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,Increase revenue growth to 5% per annum Increase operating margin from 10% to 15% by 2004 Deliver an incremental 2.7billion in operating profit by 2004,Path to Growth identifies what we will do to deliver on our promises to shareholders:,Provide Unilever with the platform to deliver sustainable growth,Note: Figures do not include Bestfoods,Unilever,Peer Group,Unilever 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 strategy,Peer 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, Pepsico,Unilever Share Price Performance v Peer Group “Shadow”,Path to Growth - 6 primary strategic thrusts,What is our strategy for the Path to Growth?,World Class Supply Chain,We aim to: Close the gap to world class in supply chain within three years By: Establishing a Global Buying programme Establishing a world class manufacturing programme Resulting 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 Skills An excellent overall understanding of the business, its processes and their linkages Business behaviours Outstanding performance,Supply Chain - What does it take to succeed?,The Supply Chain Process Model,Supply Chain - the Heart of Operations,Plan/Source Plan/Make Plan/Deliver Planning links the processes together,Driving Value Creation in the Supply Chain,Beating the Fade: continuous innovation and cost savings Growth through: making new products available improved distribution better customer service Increased margins through: cost savings along the supply chain overhead cost reduction reducing complexity Capital efficiency improvements: minimising investment in plant & equipment and inventories,These elements together contribute more than 50% of Unilevers total Value Creation,Organisational Development,Business has moved, and continues to move, towards process management Emergence of Supply Chain process roles A career in the Supply Chain requires development of breadth and depth of skills, Leadership competencies, and experience,What do Supply Chain people in Unilever do?,Roles in different parts of the organisation factories regional supply chains business groups corporate centre Roles: with strategic focus in a more operational environment, Roles in various parts of the supply chain: PlanSourceMakeDeliver Roles which focus on the multi-local aspects of the business at a national or regional level the multinational aspects Roles in related professions, e.g. R&D, Customer Management Roles in QA, SHE and Technical Management,Building Successful Careers Focuses On:,Processes and tools used in career development Key career building blocks Career phases The need for breadth and depth of skills and experience The impact of each individuals potential The importance of tactical and strategic career planning The need for a global perspective Planning life and career,Building Careers - Key Principles,Successful careers are based on outstanding performance founded on skills, competencies and experience,Experience,Professional Skills,Leadership Competencies,Performance,Building Careers - Key Principles,Successful careers are based on outstanding performance founded on skills, competencies and experience,Experience,Professional Skills,Leadership Competencies,Performance,The Leadership Growth Competencies,Focus 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 business A tool for development and assessment of performance By helping our leaders grow, we will grow our business Applicable to everyone at WL2 and above,Why we need to develop Competencies?,SUPERIOR JOB PERFORMANCE,Competencies,Knowledge & Skills,Personal characteristics (values, traits, motives) shaping HOW the job is undertaken Measured by clearly observable behaviour,Transferable knowledge and abilities (professional and general) to do WHAT is required by the job Measured by demonstrated capability,What 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 presentation knowledge - what you know e.g. theories of effective presentation self image - how you see yourself e.g. public speaker values - 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 Model,Necessary but not sufficient,Distinguish effective performance,Acquired capability,Deeper seated traits and motives,A 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 job,How 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 growth In-depth research of 39 Unilever growth leaders Interviews and feedback from colleagues Comparison of the Unilever growth leadership characteristics to a world-class benchmark sample Large international organisations Achieved substantial growth in own sectors Result: LGP was rolled out to WL6 and 5 in 2000,How was the LGP developed?,Step 2: Focus groups and interviews with WL2, 3 and 4 in 14 countries around the world Tested relevance and made relevant adjustments Result: Now rolling out to all WL2+ managers across Unilever,How were the Criteria Established?,Original Research Compared and Contrasted Two Groups,Current Superior Leaders,Current Outstanding Leaders,“Baseline” Competencies Both groups show,“Distinguishing” Competencies Only outstanding show,How were the External Benchmarks used?,Compared both groups to competencies required to meet the future strategy and against the external benchmark population,External benchmark of world class leaders,Current Superior Leaders,“Baseline” Competencies,“Distinguishing” Competencies,Potential Vulnerabilities Even the best need to show more,Current Outstanding 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 savvy Think and act over a longer term perspective Energise others for significant change Demonstrate a greater focus on individuals - developing, empowering and holding them accountable Use highly effective influencing strategies to gain support: they know how to orchestrate the organisation - colleagues, bosses, their teams How 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 better,How is the LGP different?,Directly related to our current business agenda - Growth Externally benchmarked against the best One set of competencies for all levels Creates a focus on development of outstanding leaders at every level It is easily modified to support future new business goals As a result, LGP will replace the Effective Unilever Manager competencies,Achieves through integrity, teamwork and learning,Self Confident Integrity Team Commitment Learning from Experience,Possesses the intellectual power to determine direction,Ensures that direction is market driven,Delivers through people,Acts decisively to improve performance,Clarity of Purpose Practical Creativity Objective Analytical Power,Market Orientation,Leading Others Developing Others Influencing Others,Entrepreneurial Drive,Builds Commitment to Growth Strategic Influencing Team Commitment Team Leadership,Drives for Growth Seizing the Future Change Catalyst Developing Self & Others Holding People -Accountable Empowering Others,Creates a Growth Vision Passion for Growth Breakthrough Thinking Organisational Awareness,Supply Chain - What does it take to succeed?,Leadership Growth Competencies,LGP - The Levels,Four levels: Foundational Developing Growth World Class Example: Passion for Growth,Are highly motivated to achieve their personal targets in order to contribute to the sustainable profitable growth of the business,Are ambitious for excellence and constantly search for opportunities to improve the business,Set challenging growth goals for themselves and others and put into place plans to achieve these,Take significant entrepreneurial action and ask “what is possible?” to ensure growth opportunities are realised,Foundation Level,Developing Level,Growth Level,World Class Level,LGP - The Levels (continued),Behaviours needed to demonstrate World Class are very stretching This reflects our business targets We cant have significant growth without an incremental shift in behaviour But These behaviours are not beyond our capabilities We need to make our people development a higher priority To help people assess their performance against the profile, target criteria have been established for each work level,Passion for Growth Does 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 business,Create stretching but achievable goals to align own activities with growth initiatives Aim to find and realise new growth opportunities Align own activities and goals with growth initiatives Aim for performance excellence through own efforts Stimulate growth by bringing about step change improvements,Aim to make the impossible possible Entrepreneurially commit significant investments to reap major rewards Defy conventional wisdom and internal opposition to achieve major growth Create new markets by exploiting growth opportunities Obsess with growth and focus on delivering new ways to gain competitive advantage,Ambitious to hit set targets and standards Deliver on commitments made to others Persist in overcoming obstacles to success Take full responsibility for delivering their contribution to the business,Are highly motivated to achieve their personal targets in order to contribute to the sustainable profitable growth of the business,Focus on business improvement and are ambitious for excellence, constantly search for opportunities to improve the business,Set challenging growth goals for themselves and others and put into place plans to achieve these,Take significant entrepreneurial action, and ask “what is possible?” to ensure growth opportunities are realised,Foundation Level,Developing Level,Growth Level,World Class Level,Outstanding 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: Too busy dealing with immediate, urgent issues to look for new growth opportunities Settle for the status quo - take no action to improve mediocre performance,Easily side-tracked from important growth goals Unconcerned about missing deadlines or failing to meet business objectives Do not take responsibility for contributing to growth objectives,Links with: Organisational Awareness,LGP Guideline criteria for work levels,WL6,Meets WL4 target and has at least one World Class competency in each cluster,WL5,Meets WL4 target and has one World Class competency in each of two clusters,WL4,WL3,WL2,Two in each cluster at Growth including one of Seizing the Future and Change Catalyst and one other from the same cluster No negative indicators,Most competencies at Developing level. At least one competency in each cluster at Growth level,More competencies at Developing level than at Foundation,Using the LGP and Competencies,Talent Management,Coaching & Mentoring,Reward for Growth,Ranking,Listing,PDP/ Development,Leadership Growth Profile,Where has LGP been used so far?,Already used for: Assessment of all WL5 and WL6 Personal development planning for WL5/6 Executive selection One element of WL4 assessment in Unilever/Bestfoods merger,Going Forward - Future Uses of LGP,The LGP will be used in: PDP - in all organisations for WL2 and above by 2002/2003 PDP cycle Individual performance and capability will be assessed against the LGP competencies based on previous 2 - 3 years data Self-assessment and personal development planning Listing Ranking for WL4 (others may follow) Assessment, selection and recruitment of all posts at Graduate level and above,Next Steps for you,Access 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 model Study the target criteria for your role and work level in the document Consider your strengths and development needs against the model Work 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 plan,Building Careers - Key Principles,Successful careers are based on outstanding performance founded on skills, competencies and experience,Experience,Professional Skills,Leadership Competencies,Performance,Supply Chain Professional Skills,Job Skills Profile Abilities to do the job well now + future.,Person Skills Profile My current abilities.,Difference,Personal Development Plan,GAP ANALYSIS,2. Integrated Supply Chain Modelling and Design,Integrated/Collaborative Supply Chain Planning Operational Planning & Forecasting Materials Management,Supply Intelligence & Strategy Development Contract Agreement/Arrangement & Management Integrating Supplier Value into the Business,Driving Production Performance Improvement Influencing & Implementing Product & Process Innovation Maintenance & Project Engineering,Customer Service Development & Management Warehousing and Distribution Management Channel Logistics Development,The New Skills Framework for Supply Chain,Plan,Make,Deliver,Source,Key General,Business Economics Negotiation & Influencing Supporting Sustainable Development Using Information Technology People Management Project Management,(HR) Employee Relations R & D Development Skills,1. Extended Supply Chain Strategy Development & Deployment,3. Supplier (& Contractor) Relationship 4. Developing & Implementing /Economic Management Supply Chain Innovation,6. Managing Quality, Safety (& Environment) 5. Formulation, Process & Packaging Kn

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