Good Food, Good Life
The World is Flat
“Globalisation? It means primarily creation of horizontal networks and increasing role of co-operation and mutual trust …“
Thomas L. Friedman – The World is FlatA Brief History of the Twenty-First Century
Good Food, Good Life
Change in the Mindset
FROM
RESULT ORIENTATIONTASK ORIENTATION
TOHierarchy Network
AlignmentCommandExperience InsightCompeting Co-operation
Discipline InitiativeNational - Functional Cross-border/Cross-functional
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The Develop People Initiative
Core elements:
1. Holding an effective performance and development dialogue in an agreed performance and career management process
2. Applying 13 behaviours from the Nestlé Leadership Framework
3. Planning succession
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Management developmentScope & working principles
Competency based recruitment
Definition of Key positions at local / regional / Group levels
Succession planning for Key positions with target of 2 successors per position
Performance assessment using competency based:
- Progress & Development Guide (appraisal form)- 360o Feedback - Training and development
Expansion of Talent pool based on new definitions
Good Food, Good Life
Management developmentSourcing
ManagementDevelopment& Sourcing
Man
agem
ent
Devel
opmen
t Sourcing
Internalsourcing
&People
developmentfor
Key positions
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Develop People – different from current performance management systems
FROM TO
• No consistency across markets • One consistency standard across the world
• Seldom applied to top management
• Starts with and is led by top management
• The focus was on ‘what’ people achieved
• The focus is on ‘what’ people achieve, and ‘how’ they do it
• Performance and Competencies were rated in an inconsistent way
• Salary increases generally based on performance
• Salary increases based on 5 criteria:- performance, potential, market forces, fairness and salary history
• Move away from ratings to the language of performance
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Division
Department
Individual/Team Action Plan
CompanyO S M
O S M
O S M
O S M
The company strategy becomes the divisional
objective and the divisional strategy
becomes the department objectives
and so on
Cascading objectives(O), strategies(S) & measures(M)
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Nestlé Leadership framework Progress & Development Guide
Flat and Flexible Structures
Flat and Flexible Structures
Inspiring Management
Inspiring Management
Long-term Development
Long-term Development
Dynamic Compensation
Dynamic Compensation
Life-long LearningLife-long Learning
Part 1:Achievements
Part 2: Career &DevelopmentPlan
Part 1: Achievements
Progress and Development Guide
Name: Current position:
ReviewPeriod:
Date of lastreview:
Objectives: Results:
Annual BusinessObjectives
Long TermDevelopmentObjectives
Leadership Framework
ADDING VALUE
OPENING UP
Know Yourself
Insight
Service Orientation
Curiosity
Courage
Results Focus
Initiative
Innovation & Renovation
Leadership Framework
KNOWLEDGE
DEALING WITH OTHERS
INSPIRING PEOPLE
Proactive Cooperation
Impact / Convince Others
Lead People
Develop People
Practice what you Preach
Product Knowledge
Professional Knowledge & Skills
Strengths Improvement needs
Reviewer’s Comments
Transforms
Steers
Masters
Acquires
Trails
Nature of the Contribution
Part 2: Career & DevelopmentPlan
Key Areas to beDeveloped
Action plan (what, bywhom, by when,training ...)
Employee Comments
Possible Options forPersonal / CareerDevelopment (ifapplicable)
Action plan
Name of employee Name of reviewer
Signature Signature
5
4
3
2
1
Inspiring People
Adding Value
Opening Up Dealing with others
• Lead people
• Develop people
• Practise what you preach
• Know yourself• Insight
• Service Orientation
• Curiosity
• Courage
• Proactive co-operation
• Convincingothers
• Resultsfocus
• Initiative
• Innovation &Renovation
Nestlé Leadership Framework
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Using the Nestlé Leadership Framework
• Behavioural Competencies – behaviours provide the point of difference between a good performer and an average one
• The Nestlé Leadership Framework provides direction on the behaviours that matter at Nestlé
• They apply to everyone in the business
What is a competency ?Any characteristic of a person that differentiates levels of performance
Demonstrably Related to Superior Performance in a JobCharacteristic that Enables Superior Performance :
•more often•in more situations
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Social RoleSelf-Image
TraitMotive
SkillSkillKnowledgeKnowledge
Behaviours
Individual behavioral competencies
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Individual competencies (cont’d)
The Competency Foundation Characteristics at different levels:
Social Role
Self-Image
Trait
Motive
SkillKnowledge
Skills are the things a person knows how to do well, e.g., reading a profit-and-loss statement.
Knowledge is what a person knows about a particular substantive area, e.g., basic accounting principles.
Social Role is the image a person projects to others. It reflects a person’s values - what one believes is important to do - such as developing others or providing a sense of mission & direction.
Self-image is the way a person sees him/herself - the internal concept of identity, e.g., seeing oneself as a teacher or leader.
Traits are relatively enduring and stable characteristics of a person’s behavior, e.g., being a good listener, or being able to recognize patterns across seemingly unrelated elements.
Motives are natural and constant thoughts and preferences in a particular area (i.e., Achievement, Affiliation, and Power) that drive, direct, and select a person’s outward behavior.
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« Natural » Tendencies and Traits
Task-Related Knowledgeand Skills
For Example: Knowledge of Electronics, Companies Products, Labor Relations, Law, Skill in active listening, Negotiating
For Example: Results FocusCuriosityProactive cooperationCourage
Job Complexity
Re
lati
ve
Imp
ort
an
ce
HighLow
Behaviors become more important as job complexity increases
Good Food, Good Life
Nestlé Leadership Framework4 clusters and 13 behavioral competencies
Inspiring People
Adding Value
Opening Up Dealing with others
• Lead people
• Develop people
• Practise what you preach
• Know yourself• Insight
• Service Orientation
• Curiosity
• Courage
• Proactive co-operation
• Convincing others
• Resultsfocus
• Initiative
• Innovation &Renovation
Good Food, Good Life
When should you do an Interim Review?
At least once through the year to ensure the reviewee is on track
When the reviewee's objectives change significantly
When the reviewee changes positions
When the manager changes position
In these last two situations the full end of year process should be completed including giving an overall assessment
This information should be provided to the reviewee's new manager
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Performance Review Cycle
Business Objectives
Set Personal PerformanceObjectives*
Identify Behaviors
ReviewProgress
Final Review
Salary Review
Development Plan
• The performance review is one of the inputs into salary review.
• The other criteria for salary increase – if any – are: potential, market forces, fairness and salary history.
• Coaching @ Feedback are ongoing and occur at each stage of the Cycle.
Good Food, Good Life
Change of training culture (focus on training on the job) Emphasize the role of manager Use of new Nestle Leadership Framework
& Nestle on the Move concept Skills courses transfer to the competency based
models Course nominations based on results of appraisal
meeting – PDG forms New e-learning programme E-learning & Blended solution
Training and Learning
Good Food, Good Life
Change of career development and succession planning culture
Emphasize the role of manager Use of new Nestle Leadership Framework & Nestle
on the Move concept Profile assessment based on the competency
model:- For each position are defined key competencies - For key people 2 successors are nominated
Succession nominations & career plan based on results of appraisal meeting – PDG forms
Career Development / Planning
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Career Committee:
Mini-career Committee = HR Partners + Division Head Company CC = HR Partners + Managers Committee It is about: headcount
organisational structurekey people (development, successors, …)high potential (development, successors, …)expats / inpats remunerationinterdepartmental discussion on HR issues
Career Committee
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01 0904 1202 03 111008070605
Appraisal meetings, setting objectives, performance evaluation
Appraisal meetings, setting objectives, performance evaluation
Train the managers
Train the managers
Train all appraisers and appraisees
Train all appraisers and appraisees
Feedback to managersFeedback to managers
Career committeeand training plan 2005
Career committeeand training plan 2005
Results / evaluationResults / evaluation
11-12/2003
01/2005
Start-upStart-up
Train new appraisers and
appraisees
Train new appraisers and
appraisees
Appraisal meetings, setting objectives,
performance evaluation
Appraisal meetings, setting objectives,
performance evaluation
Start-up regular process
Start-up regular process
Nestlé on the Move – Year 1
Good Food, Good Life
01 0904 1202 03
111008070605
Appraisal meetings, setting objectives,
performance evaluation
Appraisal meetings, setting objectives,
performance evaluation
Train factory appraisers and
appraisees
Train factory appraisers and
appraiseesResults / evaluationTraining nomination
Results / evaluationTraining nomination
11-12/2004
01/2006
Train all new appraisers and
appraisees
Train all new appraisers and
appraisees
Nestlé on the Move – Year N+
Mini-career committees
Mini-career committees
Career committeeCareer committee
Mini-career committees
Mini-career committees
Career committeeCareer committee
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Nov- FebProgress & Development review
(incl. review ofdelivery on objectives)
MarchTalent Poolproposal byevaluation of
potential
April- MayTalent Pool Validation
Sept - OctPlans and Actions tofill gaps
Management Development Cycle
Mid - FebruaryP& DG forKey Positions, Expatriates andHigh Potential
March 11th:Verified Talent Pool list is due back to the Zone
March 14 to 18: Pre-calibration Talent Pool discussions - SBU/Functions
April12thEBM Talent Pool Validation
June 1st to June 29th: Management Development and Succession Planning discussions SBU/ Function
SeptemberEBM validationSuccession Plansfor Corporate Key Positions and ManCom Positions
June - AugSuccession
Planning
Feb.23th:HR Zone EUR deliver current Talent Pool and Management Development
May 21st: Submission of the Management Development and Succession Planning proposals by the markets for Key Positions
In red: Market Inputs
In green: Zone Inputs
In black: EBM Inputs
March 21 to 29: Zone Validation of the Talent Pool submissions Final list transmitted to the markets after EBM Validation
July to 30th August: Zone Validation of the Succession Plan Final list transmitted to the markets after EBM Validation
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Personal Development Cycle
P&DG
Training & Development Plan
Career & Succession Plan
Objective setting (short/long term)
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Personal Development Cycle – 4 steps
Nov-Jan
Run PDG (incl. achievement of objectives)
March
Consolidate individual training &
development plan
End of February:
• PDG finalized by Markets and forwarded to CE HR
• Personal objectives defined
End of March:
Individual training & development consolidated by CE HR
April Prepare regional
training & development
plan End of April:
Plans approved by CdD
May-Oct
Run training & actions to
close development
gapsMid of April:
Training plan developed for Region
September:
Applications for Rive Reine programs completed
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Succession Planning Cycle – 4 steps
Nov-Feb
Run PDG (incl. achievement of objectives)
March
Propose succession
plan
End of February:
PDG finalized by Markets and forwarded to CE HR
End of March:
Succession plan proposals logged into database by Markets and CE Management
April-May
Succession planning discussions between • CM – CE• CE – LOC May:
Approved succession plan
June-Oct
Plans & actions to fill
gaps
June:
CE Succession planning completed and sent to HQ Vevey
End of April:
Succession plan reviewed through and finalized by CE Director and CE HR
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Training & Personal Development Cycle
Nov-Feb
Run PDG (incl. achievement of objectives)
March-April
Collect and assess needs
vs existing opportunities
End of February:
PDG finalized by Markets and forwarded to CE HR
May
Develop individual Training &
development plan
June-Oct
Plans & actions to fill
gaps
June
Individual training & development plan approved by CM + CE HR
End of April
Training and development needs consolidated and comparison to existing training * opportunities completed
October
T&D budget established through CM + CE HR + CE Finance
Existing Training• Country local: CM, local HR• Nestlé centralized/decentralized: CE HR• Rive-Reine: CE HR• E-learning tools: CE HR