Unilever Global Reach With Local Roots: Creating a Gender-Balanced Workforce in Different Cultural Contexts

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1 Unilever Global Reach With Local Roots: Creating a Gender-Balanced Workforce in Different Cultural Contexts 2013 Catalyst Award Winner Globally, women control nearly $12 trillion of the overall $18.4 trillion in consumer spending, and that figure is projected to rise each year, according to a 2009 study. With this information, smart corporations are turning to their own workforce to better understand and reach this critical consumer base in different regions of the world. As a major consumer goods company, Unilever recognizes that by retaining and advancing women internally, it can better serve its consumers externally. The company believes that having a gender-balanced and engaged workforce reflective of its consumer base is an essential element of its long-term growth strategy. This commitment to gender diversity strengthens the company, maximizes its shareholders investments, and better prepares it to lead in the future. Unilever s initiative, Global Reach With Local Roots: Creating a Gender- Balanced Workforce in Different Cultural Contexts, accelerates the advancement of high-potential women across different regions and leverages the company s strong foundation of cultural diversity and multinational expertise to promote a culture of inclusion. CEO Paul Polman recognized that increasing gender diversity would help the business thrive, and he set an ambitious goal of achieving gender parity at all management levels. To achieve this goal, Unilever implemented a number of focused efforts, including the Global Diversity Board chaired by Mr. Polman, as well as gender balance accountability and targets for Unilever Leadership Executives (ULE), including the CEO and his direct reports. Gender diversity was further integrated into Unilever s HR processes, such as talent management, career planning, and leadership development. In addition, the Global Mentoring Program, which targets high-potential women in different regions, and Agile Working, a comprehensive flexible work program that supports sustainability in different regions, were implemented. The Compass, Unilever s strategy for sustainable growth, and the Sustainable Living Plan, which guides the responsible delivery of business operations, provide the initiative s over-arching framework and help maintain consistency and alignment across 11 important regions on five continents. Unilever s programs are adapted locally in response to cultural norms and to meet the specific needs of each region in which it operates. Innovative localized efforts include social media and digital recruitment programs in South Asia and Career by Choice in India, a program which allows women to re-enter the Catalyst

2 workforce in business consultant roles with the option to become full-time. Other examples are a half-time job share initiative in Germany and pick n drop facilities in North Africa and the Middle East, where women are not allowed to drive and transportation to and from work is challenging. In addition, Unilever s UK and Ireland headquarters and its India office facility in Mumbai were all built to decrease workers daily commutes and designed with a strong technology infrastructure to allow them to work at any place and any time. History and Launch of the Initiative In January 2009, Paul Polman became CEO of Unilever, and the first external hire to hold this position. Mr. Polman took several steps to balance the business and encourage its performance. He recognized that the new business strategy needed to better position women as vital drivers of growth both internally and externally, and also that the low number of women at senior levels and the high turnover among mid-career women represented important losses given that 80 percent of Unilever s consumers are women. In order to address these issues, Mr. Polman created an ambitious set of goals: double Unilever s size while decreasing its impact on the environment and reaching gender parity across all management populations by He introduced the Compass, a strategy to guide Unilever s growth and transformation onto the path of sustainability, the same year he became CEO. Incorporated into this strategy were four focal points: 1) Winning With Innovation, 2) Winning in the Marketplace, 3) Winning through Continuous Improvement, and 4) Winning With People. In conjunction with the Compass, Unilever s Sustainable Living Plan (SLP) was introduced in 2010 to guide the responsible delivery of business results. Together, these programs guide Unilever s overall diversity and inclusion strategy, including this initiative, and drive consistency and alignment through a central agenda. The initiative s specific programs and components are then adapted by local leaders to address cultural norms, nuances, and variations across locations. Organization s Strategy The Compass and the Sustainable Living Plan are at the initiative s core. The Compass s Winning With People focal point calls for a diverse talent pipeline to fulfill Unilever s business objectives and reach its diversity goals. The Sustainable Living Plan promotes gender priorities through programs that are implemented locally. Through constant communication and encouragement from leadership to meet gender balance targets, Unilever maintains the consistency of its accountability, performance evaluation, and professional development processes. At the same time, certain programs are adapted to cultural norms and nuances, and some are unique to particular locations. A 10-member Global Diversity Board (GDB) chaired by Mr. Polman is responsible for oversight of the initiative. The GDB is composed of women and men senior executives from different businesses. In addition, Unilever s Global Diversity and Inclusion Team provides weekly updates to the GDB on gender targets and shares new information with the CEO once a quarter. The Unilever Catalyst

3 Leadership Executives (ULE), composed of 13 senior leaders who manage profit and loss across regions, categories, and functions, also monitors and oversees gender diversity targets for priority geographies and functions, with each leader sponsoring one geography and function. The members of the ULE communicate monthly regarding their sponsor market s gender diversity progress. Finally, the Global Diversity Champions (GDC), a group of country and regional leaders formed in 2010, meets every six weeks to drive cohesive diversity and inclusion efforts across geographies and functions. The Global Diversity Board identified six non-negotiable components for achieving the initiative s targets and goals: 1. Measurement and Accountability Systems: These systems include talent management programs, resources, and tools to drive successful execution of the initiative. Examples include scorecards, country fact sheets, and tracking of key performance indicators (KPIs). 2. Mentoring: The Global Mentoring Programme, launched in 2009, targets women at the director and VP levels who have been identified as highpotentials eligible for more senior roles. The program successfully expanded in 2010 to South Asia with 150 mentoring relationships (80 men and 70 women) and strong participant satisfaction rates, and to Brazil in 2011 for manager-level employees. All senior leaders, including the CEO and executive leadership team, are required to serve as mentors. Mentees create individual development plans (IDPs) and identify skills gaps with the help of their line managers and mentors. They then use these IDPs as a basis of conversation with their mentors. A small-scale analysis has been conducted based on a survey and interviews with current mentors and current and former mentees to gauge the success of the program. Early results indicate that a majority of mentees who participated in the program found it worthwhile and believe they have a better understanding of what they need to do to transition into a senior leadership role. A large majority of mentees also noted that mentoring is a strong tool for professional development. An e-mentoring program was also launched in 2010 in the Americas, with 600+ participants across the United States, Canada, Brazil, Greater Caribbean, and Mexico. It uses an online match program, and program managers monitor the mentor-mentee relationships to ensure progress over the course of a year. 3. Agile Working: Started in 2009 and framed as a flexible work program, Agile Working has evolved from a simple flexibility program into a pioneering career work model. While flexibility is certainly a large part of it, Unilever s Agile Working goes beyond most flexible work programs to create job structures connected to sustainability efforts and promote overall culture change. Agile Working helps to promote gender balance, but it also benefits employees in other ways by allowing them to work anytime, anywhere, as long as they get the job done. The focus is on the outcome, rather than Catalyst

4 where/when/how the work gets done. Agile Working promotes job-sharing, helps attract and retain talent, and drives overall performance. Unilever is promoting Agile Working on a large scale in 12 locations and on a smaller scale in an additional 32 locations. Communication about Agile Working is constant, with HR workshops taking place around the globe to educate managers and employees on how to support this effort through technology. Along with emphasizing employees ability to contribute to Unilever s sustainability efforts, the company promotes the benefits of shorter commutes and more personal/family time. Local culture is also given strong consideration; for example, in Japan, employees have access to child care leave and career breaks, and in the Middle East, employees are offered family support. In India, agile work policies range from work from home to flexi-hours to part-time work arrangements. Thanks in large part to this program, Unilever has improved its Employer of Choice rankings in many countries over the last two years. The success of the program is measured through business outcomes, including metrics which represent financial benefits to the company, as well as employee outcomes, such as employee experiences with various aspects of Agile Working. One survey indicated that 80 percent of employees experienced higher levels of engagement and productivity after construction of a new Unilever site in Leatherhead, England. 4. Networks/Councils/Diversity Boards: In North America, there are seven employee business networks, including WIN (Women s Interactive Network). WIN was launched in 2001 and was designed to strengthen the pipeline of women through mentoring circles and professional development forums. The diversity lead has quarterly roundtables with leaders of each of the networks in order to understand their progression against the company s goals. In the UK/Ireland, Brazil, China, and France, the employee networks focus areas include professional development, health and wellness, and work-life balance. 5. Professional Development and Career Planning: Employee performance evaluations and talent development processes include a variety of programs. Every geography and function puts together a localized HR plan identifying high-potential employees for purposes of succession planning. Genderbalanced slates and succession plans are required for all VP and SVP roles. Those identified participate in career development discussions (e.g., whether the employee needs international experience or brand development experience). High-potentials at the director and vice president levels also receive accelerated development plans which, for women, include access to the Global Mentoring Programme. In addition, employees can plot their own career development trajectory through a program featured on Unilever s intranet. Performance evaluation cycles are in place and consist of 3 + 1s goal-setting (three business goals and one personal development goal), identification of gaps, learning and development plans, performance ratings, and structured feedback, including 360-degree reviews. Catalyst

5 Gender Balance Leadership Immersion Training was rolled out in 2011 across priority geographies and functions. It is now mandatory for top leaders and business unit heads. Led by the consultancy 20-First, this program aims to broaden participant understanding of the business case for diversity and increase gender balance. Career by Choice (CBC), a workplace re-entry program targeted to women, was launched in the India region in With a large number of women in managerial and technical fields in India choosing to temporarily leave their careers in order to care for their families, the company recognized the need for a program that supports the work-life needs of talented women who are ready to return to work full time. CBC works toward three goals: to widen and sustain the talent pool, to promote flexible working, and to activate critical business projects. The program enables women who desire flexibility to take on business projects that are expected to last from six months to a year with the option to rotate into full-time or part-time positions. A unique aspect of the program is that it can take one larger role and divide it into multiple opportunities. The program has four pillars: live business projects, flexible work arrangements, a project guide, and a community program, designed to familiarize CBC participants with the company, its stakeholders, and its policies and promote networking. Participants choose the days and times they work in the office or at home based on their projects and are provided with the supports and technology to ensure a smooth transition. In order to recruit participants, Unilever launched a CBC website and an employee referral program called Add your Friend to the Program. The website has processed over 4,000 registrations of which over 500 have been employee referrals. Twenty-seven women currently participate in CBC in Unilever s Mumbai and Bangalore offices across all functions. 6. Culture of Diversity and Inclusion: Unilever s international experience is a noted strength across all locations and functions. While its impact is evident in several regions, India and Southeast Asia are model regions. In the last two years, Hindustan Unilever (HUL) has increased women s presence in management roles from 18 percent to 27 percent and expanded daycare slots at the corporate office from 20 to 80. One-half of those who take advantage of HUL s daycare program are men, and the first person to take a half-day job arrangement when Agile Working was introduced in the region was a man. Other efforts in the region include: HUL s facility was built with a strong technology infrastructure in an area of Mumbai which would substantially decrease employees commutes and enable employees to work at any place and any time. In two years, Unilever in Pakistan increased the representation of women in Customer Development from 16 percent to 30 percent. In Supply Chain, women s roles have increased from 20 percent to 29 percent and, since men and women can t work side-by-side, a separate factory line was established. Additionally, Unilever pays for chaperones when women are required to travel and established guest houses for women to stay in Catalyst

6 when they have to work late. Parents of prospective employees are allowed to vet these facilities. In two years, Unilever in Bangalore increased women managers in Supply Chain from 2 percent to 9 percent. This is especially significant as these roles were traditionally male-dominated. In Sri Lanka, Unilever focused on placing women employees in geographies that are not too rural in order to address issues of safety and travel. Catalyst Award Criteria: Change Drivers Unilever s efforts exceed the following criteria, by which Catalyst evaluates efforts to develop and advance women in business. 1. Integrate the Initiative With the Business Strategy. Global Reach With Local Roots: Creating a Gender-Balanced Workforce in Different Cultural Contexts is directly linked with Unilever s overall business strategy of creating a productive and sustainable company. Gender diversity is seen as an integral part of the Compass and the Sustainable Living Plan, and the initiative has made Unilever an employer of choice. The integration of initiative components such as Agile Working and Mentoring into the company s global culture further supports gender inclusion as a business imperative. Unilever s culture focuses on results, allowing employees to work where and when they want, as long as they get the job done. 2. Demonstrate the Commitment of Senior-Level Leadership. When he first started as CEO, Paul Polman recognized that he needed to increase gender diversity and immediately set several minimum requirements. As a testament to his commitment, he oversees the Global Diversity Board and is directly accountable for meeting gender diversity goals. Mr. Polman is also closely involved in succession-planning discussions with his executive team, and he regularly communicates about gender balance to the Unilever workforce via his blog, as well as in other internal and external communications, conferences, and events. Senior leaders throughout Unilever demonstrate passion for and commitment to gender diversity. The company s leadership recognizes that its diversity programs are a sound business strategy for growth and sustainability. Their commitment is upfront and visible, and they support the initiative not because it s mandated by the CEO but because they see it as crucial to the company s success. This is true of all senior leaders serving as mentors, and it is demonstrated by the fact that diversity is a standing agenda item at Board of Directors and internal executive meetings. 3. Effectively Communicate the Strategy. Unilever s communication starts with the company s CEO and senior leaders consistent messages, delivered to all employees both in person and through blogs and videos, about the business case for gender balance. Leaders also share personal stories with their teams and actively solicit feedback from their employees. Unilever s diversity portals, regional/local websites on the companywide intranet to raise awareness and share best practices, are available to the entire organization. Catalyst

7 4. Create Accountability Systems. Unilever s accountability systems include both primary and other expectationsetting components. Primary accountability currently rests with the top 60 leaders and includes several elements. Specific representation goals are in place for each work level across 11 priority geographies and two priority functions. Unilever s CEO, top executives, regional leaders, and the ULE (Unilever Leadership Executive) have gender diversity targets incorporated into their goals, which are tied to the Compass. Other accountability tools include a requisite 50/50 recruitment and succession planning pool and the use of global scorecards to measure progress on women s representation across the organization. Furthermore, all employees evaluate their managers support of Agile Working and flexibility through their performance development plans. Managers must discuss Agile Working with their direct reports as part of the performance evaluation process. Additional accountability includes strong communication and ongoing discussion about gender balance goals and targets, reports on progress toward those targets, and the creation of action plans when a function or business unit isn t meeting its targets. All top executives are expected to discuss these results with their VPs and HR. Furthermore, Mr. Polman highlights Unilever s track record on meeting its gender balance targets at the annual International Women s Day Conference. The Compass Award was launched in 2010 to recognize the business initiatives and teams which make a major contribution to the Compass program s success. Hundreds of employees from all countries, categories, functions, and business units apply. The award categories align with the Compass s focal points. The 2012 award-winning initiative in the category of Winning With People was Building a diverse talent pipeline by being an employer of choice for top talent. The overall Compass Award-winning team receives 10,000 to donate to the Unilever Foundation partner of its choice and 10,000 for its chosen celebration. Winners under each focal point receive two 5,000 grants to spend in the same fashion. 5. Create Tools to Measure Progress. Unilever measures balance through two lenses: first, by tracking representation of women at all levels to monitor progress, and second, by implementing initiatives that help build a culture of inclusion and address the challenges faced by women employees. These include metrics gauging the success of flexible working programs, mentoring, training of leaders and managers, networks, and career planning. In addition to scorecards, which measure progress on the representation of women with both quantitative and qualitative metrics across 23 regions, Unilever tracks progress through its annual Global People Survey, which evaluates the success and impact of Agile Working, Global Mentoring, and Career by Choice programs. The Impact of the Initiative From 2009 to 2012, representation of women in the pipeline increased from 16 to 21 percent for EVP and VP-level women, from 27 to 32 percent for directorlevel women, and from 40 to 43 percent for manager-level women. Recruitment of women across all levels has increased from 47 to 50 percent. Momentum has also grown in some regions. From 2009 to 2012, Hindustan Unilever increased Catalyst

8 the proportion of women in management roles from 19 to 27 percent. Within the same timeframe, the proportion of women managers at Unilever Japan increased from 22 to 29 percent. Unilever is one of the world s leading suppliers of food, home, and personal care products, with sales in over 190 countries and around 171,000 employees around the world. Unilever products are present in seven out of 10 homes globally and are used by over 2 billion people on a daily basis. Over half of the company s footprint is in the faster growing developing and emerging markets (56% in 2011). Working to create a better future every day, Unilever helps people feel good, look good and get more out of life. Unilever s portfolio includes some of the world s best known brands such as Knorr, Omo, Dove, Sunsilk, Hellmann s, Lipton, Rexona, Wall s, Lux, Rama, Ponds and Axe. The Unilever Sustainable Living Plan sets out the company s ambition to double the size of its business, whilst reducing its overall environmental footprint (including sourcing, consumer use and disposal) and increasing its positive social impact. Catalyst