Customer: Unilever Deodorants

Manufacturing Factory - Leeds

Challenges

How strategy became reality

at Unilever Leeds

Global competition and a strong Pound

Customer pressure on cost, agility,

Introduction

customisation, variety
Leeds bottom of peer factories in
European customer satisfaction survey
High manufacturing cost compared to
global peer group

Solution
Major change programme Strategy
into Action plan developed, branded
and cascaded to everyone in the factory

Benefits
Leeds becomes one of Unilevers best
performing Personal Care factories in
Europe in 2003 and 2004
Independent survey gives Leeds 4.1
out of 5 for customer satisfaction
Leeds one of four short listed for
European supply chain excellence
award
Improved production and delivery to
market for new products
Culture - employees at all levels
developing their own sense of
ownership and responsibility for
strategy delivery.

Probably, the single most important

area for improvement was customer
service and Leeds 2006 has taken the
factory from being worst in 2002 to
one of the best for customer service in
2003 and 2004. I would say that is
pretty good evidence of the successful
impact of the strategy into action work
we undertook with Farsight.
Paul Howells Works Director, Unilever

Following a major re-structuring programme in

2001, Unilevers Deodorants manufacturing
operation in Leeds was suffering from a number
of performance issues most notably in the area
of customer service. The factorys management
team worked with Farsight Leadership - a
specialist in strategy implementation - to develop
a strategy into action methodology to improve
the situation.

Dealing with change

The Leeds factory, which has 600 employees,
manufactures personal care brands such as
Dove, Sure and Lynx. Over 60 percent of the
factorys business is exported to Europe and its
customers include Asda-Walmart, Carrefour,
Intermarche, Morrisons, Sainsburys and Tesco.
Despite increasing productivity and several
awards, the business environment in early 2000
was changing and this presented the factory
with a number of challenges. Global competition
was increasing, a strong Pound made exports
more costly and customers were demanding
more variety, customisation and the ability to
change or adapt products lines quickly. Against
its peer factories in the Unilever group, Leeds
came bottom in the companys annual European
customer satisfaction surveys and manufacturing
costs were growing. From a cultural point of
view this situation was having a negative impact
on moral, says Paul Howells, Works Director at
Unilever in Leeds. Our performance was
suffering, we lost a number of our skilled
employees in the re-structuring and we were
falling into the trap of fire-fighting and having a
knee-jerk response to problems.

in getting strategy into action to address the

situation. Paul Howells says, The relationship
with Farsight was a partnership of equals and
this approach has without doubt proven to be
successful. Together we were able to establish
a clear mission and vision, but more importantly
a framework of activities aligned to realise the
vision so that everybody could understand the
part they play.

Strategy Methodology
The strategy into action methodology involved
identifying the strategic challenges; developing
the mission, vision, critical success factors;
bringing the programme to life; developing an
action plan; and deployment to the shop floor.
Leeds set up three key targets: outstanding
customer service, brilliant innovation and lowest
possible cost. In practice, achieving these
targets meant - for example - increasing product
volumes, introducing innovative products and
product adaptations and getting these to market
faster than the competition. It also meant
reducing operating costs, but still retaining
flexibility and streamlining stock control.
Leeds created a branded change programme
called Leeds 2006: United in success. This
encompasses improvement areas called
critical success factors - such as operational
effectiveness, motivating and empowering
people, product innovation and customer
management, support
systems and environmental responsibility.
The programme set
targets for these areas
across functional parts of

The factory management team were conscious

that formulating a strategy however
comprehensive - was the easy part. The real
challenge lay in bridging the gap between the
strategy, communicating it to every employee
and ensuring that employees could put the
strategy into action.

the factory such as

Paul Howells worked with Farsight Leadership, a

management consulting company that specialises

targets for improving

www.farsightleadership.com Case Study 04/2005 - Unilever - Leeds

operations, technology
and development or
logistics.
For example, the quality
control department has
themes, projects and
operational effectiveness,

customer management and the other areas spe-

number of channels including the factorys

cific to its function. The IT department also has

intranet, team and departmental meeting and

targets for these improvement areas, but in a

posters and leaflets located around the factory.

way which is related to its day-to-day activity.

Best for customer service

Most companies and organisations

know their business and the strategies
they need to be successful. Many, however, struggle with the translation of this
knowledge into the aligned action plans
that are required to drive them forward
on a sustained basis.

Critical Success Factors

Probably, the single most important area for

Responsible Care

2006 has taken the factory from being worst in

Caring for each other, our factory and the

environment

2002 to one of the best for customer service in

Operational Effectiveness

say that is pretty good evidence of the successful

Producing the right goods, at the right time,

with the right quality at the right cost

impact of the Strategy into action work we

Win through People

factories undergo an independent customer

Our success will only be achieved through

highly motivated and effective people

satisfaction survey. In 2003 Leeds scored 4.1

such as focusing people to prioritise what is

out of a possible 5 for outstanding performance.

important rather than what they are good at and

Innovation & Capability Development

In 2004, this rose to 4.3. Also, the factory was

what is urgent. Paul Howells has also seen a

Right first time innovation is essential to

ensure the future of our business

recently one of four European FMCG companies

shift in approach to innovation such as employ-

short listed for a European Supply Chain

ees offering new ideas for improving manufac-

Customer and Supplier Management

Excellence Award.

turing efficiency and developing product lines.

Satisfying our customers through effective

management of the total supply chain

Paul believes that the success of Leeds 2006 is

As a result of the Leeds 2006, we now have a

due to the effort put into cascading the strategy

clear mission and vision and more importantly a

throughout the organisation and providing a

framework of activities aligned to develop that

framework in which all employees understand

vision. Equally important, everybody in the

their part in the vision.

Leeds factory understands the part they play in

We find that having the framework in place

achieving our objectives. As a result we have

helps everyone. It enables management to be

seen a dramatic turn around in customer service

hands off. But it also gives other employees the

performance, manufacturing innovation and in

freedom to get on with their jobs because you

the culture of the organisation, says Paul

know that basically they are working on a

Howells.

Enabling Systems and Processes

Excellence in our IT systems and skills are
key to the success of our factory

Man on the moon principle

To ensure that Leeds 2006 pervades every part
of the organisation, selected employees ensure
their team and the individuals in it, understand
the overall objectives and how their performance
relates to those objectives. Key performance
indicators and scorecards are used to measure
individuals, teams, departments and the whole
factory so that it is possible to track whether the
factory is meeting its objectives and where extra
support might be needed. These KPIs also
relate to employee reviews and bonuses.
For example, each employee has a personal
development plan which aligns individual
development needs with the objectives of Leeds
2006. This helps employees to see how their
career development is directly related to the
business success of the factory.

improvement was customer service and Leeds

2003 and 2004, says Paul Howells. I would

undertook with Farsight. Every year Unilever

We help clients create this alignment

and get people emotionally engaged to
deliver results.
David Parkinson, Managing Director,
Farsight Leadership

programme which is aligned to achieving the

strategy. Thats important because individuals

Contact:

develop their own sense of ownership and

David Parkinson

responsibility.

Farsight Leadership Ltd.

The Leeds 2006 programme has also had an

Manchester Business Park,

impact on career development. For example,

3000 Aviator Way,

Paul Howells says that one junior manager

Manchester M22 5TG

applied for a job in another part of Unilever.

Tel:

Although on paper she only had an outside

E-mail: info@FarsightLeadership.com

chance, after describing her role at Leeds and

Web:

how she had contributed to improving customer

Farsight Leadership helps clients achieve

service, she got the job against opposition who,

success through effective leadership of people

0161 266 1090

www.FarsightLeadership.com

on paper, were more qualified for the position.

Foot note: This case study was featured in the March 2005 issue

Leeds 2006 has also delivered cultural benefits

of Works Management Magazine

Paul Howells says, Two years ago, if I had

asked some one on the shop floor what is our
strategy they would probably have no idea.
Today, not only can they talk confidently about

Strategy into Action methodology

Phase 1 Generation of a Statement of Intent

in achieving it. Paul Howells cites the man on

Interactive process with the senior leadership team to shape the mid or long term
vision for the enterprise.

the moon principle to illustrate the point. It does

Phase II Identification of Strategic Thrusts & Critical Success Factors

not matter whether you are an astronaut or an

to putting a man on the moon.

Interactive process with the senior leadership team and their immediate reports to
identify and agree what is critical to the success of the enterprise and to describe
what success will really look like.

Leeds 2006 was treated like an external market-

Phase III Sequencing and action plans including communication

ing campaign with each of the key improvement

Workshop process, often involving lower levels of management, to define projects

and sequenced action plans for the delivery of the strategy.

the strategy, they can explain what part they play

engineer who tightens bolts, both are essential

areas branded and given a logo. The programme

was communicated to employees through a

www.farsightleadership.com Case Study 04/2005 - Unilever - Leeds