

OPENING UP

Know Yourself

Insight

Service Orientation

Curiosity

Courage

Results Focus

Initiative

Innovation & Renovation

Leadership Framework

KNOWLEDGE

DEALING WITH OTHERS

INSPIRING PEOPLE

Proactive Cooperation

Impact / Convince Others

Lead People

Develop People

Practice what you Preach

Product Knowledge

Professional Knowledge & Skills

Strengths Improvement needs

Reviewer’s Comments

Transforms

Steers

Masters

Acquires

Trails

Nature of the Contribution

Part 2: Career & DevelopmentPlan

Key Areas to beDeveloped

Action plan (what, bywhom, by when,training ...)

Employee Comments

Possible Options forPersonal / CareerDevelopment (ifapplicable)

Action plan

Name of employee Name of reviewer

Signature Signature

5

4

3

2

1

Inspiring People

Adding Value

Opening Up Dealing with others

• Lead people

• Develop people

• Practise what you preach

• Know yourself• Insight

• Service Orientation

• Curiosity

• Courage

• Proactive co-operation

• Convincingothers

• Resultsfocus

• Initiative

• Innovation &Renovation

Nestlé Leadership Framework


Using the Nestlé Leadership Framework

• Behavioural Competencies – behaviours provide the point of difference between a good performer and an average one

• The Nestlé Leadership Framework provides direction on the behaviours that matter at Nestlé

• They apply to everyone in the business

What is a competency ?Any characteristic of a person that differentiates levels of performance

Demonstrably Related to Superior Performance in a JobCharacteristic that Enables Superior Performance :

•more often•in more situations


Social RoleSelf-Image

TraitMotive

SkillSkillKnowledgeKnowledge

Behaviours

Individual behavioral competencies


Individual competencies (cont’d)

The Competency Foundation Characteristics at different levels:

Social Role

Self-Image

Trait

Motive

SkillKnowledge

Skills are the things a person knows how to do well, e.g., reading a profit-and-loss statement.

Knowledge is what a person knows about a particular substantive area, e.g., basic accounting principles.

Social Role is the image a person projects to others. It reflects a person’s values - what one believes is important to do - such as developing others or providing a sense of mission & direction.

Self-image is the way a person sees him/herself - the internal concept of identity, e.g., seeing oneself as a teacher or leader.

Traits are relatively enduring and stable characteristics of a person’s behavior, e.g., being a good listener, or being able to recognize patterns across seemingly unrelated elements.

Motives are natural and constant thoughts and preferences in a particular area (i.e., Achievement, Affiliation, and Power) that drive, direct, and select a person’s outward behavior.


« Natural » Tendencies and Traits

Task-Related Knowledgeand Skills

For Example: Knowledge of Electronics, Companies Products, Labor Relations, Law, Skill in active listening, Negotiating

For Example: Results FocusCuriosityProactive cooperationCourage

Job Complexity

Re

lati

ve

Imp

ort

an

ce

HighLow

Behaviors become more important as job complexity increases


Nestlé Leadership Framework4 clusters and 13 behavioral competencies

Inspiring People

Adding Value

Opening Up Dealing with others

• Lead people

• Develop people

• Practise what you preach

• Know yourself• Insight

• Service Orientation

• Curiosity

• Courage

• Proactive co-operation

• Convincing others

• Resultsfocus

• Initiative

• Innovation &Renovation


When should you do an Interim Review?

At least once through the year to ensure the reviewee is on track

When the reviewee's objectives change significantly

When the reviewee changes positions

When the manager changes position

In these last two situations the full end of year process should be completed including giving an overall assessment

This information should be provided to the reviewee's new manager


Performance Review Cycle

Business Objectives

Set Personal PerformanceObjectives*

Identify Behaviors

ReviewProgress

Final Review

Salary Review

Development Plan

• The performance review is one of the inputs into salary review.

• The other criteria for salary increase – if any – are: potential, market forces, fairness and salary history.

• Coaching @ Feedback are ongoing and occur at each stage of the Cycle.


Change of training culture (focus on training on the job) Emphasize the role of manager Use of new Nestle Leadership Framework

& Nestle on the Move concept Skills courses transfer to the competency based

models Course nominations based on results of appraisal

meeting – PDG forms New e-learning programme E-learning & Blended solution

Training and Learning


Change of career development and succession planning culture

Emphasize the role of manager Use of new Nestle Leadership Framework & Nestle

on the Move concept Profile assessment based on the competency

model:- For each position are defined key competencies - For key people 2 successors are nominated

Succession nominations & career plan based on results of appraisal meeting – PDG forms

Career Development / Planning


Career Committee:

Mini-career Committee = HR Partners + Division Head Company CC = HR Partners + Managers Committee It is about: headcount

organisational structurekey people (development, successors, …)high potential (development, successors, …)expats / inpats remunerationinterdepartmental discussion on HR issues

Career Committee


01 0904 1202 03 111008070605

Appraisal meetings, setting objectives, performance evaluation

Appraisal meetings, setting objectives, performance evaluation

Train the managers

Train the managers

Train all appraisers and appraisees

Train all appraisers and appraisees

Feedback to managersFeedback to managers

Career committeeand training plan 2005

Career committeeand training plan 2005

Results / evaluationResults / evaluation

11-12/2003

01/2005

Start-upStart-up

Train new appraisers and

appraisees

Train new appraisers and

appraisees

Appraisal meetings, setting objectives,

performance evaluation



Start-up regular process

Start-up regular process

Nestlé on the Move – Year 1


01 0904 1202 03

111008070605





Train factory appraisers and

appraisees

Train factory appraisers and

appraiseesResults / evaluationTraining nomination

Results / evaluationTraining nomination

11-12/2004

01/2006

Train all new appraisers and

appraisees

Train all new appraisers and

appraisees

Nestlé on the Move – Year N+

Mini-career committees


Career committeeCareer committee



Career committeeCareer committee


Nov- FebProgress & Development review

(incl. review ofdelivery on objectives)

MarchTalent Poolproposal byevaluation of

potential

April- MayTalent Pool Validation

Sept - OctPlans and Actions tofill gaps

Management Development Cycle

Mid - FebruaryP& DG forKey Positions, Expatriates andHigh Potential

March 11th:Verified Talent Pool list is due back to the Zone

March 14 to 18: Pre-calibration Talent Pool discussions - SBU/Functions

April12thEBM Talent Pool Validation

June 1st to June 29th: Management Development and Succession Planning discussions SBU/ Function

SeptemberEBM validationSuccession Plansfor Corporate Key Positions and ManCom Positions

June - AugSuccession

Planning

Feb.23th:HR Zone EUR deliver current Talent Pool and Management Development

May 21st: Submission of the Management Development and Succession Planning proposals by the markets for Key Positions

In red: Market Inputs

In green: Zone Inputs

In black: EBM Inputs

March 21 to 29: Zone Validation of the Talent Pool submissions Final list transmitted to the markets after EBM Validation

July to 30th August: Zone Validation of the Succession Plan Final list transmitted to the markets after EBM Validation


Personal Development Cycle

P&DG

Training & Development Plan

Career & Succession Plan

Objective setting (short/long term)


Personal Development Cycle – 4 steps

Nov-Jan

Run PDG (incl. achievement of objectives)

March

Consolidate individual training &

development plan

End of February:

• PDG finalized by Markets and forwarded to CE HR

• Personal objectives defined

End of March:

Individual training & development consolidated by CE HR

April Prepare regional

training & development

plan End of April:

Plans approved by CdD

May-Oct

Run training & actions to

close development

gapsMid of April:

Training plan developed for Region

September:

Applications for Rive Reine programs completed


Succession Planning Cycle – 4 steps

Nov-Feb


March

Propose succession

plan

End of February:

PDG finalized by Markets and forwarded to CE HR

End of March:

Succession plan proposals logged into database by Markets and CE Management

April-May

Succession planning discussions between • CM – CE• CE – LOC May:

Approved succession plan

June-Oct

Plans & actions to fill

gaps

June:

CE Succession planning completed and sent to HQ Vevey

End of April:

Succession plan reviewed through and finalized by CE Director and CE HR


Training & Personal Development Cycle

Nov-Feb


March-April

Collect and assess needs

vs existing opportunities

End of February:

PDG finalized by Markets and forwarded to CE HR

May

Develop individual Training &

development plan

June-Oct

Plans & actions to fill

gaps

June

Individual training & development plan approved by CM + CE HR

End of April

Training and development needs consolidated and comparison to existing training * opportunities completed

October

T&D budget established through CM + CE HR + CE Finance

Existing Training• Country local: CM, local HR• Nestlé centralized/decentralized: CE HR• Rive-Reine: CE HR• E-learning tools: CE HR


Q & A

Thank you!Thank you!

Questions & Answers

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