Heinz Unlocks Potential

Unlocking Potential To Deliver Improved Business Results A partnership between Heinz and Pilat Miranda Clarke Talent Director & Roger Edwards Director Consulting

By unlocking our leadership potential we will demonstrate the gains achieved both to our bottom line and to our cultural evolution Our Agenda Today Real and sustained return on investment Cost effective approach to development; individualised Proven, sustained shift in leadership behaviour Real business issues resolved Q&A at the end

Heinz : a Global Company Fiscal Year 2008 Financial Performance Annual sales of $10 billion Operating Income of $1.57billion 77 factories globally Key categories: Ketchup, Condiments and Sauces Beans, & Kids Meals Soup Although based in the USA, 60% of sales are elsewhere in the World. 33,000 employees Consumers in every time zone and operations on all inhabited continents World-class portfolio of powerful brands holding No.1 and No.2 market positions in over 50 countries.

UK & Ireland #1 61% #1 39% #1 79% #1 79% #1 72% #1 98% #1 66% An impressive portfolio of brand leading products

Our strategy is built on 7 key pillars Sustainable, profitable growth Strategic plan Catalyst Drive scaleable innovation in all forms Aggressively differentiate across the portfolio Win with winners, over-invest in emerging channels Develop a performance-based culture Leverage disciplined resource management Deliver outstanding availability & visibility Drive supply chain/manufacturing flexibility Cultural evolution

Develop a Performance Based Culture Employee engagement survey Performance management process – cycle, calibration and Manager upskilling Leadership development Succession planning – career discussions, functional talent meetings, business unit talent meetings, European swaps and secondments Training & development strategy Winning Culture Destination

Leadership Development – Pilat partnership Design in partnership Delivery in partnership Review in partnership Evaluation and re-design in partnership A Winning Formula

Unlocking Potential – The Programme First, What It Isn’t……… A leadership SKILLS programme It does not teach delegates what leadership is all about Specific to Heinz Focuses on the strengths as well as areas that improve effectiveness. A senior leader’s behavioural programme What It Is…….. Intense; certainly that’s what attendees tell us Powerful at an individual level, group networking and business improvement

Unlocking Potential – The Programme In summary there are four phases to every programme: 1. 360’ feedback prior to the event 2. 3 day programme; overnight accommodation of day 1 and 2 is mandatory 3. 1 day follow-up; 6/8 weeks after the event 4. repeat 360’ feedback 6/8 months after initial event

Unlocking Potential – programme design

Programme Design (cont.) Each participant Comes and works on own development agenda Stretches their development while addressing real business challenges Receives immediate coaching as tasks unfold Gives colleagues feedback Receives those challenges and inputs that will most radically improve personal performance

Flexible Learning Sessions To meet the needs of individual we have built in flexible learning sessions Give Constructive Feedback Listen, How to Question Choose a Leadership Style Get the Best Out of the Team Motivate, How to be Assertive Structure a Coaching Session Body Language (Learning Guides to support) 1:1 Coaching Review / Reflection time Structured inputs as needed on how to:

Other Tools To Support Feedback emphasis Built in to every exercise Formula. Liked Disliked Do differently next time Engagement cards

What People Say About The Programme Provides a framework for improving personal and professional effectiveness An invigorating experience which adds personal value and value to the business A clear personal vision on how to proceed & move own behaviour in the right direction It allows a new perspective to be taken on traditional barriers The most powerful thing about UP is the focus on me and MY needs It has a direct impact on business and improves working relationships You learn how to get more out of yourself and others Of all the leadership programmes I have attended this programme has been the most powerful

So far 5 Unlocking Potential programmes Pilot programme took place Sept 07: - it’s this group that we will focus now on All except one of the UK/I Executive team have sponsored an event 43 senior leaders have attended Unlocking Potential

And The Results…… There are two measures to our programme; 1. Behavioural change – a positive shift in behaviours 2. Financial return on our investment It’s early days, but here’s a glimpse of progress to date

Results – second 360 6 months post prog. Self Scores down 5% (marked harder) Greatest areas of improvement in targeted behaviours: Challenges the status quo +28% Actively listens to and takes others’ views into account +23% Challenges others to make tough decisions +19% Communicates vision in a way that arouses genuine motivation and commitment +16% Average shift in 80% of targeted behaviours was up 10% +ve performance improvement in 95% of targeted behaviours (exc. self score) Managers scored their participants 16% higher on targeted behaviours

Where Significant Improvement Noticed…. By Manager Inspires others to commit to their vision Monitors individual performance and gives timely constructive feedback Encourages others to challenge the traditional way of doing things By Direct Reports Manages changed project deadlines with ease Makes timely decisions balancing analysis with decisiveness Prioritises and plans ahead effectively By Peers Communicates vision in a way that arouses genuine motivation and commitment Understands key business priorities Is a role model for the Heinz values

Top Behaviours For The Group post prog. Positive leadership behaviour has lead to cultural step change Has an understanding of how the business works beyond own area Identifies and implements best practice Focuses on the long-term when setting strategy Is honest and sincere when communicating Appeals to reason, data and figures in influencing others Treats others with respect Is a role model for the Heinz values Understands key business priorities Has a "can do" attitude and desire to win

Financial Return on Investment – Graham Responsible for Food Service Sales. Cost of product increasing, planned price increases from 2008 (although customer had not previously accepted increases) Personal development need was to engage, motivate and trust team. End of programme scheduled holiday, decided to delegate whole problem to team. Team were delighted to have the responsibility and challenge. When back team had got signed agreement and implemented increase two months ahead of schedule. We achieved 2 months additional revenue at higher price = £80k

Financial Return on Investment – Cathy (IT) Last financial year Cathy had $3.5m budget. Three months prior to the year end she was tracking $200k over. “ By involving my team, rather than thinking that I had all the answers, I came in under budget rather than over” At year end came in $80k under budget. “ My team have greater motivation and drive. I feel more in control / more informed even though I am not doing ”.

Return on Investment – Chris (IT) Projects are now delivered on time (even those projects that before the Unlocking Potential programme were behind – I’ve caught up). E.G. “FollowMe printing” By getting this project back on schedule, saved £16,000 in three months . What I now do differently…..involve my team, give them the space to take accountability and I’m reaping the rewards “ My team have really stepped up to the plate” “ My team are getting around road-blocks themselves and I now know I wasn’t always right”

Return on Investment – Alec (Manu) Largest factory in Europe “ P16 Cooler” The issue; ½° out from specification The old Alec: One of two things; Shut down the cooler OR go into battle into IMS A shut down would take 2 days to restore The new Alec: Adopted a coaching style; got the ‘experts’ together, pulled from them the potential root causes, series of tests took place Resulting in……the cooler being back in service after just two hours. Saving 1.5 days production approx value £80k

Return on Investment – Laura (Marketing) Key ingredient supplier went into administration ‘ Taste of Home’ range extension was at risk of no launch The new Laura: Challenged purchasing to find alternative Challenged suppliers to up game Challenged the business to keep going Challenge to operations (need to change factory plans) and R&D (to research and undertake new kitchen trials.) Resulting in successful launch across entire trade Revenue gain £150k GP

Return on Investment – Denis (Sales) On Amoy- There is a three month lead time on noodles It is a high risk product with short life span. As a result of course re-evaluated excess stock and chaired a meeting to clarify objectives and agree next steps. The course gave me the tools and the confidence to really make a difference and structure my meetings more effectively and ensure real outcomes. Consequence was we were able to move 15,000 cases to Morrisons that would have quickly moved to waste Revenue achieved £45k.

Return on Investment – Paul (Pasta) In June 2008 Paul’s team had reached capacity in pasta production As a result of the course Paul got the team together to explore how they could improve team capacity – getting the team to come back with their vision Engaging the team in whole business has meant: Agreed team specific actions Increased commitment and ownership Implementation of actions within 6 weeks Resulting in record output and increased internal capacity which has allowed outsourced re-work to be brought in-house Saving £124k

In Summary Real and sustained return on investment Cost effective approach to development; individualised Proven, sustained shift in leadership behaviour Real business issues resolved By investing in unlocking our leadership potential we have demonstrated the very real gains achieved both to our bottom line and to our cultural evolution

Why We Believe It Works Process / structure of the programme Pre / do / post Real current business challenges (valued by participants) Feedback loop Facilitation style; support and challenge Individualised Sponsorship from the top Every programme has an Exec sponsor including the CEO Evolution not revolution Partnership development of product

Questions & Answers We would be delighted to use the time we have left during this session to take questions

Heinz Unlocks Potential

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