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June 23, 2006Kevin D. Wilde

VP, Chief Learning OfficerGeneral Mills, Inc.

Food For Thought:Building Great LeadersAt General Mills

Food For Thought:Building Great LeadersAt General Mills

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Thank You!

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Extreme Make Over

Taste for:Taste for:

- Drama of Business and MarketingDrama of Business and Marketing

- Excitement of LeadershipExcitement of Leadership

- Calling for DevelopmentCalling for Development

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Chief Learning Officer

Helping General Mills Win:

– Building Great Leaders– Global Selection &

Development, Bench Strength

– Creating Innovation Drivers– Structure, Practice, People– Funding Innovation through Efficiency & Execution

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• World’s 6World’s 6thth largest food company largest food company

• $12.5 billion in FY05 net sales$12.5 billion in FY05 net sales

• 28,000 employees28,000 employees

• Marketed in moreMarketed in morethan 100 countriesthan 100 countries

General MillsGeneral MillsThe Company of ChampionsThe Company of Champions

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General Mills: Company of Champions

Our ValuesOur Values

• Championship BrandsChampionship Brands

• Championship PeopleChampionship People

• Championship InnovationChampionship Innovation

• Championship PerformanceChampionship Performance

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CHAMPIONSHIP

brands Building leading brands thatBuilding leading brands that our consumers trust around our consumers trust around the world – making lives the world – making liveseasier, healthier and more funeasier, healthier and more fun

....................

The Company of Champions

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Championship Brands

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U.S. Market Share PositionsU.S. Market Share Positions

Refrigerated yogurtRefrigerated yogurt 11Ready-to-eat cerealsReady-to-eat cereals 22Frozen vegetablesFrozen vegetables 11Refrigerated doughRefrigerated dough 11Ready-to-serve soupReady-to-serve soup 22Dessert mixesDessert mixes 11Frozen baked goodsFrozen baked goods 11Frozen hot snacksFrozen hot snacks 22Microwave popcornMicrowave popcorn 22Dry dinnersDry dinners 11Fruit snacksFruit snacks 11Mexican productsMexican products 22

RankRank

ACNielsen Plus Wal-Mart Projection

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The Company of ChampionsThe Company of Champions

Diverse, talented, committedDiverse, talented, committedpeople – constantly learningpeople – constantly learningand growing, and contributingand growing, and contributingto our communitiesto our communities

CHAMPIONSHIP

people CHAMPIONSHIP

people ..................

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May 2005May 2005

““Top 20 CompaniesTop 20 Companies For Leaders” For Leaders”

Black MBA MagazineBlack MBA MagazineSummer 2005Summer 2005

““Top 50 Under 50”Top 50 Under 50”

Individual Development PlanIndividual Development Plan

Development

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• Fortune’s Fortune’s “America’s Most Admired Companies”“America’s Most Admired Companies”“100 Best Companies to Work for”“100 Best Companies to Work for”

• Working MotherWorking Mother “Best Companies for Women of Color”“Best Companies for Women of Color”

• Business WeekBusiness Week “America’s Top Givers” “America’s Top Givers”

• The Conference Board The Conference Board “Ron Brown Award - Corporate Achievement”“Ron Brown Award - Corporate Achievement”

• Business EthicsBusiness Ethics “100 Best Corporate Citizens”“100 Best Corporate Citizens”

• Working MotherWorking Mother “100 Best Companies” “100 Best Companies”

• Latina Style MagazineLatina Style Magazine “50 Top Companies in U.S. for Latinas”“50 Top Companies in U.S. for Latinas”

• NAFENAFE“Top 30 Companies for Executive Women”“Top 30 Companies for Executive Women”

What Others Say

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What Our People Say

““I would recommend I would recommend General Mills as a General Mills as a

great place to work”great place to work”

““Overall Commitment”Overall Commitment”

““I believe management I believe management decisions are consistent decisions are consistent

with company’s core values”with company’s core values”

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* Adjusted for Stock Splits and Spin-offsSources: Economic History Services (Inflation data) and Dow Jones & Company, Inc.

1928 – 20051928 – 2005

Stock Price Performance

General Mills

Dow Jones Industrials

77-year Compound Annual Growth

General Mills: 7.5%*Dow Jones Industrials: 4.8%Inflation: 3.2%

0

50

100

150

200

250

1933

1938

1943

1948

1953

1958

1963

1968

1973

1978

1983

1988

1993

1998

2005

1928

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WHY LEADERSHIP?WHY LEADERSHIP?

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How Important Is Leadership To Me?

Importance

Individual Contributor

People Manager

Director/Vice President

Leadership

Managerial

Technical

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Leadership Development Resource

• General Mills, in collaboration with Zenger-General Mills, in collaboration with Zenger-Folkman, created a leadership development Folkman, created a leadership development program.program.

• Titled “Building Great Leaders”, it is based on Titled “Building Great Leaders”, it is based on internal research as well as material from internal research as well as material from Zenger-Folkman. Zenger-Folkman.

• The Zenger-Folkman research is based on their The Zenger-Folkman research is based on their book “The Extraordinary Leader” book “The Extraordinary Leader”

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Relationship between *turnover and Leadership Effectiveness

Ave

rag

e P

erce

nt

Tu

rno

ver

More effective leaders have lower turnover.

* Results from a large insurance company

Leadership Effectiveness

19

14

9

0

2

4

6

8

10

12

14

16

18

20

Bottom 30% Middle 60% Top 10%

Impact of Leadership Effectiveness on *Turnover

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Impact of Leadership Effectiveness on *Net Income

Net

In

com

e

Leadership Effectiveness

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

Bottom 10% Middle 80% Top 10%

More effective leaders generate higher income.

* Results from a large mortgage bank

$1.2 MM

$2.4 MM

$4.5 MM

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Impact of Leadership Effectiveness on *Perceptions of Customer Satisfaction

Per

cep

tio

ns

of

Cu

sto

mer

S

atis

fact

ion

PC

TL

39

49

68

0

10

20

30

40

50

60

70

Bottom 20% Middle 60% Top 20%

More effective leaders have more satisfied customers.

* Results from a large high technology company

Leadership Effectiveness

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Results From a Large ManufacturerE

mp

loye

e S

atis

fact

ion

In

dex

Leadership Effectiveness Percentile

0

10

20

30

40

50

60

70

80

90

1st–9th

10th–19th

20th–29th

30th–39th

40th–49th

50th–59th

60th–69th

70th–79th

80th–89th

90th–100th

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Strong Correlation Between Employee Commitment and Company Performance

% Change in Operating Margin% Change in Operating Margin

-5

-4

-3

-2

-1

0

1

2

3

4

5

-2.01

+3.74

Low Commitment CompaniesLow Commitment Companies

High Commitment CompaniesHigh Commitment Companies

+

+

+

+

+

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Leadership

Development

Empowerment

Commitment

Key Drivers of Commitment at General Mills

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TT OO

PP

Development: P+O+T

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TT OO

PPWhere do you find it:Where do you find it:

– Classes/projectsClasses/projects

– ActivitiesActivities

– Work ExperiencesWork Experiences

Tell Me About Your … Passion

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WHAT IS LEADERSHIP?WHAT IS LEADERSHIP?

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Built on Internal & External Research

EXTERNAL EXTERNAL

: Zenger-Folkman ConsultingZenger-Folkman Consulting

• 200,000 evaluations on 20,000 200,000 evaluations on 20,000 people Top 10% vs. bottom people Top 10% vs. bottom 10%10%

: Lominger AssociatesLominger Associates

• Similar 360 database and Similar 360 database and analysisanalysis

: Center For Creative LeadershipCenter For Creative Leadership

• 20 year study of benchmark 20 year study of benchmark leadership 360leadership 360

INTERNAL

: Executive Interviews and Strategy analysis 1999-2002

: 400 360º reports & coaching plans

: Ongoing study of 100+ of best leaders and “derailed” leaders.

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General Mills Leadership Is…

• Demonstrates unquestionable integrity• Engenders trust at all levels

• Communicates a compelling vision• Develops winning strategies• Connects to the outside world• Encourages innovation

• Inspires and motivates• Collaborates across boundaries• Develops: people, organizations, self• Values diversity

• Sets aggressive goals and clear priorities• Delivers on commitments—long/short• Makes timely, high-quality decisions• Adds value with superior expertise

INNOVATION PEOPLE

INTEGRITY

RESULTS

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TT OO

PPWhere do you find it:Where do you find it:

– Classes/projectsClasses/projects

– ActivitiesActivities

– Work ExperiencesWork Experiences

Tell Me About Your … Opportunity

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SO HOW TO DEVELOP LEADERSHIP?SO HOW TO DEVELOP LEADERSHIP?

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Focus on “Gaps” as a Start

Low Score

1

A

• Opportunity• Limiter

G

H

I

J

K

L

M

N

O

P

D

E

F

B

C

3 4 52

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Focusing on Less Positive Issues Has Limitations

Averageat everything

1 2 3 4 5

P

O

N

M

L

K

J

I

H

G

F

E

D

C

B

A

Will fixing one or two less-positive

issues have a dramatic impact on leadership effectiveness?

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Impact of Leadership Effectiveness on *Employee Engagement/Commitment

90

80

70

60

50

40

30

20

10

90th

–100

th

80th

–89t

h

70th

–79t

h

60th

–69t

h

50th

–59t

h

40th

–49t

h

30th

–39t

h

20th

–29t

h

10th

–19t

h

1st

– 9

th

Leadership Effectiveness Percentile

Poor LeadersCreate

Dissatisfaction

Good Leaders Have an

Adequate Impact

Great LeadersMake a Great

Difference

Em

plo

yee

En

gag

emen

t/C

om

mit

men

t

Percentile

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SO HOW TO DEVELOP SO HOW TO DEVELOP GREATGREAT LEADERSHIP?LEADERSHIP?

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““Great LeadersGreat Leaders

Are not defined by Are not defined by the absencethe absence of of weaknesses …weaknesses …

… but rather the possession of a few profound strengths.”

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Impact of Leadership Effectiveness Without Any Perceived Strengths

Number of Strengths

34

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5

Ave

rag

e P

erce

nti

le S

core

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Impact of One Strength on Overall Perception of Leadership Effectiveness

34

64

0

10

20

30

40

50

60

70

80

90

100

Average Percentile

Score

0 1 2 3 4 5

Number of Strengths

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Three Strengths Raises Leadership Effectiveness to the 81st Percentile

Number of Strengths

Ave

rag

e P

erce

nti

le S

core

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SO HOW TO BUILD A STRENGTH?SO HOW TO BUILD A STRENGTH?

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Current Approach to Change Plans

CurrentCurrentPerformancePerformance

People question ability

on technical expertise.

Desired Desired FutureFuture

PerformancePerformance

People have confidence in technical

expertise.

More,Better,Faster,Smarter

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The Problem With the Direct Approach

More,Better,Faster,Smarter

There are Limits to:

Consider creative routes to the same destination:

Cross- Training

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Characteristics of a Great Basketball Player

Height

Speed

Tall & Slow

Tall & FastTall & Fast

Short & Fast

Powerful

Combination

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Impact of Drive for Results and Interpersonal Skills

% o

f L

ead

ers

at 9

0th

Per

cen

tile

9 13

66

0

10

20

30

40

50

60

70

InterpersonalSkills

Drive forResults

Drive forResults and

InterpersonalSkills

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Technical Expertise

DifferentiatingCompetency

Competency Companion

InterpersonalSkills

A Competency Companion to Technical Expertise

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Honesty & Integrity

DifferentiatingCompetency

Competency Companion

Assertiveness

A Competency Companion to Honesty & Integrity

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StrategicPerspective

Customer Focus

Innovation

Analytical & Problem-

Solving Skills

Communication

Business Acumen

Establishing Stretch Goals

Companion Behaviors for Strategic Perspective

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TT OO

PPWhere do you find it:Where do you find it:

– Classes/projectsClasses/projects

– ActivitiesActivities

– Work ExperiencesWork Experiences

Tell Me About Your … Talents

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1.1. This Guy is a MarkEd Grad and Works as This Guy is a MarkEd Grad and Works as the CLO at General Millsthe CLO at General Mills

Cliff Notes On This Session

2. Technical Knowledge is assumed2. Technical Knowledge is assumed

3. Passion + Competence + Opportunity3. Passion + Competence + Opportunity

4. Impact through Leadership4. Impact through Leadership

… … All about ConnectingAll about Connecting

5. Eat More Cereal!5. Eat More Cereal!

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Thank You!