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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
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

change in the mindset

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

the develop people initiative
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

management development scope working principles
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
management development sourcing
Management developmentSourcing

Management

Development

& Sourcing

Internal

sourcing

&

People

development

for

Key positions

Management

Development

Sourcing

develop people different from current performance management systems
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
cascading objectives o strategies s measures m

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

nestl leadership framework progress development guide
Nestlé Leadership framework Progress & Development Guide

Flat and Flexible Structures

Inspiring Management

Long-term Development

Dynamic Compensation

Life-long Learning

using the nestl leadership framework
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
individual behavioral competencies
Individual behavioral competencies

Skill

Knowledge

Social Role

Self-Image

Trait

Motive

Behaviours

individual competencies cont d
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.

behaviors become more important as job complexity increases
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

nestl leadership framework 4 clusters and 13 behavioral competencies
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
when should you do an interim review
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
performance review cycle
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.
slide16
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

slide17
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

slide18
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

slide19

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

slide20

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

management development cycle

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

p ersonal development cycle
Personal Development Cycle

P&DG

Training & Development Plan

Career & Succession Plan

Objective setting (short/long term)

personal development cycle 4 steps
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

succession planning cycle 4 steps
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

training personal development cycle
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
slide26
Q & A

Questions & Answers

Thank you!