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Bridgette Heller Global President, Baby Care Johnson & Johnson Consumer Companies

Bridgette Heller Global President, Baby Care Johnson & Johnson Consumer Companies. Diversity & Inclusion as a Global Growth Driver. NEW Sponsors are Multi-National. Demographic and Social Changes Create A War for Talent. US—5% UK—1% Germany—1% France—1% Japan –2%

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Bridgette Heller Global President, Baby Care Johnson & Johnson Consumer Companies

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  1. Bridgette Heller Global President, Baby CareJohnson & Johnson Consumer Companies

  2. Diversity & Inclusion as a Global Growth Driver

  3. NEW Sponsors are Multi-National

  4. Demographic and Social Changes Create A War for Talent

  5. US—5% • UK—1% • Germany—1% • France—1% • Japan –2% Leading “Developed” Nations: 10% World’s Population Skewing to Developing Nations Brazil—3% Russia—2% India—17% China—20% Total BRIC countries: 42% Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat (2007)

  6. … Even in the Developing World! Population Growth Rates in China & Brazil

  7. Demand for Global Workforce Intensifying Retiring Baby Boomers and declines in birth rates are creating labor shortages in major developed countries By 2020, the working age population (15-64) will shrink in the U.S., U.K., Canada, Germany, Italy and Japan By 2020, it is estimated there will be: 17 million jobs unfilled in the U.S. 9 million jobs unfilled in Japan 2 million jobs unfilled in France, Germany and the U.K.

  8. Role of Diversity & Inclusion

  9. Diversity is the WHAT Diversity refers to the many differences within our workforce and marketplace Personality

  10. Inclusion is the HOW In the 21st century, understanding, respecting and leveraging diversity is essential to business success

  11. “Gender” is #1 diversity dimension measured across all regions Diversity Dimensions—Average Across 8 Geographic Regions 65% 60% 55% 50% 54% 45% 40% 35% 30% 31% 25% 20% 23% 23% 23% 15% 20% 10% 12% 5% 0% Average Across 8 Regions (US, Canada, LA, Europe, Asia and Pacific, Africa, Middle East, Australia/ New Zealand) Gender Race/Ethnicity Sexual Orientation Disability Nationality Generational Religion CLC Brief-Creating a Global Diversity Policy, October 2008 Data derived from a 2006 Catalyst survey of 110 organizations across different geographic locations

  12. What Does All This Mean to You? Embracing diversity is no longer optional. New “people dynamics” are critical growth drivers. Workforce “war on talent” Marketplace/consumer insights Culture of valuing differences to generate innovation and to promote employee engagement and development/retention

  13. Diversity and Inclusion Enables Growth Varied perspectives and experiences An understanding of different countries and cultures An understanding of markets a company is trying to penetrate Better responsiveness to new opportunities Enhanced innovation, creativity and problem-solving capacity Better retention of high-quality staff

  14. Diversity and Inclusion Enables Growth The 43 publicly traded companies on the “Diversity Inc. 2006 Top 50 Companies for Diversity” list = a 10-year average return on stock that was 23.5% higher than the return of the S&P 500 Catalyst study of Fortune 500 from 1996-2000 = companies with the highest number of women in top management positions had a 35.1% higher return on equity than the companies with the lowest number of women. These companies also had a total return to shareholders that was 35.1% higher.

  15. A Little About the Johnson & Johnson Approach to Diversity and Inclusion

  16. Johnson & Johnson: A Long Global History First international affiliate in Canada (1919), first overseas affiliate in Great Britain (1924) J&J Mexico and J&J South Africa formed in 1930, J&J Brazil formed in 1937 More than 250 operating companies Facilities in 57 countries around the world Sales in more than 175 countries 119,400 employees worldwide Almost 50% of revenues from outside the United States

  17. Global Diversity: Part of our “DNA” Decentralized management approach and structure Global affiliates staffed with local talent International Development Program fosters leaders who can effectively operate in a diverse, global environment CREDO that defines expected behavior including “…” We are responsible to our employees, the men and women who work with us throughout the world Everyone must be considered as an individual We are responsible to the communities in which we live and work and to the world community as well

  18. Global and Regional Brands

  19. Our People Build Our Reputation Barron’s Magazine: #1 World’s Most Respected Companies Fortune Magazine: Top 10America’s Most Admired Companies & Global Most Admired List Wall Street Journal / Harris Interactive Reputation Survey: Ranked #2 Diversity Inc. Magazine: #1 Among Top 50 Companies for Diversity Reputation Institute: #2 Most Respected U.S. Companies; #5 World’s Most Respected List

  20. Case Studies

  21. Brand presence in 173 countries, only 16% of revenues from U.S. Developing world 50% of business and growing 3x developed countries – managing portfolio drives total long-term growth Different growth and innovation strategies depending upon stage of development Leadership team truly global – 6 languages, 4 nationalities, all four continents represented Local leadership allows for mining of local consumer insights Global leadership and infrastructure enables faster best practice transfer Examples include – Bedtime launch, Trendscope process

  22. Bedtime Executions From Around The World

  23. Bedtime platform was up +24% during year one of relaunch A Success Story

  24. Use consumer inspiration to drive depth and diversity of global JOHNSON’S® Baby pipeline to meet mid-term and long-term growth goals by: Understanding changing consumer values & needs Uncovering insights that enable us to speak to the consumer in relevant ways Using this input to build a differentiated pipeline Project TRENDSCOPE Objectives

  25. Sixty participants across 12 countries generated 356 new product ideas 29 in USA and 1 in Canada 12 in Europe in Germany, France, Sweden, Switzerland and the UK 11 in Asia Pacific in Australia, China, India and Singapore 8 in Brazil TRENDSCOPE Virtual Hothouse Delegate Map

  26. Living Our Credo:Building a New Business Model While Improving Women’s Lives • Direct-to-consumer business models are fast-growing • Community moms in Colombia need to increase their income to provide for their families • Moms look to activities such as catalog sales to supplement their income • Additional incentive programs provide access to products that will benefit the children in mom’s care • Increased exposure and penetration of our brands to women in Colombia

  27. Leveraging the Community, Our Communication, Our Portfolio and Our Distribution Model

  28. Communication Begins With Our Catalog One-to-One Advertising

  29. Incentive Programs to Enhance Community Roles and Improve Living Conditions

  30. Building Your Diversity & Inclusion Strategy

  31. Enact Measure Assess Plan Commit to the Process Commit leadership Assess readiness and define desired change Establish priorities and realistic objectives Plan the change – key leaders, processes, policies and practices to meet the particular diversity needs of your company; include training and support processes Act decisively and consistently Measure progress on an ongoing basis and course correct as needed

  32. Balance Global with Regional Needs Consider developing a global statement about respect, difference and the shared goals and values of the organization Link your global strategy to business performance and growth Remember that while gender is the most commonly targeted dimension of diversity across all geographic regions, wide variations exist in perceptions of diversity across different geographic regions; thus, best companies create regional definitions and customize policies accordingly Define diversity for each geographic region to align it with cultural norms and legal frameworks Emphasize dimensions of diversity that best address cultural issues and employee needs of the region Get local input; don’t impose your own agenda Meet people where they are Local/regional leadership buy-in is key CLC Brief -- Creating a Global Diversity Policy, October 2008

  33. “Walk the Talk” – Model Inclusive Behavior for the Organization Set clear expectations for the organization and report against progress to ensure everyone knows it’s a priority for the company Seek out advice or opinions from diverse perspectives; move beyond your comfort zone Celebrate diversity and inclusion successes Speak up when you see colleagues making a diversity and inclusion misstep Be flexible in how you communicate with others from different cultural backgrounds Alternate times for global team meetings so that different time zones can share the “pain” of awkwardly timed meetings Listen and ask questions to avoid jumping to snap judgments about people

  34. Common Performance Indicators to Guide Progress Increase in the representation of women, people from different countries of origin, ethnic minorities, etc. Employee survey results indicating how a culture of valuing differences enhances employee engagement and productivity Consumer insights about a specific group resulting in new product developments and/or increased sales Homogenous work group vs. diverse work teams output and innovation Improved insights about global consumers leading to increased sales growth Demographic profile of the management team

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