Human Resources in Current

Business Environment

Moscow, April 24-th, 2010

2

Coca-Cola Hellenic at a glance

Developingmarkets

CroatiaCzech Republic

EstoniaHungaryLatviaLithuania

PolandSlovakia

Slovenia

Emergingmarkets

ArmeniaBelarus

Bosnia and HerzegovinaBulgaria

FYROMMoldova

MontenegroNigeria

RomaniaRussia

SerbiaUkraine

•

•

•

Establishedmarkets

AustriaCyprusGreece

ItalyNorthern Ireland

Republic of IrelandSwitzerland

HR Centers of Expertise

Selection & Recruitment

Training & Development

Performance Management

Compensation & Benefits

Employee/Industrial Relations

HR Administration

Traditional Renewed

Talent Acquisition

Career Path & Career Planning

Employer Branding

Change management

Coaching

HR Systems

HR Centers of Expertise

Selection & Recruitment

Training & Development

Performance Management

Compensation & Benefits

Employee/Industrial Relations

HR Administration

Traditional Renewed

Talent Acquisition

Career Path & Career Planning

Employer Branding

Change management

Coaching

HR Systems

STAR

ST Identify the situation and/or task the person was doing.

A Describe the actions – what was done.

R Describe the results of the actions with the consequence

on you, others, the organization, etc.

STAR

S - Situation

T - Task

A - Action

R - Result

Recruitment: The STAR Model

Support business growth through employees’ capability

development, knowledge management, experience sharing, both leadership and technical

Focus on potential development

2005 - 2013

Man

agem

ent

Facu

lty

Co

mm

erc

ial F

acu

lty

Mar

keti

ng

Facu

lty

Sup

ply

Ch

ain

Fac

ult

y

Fin

ance

Fac

ult

y

Hu

man

Res

ou

rces

Fa

cult

y

Other CCU InitiativesTrainers CertificationTraining Results

Welcome Training Passion to Lead

CCH University: Year 2005 - 2013

Targeted Selection

GR: C&B programs

Developing T&D capability

Facilitation skills development

E&I Relations

CIPD

CCU: Training Programs

On-boarding (Welcome Training)

Leadership Pipeline deployment

P2L and Leadership Excellence

EFC and Wind of Change

GMU / LDP /Excel

Coaching / Mentoring

Creative Thinking Program

Building Innovation Culture

Essential of Marketing

Marketing Research

Media Training Program

Other Professional Courses

Advanced Procurement Skills

PPDS / SNP CoE

SC: Delivery & Warehouse

Universities

Health & Safety Program

Change Management

Finance for Non Finance

Finance for Commercial

Professional Finance Programs

(CIMA, CMA, ACCA)

Project Management

Negotiation Skills

BSS, SPIN, Channel

Activation, Key to Success,

Coaching

RPA, Customer Business

Planning

Segmented Execution (RED)

Sales Excellence Center

Coca-Cola

HBC Eurasia

University

Commercial Faculty

Supply Chain

Faculty

Management Faculty

Marketing Faculty

Human

Resources

Faculty

Finance Faculty

Support business growth through employees’ capability development, knowledge

management, experience sharing, both leadership and technical

Focus on Potential Development

Purpose of Performance

Management

Purpose of

Performance

Management?

1. Identify the work that is getting

done

2. Identify the work that is not

getting done

3. Make a plan & develop direct

reports to get it done

4. Improve performance

Jul

Apr

May

Jun

Aug

Sep

Nov

OBJECTIVE SETTING

Annual

Performance

Review

Annual

Business

Plan

Interim Review

Oct

Jan

Feb

Dec

Mar

Salary

Plan

Franchise

PDF

Country

PDF

Performance Management &

Development Cycle

MIP

Payment

People

Development

Forum

Management

Incentive Plan –

annual bonus

The Performance/Potential Matrix

TerminologyS U S T A I N E D P E R F O R M A N C E

Exceptional Performance

FullPerformance

Not Yet Full Performance

P O

T E

N T

I A

L

Growth Potentialable to do the work of bigger jobs at thesame level in the near term

Mastery Potential able to do the same kind of work, only better

Turn Potentialable to do the work at the next level in threeto five years or sooner

1 Exceptional/Turn

EXCEPTIONAL TALENT

• Exceptional performer ready to turn i.e. to move to the next passage or higher leadership layer

• Move now

2 Exceptional/Growth

HIGH PERFORMER WITH

POTENTIAL

• Exceptional performer capable of continued growth along current path

• Develop for next layer

3 Full/Turn

TALENT

• Full performer with turn potential who should furtherimprove performance before being asked to make a leadership turn

• Stretch performance

4 Exceptional/Mastery

HIGH PERFORMER

• Exceptional performer likely to remain at current level, but whose contributions should be recognized

• Reward and recognize

5 Full/Growth

PERFORMER WITH POTENTIAL

•These persons should be considered for bigger jobs along current path if they can deliver better results

•Stretch performance

6 Not Yet Full/Turn

POTENTIAL TALENT

• Recently moved/promoted to a new job; requires some time and experience

• Stretch performance, wait and see

8 Not Yet Full/Growth

POTENTIAL PERFORMER

• Performs parts of the job well, other parts poorly

• Get the whole job done

7 Full/Mastery

PERFORMER

• Full performer not likely to grow beyond the scope of current job

• Stretch performance

9 Not Yet Full/Mastery

UNDERPERFORMER

• These individuals are frequently working at the wrong leadership level

• Performance manage and coach tightly for improved performance

Motivational

(Praise/Encouragement):

Tells the person what he or she

did well and should continue to do

Developmental

(Improvement/further

development):

Tells the person what needs to

be improved or further developed

and explores possible actions

The right balance is key

Elements of Feedback

13

Possible Remuneration Map

Managers & Senior Managers

Management Incentive

Long-term Incentive

Stock Options

Other

Incentives

Supply

Chain

Incentive

Sales

Incentive

Base Salary

Employee Stock Purchase Plan (not for all Business Units)

General Population

Benefits

To

tal R

em

un

era

tion

HR Centers of Expertise

Selection & Recruitment

Training & Development

Performance Management

Compensation & Benefits

Employee/Industrial Relations

HR Administration

Traditional Renewed

Talent Acquisition

Career Path & Career Planning

Employer Branding

Change management

Coaching

HR Systems

Passage # 1

Passage # 3

Passage # 5

Passage # 6

Passage # 4

Passage # 2

The Leadership Pipeline Model

The Concept

There is a natural hierarchy of leadership work in any business organization. The required results change dramatically at key breakpoints in the hierarchy. So when you are promoted past one of those breakpoints a transition is required in:

• Skills

• Time application

• Work values

In addition, all the transition points require a letting go of things that make you successful at one layer and adopting entirely new ones in order to:

1. succeed at the new layer and

2. make those around you successful.

У п р а в л е н и е К а р ь е р о й

Доставка Склад

Перспективы Развития

учиться и развиваться в своей должности

участвовать в открытом конкурсе на любую вакансию

Каждый сотрудник может

Отдел Продаж

Транспортный Отдел

Доставка

Производство

Склад

1

Organizational Capabilities

What are the Work Processes, People, Measurement

Systems, Knowledge, and Environment we will need?

Mark

et

Ob

jecti

ves

What w

ill it

loo

k lik

e in

th

e M

ark

et?

Current RealityWhat is the “state” of the business

today?

Destination

What is the business unit

striving to create?

5

4

3

2

It all Starts with the Business Plans….

Breakthrough Model

Employer Branding

20

Introducing Our Road Map for

Successful Change

Project mgt

& Leadership

II Build guiding

teams

I

Prepare & Increase sense of urgency

III Get the

Vision right

IV

Communicate

VEmpower action

VI

Short-term wins

VII

Don’t let up

VIII

Make it stick

Steps Purpose

1. Prepare and Create a sense of Urgency Help others see the need and importance of the change

2. Pull together the guiding team Make sure there is a powerful group guiding the change – one with leadership skills, credibility, communication ability, authority, analytical skills and a sense of urgency

3. Get the Vision right Clarify how the future will be different from the past, and how you can make that future a reality

4. Communicate for Understanding and Buy in

Make sure as many others as possible understand and accept the vision and the strategy

5. Empower action Remove as many barriers as possible

6. Produce Short Term Wins Plan, create and celebrate some visible, unambiguous successes as soon as possible

7. Don’t let up Continue with wave after wave of change until the vision becomes a reality

8. Make Change stick Hold on to the new ways of behaving, and make sure they success, until they become strong enough to replace old traditions

Source: J. Kotter’s 8 step process

Our 8-Step Change Process

Two approaches to Change:

Logic and Emotion

John P. Kotter and Dan S. Cohen ; The Heart of Change: Real-Life Stories of How People Change Their Ogranizations, 2002

Both thinking and feeling are essential, but the true heart of

change is in our emotions

Stages of Change

Immobilization

Trigger

Denial

Anger

Bargaining

Depression

Acceptance

Old State

• Habits

• Roles

• Identity

New State

• Habits

• Roles

• Identity

Em

otional R

esponse

Ending Transition/Neutral Zone Beginning

Active

Passive

Testing

Performance