2. Provide Unilever with the platform to deliver sustainable growth
Path to Growth identifies what we will do to deliver on our promises to shareholders:
Increase revenue growth to 5% per annum
Increase operating margin from 10% to 15% by 2004
Deliver an incremental €2.7billion in operating profit by 2004
Provide Unilever with the platform to deliver sustainable growth
Note: Figures do not include Bestfoods

3. Why do we need the Path to Growth?
Unilever Share Price Performance v Peer Group “Shadow”
Unilever Share Price Performance v Peer Group “Shadow”
Unilever
Peer Group:
Beiersdorf,Avon, Cadbury, Clorox, Coca Cola, Colgate, Danone, Eridania, Gillette, Heinz, Kao, Lion, L’Oreal, Nestle, P&G, Philip Morris, Reckitt Benckiser, Sara Lee, Shiseido, Pepsico
Peer Group
(Based on Quarterly Average Share prices)
The Market is concerned about our ability to execute our strategy

4. Path to Growth -- 6 primary strategic thrusts

5. What is our strategy for the Path to Growth?

6. World Class Supply Chain
We aim to:
Close the gap to world class in supply chain within three years
By:
Establishing a Global Buying programme
Establishing a world class manufacturing programme
Resulting in (approximately):
100 fewer manufacturing sites
€€1.6 billion buying savings by end 2002
€€0.5 billion manufacturing savings per annum

7. “The only way to safeguard our position is to perform, to deliver, and to grow our business.”

8. Supply Chain - What does it take to succeed?
Depth and breadth of the Supply Chain Professional Skills
An excellent overall understanding of the business, it’s processes and their linkages
Business behaviours
Outstanding performance
Slide 15. What does it take to succeed in the Supply Chain?
Secondly, in addition to the Competencies, it takes depth and breadth of the SC Professional skills acquired over time by working in a range of SC jobs (more on that in a few moments).
However it takes more than just competencies and skills. It takes an overall understanding of the business and its processes and an ability to act not just as a SC professional, but also as a businessman.
Business awareness gives insight to break existing paradigms and create growth opportunities. This is essential to progress to more senior levels in the SC.
Lastly, but by no means least, to succeed in the SC takes a track record of outstanding performance at each level.

9. The Supply Chain Process Model
Plan
Source
Make
Deliver
Supply Chain Mission & Strategy
Brand Development
Customer
Development
Suppliers
Consumers
&
Customers
Information Management
Human Resource Management
Quality & Business Excellence
Finance Management
Safety, Health & Environment
Technology Management

10. Supply Chain - the Heart of Operations
Plan/Source
Plan/Make
Plan/Deliver
Planning links the processes together
Slide 11. The Heart of operations
Each SC sub-process requires planning. Planning also links the sub-processes together. It is therefore critical to optimisation of SC performance.
Because It guides our everyday life working in the SC requires a thorough knowledge of the planning process.

11. Driving Value Creation in the Supply Chain
‘Beating the Fade’:
continuous innovation and cost savings
Growth through:
making new products available
improved distribution
better customer service
Increased margins through:
cost savings along the supply chain
overhead cost reduction
reducing complexity
Capital efficiency improvements:
minimising investment in plant & equipment and inventories
These elements together contribute more than 50% of Unilever’s total Value Creation

12. Organisational Development
Business has moved, and continues to move, towards process management
Emergence of Supply Chain process roles
A career in the Supply Chain requires development of breadth and depth of skills, Leadership competencies, and experience
Slide 5. Organisational Developments
Before we focus on career management, it is worth while spending a few minutes to review the organisational developments against which any discussion about careers has to take place. The move towards process management, the emergence of single integrated supply chain structures, regional sourcing and e-commerce have changed and enhanced the role of the Supply Chain. To equip ourselves for this new role we must build our professionalism to higher levels.

13. What do Supply Chain people in Unilever do?
Roles in different parts of the organisation
factories
regional supply chains
business groups
corporate centre
Roles:
with strategic focus
in a more operational environment,
Roles in various parts of the supply chain: Plan–Source–Make–Deliver
Roles which focus on
the multi-local aspects of the business at a national or regional level
the multinational aspects
Roles in related professions, e.g. R&D, Customer Management
Roles in QA, SHE and Technical Management
Slide 13. What do Supply Chain people in Unilever do?
SC managers work in a wide variety of roles. They cover both operational and strategic activities. They can be in one of the main sub-processes (Plan, Source, Make or Deliver) or in enabling processes such as QA, Technology and SHE.
The trend in is toward integrated management of the SC in which SC managers deliver value by leveraging their professional capabilities and business understanding.
The content and focus of SC roles vary according to specific organisational and business environments. SC managers can expect to (and should) undertake a number of different types of role during their career.

14. Building Successful Careers Focuses On:
Processes and tools used in career development
Key career building blocks
Career phases
The need for breadth and depth of skills and experience
The impact of each individual’s potential
The importance of tactical and strategic career planning
The need for a global perspective
Planning life and career
Slide 7. Building successful careers
The general booklet “Building Successful Careers” focuses on the eight major components of career management. Some of these are processes and tools; some are guidance about the general requirements the business has set down; and some are personal to each individual.

15. Building Careers - Key Principles
Professional
Skills
Experience
Performance
Leadership
Competencies
Successful careers are based on outstanding performance founded on skills, competencies and experience

16. Building Careers - Key Principles
Professional
Skills
Experience
Performance
Leadership
Competencies
Successful careers are based on outstanding performance founded on skills, competencies and experience

17. The Leadership Growth Competencies

18. Focus on Growth (in every sense)

19. What is the Leadership Growth Profile?
It is :
A leading edge competency model that focuses on driving growth throughout the business
A tool for development and assessment of performance
By helping our leaders grow, we will grow our business
Applicable to everyone at WL2 and above

20. Why we need to develop Competencies?
SUPERIOR JOB PERFORMANCE
Competencies
Knowledge & Skills
Personal characteristics (values, traits, motives) shaping HOW the job is undertaken
Measured by clearly observable behaviour
Transferable knowledge and abilities (professional and general) to do WHAT is required by the job
Measured by demonstrated capability

21. What are Competencies?
“ … underlying characteristics that are directly related to superior performance in a given role”
skills - what you know how to do e.g. make an effective presentation
knowledge - what you know e.g. theories of effective presentation
self image - how you see yourself e.g. public speaker
values - what you think is important e.g. achieving excellence
traits - relatively enduring characteristics e.g. self-control ‘big picture’ thinking
motives - the unconscious factors that drive behaviour; they are intrinsically satisfying and rewarding e.g. achievement

22. The Iceberg Model
A competency: any characteristic of a person that differentiates outstanding from more typical performance in a given job, role, organization or culture. }
Skill
Knowledge
Values
Self-Image
Traits
Motives }
Acquired
capability
Necessary but
not sufficient
Distinguish
effective
performance
Deeper seated
traits and
motives

23. Competencies are: observable and measurable
behavioural characteristics that can be developed
based on the business needs of today and tomorrow
factors which drive superior performance in a given job

24. How was the LGP developed?
Step 1:
Was developed by a rigorous research process:
Assessment of Unilever’s business context, the challenges facing leaders and the capabilities needed to achieve growth
In-depth research of 39 Unilever ‘growth’ leaders
Interviews and feedback from colleagues
Comparison of the Unilever ‘growth’ leadership characteristics to a world-class benchmark sample
Large international organisations
Achieved substantial growth in own sectors
Result: LGP was rolled out to WL6 and 5 in 2000

25. How was the LGP developed?
Step 2:
Focus groups and interviews with WL2, 3 and 4 in 14 countries around the world
Tested relevance and made relevant adjustments
Result: Now rolling out to all WL2+ managers across Unilever

26. How were the Criteria Established?
Original Research Compared and Contrasted Two Groups
Current
Superior
Leaders
Current
Outstanding
Leaders
“Baseline”
Competencies
Both groups show
“Distinguishing”
Competencies
Only outstanding show

27. How were the External Benchmarks used?
Compared both groups to competencies required to meet the future strategy and against the external benchmark population
Current
Superior
Leaders
Current
Outstanding
Leaders
External
benchmark
of ‘world
class’
leaders
“Baseline”
Competencies
“Distinguishing”
Competencies
Potential
Vulnerabilities
Even the best need to show more

28. What makes a world-class leader of growth?
World-class leaders of growth:
Driven by bigger ambition and drive for step change
Generate and encourage ‘big’ thinking
Are highly ‘street smart’ and savvy
Think and act over a longer term perspective
Energise others for significant change
Demonstrate a greater focus on individuals - developing, empowering and holding them accountable
Use highly effective influencing strategies to gain support: they know how to orchestrate the organisation - colleagues, bosses, their teams
How does Unilever measure up?
Although the best of the Unilever sample demonstrates these behaviours and creates growth orientated climates, we are often still more ‘controllers’ than ‘enablers’ in our leadership style.
We are good, but we know we can be better

29. How is the LGP different?
Directly related to our current business agenda - Growth
Externally benchmarked against the best
One set of competencies for all levels
Creates a focus on development of outstanding leaders at every level
It is easily modified to support future new business goals
As a result, LGP will replace the ‘Effective Unilever Manager’ competencies

30. Leadership Growth Competencies
Supply Chain - What does it take to succeed?
Leadership Growth Competencies
Builds Commitment to Growth
Strategic Influencing
Team Commitment
Team Leadership
Possesses the intellectual power to determine direction
Ensures that direction is market driven
Drives for Growth
Seizing the Future
Change Catalyst
Developing Self & Others
Holding People -Accountable
Empowering Others
Clarity of Purpose
Practical Creativity
Objective Analytical Power
Market Orientation
Achieves through integrity, teamwork and learning
Self Confident Integrity
Team Commitment
Learning from Experience
Delivers through people
Acts decisively to improve performance
Creates a Growth Vision
Passion for Growth
Breakthrough Thinking
Organisational Awareness
Leading Others
Developing Others
Influencing Others
Entrepreneurial Drive

31. LGP - The Levels Four levels: Example: Passion for Growth Foundational
Developing
Growth
World Class
Example: Passion for Growth
Foundation Level
Developing Level
Growth Level
World Class Level
Are highly motivated to achieve their personal targets in order to contribute to the sustainable profitable growth of the business
Are ambitious for excellence and constantly search for opportunities to improve the business
Set challenging growth goals for themselves and others and put into place plans to achieve these
Take significant entrepreneurial action and ask “what is possible?” to ensure growth opportunities are realised

32. LGP - The Levels (continued…)
Behaviours needed to demonstrate World Class are very stretching
This reflects our business targets
We can’t have significant growth without an incremental shift in behaviour
But…..
These behaviours are not beyond our capabilities
We need to make our people development a higher priority
To help people assess their performance against the profile, target criteria have been established for each work level

33. Passion for Growth Does this person DEMONSTRATE DRIVE BEYOND EXPECTATION TO DELIVER outstanding results?
Outstanding individuals radiate a Passion for Growth, the personal drive that enables individuals to go the extra mile in delivering excellent performance. They recognise that everyone has a contribution to make to ensure that Unilever achieves its growth objectives. Outstanding individuals constantly push the boundaries of excellent business, ask big questions about what is possible and then take significant entrepreneurial action over time to expand the horizons of the business. Success is the delivery of sustainable profitable growth. .
Foundation Level
Developing Level
Growth Level
World Class Level
Are highly motivated to achieve their personal targets in order to contribute to the sustainable profitable growth of the business
Focus on business improvement and are ambitious for excellence, constantly search for opportunities to improve the business
Set challenging growth goals for themselves and others and put into place plans to achieve these
Take significant entrepreneurial action, and ask “what is possible?” to ensure growth opportunities are realised
Ambitious to hit set targets and standards
Deliver on commitments made to others
Persist in overcoming obstacles to success
Take full responsibility for delivering their contribution to the business
Measure performance against internal and external benchmarks
Make specific changes to improve performance (e.g. re-engineer processes to be faster, more efficient)
Focus on raising quality and customer and consumer satisfaction
Stimulate and encourage others to bring about performance improvement for the business
Create stretching but achievable goals to align own activities with growth initiatives
Aim to find and realise new growth opportunities
Align own activities and goals with growth initiatives
Aim for performance excellence through own efforts
Stimulate growth by bringing about step change improvements
Aim to make the impossible possible
Entrepreneurially commit significant investments to reap major rewards
Defy conventional wisdom and internal opposition to achieve major growth
Create new markets by exploiting growth opportunities
Obsess with growth and focus on delivering new ways to gain competitive advantage
Negative Indicators:
Too busy dealing with immediate, urgent issues to look for new growth opportunities
Settle for the status quo - take no action to improve mediocre performance
Easily side-tracked from important growth goals
Unconcerned about missing deadlines or failing to meet business objectives
Do not take responsibility for contributing to growth objectives
Links with: Organisational Awareness

34. No negative indicators
LGP Guideline criteria for work levels
WL3
WL4
WL5
WL6
WL2
Two in each cluster at Growth including one of Seizing the Future and Change Catalyst and one other from the same cluster
No negative indicators
Most competencies at Developing level. At least one competency in each cluster at Growth level
Meets WL4 target and has one World Class competency in each of two clusters
Meets WL4 target and has at least one World Class competency in each cluster
More competencies at Developing level than at Foundation

35. Using the LGP and Competencies
Coaching &
Mentoring
PDP/
Development
Talent
Management
Leadership
Growth
Profile
Ranking
Reward for
Growth
Listing

36. Where has LGP been used so far?
Already used for:
Assessment of all WL5 and WL6
Personal development planning for WL5/6
Executive selection
One element of WL4 assessment in Unilever/Bestfoods merger

37. Going Forward - Future Uses of LGP
The LGP will be used in:
PDP - in all organisations for WL2 and above by 2002/2003 PDP cycle
Individual performance and capability will be assessed against the LGP competencies based on previous years’ data
Self-assessment and personal development planning
Listing
Ranking for WL4 (others may follow)
Assessment, selection and recruitment of all posts at Graduate level and above

38. Next Steps for you
Access the ‘How good can I be?’ document on the HR website [address] to understand the model, the competencies within it and how to use the model
Study the target criteria for your role and work level in the document
Consider your strengths and development needs against the model
Work with your manager and your employees (either in the PDP process or independently) to identify critical gaps to close - and build and implement an action plan

39. Building Careers - Key Principles
Professional
Skills
Experience
Performance
Leadership
Competencies
Successful careers are based on outstanding performance founded on skills, competencies and experience

40. Supply Chain Professional Skills
Job Skills Profile
Abilities to do the job well
now + future.
Person Skills Profile
My current abilities.
GAP ANALYSIS
Personal
Development
Plan
Difference

41. The New Skills Framework for Supply Chain
Supply Intelligence & Strategy Development
Contract Agreement/Arrangement & Management
Integrating Supplier Value into the Business
Driving Production Performance Improvement
Influencing & Implementing Product & Process Innovation
Maintenance & Project Engineering
Core
2. Integrated Supply Chain Modelling and Design
1. Extended Supply Chain Strategy Development & Deployment
Make
Source
3. Supplier (& Contractor) Relationship 4. Developing & Implementing
/Economic Management Supply Chain Innovation
6. Managing Quality, Safety (& Environment) 5. Formulation, Process &
Packaging Knowledge
Plan
7. Optimising Supply Chain Operations Performance
Customer Service Development & Management
Warehousing and Distribution Management
Channel Logistics Development
Integrated/Collaborative Supply Chain Planning
Operational Planning & Forecasting
Materials Management
Key General
Business Economics
Negotiation & Influencing
Supporting Sustainable Development
Using Information Technology
People Management
Project Management
(HR) Employee Relations
R & D Development Skills
Deliver

42. Building a Supply Chain career Learn the Trade
Career Building Blocks Experience - WL2
at least 2 of the 4 Supply Chain sub-processes (Plan, Source, Make, Deliver).
(especially those with Finance/Business backgrounds): Technology as a Supply Chain enabler.

43. Building a Supply Chain career Act as a Businessman
Career Building Blocks Experience - WL3
As a Supply Chain leader at WL3 you will need to gain experience in:
managing in an integrated SC
leading a SC sub-process at regional level

44. Building a Supply Chain career Strategy into Action
Career Building Blocks Experience - WL4
As a Supply Chain Director at WL4 you will need to gain experience in:
operational management of integrated supply chains
leading strategic development of Supply Chain or sub- processes at regional/international level (BG/ Corporate/Category)

45. The Supply Chain Career Platform: My Professional Development
There are Supply Chain jobs at every level in Unilever
Progress to senior levels by moving through challenging jobs.
Unique experience of working in positions of different types
Work alongside other business processes, including:
Financial Management
Customer Development
Brand Development.
Slide 20. Your Professional development
There are SC jobs at every level in Unilever and therefore there is every opportunity to progress to senior levels by moving through challenging jobs.
The SC also offers the opportunity to work in many different types of environments and increasingly with other business processes such as Customer Management and Brand Development.
And some managers, given their breadth of experience in the SC and General skills, will use their background as a basis for moving into “unit general management”, e.g. a company chairman type of role.

46. The bottom line: Unilever is a Meritocracy
Whatever the career route, Supply Chain managers can
be assured that:
Unilever’s focus on performance, and the use of objective means by which to assess skills, experience, competencies and potential,
will lead the best managers to reach the most senior levels in the business.

47. Slide 22. What do you do next.
Use PDP to develop skills and competencies
Use each career step as a learning experience
Be realistic about your own potential
Deliver outstanding performance
Slide 22. What do you do next.
These are the four guiding principles which you should keep in mind to give you the best chance of maximising your own potential.
* use PDP to develop skills and competencies
* use each career step as a learning experience
* be realistic about your own potential, and
* deliver outstanding performance.
Finally: If you deliver your targets you will always get noticed. And if you consistently meet tough targets you can be assured that your career will prosper.