ADAM HOY DIRECTOR – WORKPLACE INNOVATIONS & OPERATIONS JANUARY 2015

AGILE WORKING AT UNILEVER

€1 BILLION INVESTED IN R&D

WORLDWIDE

190 COUNTRIES IN

WHICH OUR

PRODUCTS

ARE SOLD PRODUCTS

USED BY

2 BILLION EVERY DAY EMPLOYEES

AT THE END

OF 2012

174,000

EMERGING

MARKETS

NOW

REPRESENT

57% OF TURNOVER

105m sqft GLOBAL REAL ESTATE

PORTFOLIO

UNILEVER AT A GLANCE

ETS VISION

To make Unilever work by improving the

effectiveness of our employees, driving

efficiency & generating sustainable growth

AGILE WORKING DRIVING A CULTURAL TRANSFORMATION AT UNILEVER

OUR ORGANIZATION

170,000 employees

Challenging global roles

Competing with the best

for the best

IT STARTED WITH A QUESTION

How can we be more

competitive in attracting

and retaining highly

engaged talent?

(Engaged =

discretionary effort)

THE UGLY STATISTICS

are engaged at work

are disengaged

are actively disengaged

3 DRIVERS OF ENGAGEMENT

Meaningful work

Rewards

Environment

SO WE FURTHER ASKED

How can our

people work

more…

»effectively?

»enjoyably?

»sustainably?

AGILE WORKING

An approach to working with…

»Maximum flexibility

»Minimum constraints

WHY IS THIS DIFFERENT?

Not a set of “flex

work” programs

or policies

Rather, a total

culture change

And yes, like

Best Buy…but

more

WHY DOES THIS MATTER?

THE REACTION…

Marissa Mayer:

Get off Your Cloud

Marissa Mayer, we need to talk:

This genie is way out of the bottle Yahoo Policy Riles Workers

Everywhere

Mayer shows she knows little about

managing people with this offensive

memo to Yahoo employees

Marissa Mayer’s Work-From-Home

Ban Is The Exact Opposite Of What

CEOs Should The Doing

THE INSIGHT FOR US

This is a powerful

trend that is not

going away.

We can lead

or be left behind

AGILE WORKING MODEL

Workplaces

Working Practices

Technology

Sustainability

Savings

Vitality

Talent Capability

WORKING PRACTICES

Work anytime and

anywhere as long as

business needs are met

Performance determined

by results, not ‘time and

attendance’

Managers assessed on

how well they support

Working Practices

IN THE PAST…

Organizations

placed boundaries

around work

»When (9 to 5)

»Where (the office)

TODAY…

Technology

makes working

boundaries

irrelevant

»Anytime

»Anywhere

VALUE OF EMPOWERMENT

Greater

productivity

AND

Greater

engagement

WORKPLACES

Flexibility

»Mostly ‘free address’ space

Zones

»Areas designed for activities,

not individuals

Workplaces

OFFICE UTILIZATION

60% not fully utilizing

their dedicated

workspaces

Up to 40% less expensive

to operate than traditional

offices

OUR OLD ENVIRONMENTS

OUR NEW ENVIRONMENTS

Englewood Cliffs, USA

Hamburg

Bogotá, Colombia

Singapore

AGILE WORKPLACE ZONES

FOCUS: For individual working

Connect: For collaboration

Vitality: For revitalization

FOCUS ZONE

CONNECT ZONE

VITALITY ZONE

AGILE WORKPLACE PLAN

FOCUS

CONNECT

VITALITY

Café

Quiet work area

Small conference rooms

Huddle

Large conference room

Quiet lounge

Individual workstations

Lounge

Phone rooms Storage

COST COMPARISON

Cost of Office Space for 100 Employees (€)

Traditional Agile % Savings

Required sq ft per Person 125 80 36%

Total sq ft Required 12,500 8,000 36%

Cost per sq ft 110 125 (12)%

Construction 1,375,000 1,000,000 27%

Furniture, IT, etc 667,500 562,000 16%

Total Cost 2,042,500 1,562,000 24%

Maintenance, Leases, Taxes, etc. 10,000 6,000 ~40%

Space reconfiguration/Moves 2,000 200 90%

Bu

ild

ou

t

Co

sts

Sp

ac

e

Ne

ed

s

On

go

ing

Co

sts

TECHNOLOGY

Technology to enable

anytime/anywhere working

Consummerization—

Choice of tools to support

different working styles

Technology

AGILE TECHNOLOGY TYPES

Virtual

Collaboration

Personal

Productivity Advanced

Mobility

Desktop VC

WORKING STYLES

Offsite Mobile Resident

Usually works at the

same company location Works in a variety of

locations – company

offices, customer

locations, at home, while

travelling

Works at a fixed, non-

company (such as a

business partner facility

or home office)

THE BENEFITS

Workplaces

Working Practices

Technology

Sustainability

Savings

Vitality

Talent Capability

ARE THERE TRADE-OFFS?

In a word, yes…

» Less “personal

space” in the office

» Less “face to face”

time with colleagues

» Potentially harder to

manage boundaries

around personal time

But…

» The trade-offs are

worth it

34

SO WHAT HAVE WE LEARNED?

Culture change

»is hard

»takes time

Need to drive it

»From the top

»From the bottom

AWARENESS CAMPAIGN

Strengthen

understanding

Promote the

benefits—for

people, the

environment, the

business

Encourage adoption

of behaviors

CONCEPT—”UNLIMITED”

COMMUNICATION

COMMUNICATION

PEOPLE PROFILES

TRAINING RESOURCES

SPOTLIGHT EVENTS

LONDON, UK

DURBAN, SOUTH AFRICA

ENGLEWOOD CLIFFS, NJ

NAIROBI, KENYA

MINBURI, THAILAND

SINGAPORE

SHANGHAI, CHINA

KUALA LUMPUR, MALAYSIA

ROTTERDAM, NETHERLANDS

BARCELONA, SPAIN

BOGOTÁ, COLOMBIA

MOSCOW, RUSSIA

SITE CERTIFICATION

Meets Agile

Criteria

Meets Criteria to

a high standard

Excels in all

Criteria

AGILE SCORECARD

Agile Working Global Scorecard

Target Year end 2013

Technology

# new telepresence rooms implemented 13

Telepresence room % utilisation (1) 45%

Sharepoint capabilities % implemented 100%

Workplaces

# new agile workplace sites implemented 12

# potential new agile workplace sites identified 10

Working Practices

% WL1+ employee awareness of Agile Working (2) 90%

% WL2+ employees trained in Agile Working practices (3) 75%

% WL2+ Individual Workplans developed 90%

Savings

% travel cost reduction (4)(5) 30%

% facility operating cost reduction (4)(6) 25%

SOME KEY RESULTS

Per annum savings

»38,000 flights

»300,000 tonnes of CO2

»€150 million

SOME KEY RESULTS

43 Agile

Workplaces

completed or in

progress

»30% greater

space utilization

»30% less waste

and energy

SOME KEY RESULTS

Improved engagement

scores

»80% increased

productivity

»86% enjoy new

design

Unilever named

#1 employer in

18 countries and

#3 InDemand on

LinkedIn

BUT WHAT ABOUT....

Workforce visibility?

Managing boundaries?

Relationship building?

Labor regulations?

Safety & liability risks?

Data security?

Cultural differences?

Abusers?

YOUR QUESTIONS