Building Capabilities to Deliver Strategic Objectives

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1 The Supply Chain Academy Supply Management Building Capabilities to Deliver Strategic Objectives EIPM Annual Conference 07 December 2006 Philippe de Jongh Page 1

2 Agenda Unilever: Company Facts & Figures The Supply Management Learning Journey: 3 years at a glance Programs & Critical Success Factors Moving Talent Forward: The Supply Chain Academy Preparing for the Future: A New Supply Chain Skills Set Recap of Best Practices Page 2

3 Unilever Company Facts & Figures Page 3

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9 The Supply Management Learning Journey 3 Years at a Glance Page 9

10 Turn Back the Clock - Late 2003 On the Business side:»path to Growth» plan almost completed ( ) Acquisitions (Bestfoods, Amora-Maille, Ben & Jerry, Slim fast, ) 140 businesses sold Dramatic brand reduction (1,600 down to 400) Leading brands account for 93% of sales Massive cost savings achieved to fuel future growth Oct 2003 Page 10 On the Supply Management side: Total Spend 26bln Euro 1,100 Supply Managers Transition from Local to Regional to Global in varying stages of completion A new SC skills set published end 2001 but not widely used (27 Reference jobs profiles available)

11 Moving Onward... ( ) Vision «From Buyers to Business Partners in innovation, Simplification, Supply Chain and NPI to maximize company value» Accelerate development of professional capability Top strategic thrust identified to underpin this transformation Challenges ahead Data aggregation Supply Chain / Innovation Chain Supply Management to become one global community Manage virtual teams in a multicultural environment SM the hot place to be! Attracted new people from all over the Business with very different educational and professional backgrounds 2006 Page 11

12 Programs & Critical Success Factors Page 12

exposure to participants Fill existing identified gaps «Raise the floor»

13 Our Guiding Principles for Learning Align with business objectives Target all Management levels with clear priorities in the execution Ensure maximum exposure to participants Fill existing identified gaps «Raise the floor» Prepare for the future «Raise the ceiling» Delivered in a cost effective way Page 13

14 The Learning Program Supply Management courses: The Core 4 programs covering the different management levels Skills-based 3 phases Explore 8 weeks prior Understand 5 days residential Go create 8 to 16 weeks after Delivered regionally or globally Specific Skill-based courses: Tackle the Diversity Negotiation (2,5 days + pre-work) Finance for Supply Chain (3 days + pre-work) Managing Cultural differences (1,5 day) Cross Functional courses Joint participation with existing programs Create new joint programs E-learning As a standalone curriculum As an integral part of a program Continuing Education Virtual gatherings with experts in the field Supply Chain / Supply Management portal Page 14

15 Have we been successful? In 3 years ( ) 9 programs rolled out across all geographies 1,500 + participants in classroom courses e-learning users (blended learning) participants in Virtual Gatherings with experts in the field Evaluation Scoring standardized: 1 5 scale Participants assess themselves against program learning objectives Use different evaluation criteria (faculty, guest speakers, logistics, ) Combine quantitative and qualitative feedback Reading the results High score average (4.4) out of 50+ courses delivered Score dispersion very low same level of satisfaction across the globe Strategy into action: bring the learning back to the workplace Other functions eager to send participants Page 15

Examples - Evaluations Course Evaluation Participants score themselves before and after the course to measure improvement against learning objectives Faculty Evaluation Participants score each

16 Examples - Evaluations Course Evaluation Participants score themselves before and after the course to measure improvement against learning objectives Faculty Evaluation Participants score each faculty member on series of questions Speaker Evaluation Participants evaluate the speaker with written responses 1. What was the key message for you? 2. To what extent did the presenter s style help your understanding of the content? 3. Would you recommend this session of the next program? Why or why not? Page 16

17 What s next? The company accelerates its transformation Foods and HPC divisions have disappeared 3 regions (Europe, Americas and Asia-Amet) instead of 5 Each function s targets fully aligned with company top objectives A new mission for the Supply Chain which translates into new thrusts A new learning infrastructure for a new challenge Connected to the business, driver to promote talent development The Supply Chain Academy Page 17

deliver Learning & Development programmes in the Supply Chain Mission «Building People Capabilities to

18 Unilever Supply Chain Academy 3 critical success factors People Capability Solutions that meet the development needs of individuals & deliver Supply Chain improvement Professional Business Partners who deliver Learning & Development programmes in the Supply Chain Mission «Building People Capabilities to Deliver the Unilever Supply Chain Strategy» A Space for Sharing Supply Chain knowledge & communications Page 18

19 A Space for Sharing As a global function, having a common space online is key Page 19 Page 19

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22 Preparing for the Future A New Supply Chain Skills Set Page 22

23 Supply Chain requires a new platform Main Objectives Create a new skill set that will drive Unilever SC towards 2010 Identify skills key to deliver the SC Strategy into Action Easy to implement, understand, review and measure Scope The extended Supply Chain will be covered Skills will be identified at a global level and be applicable to regions Page 23

24 The SC Skills Framework Requirements Alignment with HR guidelines for General skills Straightforward word definition for each skill, followed by a list of sub-skills Each sub-skill linked with Activities / Tasks 4 competency levels for each sub-skill / skill Basic Appreciation Working Knowledge Fully Operational Leading Edge Ability to discuss the main elements of the skill with others Ability to have direct involvement in decisions and actions in the skill area Ability to perform personally the great majority of the activities of the skill area Ability to significantly develop the skill Page 24

25 The SC Skills Framework - example Skill Name Description Sub Skills Supply Market Intelligence and Analysis Searching for and gathering information on relevant supply markets. Analysing market behaviour and trends to support strategy formulation. Sub Skills Collecting Relevant Information Analysing Supply and Demand Market Behaviour Understanding key cost drivers and price trends Applying Market Insights Communicating and Sharing Market Intelligence Activities Identifies the barriers to market entry e.g. legal, economic, technical, political and environmental factors Identifies possible new entrants to the market and how they would change the supply/demand balance Understand the customers within the market, total demand, productivity, services and quality levels required Identify substitute technologies, processes and business models in the market Analyse the supply market dependencies (supplier s supplier chain) Page 25

26 Job Skills Profile building blocks Example Supply Management Role All Skill Components Supply Manager Relevant Skills Collaborating Across the Supply Chain to Drive Value Creation for Ourselves and Our Customers Supply Market Intelligence and Analysis Managing Alliance and Relationships Change Management Supply Planning Marketing Cross Supply Chain Skill + Supply Management Skills + General Skills + Other SC Skills + Other Functional Skills Page 26

27 Project Process Driven by the Supply Chain Academy Supported by each SC function (Plan, Source, Make and Deliver) Endorsed by the Business SC Leadership Team Sign Off Each SC function in parallel Page 27 Project Brief Where are we? Where do we want to be? Stakeholder Interviews Scoping Content (Functional Skills) External benchmarking SME interviews Draft of skills set for each subprocess designed Each respective Functional Leadership Team validated & signed off their skills set Content (Cross-SC Skill) One cross-sc skill that encompasses all functions created 8 months Job Skills Profiles New skills set used to profile reference jobs Feedback from homogeneous group of profilers Each respective Functional Leadership Team signed off their job skills profile Implementation Transfer into system that allows people to use it Communicate

facilitates the the profiling profiling of of of an each each skill skill and and sub-skill an individual

28 Implementation - How does it look? Individuals select their current role (or a possible future one) and assess themselves against the reference profile System generates available learning materials based on skill gaps Priorities are agreed with line manager Page 28 Tool Provides Provides descriptions descriptions of Tool that that facilitates facilitates the the profiling profiling of of of an each each skill skill and and sub-skill an individual individual against against a a reference reference sub-skill role activities role profile profile from from a a generic generic list list of of activities Supply Supply Chain Chain jobs jobs

29 To Recap: Some Best Practices to Share Link closely with Business priorities Be clear on the framework Skill-based programs Flexibles (building blocks) Find the right mix (lectures, guests speakers, team work) Raise the floor (fill the gaps), Raise the ceiling (prepare for the future) Leverage and get people committed Global lead / regional execution Program committee architecture Maximize learning Blended learning Deliver at the best place Evaluate Transfer to the workplace (Strategy into Action) Keep in touch with your customers Page 29 Web page Virtual conferences

30 Thank you Page 30

Transforming your organisational learning systems and culture

Transforming your organisational learning systems and culture Nick Denholm Global Learning Technologies Manager Mars Incorporated nick.denholm@effem.com A question to begin... What do you believe is the