CONFIDENTIAL
Document
Date
This report is solely for the use of client personnel. No part of it may be circulated. quoted. or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.
Unlocking Potential To Deliver Improved
Business ResultsA partnership between Heinz and Pilat
Miranda Clarke Talent Director& Roger Edwards Director Consulting
2
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
By unlocking our leadership potential we will demonstrate the gains achieved both to our bottom
line and to our cultural evolution
Our Agenda Today
• Real and sustained return on investment
• Cost effective approach to development; individualised
• Proven, sustained shift in leadership behaviour
• Real business issues resolved
• Q&A at the end
3
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Heinz : a Global Company
Fiscal Year 2008 Financial PerformanceAnnual sales of $10 billionOperating Income of $1.57billion
• 77 factories globally
• Key categories: Ketchup, Condiments and Sauces Beans, & Kids Meals Soup
• Although based in the USA, 60% of sales are elsewhere in the World. • 33,000 employees
• Consumers in every time zone and operations on all inhabited continents
• World-class portfolio of powerful brands holding No.1 and No.2 market positions in over 50 countries.
4
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
UK & Ireland
#161%
#139%
#179%
#179%
#172%
#198%
#166%
An impressive portfolio of brand leading products
5
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Our strategy is built on 7 key pillars
Sustainable, profitable growth
Strategic plan
Catalyst
Dri
ve s
cale
able
inn
ova
tio
n in
all
form
s
Ag
gre
ssiv
ely
dif
fere
nti
ate
acro
ss
the
po
rtfo
lio
Win
wit
h w
inn
ers,
ove
r-in
vest
in
emer
gin
g c
han
nel
s
Dev
elo
p a
per
form
ance
-bas
ed
cult
ure
Lev
erag
e d
isci
plin
ed r
eso
urc
e m
anag
emen
t
Del
iver
ou
tsta
nd
ing
ava
ilab
ility
&
visi
bili
ty
Dri
ve s
up
ply
ch
ain
/man
ufa
ctu
rin
g
flex
ibili
ty
Cultural evolution
6
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Develop a Performance Based Culture
- Employee engagement survey
- Performance management process – cycle, calibration and Manager upskilling
Winning Culture Destination
- Leadership development
- Succession planning – career discussions, functional talent meetings, business unit talent meetings, European swaps and secondments
- Training & development strategy
7
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Leadership Development – Pilat partnership
- Design in partnership - Delivery in partnership
- Review in partnership
- Evaluation and re-design in partnership
A Winning Formula
8
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Unlocking Potential – The Programme
First, What It Isn’t………
• A leadership SKILLS programme• It does not teach delegates what leadership is all about
• Specific to Heinz
• Focuses on the strengths as well as areas that improve effectiveness.
• A senior leader’s behavioural programme
What It Is……..
• Intense; certainly that’s what attendees tell us
• Powerful at an individual level, group networking and business
improvement
9
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Unlocking Potential – The Programme
In summary there are four phases to every programme:
1. 360’ feedback prior to the event
2. 3 day programme; overnight accommodation of day 1 and 2 is mandatory
3. 1 day follow-up; 6/8 weeks after the event
4. repeat 360’ feedback 6/8 months after initial event
10
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Unlocking Potential – programme design
11
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Programme Design (cont.)
Each participant
• Comes and works on own development agenda
• Stretches their development while addressing real business challenges
• Receives immediate coaching as tasks unfold
• Gives colleagues feedback
• Receives those challenges and inputs that will most radically improve personal performance
12
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Flexible Learning Sessions
To meet the needs of individual we have built in flexible learning sessions
• Give Constructive Feedback• Listen, How to Question• Choose a Leadership Style• Get the Best Out of the Team• Motivate, How to be Assertive• Structure a Coaching Session• Body Language
(Learning Guides to support)
1:1 Coaching
Review / Reflection time
Structured inputs as needed on how to:
13
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Other Tools To Support
Engagement cards
Feedback emphasis
- Built in to every exercise- Formula.
LikedDislikedDo differently next time
14
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
What People Say About The Programme
Provides a frameworkfor improving personal andprofessional effectiveness
An invigorating experiencewhich adds personal valueand value to the business
A clear personal vision onhow to proceed & move own
behaviour in the rightdirection
It allows a new perspectiveto be taken on traditional
barriersThe most powerful thing about UP is the focus on
me and MY needs
It has a direct impact on business and improves working
relationships
You learn how to get more outof yourself and others
Of all the leadership programmes I have attended this programme
has been the most powerful
15
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
So far
5 Unlocking Potential programmes
Pilot programme took place Sept 07:- it’s this group that we will focus now on
All except one of the UK/I Executive team have sponsored an event
43 senior leaders have attended Unlocking Potential
16
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
And The Results……
There are two measures to our programme;
1. Behavioural change – a positive shift in behaviours
2. Financial return on our investment
It’s early days, but here’s a glimpse ofprogress to date
17
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Results – second 360 6 months post prog.
• Self Scores down 5% (marked harder)
• Greatest areas of improvement in targeted behaviours:– Challenges the status quo +28%– Actively listens to and takes others’ views into account +23%– Challenges others to make tough decisions +19%– Communicates vision in a way that arouses genuine motivation and commitment +16%
• Average shift in 80% of targeted behaviours was up 10%
• +ve performance improvement in 95% of targeted behaviours (exc. self score)
• Managers scored their participants 16% higher on targeted behaviours
18
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Where Significant Improvement Noticed….
By Manager• Inspires others to commit to their vision• Monitors individual performance and gives timely constructive feedback• Encourages others to challenge the traditional way of doing things
By Direct Reports• Manages changed project deadlines with ease• Makes timely decisions balancing analysis with decisiveness• Prioritises and plans ahead effectively
By Peers• Communicates vision in a way that arouses genuine motivation and commitment• Understands key business priorities• Is a role model for the Heinz values
19
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Top Behaviours For The Group post prog.
Positive leadership behaviour has lead to cultural step change
• Has an understanding of how the business works beyond own area
• Identifies and implements best practice • Focuses on the long-term when setting strategy
• Is honest and sincere when communicating• Appeals to reason, data and figures in influencing others
• Treats others with respect
• Is a role model for the Heinz values
• Understands key business priorities
• Has a "can do" attitude and desire to win
20
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Financial Return on Investment – Graham
Responsible for Food Service Sales.
Cost of product increasing, planned price increases from 2008 (although customer had not previously accepted increases)
Personal development need was to engage, motivate and trust team.
End of programme scheduled holiday, decided to delegate whole problem to team.
Team were delighted to have the responsibility and challenge.
When back team had got signed agreement and implemented increase two months ahead of schedule.
We achieved 2 months additional revenue at higher price = £80k
21
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Financial Return on Investment – Cathy (IT)
Last financial year Cathy had $3.5m budget.
Three months prior to the year end she was tracking $200k over.
“By involving my team, rather than thinking that I had all the answers, I came in under budget rather than over”
At year end came in $80k under budget.
“My team have greater motivation and drive. I feel more in control / more informed even though I am not doing”.
22
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Return on Investment – Chris (IT)
Projects are now delivered on time (even those projects that before the Unlocking Potential programme were behind – I’ve caught up).
E.G. “FollowMe printing”
By getting this project back on schedule, saved £16,000 in three months.
What I now do differently…..involve my team, give them the space to take accountability and I’m reaping the rewards
“My team have really stepped up to the plate”“My team are getting around road-blocks themselves and I now know I wasn’t always right”
23
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Return on Investment – Alec (Manu)
Largest factory in Europe
“P16 Cooler” The issue; ½° out from specification
The old Alec: One of two things; Shut down the cooler OR go into battle into IMS
A shut down would take 2 days to restore
The new Alec: Adopted a coaching style; got the ‘experts’ together, pulled from them the potential root causes, series of tests took place
Resulting in……the cooler being back in service after just two hours.
Saving 1.5 days production approx value £80k
24
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Return on Investment – Laura (Marketing)
Key ingredient supplier went into administration
‘Taste of Home’ range extension was at risk of no launch
The new Laura: • Challenged purchasing to find alternative• Challenged suppliers to up game• Challenged the business to keep going• Challenge to operations (need to change factory plans) and R&D (to research and undertake new kitchen trials.)
Resulting in successful launch across entire trade
Revenue gain £150k GP
25
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Return on Investment – Denis (Sales)
On Amoy-
–There is a three month lead time on noodles–It is a high risk product with short life span.–As a result of course re-evaluated excess stock and chaired a meeting
to clarify objectives and agree next steps.
The course gave me the tools and the confidence to really make a difference and structure my meetings more effectively and ensure real outcomes.
Consequence was we were able to move 15,000 cases to Morrisons that would have quickly moved to waste
Revenue achieved £45k.
26
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Return on Investment – Paul (Pasta)
In June 2008 Paul’s team had reached capacity in pasta production
As a result of the course Paul got the team together to explore how they could improve team capacity – getting the team to come back with their vision
Engaging the team in whole business has meant:
Agreed team specific actions
Increased commitment and ownership
Implementation of actions within 6 weeks
Resulting in record output and increased internal capacity which has allowed outsourced re-work to be brought in-house
Saving £124k
27
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
In Summary
• Real and sustained return on investment
• Cost effective approach to development; individualised
• Proven, sustained shift in leadership behaviour
• Real business issues resolved
By investing in unlocking our leadership potential we have demonstrated the very real gains achieved both
to our bottom line and to our cultural evolution
28
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Why We Believe It Works
Process / structure of the programme
- Pre / do / post- Real current business challenges (valued by participants)- Feedback loop- Facilitation style; support and challenge
Evolution not revolution
Partnership development of product
Individualised
Sponsorship from the top
- Every programme has an Exec sponsor including the CEO
29
Unit of measure
* Footnote
Source: Source
Wo
rking D
raft - Last M
odified
3/1
/20
06 2
:01:4
2 PM
Printe
d 2/2
8/20
06 10
:02:21
AM
Questions & Answers
We would be delighted to use the time we have left during this session to take questions