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lIncrease revenue growth to 5%per annumlIncrease operating margin from 10%to 15%by 2004lDeliver 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 sustainable growthNote:Figures do not include BestfoodsUnileverPeer GroupUnilever Share Price Performance v Peer Group“Shadow”(Based on Quarterly Average Share prices)Why do we need the Path to Growth?The Market is concerned about our ability to execute our strategyPeer Group:Beiersdorf,Avon,Cadbury,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”Path to Growth-6 primary strategic thrustsWhat is our strategy for the Path to Growth?World Class Supply ChainWe aim to:lClose the gap to world class in supply chain within three yearsBy:lEstablishing a Global Buying programmelEstablishing a world class manufacturing programmeResulting in(approximately):-100 fewer manufacturing sites-1.6 billion buying savings by end 2002-0.5 billion manufacturing 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 Chain-What does it take to succeed?The Supply Chain Process ModelPlanSourceMakeDeliverSupply Chain Mission&Strategy Brand Development Brand DevelopmentCustomerDevelopmentCustomerDevelopmentSuppliersSuppliersConsumers&CustomersConsumers&CustomersInformation ManagementHuman Resource ManagementQuality&Business 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:making 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 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 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-local 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 phasesThe 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 founded on skills,competencies and experienceExperienceProfessionalSkillsLeadershipCompetenciesPerformanceBuilding Careers-Key PrinciplesSuccessful careers are based on outstanding performance founded on skills,competencies and experienceExperienceProfessionalSkillsLeadershipCompetenciesPerformanceThe Leadership Growth CompetenciesFocus on Growth(in every sense)What is the Leadership Growth Profile?It is:A leading edge competency model that focuses on driving growth throughout the businessA tool for development and assessment of performanceBy helping our leaders grow,we will grow our businessApplicable to everyone at WL2 and aboveWhy we need to develop Competencies?SUPERIOR JOB PERFORMANCESUPERIOR JOB PERFORMANCECompetenciesKnowledge&SkillsPersonal characteristics(values,traits,motives)shaping HOW the job is undertakenMeasured by clearly observable behaviourTransferable 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 presentationknowledge-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 drive behaviour;they are intrinsically satisfying and rewarding e.g.achievement The Iceberg ModelNecessary butNecessary butnot sufficientnot sufficientDistinguishDistinguish effective effective performance performance SkillKnowledgeValuesSelf-ImageTraitsMotivesAcquired capabilityDeeper seated traits and motivesA competency:any characteristic of a person that differentiates outstanding 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 developed?Step 1:Was developed by a rigorous research process:Assessment of Unilevers business context,the challenges facing leaders and the capabilities needed to achieve growthIn-depth research of 39 Unilever growth leadersInterviews and feedback from colleaguesComparison of the Unilever growth leadership characteristics to a world-class benchmark sampleLarge international organisationsAchieved substantial growth in own sectorsResult:LGP was rolled out to WL6 and 5 in 2000How was the LGP developed?Step 2:Focus groups and interviews with WL2,3 and 4 in 14 countries around the worldTested relevance and made relevant adjustmentsResult:Now rolling out to all WL2+managers across UnileverHow were the Criteria Established?Original Research Compared and Contrasted Two GroupsCurrent SuperiorLeaders Current Current OutstandingOutstandingLeaders Leaders“Baseline”CompetenciesBoth groups show“Distinguishing”CompetenciesOnly outstanding showHow were the External Benchmarks used?Compared both groups to competencies required to meet the future strategy and against the external benchmark populationExternalExternalbenchmark benchmark of worldof worldclassclassleadersleadersCurrent SuperiorLeaders“Baseline”Competencies“Distinguishing”CompetenciesPotentialVulnerabilitiesEven the best needto show moreCurrent Current OutstandingOutstandingLeaders Leaders 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 thinking 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 orchestrate 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 betterHow 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 will replace the Effective Unilever Manager competenciesAchieves through integrity,teamwork and learningSelf Confident IntegrityTeam CommitmentLearning from Experience Possesses the intellectual power to determine directionEnsures that direction is market drivenDelivers through peopleActs decisively to improve performanceClarity of PurposePractical CreativityObjective Analytical PowerMarket OrientationLeading OthersDeveloping OthersInfluencing OthersEntrepreneurial Drive Builds Commitment to Growth Strategic Influencing Team Commitment Team LeadershipDrives for Growth Seizing the Future Change Catalyst Developing Self&Others Holding People-Accountable Empowering OthersCreates a Growth Vision Passion for Growth Breakthrough Thinking Organisational AwarenessSupply Chain-What does it take to succeed?Leadership Growth CompetenciesLGP-The LevelsFour levels:Foundational DevelopingGrowthWorld ClassExample:Passion for GrowthAre 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 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 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 each 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 quality 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 growth 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 growthCreate 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 their 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 growth 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 Growth,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 questions 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 for 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 criteria for work levelsWL6Meets WL4 target and has at least one World Class competency in each clusterWL5Meets WL4 target and has one World Class competency in each of two clustersWL4WL3WL2Two in each cluster at Growth including one of Seizing the Future and Change Catalyst and one other from the same clusterNo negative indicatorsMost competencies at Developing level.At least one competency in each cluster at Growth levelMore competencies at Developing level than at FoundationUsing the LGP and CompetenciesTalent ManagementCoaching&MentoringReward forGrowthRanking ListingPDP/DevelopmentLeadershipGrowthProfileWhere has LGP been used so far?Already used for:Assessment of all WL5 and WL6Personal development planning for WL5/6Executive selectionOne element of WL4 assessment in Unilever/Bestfoods mergerGoing Forward-Future Uses of LGPThe LGP will be used in:PDP-in all organisations for WL2 and above by 2002/2003 PDP cycleIndividual performance and capability will be assessed against the LGP competencies based on previous 2-3 years dataSelf-assessment and personal development planningListingRanking for WL4(others may follow)Assessment,selection and recruitment of all posts at Graduate level and aboveNext Steps for youAccess the How good can I be?document on the HR website address to understand the model,the competencies within it and how to use the modelStudy the target criteria for your role and work level in the documentConsider your strengths and development needs against the modelWork with your manager and your employees(either in the PDP process or independently)to identify critical gaps to close-and build and implement an action planBuilding Careers-Key PrinciplesSuccessful careers are based on outstanding performance founded on skills,competencies and experienceExperienceProfessionalSkillsLeadershipCompetenciesPerformanceSupply Chain Professional SkillsJob Skills ProfileAbilities to do the job well now+future.Person Skills ProfileMy current abilities.DifferencePersonalDevelopmentPlan2.Integrated Supply Chain Modelling and DesignIntegrated/CollaborativeSupply Chain PlanningOperational Planning&ForecastingMaterials ManagementSupply Intelligence&StrategyDevelopmentContract Agreement/Arrangement&ManagementIntegrating Supplier Value into the BusinessDriving ProductionPerformance ImprovementInfluencing&Implementing Product&Process InnovationMaintenance&Project EngineeringCustomer Service Development&ManagementWarehousing and Distribution ManagementChannel Logistics DevelopmentThe New Skills Framework for Supply ChainPlanPlanMakeMakeDeliverDeliverSourceSourceKey GeneralKey GeneralBusiness EconomicsNegotiation&InfluencingSupporting Sustainable DevelopmentUsing Information TechnologyPeople ManagementProject Management(HR)Employee RelationsR&D Development Skills1.Extended Supply Chain Strategy Development&Deployment3.Supplier(&Contractor)Relationship4.Developing&Implementing/Economic Management Supply Chain Innovation6.Managing Quality,Safety(&Environment)5.Formulation,Process&Packaging Knowledge7.Optimising Supply Chain Operations PerformanceCoreCoreat least 2 of the 4 Supply Chain sub-processes(Plan,Source,Make,Deliver).(especially those with Finance/Business backgrounds):Technology as a Supply Chain enabler.Building a Supply Chain careerLearn the TradeCareer Building Blocks Experience-WL2Career Building Blocks Experience-WL3Building a Supply Chain careerAct as a BusinessmanAs a Supply Chain leader at WL3 you will need to gain experience in:managing in an integrated SCleading a SC sub-process at regional levelCareer Building Blocks Experience-WL4Building a Supply Chain careerStrategy into ActionAs a Supply Chain Director at WL4 you will need to gain experience in:operational management of integrated supply chainsleading strategic development of Supply Chain or sub-processes at regional/international level(BG/Corporate/Category)The Supply Chain Career Platform:My Professional DevelopmentThere are Supply Chain jobs at every level in UnileverProgress to senior levels by moving through challenging jobs.Unique experience of working in positions of different typesWork alongside other business processes,including:Financial ManagementCustomer DevelopmentBrand Development.The bottom line:Unilever is a MeritocracyUnilevers focus on performance,and the use of objective means by which to assess skills,experience,competencies and potential,will lead the best managers to reach the most senior levels in the business.Whatever the career route,Supply Chain managers canbe assured that:What do you do next?Use PDP to develop skills and competenciesUse each career step as a learning experienceBe realistic about your own potentialDeliver outstanding performance
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