Belgian Association of HR Managers

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1 High Performance Through People June Belgian Association of HR Managers Paul Bulcke CEO Nestlé 6 th May 2009

2 Belgian HR Managers Conference, Olympic Museum, May 6, Nestlé Long-standing history Henri Nestlé Anglo Swiss Condensed Milk Company 1960s s 1980s 1990s 2000s

3 Belgian HR Managers Conference, Olympic Museum, May 6, Key Nestlé figures 2008 Sales: CHF bn - organic growth 8.3% The world s leading, recognised and trusted Nutrition, Health and Wellness Company 283'000 employees present in all countries Market capitalisation today: 2 nd placed European Co.

4 Belgian HR Managers Conference, Olympic Museum, May 6, Decentralised early global presence A long and rich history: often perceived as local Europe Switzerland: 1866 UK, Germany: 1872 Norway: 1898 Americas US: 1882 Brazil: 1920 Argentina: 1930 Mexico: 1930 Asia, Oceania & Africa China: 1874 Australia: 1908 India: 1912 South Africa: 1927 Food is local: every day Nestlé sells over a billion products in over 130 Countries Importance of local knowledge and local experience to be close to the consumer

5 Nestlé s Vision, Strategy & Alignment Competitive Advantages Unmatched R&D capability Unmatched geographic presence People, culture, values and attitude Unmatched product portfolio Innovation & Renovation Operational efficiency The recognised reference for Nutrition, Health and Wellness & Financial Performance Whenever, wherever, however Nutrition, Health and Wellness Emerging markets and Strategic Pillars Belgian HR Managers Conference, Olympic Museum, May 6, 2009 Delegation Empowerment Autonomy Flexibility Initiative Acceleration popularly positioned products Out-of-Home Leadership Consumer Communication Premiumisation Growth Drivers OUR PEOPLE: OUR COMPETITIVE ADVANTAGE 5

6 Nestlé People Values & Principles Nestlé s Principles are NON-negotiable CEO s task: ensure awareness of and allegiance to our Principles Belgian HR Managers Conference, Olympic Museum, May 6,

7 Belgian HR Managers Conference, Olympic Museum, May 6, The HR Business Challenge Optimise people performance for superior business results. Ensure personalized people management and increase employee engagement & motivation. Create business environment respectful of people. Have right people in right places at right time over the long term.

8 Belgian HR Managers Conference, Olympic Museum, May 6, How HR is managed at Nestlé HR organisational alignement Business Partners Centers of Expertise Employee Services

9 Role of HR Enrol and Recruit Different requirements for different jobs Attitude and Aptitude Relative Importance «Natural» Tendencies and Traits: What you are Task-Related Knowledge and Skills: What you know Nestlé recruits based on competencies, fit and potential Competency-based recruitment training: 700 trainers 20'000 hiring managers Job Complexity Belgian HR Managers Conference, Olympic Museum, May 6,

10 Belgian HR Managers Conference, Olympic Museum, May 6, Role of HR Retain and Develop Focus on both short and long term Purpose Performance Alignment objectives Manage high and low performers Development Align expectations Facilitate talent discussions Key Elements Objective setting Performance against business objectives Behavior vs. Nestlé Values Strengths & development needs Career aspirations Development plans

11 Belgian HR Managers Conference, Olympic Museum, May 6, Role of HR Foster Leadership Proof point: Strong Strong commitment to training to training Training & Development Formal classroom and e-learning London Business School Leadership training since 2002 IMD open programs since 2002 Nutrition Quotient roll-out 260'000 employees p/a 3'000 employees (all corp. key Positions) 600+ Initiated 2007 All employees

12 Belgian HR Managers Conference, Olympic Museum, May 6, Role of HR Prepare the Future Sustainable long-term relationships Employees with 20+ years service 30'000 Average service at retirement 27 years Turnover Below 5% Talent pool management 1'000 Corporate Key Positions 2.2 Successors on average 80% of successors come from within talent pool 33% of talent pool successors planned for crosszone moves

13 Belgian HR Managers Conference, Olympic Museum, May 6, Role of HR - Manage Cross-Pollination North America Western Europe Eastern Europe Latin America Switzerland Africa & Middle East Asia 2'500 Expatriates originate and are received in 86 different countries Oceania 80 76

14 Belgian HR Managers Conference, Olympic Museum, May 6, HR Manager Responsibilities Catalysing business through people Coaching on people matters Custodians of principles Service providers Ambassadors

15 Belgian HR Managers Conference, Olympic Museum, May 6, Line Manager Responsibilities Manage and lead people Establish business needs Custodians of principles Take final decisions on people matters Act as mentors and role models

16 Nestlé CEO HR Head People co-pilot Coach Sounding board for competition preparation and fitness Belgian HR Managers Conference, Olympic Museum, May 6,

17 People & Nestlé: A winning combination Belgian HR Managers Conference, Olympic Museum, May 6,

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