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Unlocking Potential To Deliver Improved

Business ResultsA partnership between Heinz and Pilat

Miranda Clarke Talent Director& Roger Edwards Director Consulting

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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

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Heinz : a Global Company

Fiscal Year 2008 Financial PerformanceAnnual sales of $10 billionOperating 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.

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UK & Ireland

#161%

#139%

#179%

#179%

#172%

#198%

#166%

An impressive portfolio of brand leading products

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Our strategy is built on 7 key pillars

Sustainable, profitable growth

Strategic plan

Catalyst

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Cultural evolution

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Develop a Performance Based Culture

- Employee engagement survey

- Performance management process – cycle, calibration and Manager upskilling

Winning Culture Destination

- Leadership development

- Succession planning – career discussions, functional talent meetings, business unit talent meetings, European swaps and secondments

- Training & development strategy

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Leadership Development – Pilat partnership

- Design in partnership - Delivery in partnership

- Review in partnership

- Evaluation and re-design in partnership

A Winning Formula

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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

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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

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Unlocking Potential – programme design

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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

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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:

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Other Tools To Support

Engagement cards

Feedback emphasis

- Built in to every exercise- Formula.

LikedDislikedDo differently next time

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What People Say About The Programme

Provides a frameworkfor improving personal andprofessional effectiveness

An invigorating experiencewhich adds personal valueand value to the business

A clear personal vision onhow to proceed & move own

behaviour in the rightdirection

It allows a new perspectiveto be taken on traditional

barriersThe 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 outof yourself and others

Of all the leadership programmes I have attended this programme

has been the most powerful

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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

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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 ofprogress to date

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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

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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

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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

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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

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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”.

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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”

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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

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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

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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.

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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

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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

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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

Evolution not revolution

Partnership development of product

Individualised

Sponsorship from the top

- Every programme has an Exec sponsor including the CEO

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Questions & Answers

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