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How to manage global business at Kellogg

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... Goal Setting & People Planning Performance Management Career Development Succession Management Execution K Values Culture ... Talent Management has four ... – PowerPoint PPT presentation

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Title: How to manage global business at Kellogg


1
How to manage global business at Kelloggs (with
focus on people management)
H. Shin September 22, 2006
2
  1. Introduction
  2. Kellogg Company
  3. Performance of Kellogg Company (2001 2006)
  4. Global Alignment
  5. Key Operating Principles Volume to Value
  6. Key Operating Principles Manage for Cash
  7. K Values
  8. Kelloggs HR/People Wheel
  9. Linking Strategy to Structure People
  10. Linking Talent Management to Business Planning
  11. Linking Employee Deliverables to Priorities
  12. PMP Form
  13. Kellogg Business Leader
  14. Kellogg Business Leader
  15. Continuous Talent Management Process

3
Introduction
  • Challenges to MNCs
  • Aligned Organization
  • Talent Management

4
Kellogg Company
  • Founded in 1906 in Battle Creek, Michigan
  • Started international expansion in 1914
  • Products Cereal, cereal bars, cookies,
    crackers, toaster pastries, frozen waffles, meat
    alternatives
  • Kellogg products are manufactured in 17 countries
    and marketed in more than 180 countries
  • 2005 Financials
  • NSV 10.2 Billion
  • Operating Profit 1.8 Billion
  • Net earnings 1.0 Billion
  • Asset 10.6 Billion
  • Number of Employees 26,000

5
Performance of Kellogg Company (2001 2006)
  • Reported NSV growth (5 year CAGR) 11 per
    year
  • Internal NSV growth (5 year CAGR) 5 per
    year
  • Operating Profit growth (5 year CAGR) 11
    per year
  • Earnings Per Share (CAGR 2002 2005) 11
    per year

6
Global Alignment
High Performance Organizations are Aligned
To be the Food Company of Choice
Purpose
We build GR-R-REAT brands and make the world a
little happier by bringing our best to you.
Identity
Identity
  • Grow Cereal
  • Expand Snacks
  • Pursue Selective External Growth

Strategic Focus
Strategic Focus
  • Deliver Results
  • Strengthen the Organization
  • Create the Future

Strategic Operating Principles
Strategic Operating Principles
Values
Over Time, Culture Drives Results.
Values
7
Key Operating Principles Volume to Value
8
Key Operating Principles Volume to Value
9
K Values
10
To improve business results through people
Kelloggs HR/People Wheel
  • Creating a Winning Culture
  • Writing Accountabilities
  • Holding Performance Review
  • Discussions (setting
  • accountabilities and reviews)
  • Taking Charge of Your
  • Development
  • Guiding the Development of Your Employees

11
Linking Strategy to structure People
Cascade Template
Structure Assessment
Workforce Assessment
Linking Kellogg strategy to the departments
strategy is an important process. Structure and
people must also be aligned to support
World-Class Execution.
12
Linking Talent Management to Business Planning
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Dec
Goal Setting/ Strategy Cascade strategic information Cascade strategic information Business Strategy Planning Business Strategy Planning
PMP Create accountabilities Create accountabilities Discuss comp previous year perf Review performance to-date Review performance to-date Assess and rate performance Assess and rate performance
Career Development Assess competencies, update EP/IDP Assess competencies, update EP/IDP Review development to-date. Incorporate SM feedback Review development to-date. Incorporate SM feedback
Succession Management BU/Area Talent Review Global Function Talent Review EMC TR and Org Health Check
2
2
1
3
1
employee/manager conversations employee
assessments
3
2
13
Linking Employee Deliverables to Kellogg's 2006
Priorities
The Kellogg Strategy
2001-2003
2004-2006
2007-2010
Consistently outperform the best of food industry
Consistently perform with the best of food
industry
Perform with the food industry
Kelloggs Purpose To become the food stock of
choice.
2006 Kellogg Priorities
Deliver on all budget commitments
NSV/CF/OP Grow margins via continuous
improvements in price/mix/ innovation, cost
reduction and efficiency gains Grow RTEC
share Strengthen U.S. Snacks and expand Snacks
worldwide
Continue our focus on Inclusion and Diversity
to better reflect our values and the consumers we
serve Establish a worldwide talent management
process that is robust and complete to help
develop our people resources Improve employee
health and safety worldwide
Develop a stronger innovation pipeline Build a
results-driven culture focused on our
Values Selectively review acquisitions/ alliances
to support our strategy Carefully review selected
geographic expansion
DELIVER RESULTS
CREATE THE FUTURE
STRENGTHEN THE ORGANIZATION
  • DELIVER RESULTS
  • Focus on results for the current fiscal year
  • STRENGTHEN THE ORGANIZATION
  • Focus on supporting work and programs that are
    just on the horizon (beyond the current fiscal
    year 12-36 months away)
  • CREATE THE FUTURE
  • Focus on building an organization unit/company
    that is ready for the future
  • Frequently, this is work around building people
    capability

2006 Organization Unit Priorities Imperatives
OUs Purpose To become the best operating food
company in Asia
  • Deliver on all budget commitments NSV/OP/CF
  • Grow margins via continuous improvements in mix,
    innovation cost reduction
  • Grow RTEC share in key markets
  • Accelerate the momentum built in emerging
    markets such as India Thailand
  • Strengthen talent management process to help
    develop our people resource
  • Continue to promote K- Values
  • Focus on Inclusion and Diversity
  • Improve employee health and safety in Asia
  • Strengthen and develop org to meet the
    requirement for accelerated growth
  • Strengthen the equity of our core brands
  • Develop a stronger innovation pipeline
  • Accelerate growth through developing wholesome
    snacks business.
  • Establish the business model in China
  • Selectively review acquisitions / alliances to
    support our strategy

2006 Priorities for OU Department ________
OU Department _________________________________

2006 Accountabilities for OU Employee Metrics
Employee ___________________________________
Metrics
Metrics

Metrics
14
PMP Form
2006 Performance Management Form
Employee       Manager       2nd Level Manager      
Employee Number       Organization Unit       PMP Assessment Self Manager
Both the employee and manager play a role in completing this form. The PMP process begins when team goals have been set. The employee and manager then agree on accountabilities and measures for the year. At the middle and end of the year, the employee completes a self-assessment. The manager incorporates the self-assessment and stakeholder feedback into the final review of the employee. Signatures are obtained for accountabilities, mid-year review, and year-end review. The manager retains the final, signed form, and submits a copy to the People Services Center (U.S. only). ? The What Delivering Results Strengthening the Organization Creating the Future Both the employee and manager play a role in completing this form. The PMP process begins when team goals have been set. The employee and manager then agree on accountabilities and measures for the year. At the middle and end of the year, the employee completes a self-assessment. The manager incorporates the self-assessment and stakeholder feedback into the final review of the employee. Signatures are obtained for accountabilities, mid-year review, and year-end review. The manager retains the final, signed form, and submits a copy to the People Services Center (U.S. only). ? The What Delivering Results Strengthening the Organization Creating the Future Both the employee and manager play a role in completing this form. The PMP process begins when team goals have been set. The employee and manager then agree on accountabilities and measures for the year. At the middle and end of the year, the employee completes a self-assessment. The manager incorporates the self-assessment and stakeholder feedback into the final review of the employee. Signatures are obtained for accountabilities, mid-year review, and year-end review. The manager retains the final, signed form, and submits a copy to the People Services Center (U.S. only). ? The What Delivering Results Strengthening the Organization Creating the Future
ACCOUNTABILITIES MEASURES What is the goal/deliverable? How will it be measured? MID-YEAR CHECK IN How is this employee tracking so far? YEAR-END REVIEW What are the employees results and impact?
                 
                 
                 
                 
                 
                 
People Managers Only As a manager of people, you are accountable to Set 2006 team goals by (Date) Work with your employees to establish individual accountabilities and IDPs by (Date) Conduct performance reviews for 2005 by Jan 2006 Communicate final PMP ratings for 2005 by Mar. 13 Conduct compensation discussions for 2005 by Mar. 13 Conduct mid-year check-in and IDP reviews along with post-org review feedback by (Date) Conduct informal and ongoing coaching and feedback sessions throughout 2006            
Diversity Focus (U.S.-based Managers Only) Execute Diversity and Inclusion Strategy and communicate plan, which includes Recruit, retain and develop talented people Drive understanding, education and awareness Create the environment            
15
PMP Form

2006 Performance Management Form
? The How K Values ? The How K Values ? The How K Values
Acts with integrity and shows respect Is passionate about our business, our brands, and our food Strives for simplicity Is accountable Has the humility and hunger to learn Loves success MID-YEAR CHECK IN How is the employees behavior impacting results? What should the employee stop, start, continue, or do differently? YEAR-END REVIEW In what ways did the employees behavior impact results and contribution to the organization?
Acts with integrity and shows respect Is passionate about our business, our brands, and our food Strives for simplicity Is accountable Has the humility and hunger to learn Loves success            
? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.) ? Overall Rating (This section is completed only at year-end. Only the manager determines the rating for the employee.)
Exceeded Expectations (A) Consistently exceeded expectations and made a distinctive and significant contribution to the organization Exceeded Expectations (A) Consistently exceeded expectations and made a distinctive and significant contribution to the organization Exceeded Expectations (A) Consistently exceeded expectations and made a distinctive and significant contribution to the organization Met Expectations (B) Consistently met and sometimes exceeded expectations and made the expected contribution to the organization Met Expectations (B) Consistently met and sometimes exceeded expectations and made the expected contribution to the organization Met Expectations (B) Consistently met and sometimes exceeded expectations and made the expected contribution to the organization Did Not Meet Expectations (C) Fell short of expectations and/or failed to make the expected contribution to the organization Did Not Meet Expectations (C) Fell short of expectations and/or failed to make the expected contribution to the organization Did Not Meet Expectations (C) Fell short of expectations and/or failed to make the expected contribution to the organization No Rating (NR) Too new to the organization (i.e., less than three months as a Kellogg employee) at the time ratings were determined No Rating (NR) Too new to the organization (i.e., less than three months as a Kellogg employee) at the time ratings were determined No Rating (NR) Too new to the organization (i.e., less than three months as a Kellogg employee) at the time ratings were determined
Managers Summary Comments       Managers Summary Comments       Managers Summary Comments       Managers Summary Comments       Managers Summary Comments       Managers Summary Comments       Employees Response       Employees Response       Employees Response       Employees Response       Employees Response       Employees Response      

Role Confirm Initial Initial Date Confirm Initial Date Confirm Confirm Initial Date
Employee Accountabilities                   Mid-Year Review             Year-End Review Year-End Review            
Manager Accountabilities                   Mid-Year Review             Year-End Review Year-End Review            
2nd Level Manager Accountabilities N/A N/A N/A Mid-Year Review N/A N/A Year-End Review Year-End Review            
16
Kellogg Business Leader
Creates Direction Has strategic focus, has a
broad, long-term perspective, drives innovative
thinking, makes the call, learns from
experiences Delivers Quarterly Results Budgets,
plans, proactively solves problems, identifies
and shares opportunities and issues Organizes To
Win Ensures that structure and processes can
deliver for the overall success of Kellogg,
drives for clarity in roles and
responsibilities, gets the right people in the
right places Drives Alignment Creates a high
performance work environment, communicates
effectively, influences others, develops
relationships, collaborates with others to ensure
the overall success of Kellogg Invests in
People Sets accountabilities and communicates
expectations, provides objective feedback,
coaches, measures performance, builds the
bench Inspires Energizes People Encourages,
motivates, recognizes rewards, walks the talk
17
Kellogg Business Leader
Competency Focus
Career Categories
K Values
Kellogg Business Leader Model
Lead Executive
Executive
Upper-Manager
Manager of People or Process
Functional/ Technical Competencies
Individual Contributor
18
Continuous Talent Management Process
K Values Culture
Execution
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Dec
Learn share company priorities and set employee accountabilities Learn share company priorities and set employee accountabilities Year-end review and compensation discussion Mid-year Check In re employees performance development Mid-year Check In re employees performance development Mid-year Check In re employees performance development Draft year-end reviews and ratings Draft year-end reviews and ratings
Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year Engage in ongoing two-way conversation with employees throughout the year
19
Thank you!
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