A presentation on Business transformation by Stendert Krommendam at the StarLife HR Forum 2014

1. BUSINESS TRANSFORMATION
STENDERT KROMMENDAM
Updated: 23.09.14

2. 2
MOST FUNCTIONS ARE TRANSFORMING
In an attempt to improve both efficiency and cost, more than 80% of HR functions have just completed, are undergoing, or are planning a transformationinitiative.
As a response to demand for increased performance, cost reduction, and the changing needs of the workforce, 81% of organizations have undergone a major transformationin the last 12 months.
Despite the recent prevalence transformation, only 30% of projects succeed in delivering the forecasted benefits and sustained cost savings for two years post- implementation.

3. ABOUT UNILEVER
Unilever is one of the world’s leading suppliers of fast-moving consumer goods.
Our products are sold in over 190 countries and used by 2billion consumers every day.

4. FAST FACTS -2013
€1 BILLION
INVESTED IN R&D WORLDWIDE
190
COUNTRIESIN
WHICH OUR
PRODUCTS
ARE SOLD
TURNOVER OF
€49.8 BILLION
AT END OF 2013
EMPLOYEES
AT THE END
OF THE YEAR
174,000
EMERGING MARKETS
NOW REPRESENT
57%
OF TURNOVER

5. CATEGORY HIGHLIGHTS IN 2013
Turnover:€8.9 billion
Underlying sales growth: 8.0%
Turnover:€13.4 billion
Underlying sales growth: 0.3%
Turnover:€18.1 billion
Underlying sales growth: 7.3%
Turnover:€9.4 billion
Underlyingsales growth: 1.1%
PERSONAL CARE
FOODS
REFRESHMENT
HOME CARE

6. UNILEVER’S PORTFOLIO OF CATEGORIES
TURNOVER BY CATEGORY
27%
18%
36%
19%
FOODS
REFRESHMENT
PERSONAL CARE
HOME CARE

7. OUR €1 BILLION BRANDS
Home Care
Refreshment
Foods
Personal Care
14Unilever brands have a turnover of €1 billion or more

8. OUR COMPASS STRATEGY
Our vision is to double the size of the business, whilst reducing our environmental footprint and increasing our positive social impact.
The Compass provides a blueprint for success by identifying what we must do to win share and grow volume in every category and country.

9. OUR BUSINESS MODEL
OUR BRANDS
Strong brands and innovation
are central to our ambition to
double in size.
OUR OPERATIONS
We aim to develop innovative
products that address different
consumer needs at different
price points.
OUR PEOPLE
Sustainable, profitable growth
can only be achieved with the
right people working in an
organisation that is fit to win.
SUSTAINABLE LIVING
The differentiator in our business model is our Sustainable Living Plan and the goal of sustainable living.

10. UNILEVER WEST AFRICA
GHANA, CDI, EWA (EXPORTS WEST AFRICA)
G. BISSAU
GAMBIA
NIGER
MALI
BURKINAFASO
COTED’IVOIRE
SENEGAL
SR-LEONE
LIBERIA
TOGO
BENIN
GUINEA
Ghana

11. THE JOURNEY TO BECOME THE BEST WE CAN BE
LT Workshop in Dec
Idea creation with Ambassadors
Workshop to select Ideas
Launch of Ideas at Employee conference
Leading Change

12. 3+1 Priorities

13. We want to Up our game in four main areas…
Employees
Customers
Stakeholders
Consumers

14. KEY ENABLERS
HOW TO MAKE A TRANSFORMATION SUCCESSFUL

15. Strategy refresh
Create an effective cohesive Top team & Change team
Top Team to set clear strategic directionfor business
Op Model change
Clear KPIs for measuring business success
Clear Structure with ownership & accountability
Ensure short lines in terms of decision making
Engagement & Culture
Leaders share with the business the current reality
Set examples of the behaviour you’d like to see
Build long term capabilityand refresh talent

16. THAT IS THE HARDWIRE
HOWEVER THE SOFT WIRE IS MORE SUBTLE BUT EVEN MORE IMPORTANT

17. LEADERSHIP CAPABILITY IS KEY!
•
Ensure you have the right leaders on boardbefore you start a change.
•
Facilitate leaders, not through HR butthrough a proper infrastructure.(PMO)
•
Keep leaders accountable and coach

18. WHY?
1.
Managerial Styleaccounts for as much as 70% of the motivational climatewithin any team.
2.
Climatecreated accounts for up to 30% of business productivity(Sales, Growth, ROI and Productivity)
3.
Productivity delivers 7% of our net long term profit

19. A LOT OF PUBLIC RECOGNITION NEEDED

20. Monthly recognitions
Sponsor nominations
Wide internal publicity
A LOT OF VISUAL PUBLICITY
Mthisemployee held herself and others accountable to deliver on project A She made a complex process simple.
This is the new face of leadership.
Could it be yours?
This employee held heimelfand others accountable to deliver on project A She made a complex process simple.
This is the new face of leadership.
Could it be yours?

21. Before
RECEPTION
Before

22. After

23. STAIRCASE
Before

24. After

25. 2NDFLOOR
Before

26. After

27. UPGRADE OF AMENITIES BLOCK
Before

28. After

29. After