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© Unilever EIPM Annual Conference 2006 Philippe de Jongh The Supply Chain Academy Page 1 Supply Management Building Capabilities to Deliver Strategic Objectives EIPM Annual Conference 07 December 2006 Philippe de Jongh

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Page 1: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de Jongh

The Supply Chain Academy

Page 1

Supply Management

Building Capabilities to Deliver Strategic Objectives

EIPM Annual Conference07 December 2006

Philippe de Jongh

Page 2: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Unilever: Company Facts & Figures

The Supply Management Learning Journey: 3 years at a glance

Programs & Critical Success Factors

Moving Talent Forward: The Supply Chain Academy

Preparing for the Future: A New Supply Chain Skills Set

Recap of Best Practices

Page 2

Agenda

Page 3: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Unilever

Company Facts & Figures

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 3

Page 4: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 4

Page 5: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Page 6: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 6

Page 7: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 7

Page 8: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 8

Page 9: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

The Supply Management Learning Journey

3 Years at a Glance

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 9

Page 10: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 10© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Turn Back the Clock - Late 2003

On the Business side: ► »Path to Growth » plan almost completed (2000 – 2003)► Acquisitions (Bestfoods, Amora-Maille, Ben & Jerry, Slim fast,…)► 140 businesses sold► Dramatic brand reduction (1,600 down to 400)► Leading brands account for 93% of sales► Massive cost savings achieved to fuel future growth

On the Supply Management side:► Total Spend 26bln Euro► 1,100 Supply Managers► Transition from Local to Regional to Global in

varying stages of completion► A new SC skills set published end 2001 but not

widely used (27 Reference jobs profiles available)

Oct 2003

Page 11: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 11© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Moving Onward... (2004 - 2006)

Vision« From Buyers to Business Partners in innovation, Simplification, Supply Chain and NPI to maximize company value »

Accelerate development of professional capabilityTop strategic thrust identified to underpin this transformation

Challenges aheadData aggregationSupply Chain / Innovation ChainSupply Management to become one global communityManage virtual teams in a multicultural environmentSM the ‘hot’ place to be!

Attracted new people from all over the Business with very differenteducational and professional backgrounds

2006

Page 12: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Programs & Critical Success Factors

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 12

Page 13: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 13© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Our Guiding Principles for Learning

Align with business objectives Target all Management

levels with clear prioritiesin the execution

Ensure maximum exposure to participants Fill existing identified gaps –

« Raise the floor »

Prepare for the future –« Raise the ceiling »

Delivered in a cost effective way

Page 14: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 14© Unilever EIPM Annual Conference 2006 Philippe de Jongh

The Learning Program

Supply Management courses: The Core4 programs covering the differentmanagement levelsSkills-based3 phases

Explore – 8 weeks priorUnderstand – 5 days residentialGo create – 8 to 16 weeks after

Delivered regionally or globally

Specific Skill-based courses: Tacklethe Diversity

Negotiation (2,5 days + pre-work)Finance for Supply Chain (3 days + pre-work)Managing Cultural differences (1,5 day)

Cross Functional coursesJoint participation withexisting programsCreate new joint programs

E-learningAs a standalone curriculumAs an integral part of a program

Continuing EducationVirtual gatherings with experts in the fieldSupply Chain / SupplyManagement portal

Page 15: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 15© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Have we been successful?

In 3 years (2004 – 2006)9 programs rolled out across all geographies1,500 + participants in classroom courses500 + e-learning users (blended learning)350 + participants in Virtual Gatherings with experts in the field

EvaluationScoring standardized: 1– 5 scaleParticipants assess themselves against program learning objectivesUse different evaluation criteria (faculty, guest speakers, logistics, …)Combine quantitative and qualitative feedback

Reading the resultsHigh score average (4.4) out of 50+ courses deliveredScore dispersion very low – same level of satisfaction across the globeStrategy into action: bring the learning back to the workplaceOther functions eager to send participants

Page 16: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 16© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Examples - EvaluationsParticipants score themselves

before and after the course to measure improvementagainst learning objectives

Course Evaluation

Faculty Evaluation

Participants score eachfaculty member on series

of questions

1. What was the key message for you?

2. To what extent did the presenter’s style help your understanding of the content?

3. Would you recommend this session of the next program? Why or why not?

Participants evaluatethe speaker withwritten responses

Speaker Evaluation

Page 17: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 17© Unilever EIPM Annual Conference 2006 Philippe de Jongh

What’s next?

The company accelerates its transformationFoods and HPC divisions have disappeared3 regions (Europe, Americas and Asia-Amet) instead of 5Each function’s targets fully aligned with company top objectives

A new mission for the Supply Chain which translates into new thrusts

A new learning infrastructure for a new challengeConnected to the business, driver to promote talent development

The Supply Chain Academy

Page 18: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 18© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Unilever Supply Chain Academy – 3 critical success factors

A Space for Sharing Supply

Chain knowledge & communications

People Capability Solutionsthat meet the development

needs of individuals & deliver Supply Chain improvement

Professional Business Partners who deliver

Learning & Development programmes in the Supply

Chain

Mission« Building People Capabilities

to Deliver the Unilever Supply Chain Strategy »

Page 19: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 19© Unilever EIPM Annual Conference 2006 Philippe de Jongh

As a global function, having a common space online is key

“A Space for Sharing”

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 19

Page 20: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 20© Unilever EIPM Annual Conference 2006 Philippe de Jongh© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Page 21: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 21© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 21

Page 22: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Preparing for the Future

A New Supply Chain Skills Set

© Unilever EIPM Annual Conference 2006 Philippe de JonghPage 22

Page 23: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 23© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Supply Chain requires a new platform

Main Objectives

Create a new skill set that will drive Unilever SC towards 2010

Identify skills key to deliver the SC Strategy into Action

Easy to implement, understand, review and measure

Scope

The extended Supply Chain will be covered

Skills will be identified at a global level and be applicable to regions

Page 24: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 24© Unilever EIPM Annual Conference 2006 Philippe de Jongh

The SC Skills Framework

Requirements

Alignment with HR guidelines for General skills

Straightforward word definition for each skill, followed by a list of sub-skills

Each sub-skill linked with “Activities / Tasks”

4 competency levels for each sub-skill / skill

Basic Appreciation

Ability to discuss the main elements of

the skill with others

Working Knowledge

Ability to have direct involvement in decisions and

actions in the skill area

Fully Operational

Ability to perform personally the great

majority of the activities of the skill

area

Leading Edge

Ability to significantly develop

the skill

Page 25: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 25© Unilever EIPM Annual Conference 2006 Philippe de Jongh

The SC Skills Framework - example

Supply Market Intelligence and Analysis

Searching for and gathering information on relevant supply markets. Analysing market behaviour and trends to support strategy formulation….

Sub Skills• Collecting Relevant Information• Analysing Supply and Demand Market

Behaviour• Understanding key cost drivers and price

trends• Applying Market Insights• Communicating and Sharing Market

Intelligence

Activities• Identifies the barriers to market entry

e.g. legal, economic, technical, political and environmental factors

• Identifies possible new entrants to the market and how they would change the supply/demand balance

• Understand the customers within the market, total demand, productivity, services and quality levels required

• Identify substitute technologies,processes and business models inthe market

• Analyse the supply marketdependencies (supplier’s supplier chain)

Skill Name

Description

Sub Skills

Page 26: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 26© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Job Skills Profile – building blocks

+

Example Supply Management Role

Supply Manager

Collaborating Across the Supply Chain to Drive Value Creation for

Ourselves and Our Customers

Managing Alliance and Relationships

Change Management

Supply Planning

Marketing

All Skill Components

Supply Management Skills

General Skills

Other SC Skills

Other Functional Skills

+

+

+

Cross Supply Chain Skill

Supply Market Intelligence and Analysis

Relevant Skills

Page 27: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 27© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Project Process

Project Brief

Content(Functional Skills)

Job SkillsProfiles Implementation

• Where are we? Where do we want to be?

• Stakeholder Interviews

• Scoping

• Externalbenchmarking

• SME interviews

• Draft of skills set for each sub-process designed

• Each respectiveFunctional Leadership Team validated & signed off their skills set

• New skills set used to profile reference jobs

• Feedback fromhomogeneous group of profilers

• Each respectiveFunctional Leadership Team signed off their job skills profile

• Transfer into system that allows people to use it

• Communicate

SC Leadership Team Sign Off

Each

SC

func

tion

in p

aral

lel

8 months

Content (Cross-SC

Skill)

• One cross-SC skill that encompassesall functions created

Driven by the Supply Chain AcademySupported by each SC function (Plan, Source, Make and Deliver)Endorsed by the Business

Page 28: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 28© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Implementation - How does it look?

System generates available learning materials based on skill gaps

Individuals select their current role (or a possible future one) and assess themselves against the reference profile

Provides descriptions of each skill and sub-skill

activities

Provides descriptions of each skill and sub-skill

activities

Priorities are agreed with line manager

Tool that facilitates the profiling of an individual against a reference role profile from a generic list of

Supply Chain jobs

Tool that facilitates the profiling of an individual against a reference role profile from a generic list of

Supply Chain jobs

Page 29: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 29© Unilever EIPM Annual Conference 2006 Philippe de Jongh

To Recap: Some Best Practices to Share

Link closely with Business priorities

Be clear on the frameworkSkill-based programsFlexibles (building blocks)Find the right mix (lectures, guests speakers, team work)

Raise the floor (fill the gaps), Raise the ceiling (prepare for the future)

Leverage and get people committedGlobal lead / regional executionProgram committee architecture

Maximize learningBlended learningDeliver at the best placeEvaluateTransfer to the workplace (Strategy into Action)

Keep in touch with your “customers”Web pageVirtual conferences

Page 30: Building Capabilities to Deliver Strategic Objectives · © Unilever EIPM Annual Conference 2006 Philippe de Jongh Turn ... objectives Target all Management ... Unilever Supply Chain

Page 30© Unilever EIPM Annual Conference 2006 Philippe de Jongh

Thank you