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The World is Flat

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. Hierarchy. Network. Command. Alignment. Experience. Insight.

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The World is Flat

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  1. 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

  2. Hierarchy Network Command Alignment Experience Insight Competing Co-operation Discipline Initiative National - Functional Cross-border/Cross-functional TASK ORIENTATION RESULT ORIENTATION Change in the Mindset FROM TO

  3. The Develop People Initiative Core elements: Holding an effective performance and development dialogue in an agreed performance and career management process Applying 13 behaviours from the Nestlé Leadership Framework Planning succession

  4. Management developmentScope & 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

  5. Management developmentSourcing Management Development & Sourcing Internal sourcing & People development for Key positions Management Development Sourcing

  6. Develop People – differentfrom currentperformance management systems FROM TO • No consistency across markets • One consistency standard across the world • Seldom applied to top management • Starts with and is led by top management • The focus was on ‘what’ people achieved • The focus is on ‘what’ people achieve, and ‘how’ they do it • Performance and Competencies were rated in an inconsistent way • Move away from ratings to the language of performance • Salary increases generally based on performance • Salary increases based on 5 criteria:- performance, potential, market forces, fairness and salary history

  7. O O O O S S S S M M M M Cascading objectives(O), strategies(S) & measures(M) Company Division Department The company strategy becomes the divisional objective and the divisional strategy becomes the department objectives and so on Individual/Team Action Plan

  8. Nestlé Leadership framework Progress & Development Guide Flat and Flexible Structures Inspiring Management Long-term Development Dynamic Compensation Life-long Learning

  9. 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

  10. Individual behavioral competencies Skill Knowledge Social Role Self-Image Trait Motive Behaviours

  11. The Competency Foundation Characteristics at different levels: Skill Knowledge Social Role Self-Image Trait Motive Individual competencies (cont’d) Skills are the things a person knows how to do well, e.g., reading a profit-and-loss statement. Knowledge is what a person knows about a particular substantive 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 developing others or providing a sense of mission & direction. Self-image is the way a person sees him/herself - the internal concept of identity, e.g., seeing oneself as a teacher or leader. Traits are relatively enduring and stable characteristics of a 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.

  12. Behaviors become more important as job complexity increases « Natural » Tendencies and Traits For Example: Results Focus Curiosity Proactive cooperation Courage Relative Importance Task-Related Knowledgeand Skills For Example: Knowledge of Electronics, Companies Products, Labor Relations, Law, Skill in active listening, Negotiating Low High Job Complexity

  13. Nestlé Leadership Framework4 clusters and 13 behavioral competencies Inspiring People • Lead people • Develop people • Practise • what you preach Adding Value • Results • focus Dealing with others Opening Up • Initiative • Know yourself • Innovation & • Renovation • Insight • Service Orientation • Proactive • co-operation • Convincing others • Curiosity • Courage

  14. 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

  15. Performance Review Cycle Set Personal Performance Objectives* Business Objectives Development Plan Identify Behaviors Final Review 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.

  16. 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 Training and Learning

  17. 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 planbased on results of appraisal meeting – PDG forms Career Development / Planning

  18. 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 Career Committee

  19. Nestlé on the Move – Year 1 Appraisal meetings, setting objectives, performance evaluation Train all appraisers and appraisees Results / evaluation Train the managers Feedback to managers Career committee and training plan 2005 Start-up 01 05 06 07 08 10 11 12 11-12/2003 02 03 04 09 01/2005 Train new appraisers and appraisees Appraisal meetings, setting objectives, performance evaluation Start-up regular process

  20. Nestlé on the Move – Year N+ Appraisal meetings, setting objectives, performance evaluation Train factory appraisers and appraisees Train all new appraisers and appraisees Results / evaluation Training nomination 01 02 03 04 05 06 07 09 12 08 10 11 11-12/2004 01/2006 Mini-career committees Mini-career committees Career committee Career committee

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

  22. Personal Development Cycle P&DG Training & Development Plan Career & Succession Plan Objective setting (short/long term)

  23. Personal Development Cycle– 4steps • End of February: • PDG finalizedby Markets and forwarded to CE HR • Personal objectives defined Nov-Jan Run PDG (incl. achievement of objectives) September: Applications for Rive Reine programs completed March Consolidate individual training & development plan End of March: Individual training & development consolidated by CE HR May-Oct Run training & actions to close development gaps April Prepareregionaltraining & development plan Mid of April: Training plan developed for Region End of April: Plans approved by CdD

  24. Succession Planning Cycle– 4steps End of February: PDG finalizedby Markets and forwarded to CE HR Nov-Feb Run PDG (incl. achievement of objectives) March Propose succession plan End of March: Succession plan proposals logged into database by Markets and CE Management June-Oct Plans & actions to fill gaps End of April: Succession plan reviewed through and finalized by CE Director and CE HR • April-May • Succession planning discussions between • CM – CE • CE – LOC June: CE Succession planning completed and sent to HQ Vevey May: Approved succession plan

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

  26. Q & A Questions & Answers Thank you!

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