People Making The Difference

LondonFebruary 10th, 2011

From Danone Leadership Collegeto

Danone Leadership Culture

Rossitsa Tsoleva Danone

ContentAbout DanoneWhy people are making the differenceUnique program for business transformation2009 2001 Results & key success factorsExamples

DannonEvian

DANONE in FEW NUMBERS

FMCG with 4 divisions

Dairy

Waters

Baby nutrition

Medical Nutrition

€ 14,073 mln sales

Activity in more than 130 countries

100 000 Danoners worldwide

12

3 4

Bringing health through food to as many people as

possible

4

A unique mission based on 4 axes

For All

Nature

Health

People

3 ??? Danone Leadership College

WHY => explore existing resources to build WW competitive advantage in challenging environment

WHAT => an Unique CODE leadership model for ALL Danone employees

HOWDanone Leadership College as business

transformation tool and people growth booster

AMBITIONIn 2011, 15000 team leaders have been developed in a

distinctive leadership culture to enable breakthrough business outcomes and empower, grow and engage all Danoners

2010 Objectives:Embark 5000 Team Leaders (vs 1200’ in 2009)Ensure sustainability of deployment

DANONE LEADERSHIP COLLEGE -Unique program for business & people transformation

TRANSFORMATIONJOURNEY

CUSTOMIZATION

Outcomes & KPIs Culture & mgt context

MOBILISATION

Ownership GM/ CODI Embark Team Leaders internally

CERTIFICATION

Common language & tools Certified partners Certified internal trainers

DANONE LEADERSHIP

FEW WORDS ABOUT THE JOURNEY

ОтдаденВовлеченныйCommittedComprometidoEngagéBagli Открит

ОткрытыйOpenOsados

ДеенРезультативныйDoerEmprendedores

ОвластенВдохновляющийEmpowered ResponsablesEmpoderadoResponsabiliserYetkili

AbertoAbiertosOuvertAçik

EjecutorDans l’actionFazer acontecerHarekete geçen

CODE in 30 languages

•117 CBUs embarked (86% of the CBUs, 90% CANN)•46 Countries•9000 Danoners already trained•315 Internal Trainers

Develop and empower DanonersDanone Leadership College to develop leadership capacities of 15000 team leaders and to spread Danone values and culture, with local customization

BALANCED WORLDWIDE DEPLOYMENT EXCO embarked + Cascading startedEXCO embarked

Will embark in 2011

To be done

ОтдаденВовлеченныйCommittedComprometidoEngagéBagli

AbertoAbiertosOuvertAçik

46 countries

Phase 1 External Consultants

Developing leadership culture

S2’2009 – S1 2011

Phase 2Internal trainers

& KOL& ambassadors

Strong leadership culture

S2’2010 – S1 2012

Phase 3 Team leaders

Breakthrough leadership culture

Rooted in daily behavior of TL

CODE in life

WE ARE HERE

Self-sustaining leadership culture

Un-rooted leadership culture with strong values HOPE

WHERE WE ARE TODAYD

LC

KEY SUCCESS FACTORS

o GM/CODI Ownershipo Business Transformationo Clear and High Ambition

KEY SUCCESS FACTORS

o Fast mobilization of Team leaders via Internal Trainers :

o Developing the momentum : Mobilization, communication, follow up :

o Cross CBUs experience

INTERNAL TRAINERS:KEY FOR TRANSFORMATION

46 countries from all WWBUS

From all functions!

315 Danoners

149 women & 166 menMore than 150 sessions facilitated

HR MARKETING SALES OPERATIONS FINANCE TOTAL

123 25 56 79 32 315

39% 8% 18% 25% 10% 100%

Danone People Survey Oct 2010

Engagement for growth

LEARNING & DEVELOPMENT

SAFETY

CSR & ENVIRONMENT

GREAT PLACE TO GROW

IMMEDIATE MANAGEMENT

ENGAGEMENT

MY JOB

EVALUATION

CULTURE & VALUES

5

4

3

2

2

1

0

0

-4

3

4

1

4

3

4

3

-3

-5

0

-1

1

0

DANONE OVERALL 2009

TW GLOBAL FMCG NORM

TW GLOBAL HP NORM

n/a

n/a

n/a

n/a

n/a

Favorable Scores

73

86

81

76

72

87

84

64

77

Engagement > to Danone in Brazil, Mexico, Indonesia and China (88 to 89%)

Learning and Development improving in China, USA, Russia and Indonesia (up to +14 points)

Safety improving in Indonesia, Russia and China (up to +10 points)

My Job highly important in Mexico, Indonesia and Brazil (85 to 90 points)

Dannon U.S.Creating the $4b

DanonerDLC Journey

Example

DLC Leadership Transformation

• Define what it means to BE A LEADER • Clarify our commitments • Enroll people in new possibilities• Reducing waste and inefficiencies• Increasing leadership competency• Develop the capability and capacity for initiative, innovation and action

DO YOUR COMMITMENTS DETERMINE REALITY OR DOES YOUR VIEW OF REALITY DETERMINE WHAT YOU COMMIT TO?

What is our Ambition – Be $4B Danoners

COMMITMENT “No Matter What….”

Openness “Think Different….”

Doer “Make It Happen….”

Empowerment“Give the Power to your Teams,

Do Not Control Them”

DLC Leadership Transformation

2700 Danoners 1750 workers / 400 staff and supervisors / 450 managers

DLC WATERS FRANCE

Create the possibility of an unpredictable future after 3 years of business crisis

Example

450 Danoners trained (250 with 6 internal trainers)

10 months after kick off…

16 DLC sessions facilitated : 4 by External provider

2 co-facilitated by external provider + internal trainers10 facilitated by internal trainers only

100% managers and staff and supervisors top line functions trained

100% participants have contributed to build up the way their departement will contribute to CBU

ambition (merlin)

Throughout a priorization process, a top 20 has been identified with a focus on 4 « transformation

projects »

100% team managers operations EV trained FLM Operations EV to be trained in 2011 (300)

Leadership attitudes based onDanone distinctive CODE model

create competitive advantage through PEOPLE

Thank you

Choukran

Grazie

Tak

Gracias

Xiexie

Terima

Kasih

Dziekuje

Kiitos

Evkharistó

Arigatō

Obrigado

Spasibo

Cám

Danke

DekujiMERCI!

THANK YOU!

…in 18 months

KICK OFF •for Excos

BOOSTERS• in each CBU

TRAIN THE TRAINERS TEAM LEADERS

WORKSHOPS•for all TL

2009

2010 7892

Team Leaders

1200Team Leaders

36 CBUs

30 Internal Trainers

Refueling sessions

9000 Danoners embarked

117 CBUs

81 CBUs

285 Internal Trainers

315 ITs