HUMAN RESOURCES AS CHANGE AGENT HUMAN RESOURCES AS CHANGE AGENT HUMAN RESOURCES AS CHANGE AGENT HUMAN RESOURCES AS CHANGE AGENT IN NESTLIN NESTLIN NESTLIN NESTLÉÉÉÉ VIETNAM VIETNAM VIETNAM VIETNAM (2001(2001(2001(2001----2006)2006)2006)2006)

Le Duc Thuan

HR as Change Agent Seminar

Kim Do Hotel

26th November 2009

1987

1987 - 1993 1993 - 1995 1996 - Now

1987 – 1995Nam Dinh

1996 – 2001Vung Tau

2001 – 2007Ho Chi Minh City

2007-2008Phu My

2008- NowVung Tau

Changes and manage the changes...

About ChangeAbout ChangeAbout ChangeAbout Change

• Change is always with us

• Change might be resisted

• We need to understand the change

• We need to lead the change

• We need to take risk:

“The biggest risk is take no risk!!!”

“Member of Nestlé Management at all levels are…

- Willing to accept change and the ability to manage it.“

Sources: The Nestlé Management and Leadership Principles –Revised Edition July 2005

NestlNestlNestlNestléééé Leadership FrameworkLeadership FrameworkLeadership FrameworkLeadership Framework

Change Agent Change Agent Change Agent Change Agent –––– HR Roles HR Roles HR Roles HR Roles

As Change Agent HR of Nestlé needs to:

• Model the change

• Communicate about the change

• Involve others in the change

• Help others to break from the past

• Create a supporting learning environment

Organizational & Culture Change Organizational & Culture Change Organizational & Culture Change Organizational & Culture Change NestlNestlNestlNestléééé Vietnam (2001Vietnam (2001Vietnam (2001Vietnam (2001----2006)2006)2006)2006)

The Need of Organization and Culture Changes(Back to 2001)

Nation-wide road show to raise the needs of change(October – November 2001)

Series of Change Management Seminars(November – December 2001)

Team Building in Phan Thiet(February 2002)

Culture DiagnosingCulture DiagnosingCulture DiagnosingCulture Diagnosing

Desirable Culture, TopDesirable Culture, TopDesirable Culture, TopDesirable Culture, Top----down Ambition,down Ambition,down Ambition,down Ambition,and Change Roadmapand Change Roadmapand Change Roadmapand Change Roadmap

Top-down Ambition

Establish Nestlé’s position as “THE food, beverage, nutrition, and wellness company” in Vietnam

Change Management

Road Map

Change

Implementation

Process in

Nestlé Vietnam

Raising awareness on the need of change

Setting Objectives & Tackling issues

Setting & CommunicatingVision/Strategies

Acting on VisionRegular follow-up, audit, correction & celebrating

• 3-month follow-up• Celebrating for short term wins• Corrective actions• Invigorating process with new

project/objectives

Goal SettingProject ManagementCustomer ServiceCommunicationTeam BuildingTeam ManagementLeadership

New Culture reinforcedReward SystemMotivating staff to participate & contribute with head & heartCoachingSuccession PlanDeveloping resources for future

• Restructuring hindering systems

• PMS to be revised• Ind. vs. team performance• Department Task Force• Cross functional projects

• Change Coalition to be formed• MANCOM as Change

Champions• Communication

• Communication sessions • Change Management

Seminars• Phan Thiet sessions

Change Management Road Map

Human Resources as Change Agent Human Resources as Change Agent Human Resources as Change Agent Human Resources as Change Agent ((((2001200120012001----2006)2006)2006)2006)

Changes Result Changes Result Changes Result Changes Result EEEEmployeesmployeesmployeesmployeesmployeesmployeesmployeesmployees’’’’’’’’ CommentsCommentsCommentsCommentsCommentsCommentsCommentsComments

Most of us,

• Are happy at Nestlé Vietnam (94%)

• Think the work we do is important (89%)

• Feel that Nestlé treats us well (93%)

• Are satisfied with our job (82%)

• Feel stimulated by what we are doing (89%)

• Feel that our job is well defined (90%)

• Feel that we able to contribute ideas (82%)

• Feel there is a good management system to take our problems to (85%)

Changes ResultChanges ResultChanges ResultChanges ResultBusiness GrowthBusiness GrowthBusiness GrowthBusiness Growth

Food and beverage only, did not count nutrition, pharmaceitical, and water.

0

100

200

300

400

500

600

Index (100 = year

1995)

1995 1996 1997 1999 2000 2001 2003 2005 2006

SALES DEVELOPMENT - VIETNAM (F&B)

Key LearningKey LearningKey LearningKey LearningHR Credibility to Lead ChangeHR Credibility to Lead ChangeHR Credibility to Lead ChangeHR Credibility to Lead Change

• Gain Strong Support from CEO/MANCOM

• Gain Credibility by more Approachableand Responsible

• Build HR as a “Business Partner”

• Track Change Progress and Maintain Change Momentum

Key LearningKey LearningKey LearningKey LearningHR Ability to Lead ChangeHR Ability to Lead ChangeHR Ability to Lead ChangeHR Ability to Lead Change

• Well trained in Change Management Knowledge

• Quantity and Quality of HR Staffs

• Courage and Take Risk in Leading Change

• Creative to build HR and Organization Initiatives

Key Learning Key Learning Key Learning Key Learning

Right Model for ChangeRight Model for ChangeRight Model for ChangeRight Model for Change

Source: John Kotter,

Leading Change: Why Transformation Efforts Fail, HBR, March- April 1995

1. Establish a Sense of Urgency

2. Form of a Powerful Guiding Coalition

3. Create a Vision

5. Communicate the Vision

6. Planning for and Creating Short Term Wins

7. Consolidating Improvements and Producing More Change

8. Institutionalizing New Approaches

Key Learning Key Learning Key Learning Key Learning Dealing with People in ChangeDealing with People in ChangeDealing with People in ChangeDealing with People in Change

Followers

Leaders

Resisters Followers

Ability to change

Wil

lin

gn

ess t

o c

han

ge

Low High

Low

High

Training

Com

mun

icatio

n

• Communication: Message, Vehicles, and Timely

• Training: Teambuilding, Practical and Mass Training