22 PREPARing OUR TEAM FOR THE FUTURE

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1 22 PREPARing OUR TEAM FOR THE FUTURE

2 1 annual report preparing our team for the future Organizational design Welcome plan for employees Occupational Risk Prevention Internal Communication Programs Ambassador Program and 'Challenge 2014'

3 24 PREPARing OUR TEAM FOR THE FUTURE Preparing our team for the future The Coca-Cola Iberian Partners team is key to the smooth functioning of our business model, from bottling, distribution, product marketing and internal management, to building relationships with customers, consumers, suppliers and communities in general. Thus, at Coca-Cola Iberian Partners we believe that one of the main pillars of success is being able to count on our people's commitment to both the business objectives and their own growth within our exciting business project. Laia Soler Corporate Director of Human Resources We have implemented an unprecedented change in the way we work, and our professionals have responded with the utmost responsibility and constructive spirit.

4 annual report Building... with our people... Flexibly We approach the process of adapting to change as a challenge for our people and we strive to be flexible in finding imaginative solutions. Responsibly We have been able to be efficient in a short space of time and in a complex environment, thanks to the responsible attitude of our professionals. Essentially This is a project that is committed to the professionals who comprise it, and seeks to be part of their personal and professional development. Organizational design In 2014 we took on the challenge of unifying different organizations with very different business backgrounds, identities and cultures. In order to do so, we developed a working model based on respect, professionalism and care for our people, through: 1. An organizational design that prepares us to meet the challenges of growth and stability in the future. Thus, we have built an organization that responds to the strategic needs of the business, a key tool for sizing and designing the structure. This has enabled us to guarantee the control and continuous monitoring of the impacts of this integration process on the organization. It includes the different levels of responsibility, and all the companies involved in the process. 2. The integration process, and the challenge of having to carry it out in record time, has brought unprecedented change in the way we work. This challenge has been performed successfully thanks to the responsibility and constructive spirit of our professionals. Restructuring Organizational In January 2014 and within the process of integration and reorganization of the company, Coca-Cola Iberian Partners presented an Employment Regulation Record, with the aim of creating a more efficient organization, eliminating any work duplications resulting from the merger of the eight bottlers and thus ensuring a robust and value-creating future across the company as a whole. This Record had the objective of reaching the figure of "0 dismissals", offering early retirement, relocations and voluntary redundancies, with conditions that went beyond those stipulated by law for any of the options. The willingness of the company to reach a negotiated solution found no response from the workers' representation and, finally, the case was brought to trial and declared invalid by the High Court in June The company reiterated at all times their openness to dialogue and negotiation so as to try to reach an agreement that was satisfactory to all parties, in order to overcome the legal conflict. At the close of 2014, the case was under appeal at the Supreme Court and pending resolution. The Supreme Court has since ruled to uphold the annulment of the record, the implementation of which is in process. It is expected to be completed quickly.

5 26 preparing OUR TEAM FOR THE FUTURE Welcome plan 2014 has seen the drive of initiatives aimed at building the team's sense of belonging within a new company, accompanying them in the process of adapting to the changes that were being implemented continuously and rapidly, and developing an unequivocal commitment from all employees to the company's Marta Sempere Organization, Remuneration and Personnel Management Director " We have designed an organizational model, which prepares us to meet the challenges of growth and stability in the future. strategy and business priorities. We have endeavored to promote a positive and constructive attitude in a demanding environment and are proud of the professional and personal integrity shown by the entire team. To this end, within the project The human side of integration, we have conducted forums and activities to discover the concerns and worries of our employees. 3. The remuneration policy has advanced towards a consistent and adequate model of advanced market practices. Establishing a remuneration system for the management which guarantees internal coherence and fairness and external competitiveness, has been an ambitious task considering the diversity across the 8 bottlers. All managers currently enjoy a unified remuneration system, for which it has been necessary to undertake a Job Evaluation process and design a Remuneration Model that reinforces the achievement of objectives in line with company strategy. Throughout the year we have performed the arduous task of designing a new general action framework in the field of personnel management, which has allowed us to unify processes and tools. The main lines of this framework are: The design of a strategy to help support employees adapt to their new job, and/or new workplace. Implementation of programs that have allowed the alignment of the efforts of our professionals with the priorities set out in the Business Plan, and that mark the strategic lines to follow at Coca-Cola Iberian Partners. Prepare our professionals to handle the challenges that our business requires with the maximum guarantees of success, taking into account the economic environment in which the company operates. To do this, we consider it essential to develop the necessary attitudes of flexibility and versatility in order to meet any future needs that may arise.

6 annual report Welcome plan for employees that have been relocated or those with a change of role One of the challenges that has been faced by Coca-Cola Iberian Partners has been the management of internal mobility processes (functional/geographic) that the integration process has generated. To over come this, the company launched a welcome plan designed jointly with different functional areas that has a global vision and a capacity to respond to three key areas for the people: and support for those affected by internal mobility processes. 99% of those relocated have benefited from this plan, the reception of which has been "excellent" and, as its beneficiaries have expressed, "positive and rewarding". Leadership For people in positions of responsibility, steps have been taken to reinforce leadership qualities Change of workplace. Open days have been organized to facilitate the arrival at the new work centers. Change of role. Individual training plans were developed along with professional training according to position, to support our employees throughout the process. The new bosses of those that were relocated had an active role in the process. Change of residence. A logistics support service has been established to facilitate the management of all matters related to mobility and the job search for partners of relocated employees. For those people in positions of responsibility, measures have been developed to strengthen their leadership capcities throughout the process. Team leaders have thus assumed a key role, becoming the new points of reference HR management RESTRUCTURING AND INTERNAL MOBILITY 99% of those relocated have rated the welcome plan as excellent Change of workplace Change of role Change of residence

7 28 PREPARing OUR TEAM FOR THE FUTURE Occupational Risk prevention Internal communication A key issue: Occupational Risk Prevention Safety in the workplace and the prevention of occupational risks has been one of the central issues in the Coca-Cola Iberian Partners' 2014 activity. Within the framework of the integration process, a Central Occupational Risk Prevention team has been created to design the mission, vision, strategy and company policy in this area. Without neglecting all the activities and investments necessary to ensuring a secure environment for all our centers and facilities, the focus of the new prevention strategy for Coca-Cola Iberian Partners is the creation and fostering of a strong safety culture among all our employees and collaborators. In this sense, we highlight the following projects that have been carried out during 2014: 1. The design and implementation of a unified reporting and registering tool for accidents and risk communications. 2. The creation of an occupational risk prevention indicator to measure the proactivity of each of the areas, with the direct involvement of management teams. 3. The establishment of a standard for roles and expected behaviors in regard to Occupational Rish Prevention by Industrial leaders, which has been communicated to the teams via on-site talks at the plants in La Coruña, Seville, Málaga, Bilbao and Valencia. 4. Activation of Preventive Observations (POs) in plants where this tool had not been fully implemented (La Coruña, Seville and Malaga). The aim is to encourage the involvement of team leaders and reinforce behaviorbased safety. 5. Launching, or reinforcing where it was already established, the risk communications tool, with the objective of encouraging communication with our workforce and establishing their contributions to this delicate matter. MORE INFORMATION Find out about the company s Occupational Risk Prevention Policy. New prevention strategy STAGES Creating a tool to register 'risk communications'. Creating a risk prevention indicator by area. Creating a standard for roles and behaviors regarding occupational hazards. Launch of 'Preventive Observations' in plants where they were not already in place. Launch of Risk Communications in all plants in which they were not already in place. Result of the measures in 2014: a reduction of 11% in accident rates compared to 2013.

8 annual report Internal Communication, a key tool In such a relevant moment as that experienced by the company in 2014, the internal communication policies have played a particularly prominent role. We have worked to build an integrated operation with unified criteria and objectives that are in line with those of the business, focusing particularly on generating employee commitment to the company project. Within the Internal Communication strategy, the corporate intranet has played an important role throughout the year. Through this channel, the company has kept all employees informed of each milestone reached during the reorganization process. It has also helped in ensuring that the whole team at Coca-Cola Iberian Partners had access to the documents and information necessary to discover the new company. In parallel, we have designed a new intranet that will be introduced during In line with the challenge of maintaining maximum communication with the team of professionals forming the company, the OdI (Oficina de Integración - Integration Office) was launched, an internal publication available in both paper and digital format. Besides reporting on the most important Coca- Cola Iberian Partners events, it offered information of interest on our business sector and the current social and economic context. To mark the passing from integration to consolidation in early 2014 Good News! was launched, the new magazine for internal communication in which our professionals will continue to find all the information of interest needed to follow in detail relevant facts about the company.

9 30 PREPARing OUR TEAM FOR THE FUTURE Ambassador Program and Challenge 2014 Bilbao Portugal Barcelona Madrid Seville Ambassador program: our employees, brand ambassadors The company has focused intensely on addressing the challenge of turning every Coca-Cola Iberian Partners employee into a brand ambassador. To do this, and together with The Coca-Cola Company, we launched the Ambassador program, which ran throughout the year. It is a tool focused on improving, on the one hand, knowledge of the brand and the products that we have in the market, and on the other, fostering the pride of working for a brand like Coca-Cola. Among the different activities for Ambassadors, the Don't be speechless sessions stand out. Throughout the year we organized seven training sessions in which around 1,000 people particpated, with special focus on areas which involve customer contact. The aim is to ensure that employees have all the necessary tools to address any questions that may arise from customers and consumers. The result of this initiative has been a complete success: after the session, 86% of respondents felt that they knew more about the company's products. The final assessment of the training returned a result of 4.2 points out of a maximum of 5. After the session, 86% of the participants said they would be prepared to answer questions about our products

10 annual report 'Challenge 2014', a motivation plan for the sales network The company has made the building of a corporate culture based on a positive and constructive attitude of employees one of its priorities. As evidence of this, and with the momentum of the Customer Channel Business Development (CCBD), we have opted to introduce a motivation plan for the sales network using gameification techniques. That is, the application of games to team management. Thus, in June 2014, Challenge 2014, A tall challenge was launched, a mountaineering-based activity in the form of a team competition to reach the summit. Objectives FOR CHALLENGE 2014 Teamwork Fostering a sense of belonging and teamwork, creating expeditions to, in a collective effort, meet the challenges by reaching the summit. Join forces Establish a common goal and achieve it together, creating the challenge of the month and the target of the month. In order to create a common motivation, the sales teams of each of our centers were selected to take part. The motto The best views of Challenge 2014 challenged employees to design and decorate the best sales room. Thanks to this program, the sales teams of each center have been, month after month, mounting meters and earning points, while the CCBD and Sales teams competed to reach the summit at the end of the year and win the prize: a trip to Sicily to climb the summit of Etna, a trip that the winners enjoyed in April 2015.