John M. Saguto Vice President and Director Customer Development Group Nestlé Purina Pet Care Company

Leveraging an Inclusive Team To Drive Results

“We don't accomplish anything in this world alone... and whatever happens is the result of the whole tapestry of one's life and all the weavings of individual threads from one to another that creates something.” Sandra Day O’Connor “All of us do not have equal talent, but all of us should have an equal opportunity to develop our talents.” John F. Kennedy

Creating an Inclusive and Diverse Workplace  Why do it?  Who starts it?  What is your role?  Can it really affect business results?  How is it sustained?  How do you measure progress? Or success?

Leveraging an Inclusive Team To Drive Results  Power of any team depends on the dynamics of the team  You need to have a champion, someone with passion and influence, willingness to step out in traffic  You must have a plan, a vision, or a clear expectation, and you must stay the course  Transparency and honesty, a must  Realize change takes time. It can have setbacks and disappointments, but leaders must emerge and take charge  In the long run it is imperative to the overall health and success of your organization

Creating an Inclusive and Diverse Workplace  The Opportunity: Nestlé Purina D&I Project (Design and Implementation)  The environment:  Strong competition  Success of the past would not sustain the future  We wanted to create the future  Senior Management engaged and listening (the opportunity)  Several key leaders had an idea to leverage multi- functional skill sets and change the culture within  Dynamic change opportunity – do you act?  YES… ABSOLUTELY !!!

Creating an Inclusive and Diverse Workplace Here was the situation:  Current State – mono-functional, work teams, silos  (Five departments: OM/Inventory, Cash/Collections, Pricing/Promotions, Adjustments/Deductions, Data Base Management)  Future State – multi-functional, integrated work teams  (Creation of what is known today as the Order and Revenue Management Department – ORM)  Create a competitive advantage for the organization  Create a great place to work – focus on an inclusive and diverse workforce, new ideas, different approach  Change or eliminate the rules of engagement

The Results…  Consolidation of five departments into one – ORM  Best in Class customer service  Formalized mentoring program  No headcount reduction (or minimal)  Internal cost savings of $12mm annually  Resource utilization  Collections Best in Class  Back Office costs  Streamlined the order life cycle  Service level improved  Promotion simplification

The Results…  Hired for variety of skill sets  Changed recruiting schools  Creation of an inclusive and multi-functional workforce Then (Stagnant) Now (Positive)  Turnover Rate: 5%  Turnover Rate: 20%  Retention Rate: 98%  Retention Rate: 80%  Promote Rate: 2%  Promote Rate: 15%

Creating an Inclusive and Diverse Workplace  Diverse Leadership Team  Silo Managers  Clear vision  Lack of vision or silo approach  Established S.O.P/Charter  Personal agendas  All ideas welcomed, encouraged  Grandstanding  Ownership of the solution  Not my problem  New track training approach  Buddy system training  New recruiting program  Fishing at the same fishing holes  Best practices established  Here is how I do it  Creation of compensatory base  Clerical pay scale pay program and special incentives  Open leadership (bottom up and  Top down management top down)  Clear goal/accountability  Vague goals/lack of accountability  Celebrated success along the way  Too busy to celebrate or recognize individuals or team What WorkedWhat Did Not Work

Creating an Inclusive and Diverse Workplace Major Benefits:  Creation of the ORM Department – a sustainable organization that is one of the most diverse and inclusive organizations in all of Nestlé Purina PetCare  ORM has become a diverse resource pool for all of Nestlé Purina PetCare  Instrumental in creating a passion in the Customer Development Group (Sales) to also build an inclusive and diverse, high-performing organization  ORM/Sales and Nestlé Purina at large co-developed a Diversity Steering Committee that is now in place

What Made This Project Work? In summary:  Capitalizing on an opportunity that could have been missed  Passion, Vision, Commitment, Focus  Strong Diverse Leadership Team put into place  Champions, Senior Leadership support, including HR  Clear understanding of what was at stake  Willingness to take risks and create change  Work with a solid plan  Establish goals and timelines  Monitor progress, keep leadership and organization informed  People believed they were valued and we were not turning back  Know and understand key stakeholders  Led by example: D.W.Y.S.Y.W.D. - ALWAYS

To Leveraging a Diverse and Inclusive Team to Drive Results 1.Define your objective clearly 2.Find your Champions or be the Champion – Senior Management sustainable support 3.Build a plan and timeline 4.Start small and build on progress or success 5.Build a network of allies, including HR 6.Establish your platform and talk to everyone about it – invite people in 7.Change your recruiting process – fish at different fishing holes 8.Establish a slating process to fill open roles 9.Leverage your influence and other leaders’ support 10.Build it and people will come, be transparent, be honest! Top Ten Tips

Leveraging an Inclusive Team To Drive Results In closing:  Leveraging a diverse and inclusive team to drive results can and will make a difference!! My Challenge to You:  Be a Role Model  Be the Champion in your company  Step out in traffic  Create a great place to work

Leveraging an Inclusive Team To Drive Results Thank you! Questions?