Managing Change Steps To Taking Your Organization From Vision to Reality

Transcription

1 Managing Change Steps To Taking Your Organization From Vision to Reality Roger P. Schrum, VP, Investor Relations and Corporate Affairs September 10, 2013

2 Sonoco Overview 2012 Sales SALES BY OPERATING SEGMENT (Millions of Dollars) SALES BY GEOGRAPHY (Percent) 2

3 Sonoco s 114 Years of Leadership Major James Lide Coker Charles Westfield Coker James Lide Coker III C. W. Coker Charlie Coker Peter Browning Harris E. DeLoach M. Jack Sanders

4 Using Vision To Drive Transformation 4

5 A Phased Approach To Internal Communication Introduction Inspiration Engagement Examination Implementation 5

6 Change Management Matrix Leadership Behavior Elements of Change Function Culture 6

7 Transformation and Transition that Creates Evangelists 7

8 Re-Envisioning Sonoco Together 8

9 Branding the Message Articulating the Vision Insight Innovation Re-envisioning Sonoco Curiosity Imagination Collaboration 9

10 A Formula For Success Insight Ideation Innovation 10

11 Building An Audience Driven Messaging Platform Internal Employees Customers External Communities Shareholders 11

12 8 Steps for Managing Change Establish a Sense of Urgency Create a Guiding Coalition Develop a Vision and Strategy Communicate the Change Vision Empower Broad-Based Action Generate Short-Term Wins Consolidate Change & Produce More Change Anchor in the Culture 12

13 Establishing a Sense of Urgency 13

14 Establishing a Sense of Urgency What You Can Do Identify Potential Threats Examine Opportunities to Exploit Create an Honest Dialogue 14

15 Create a Guiding Coalition 15

16 Create a Guiding Coalition What You Can Do Identify Leaders Ask for a Commitment Work on Team Building Ensure Diverse Representation 16

17 Develop a Vision and Strategy 17

18 Develop a Vision and Strategy What You Can Do Determine Values Central to Change Establish a Campaign Theme Develop a Purpose Statement Create an Execution Strategy Ensure Coalition Understanding Practice the Vision Speech Often 18

19 Mission: Become the acknowledged leader in high quality, innovative, value-creating packaging solutions that Satisfy the Customer Be a GREAT company for our Ideation and innovation stakeholders through Consumer insights and an unwavering belief that People Build Businesses by doing the right thing Guiding Principle Differentiating Capabilities market alignment Quality and service excellence Manufacturing excellence Supply chain excellence Maximize sustainable cash flow from operations Grow our consumer packaging and protective solutions businesses and our industrial businesses in emerging markets Business Priorities Financial Priorities Achieve average annual double digit total return to shareholders Return on capital and equity in top quartile of S&P 500 Maintain investment grade credit rating Interim Goals: Optimize the portfolio Sales = $5.5 to $6.0 Billion Base EPS = 10% Annual Growth RONAE = 11% to 12% Key Focus Areas Safety Customer Satisfaction Grow and Optimize Operational Excellence Maximize Cash Flow and Deployment People Create a zero injury environment Value-creating solutions On-time and to specification Net Promoter Score (NPS) Consumer Insights Innovation Share/Profit optimization Productivity Reduce Unit Cost to Produce Sonoco Performance System Optimal Supply Chain Working capital management Optimize capital investments Grow dividends Acquisitions Share repurchase Talented Engaged Aligned

20 Communicate the Change Vision 20

21 Communicate the Change Vision What You Can Do Talk Often Talk Openly Apply the Vision to Everything Lead by Example 21

22 Empower Broad-Based Action 22

23 Empower Broad-Based Action What You Can Do Identify or Hire Change Leaders Tie Performance to the Vision Recognize and Reward Change Makers Convert Change Blockers Remove Barriers to Change 23

24 Generate Short-Term Wins 24

25 Generate Short-Term Wins What You Can Do Look for Sure-Fire Projects Early Keep Costs In Mind Make Thorough Evaluations Reward Helpers 25

26 Consolidate Gains and Produce More Change 26

27 Consolidate Gains and Produce More Change What You Can Do Evaluate Performance Keep the Momentum Implement Continuous Improvement Continue to Evolve Ideas 27

28 Anchor Change in the Culture 28

29 Anchor Change in the Culture What You Can Do Talk About Success Reinforce in Hiring and Training Recognize Contributions Publically Evolve the Change Team 29

30 Leadership Consistency Success Repetition Patience 30

31 Vision Without Execution is Hallucination Insights and Ideation Urgent Execution Innovation Impact 31