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 Flat
A Brief History of the Twenty-First Century

Good Food, Good Life

 Change in the Mindset

FROM TO
Hierarchy Network
Command Alignment
Experience Insight
Competing Co-operation
Discipline Initiative
National - Functional Cross-border/Cross-functional
TASK ORIENTATION RESULT ORIENTATION

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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 development
Scope & 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

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 Key position

KEY POSITION:

… defined as business critical for a long-term sustainability of

the group;
… using criteria such as market size, business turnover,
business complexity and potential for growth.

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 Management development
Sourcing

Management
Development
& Sourcing

Internal So
en t
m en

ur
t

sourcing
op m

& ci
el g e

People
ng
ev a
D an

development
M

for
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 • Starts with and is led by top
management management

• The focus was on ‘what’ people • The focus is on ‘what’ people

achieved achieve, and ‘how’ they do it

• Performance and Competencies • Move away from ratings to the

were rated in an inconsistent way language of performance

• Salary increases generally based • Salary increases based on 5

on performance criteria:- performance, potential,
market forces, fairness and salary
history

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 Cascading objectives(O),
strategies(S) & measures(M)

O S M Company

O S M Division

The company strategy O S M Department

becomes the divisional
objective and the
divisional strategy
becomes the O S M Individual/Team
department objectives
and so on
Action
Plan

Good Food, Good Life

 Nestlé Leadership framework
Progress & Development Guide

Nestlé Leadership Framework

Inspiring People
• Lead people
Flat
Flatand
andFlexible
Flexible • Develop people
Structures
Structures
• Practise
what you preach

Inspiring
Inspiring Adding Value
Management
Management
• Results
focus Dealing
Opening Up • Initiative with others
Long-term
Long-term • Know yourself • Innovation &
• Insight • Proactive
Development
Development •Progress
Service Orientation
and Development Guide
Renovation
co-operation
Part 2: Career & Development
Plan
Name:
Review
Current position:
• Curiosity
Date of last
• Convincing
Key Areas to be
Developed
Improvement needs
Action plan (what, by
whom, by when,
Strengths
others
Dynamic
Period: review: training ...)

• CourageLeadership Framework
Leadership Framework

Dynamic Part 1: Achievements

Objectives: Results:
DEALING WITH OTHERS

Compensation
OPENING UP Proactive Cooperation

Compensation PartKnow
1:Yourself Part 2: Career &
Annual Business
Objectives
Possible Options for Action plan
Achievements Impact / Convince Others
Development
Reviewer’s Comments
Personal / Career
Development (if
Insight
Plan applicable)

INSPIRING PEOPLE

Life-long
Life-longLearning
Service Orientation

Learning
Lead People
Employee Comments
Long Term Develop People
Development
Curiosity Nature of the Contribution
Objectives Practice what you Preach
Transforms Name of reviewer
Name of employee
Courage
Steers Signature Signature
KNOWLEDGE
Masters
1 5
ADDING VALUE Product Knowledge
Acquires
Results Focus
Professional Knowledge & Skills
Trails 4
Initiative

Innovation & Renovation 3

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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 Job
Characteristic that Enables Superior Performance :
•more often
•in more situations

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 Individual behavioral competencies

Skill
Knowledge

Social Role
Behaviours
Self-Image
Trait
Motive

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 Individual competencies (cont’d)

The Competency Foundation

Characteristics at different levels:
Skills are the things a person knows how to do well, e.g., reading
a profit-and-loss statement.
Skill Knowledge is what a person knows about a particular substantive
Knowledge 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
Social Role developing others or providing a sense of mission & direction.
Self-Image Self-image is the way a person sees him/herself - the internal
Trait concept of identity, e.g., seeing oneself as a teacher or leader.
Traits are relatively enduring and stable characteristics of a
Motive
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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 Behaviors become more important as job
complexity increases

« Natural » Tendencies and Traits

For Example: Results Focus

Relative Importance

Curiosity
Proactive cooperation
Courage

Task-Related
Knowledge
and Skills
For Example: Knowledge of Electronics, Companies
Products, Labor Relations, Law, Skill in
active listening, Negotiating

Low High
Job Complexity

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 Nestlé Leadership Framework
4 clusters and 13 behavioral competencies

Inspiring People
• Lead people
• Develop people
• Practise
what you preach

Adding Value
• Results
focus Dealing
Opening Up • Initiative with others
• Know yourself • Innovation &
• Insight • Proactive
Renovation
• Service Orientation co-operation

• Curiosity • Convincing
others
• Courage

Good Food, Good Life

 Nestlé Leadership Framework
OPENING UP
KNOW YOURSELF
Knowing yourself is the ability to accurately identify and understand your own strengths and improvement
areas, understand their implications on your effectiveness in the organization and take them into account to
optimize performance.
INSIGHT
Insight is the capacity to identify links between facts, ideas and situations that have no obvious connection
with one another and to assemble them in a meaningful way. At a highly developed level, insight manifests
itself as the creation of new ideas or the development of a long term vision.
SERVICE ORIENTATION
Service Orientation is the desire to help and serve one’s customers in a way that best meets their actual
needs. It is shown in the efforts a person will make to understand the customer's expectations and needs,
to provide them with high quality service for a long-lasting and mutually profitable relationship. “Customer”
can be any person or organization for whom the service is intended (internal client, colleagues at all levels,
distributor, consumer etc…).
CURIOSITY
Curiosity means people are open minded to learn more about the environment, things and people, by
asking probing questions, or doing ad hoc research to gain a better understanding of the context.
COURAGE
Courage is linked to people’s confidence in their capabilities and judgment. It allows them to take decisions,
or make choices, at the same time evaluating the risks and being conscious of their responsibilities.

Good Food, Good Life

 Nestlé Leadership Framework
ADDING VALUE

RESULTS FOCUS
The drive to meet or exceed ambitious performance objectives and quality standards, deliver business results and
continually find sustainable improvements in methods and processes.

INITIATIVE
Initiative makes people act in a proactive way by taking action and not simply thinking about the future. People with
initiative not only react to situations but also anticipate future opportunities or problems, and act upon them well in
advance.

INNOVATION / RENOVATION
People exhibiting this behavior challenge the status quo in a drive for improvement, and come up with new ideas to
operate more efficiently. At a highly developed level, they act as change catalysts for the whole organization.

Good Food, Good Life

 Nestlé Leadership Framework
DEALING WITH OTHERS

PROACTIVE COOPERATION
Proactive cooperation implies working collaboratively with others, demonstrating commitment to achieve group
objectives, understanding the needs and goals of others and adapting one's own views and behavior when
appropriate. It may involve the sacrifice of individual objectives with a view to achieving the group objectives.

IMPACT & CONVINCE OTHERS

Convincing others, either directly or using appropriate third parties, in order to get their commitment to ideas, projects
or actions that are in the Company’s interest.

Good Food, Good Life

 Nestlé Leadership Framework
INSPIRING PEOPLE

LEAD PEOPLE
Leading people is the ability to unite individuals, make them believe in themselves and in what they are doing, so they
push their limits and are encouraged to outperform. It implies actively demonstrating the behaviors that are consistent
with Nestlé Management and Leadership Principles.

DEVELOP PEOPLE
Developing people means helping individuals identify their short and long-term development needs, encouraging their
individual learning by providing them with appropriate support.

PRACTISE WHAT YOU PREACH

Practise what you preach means acting consistently with and embodying the Nestlé Principles and Values, including
“Walking the talk” even when it is difficult to do so.

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 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

Set Personal
Business
Performance
Objectives
Objectives*

Development Identify
Plan Behaviors

Review
Final Review
Progress
Salary Review

• 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

 Develop People Best
Practices
Performance Management
It is a continuous process between Reviewing Manager and Reviewee defining and agreeing on business
and personal objectives, drilled down from the Company's short and long term goals and measuring
achievement through the WHAT-demonstrated results and the HOW - demonstrated behaviors. It
contains 2 dialogues one on performance and one on development. It is necessary to behave in
accordance with the Nestlé Leadership & Management Principles

Setting Personal Objectives to Business Objectives

Is an agreement between Reviewing Manager and Reviewee of the objectives proposed by the Reviewee to
meet the company's business objectives. Objectives need to be be Specific but Stretching, Measurable,
Agreed, Aligned and Achievable, Realistic and Time bound is SMART and need to include 2 to 3
development objectives which are longer term objectives to be achieved over 1-3 years. This dialogue also
includes a discussion about which of the Leadership behaviors are important for success.

Leadership Behaviours in Action

Behaviors in the Leadership Framework are actively discussed in all work situations as a way of improving
individual and company performance. Use of the leadership behaviors is essential for Nestlé on the Move

Reviewing Employee Performance

It is holding a performance dialogue between the Reviewing Manager and Reviewee focusing on the results
achieved from the agreed objectives using observed behavior and facts to agree achievement.

Develop People Page 1 of 2

 Develop People Best
Practices
Career and Personal Development
It is a continuous and joint process for identifying and developing employee competencies and potential to
ensure that future performance is aligned with business evolution. In most cases the employee is responsible
for carrying out the agreed development and the manager is responsible for championing the process.

Self Guided and Manager Supported Development

Development is defined as proactive responsibility for learning about myself in my work so that I can stretch
myself to perform even better.It is a recognition that only I can manage my own learning but my manager/team
can support me with the right kind of challenge and encouragement.

Holding a Development Dialogue

A discussion between Reviewing Manager and Reviewee which focuses on how the individual can address
performance through expanding knowledge or skills.

Giving and Receiving Feedback

This is a discussion between the Reviewing Manager and Reviewee on their performance or behavior and how
it affected their outputs. Where possible feedback refers to the behaviors of the Leadership Framework.

Planning Succession
This is the process by which successors are designated for positions within the organization in order to ensure
business continuity and excellence. This process enables management to gain sound knowledge of the future
requirements of the organization and plan for leadership talent, as well as identify any area where qualified
successors do not exist.
Develop People Page 2 of 2
 Training and Learning

 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

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 Career Development / Planning

 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

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 Career Committee

Career Committee:

 Mini-career Committee = HR Partners + Division Head

 Company CC = HR Partners + Managers Committee
 It is about: headcount
organisational structure
key people (development, successors, …)
high potential (development, successors, …)
expats / inpats
remuneration
interdepartmental discussion on HR issues

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 Nestlé on the Move – Year 1
Appraisal
Appraisalmeetings,
meetings,setting
setting
objectives, performance evaluation
objectives, performance evaluation
Train
Trainall
allappraisers
appraisers
and appraisees Results
Results/ /evaluation
evaluation
and appraisees
Train
Trainthe
the Feedback
Feedbackto
tomanagers
managers
managers
managers
Career
Careercommittee
committee
Start-up and
Start-up and trainingplan
training plan2005
2005

11- 01 02 03 04 05 06 07 08 09 10 11 12 01/200
12/2003 5
Train
Trainnew
new
appraisers
appraisersand
and
appraisees
appraisees

Appraisal
Appraisalmeetings,
meetings,
setting objectives,
setting objectives,
performance
performanceevaluation
evaluation

Start-up
Start-upregular
regular
process
process
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 Nestlé on the Move – Year N+

Appraisal
Appraisalmeetings,
meetings,
setting objectives,
setting objectives,
performance
performanceevaluation
evaluation
Train
Trainfactory
factory Train
Trainall
allnew
new
appraisers Results
Results/ /evaluation
appraisersand
and Training
evaluation
nomination
appraisers
appraisersand
and
appraisees
appraisees Training nomination appraisees
appraisees

11- 01 02 0 04 05 06 07 08 09 10 11 12 01/200
12/2004 3 6
Mini-career
Mini-career Mini-career
Mini-career
committees
committees committees
committees

Career
Careercommittee
committee Career
Careercommittee
committee

Good Food, Good Life

 Management Development Cycle
In red: Market Inputs Feb.23th:HR Zone
Mid - February EUR deliver current
P& DG for Talent Pool and
In green: Zone Inputs Key Positions, Management
Nov- Feb Expatriates and Development
Progress & Development review High Potential
In black: EBM Inputs
(incl. review of
delivery on objectives) March 11th:
Verified Talent
Pool list is due
March back to the
Talent Pool Zone
September proposal by March 14 to 18:
EBM validation Sept - Oct evaluation of Pre-calibration Talent Pool
Succession Plans Plans and potential discussions - SBU/Functions
for Corporate Key Actions to March 21 to 29:
Positions and fill gaps Zone Validation of the Talent
Pool submissions Final list
ManCom Positions April- May transmitted to the markets
Talent Pool after EBM Validation
June - Aug Validation
July to 30th August: April12th
Zone Validation of the
Succession
EBM Talent Pool Validation
Succession Plan Final list Planning
transmitted to the markets
after EBM Validation May 21st: Submission of the
Management Development and
June 1st to June Succession Planning proposals by
29th: Management the markets for Key Positions
Development and Succession
Planning discussions SBU/
Good Food, Good Life Function
 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

End of February:
Nov-Jan • PDG finalized by Markets and
forwarded to CE HR
Run PDG (incl. achievement
of objectives) • Personal objectives defined

September:
March
Applications for
Rive Reine Consolidate
End of March:
programs individual
completed training & Individual training &
May-Oct
development development consolidated
Run training plan by CE HR
& actions to
close
development April
Prepare Mid of April:
gaps
regional Training plan
training & developed for Region
development
plan
End of April:
Plans approved by
CdD

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 Succession Planning Cycle – 4 steps

End of February:
Nov-Feb
PDG finalized by
Run PDG (incl. achievement Markets and forwarded
of objectives) to CE HR

March
End of March:
Propose
succession Succession plan
June-Oct
plan proposals logged into
Plans & database by Markets and
actions to fill CE Management
gaps
End of April:
April-May
Succession planning Succession plan reviewed
discussions between through and finalized by
June:
• CM – CE CE Director and CE HR
CE Succession • CE – LOC May:
planning completed
and sent to HQ Vevey Approved succession plan

Good Food, Good Life

 Training & Personal Development Cycle

End of February:
Nov-Feb
October PDG finalized by
Run PDG (incl. achievement Markets and forwarded
T&D budget of objectives) to CE HR
established
through CM +
CE HR + CE March-April
Finance
Collect and
assess needs
June-Oct vs existing End of April
opportunities
Plans & Training and development needs
actions to fill consolidated and comparison to
gaps
May existing training * opportunities
completed
Develop
individual
June Training &
Existing Training
development • Country local: CM, local HR
Individual training &
plan • Nestlé centralized/decentralized: CE HR
development plan
approved by CM + • Rive-Reine: CE HR
CE HR • E-learning tools: CE HR

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 Talent Pool
Proposal and validation process
Group
Assets
Market Zone / Bus. Group
Line High Po
Manager
High Po High Po
Market
Market Zone / Bus. Group
Resources Resources Resources Parties
involved

1. Proposed by Market / Business Line Managers/

MANCOM
Local HR
2. Confirmed by Market / Business
Validated
MBO/Functions /
3. Proposed by SBU/Functions/Zone or Global Business HR - Zone
Assistants
SBU-Function
4. Confirmed by SBU/Funtions//Global Business
Head / Corporate
5. Validation/ Confirmation - Zone Management MD/Zone
Validated Confirmed Management

6. Confirmed by EBM Validated

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 Q & A

Questions &
Answers

Thank you!

Good Food, Good Life