CRF: Responsible

Business
10 September 2019
Westminster, London
Unilever
People & Purpose - Agenda

About The 3 Eras of The age of People &

Unilever FMCG Paradox

The Company DNA The Great Waves of HR

Lord Lever & Port P Waves and Unilever Unilever Today
Sunlight
 UNILEVER IS
A GLOBAL COMPANY

EUROPE

● €12.1 BILLION TURNOVER

● 24% OF GROUP
TURNOVER
ASIA/AMET/RUB
THE AMERICAS
● €22.9 BILLION TURNOVER
● €16.0 BILLION TURNOVER ● 45% OF GROUP TURNOVER
● 31% OF GROUP
TURNOVER

2018 TURNOVER = €51.0

BN
WE MAKE MANY OF THE
WORLD’S FAVOURITE
BRANDS
CATEGORY HIGHLIGHTS
IN 2018
BEAUTY & FOODS & HOMECARE
PERSONAL CARE REFRESHMENT

40% 40% 20%

Turnover: €20.7 billion Turnover: €20.2 billion Turnover: €10.1 billion
Underlying sales growth: 3.1% Underlying sales growth: 2.0% Underlying sales growth: 4.2%
THE 3 ERAS OF FMCG
1970s- 2010s Today
1890s- 1970s

The Advertising age The Retail age The Digital age

THE 3 ERAS OF FMCG

1890s- 1970s

The Advertising age

 The seven great waves of HR

HR 1.0
Paternalism

Health & Safety,

Welfare

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
 ‘You have to increase
wants. You can only
raise their wants by
giving them more
leisure. I believe that
reduced hours of labour
and more leisure for a
proper outlook on life
are as essential to an
increased consumption
of articles that can be
produced as is a
cheaper cost.’ William
Lever
Port Sunlight Works & Village, c1910
Port Sunlight Fire Brigade
– pictured outside Lever
House, c1900
Paternalism The Positives
Wave • Family analogies/ Clear
Father figure
• ‘Factory trips/ days out’ /
Family events
• Duty of care – taken
seriously
• Focus on Health & Safety,
welfare and conduct
• Identity – us v them –
evident
• Unitary philosophy
• Above’ Market’ terms and
conditions
• Acts of spontaneous ‘
generosity’
The Negatives
• Dictatorial – ‘ my way or the
high way’
• Manipulative – control being
seen as crucial ‘ My name on
the door’
• Tribal – can lead to ‘tribes’
within
• Cautious – unwillingness to
take risks – move into new
areas/ innovate
• If Business not growing –
generosity and above market
rates cannot be maintained
• Lack of empowerment as
‘Father’ decides everything
 The seven great waves of HR

HR 1.0 HR 2.0
Paternalism Power

Health & Safety, Industrial

Welfare relations

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
The Power The Positives The Negatives

Wave • Things happen – ‘JDI’

• Inspiration/ energy/ can
• Leader believes ‘own
propaganda’ – stops
do attitude listening
• Innovation/ Risks/ New • Employees begin to object
endeavours and form own ‘ power
• Speed & Decisiveness group’
• Charismatic leadership- • Focus becomes internal –
individuals able to stand on internal disputes and
out and ‘ make a name for differences
themselves’ • Egos of charismatic leaders
create ‘ Win – Lose ‘
scenarios
 The seven great waves of HR

HR 1.0 HR 2.0 HR 3.0

Paternalism Power Process

Health & Safety, Industrial Personnel

Welfare relations management

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
 The Positives
The Process
Wave • Rules are clear-
consistency and ‘ fairness’
• Professionalism and
technical know how
flourish
• Increased productivity as
standards are followed
• People know where they
stand/ clear job
descriptions/ clear
hierarchy
• TPM/ TQM – attention to
detail
The Negatives
• Bureaucratic and slow
• ‘ work to rule’
• Hierarchies and rules
inhibit individual initiative
• Process and Procedures
inhibit change, innovation
and risk taking
• Collective inhibits
individual initiative
THE 3 ERAS OF FMCG

1970s- 2010s

The age of retail

 The seven great waves of HR

HR 1.0 HR 2.0 HR 3.0 HR 4.0

Paternalism Power Process Profit

Health & Safety, Industrial Personnel HRBP,

Welfare relations management people analytics

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
 SUPPORT THE CAMPAIGN FOR DECENT WORK
IN UNILEVER !

In August 2008 Zafar Iqbal and Abdul

Hameed were dismissed after working at
the Unilever Lipton factory in Khanewal for
30 years on minimum wage. They received
no pension or retirement benefits.

Hundreds of contract agency workers

realized that if they did not organize
and struggle, then they would suffer the
same fate ….

22
The Profit The Positives The Negatives

Wave • Balances Rules with ‘ can

do ‘ attitude
• Excessive focus on
shareholder value
• Builds on ‘Standards’ to • Excessive focus on
enable innovative individual reward at
developments expense of collective’
• People able to experiment • Increased employee
more in the workplace as ‘ disengagement as gap
freedom within a between ‘top’ and
framework’ replaces the ‘bottom’ of organisations
‘operating manual’ increase
• Individual recognition • Negative social
grows externalities vis climate
• ‘Managers’ become and society emerge
‘Leaders’
THE 3 ERAS OF FMCG

Today

The digital age

 The seven great waves of HR

HR 1.0 HR 2.0 HR 3.0 HR 4.0 HR 5.0

Paternalism Power Process Profit People

Health & Safety, Industrial Personnel HRBP, Purpose,

Welfare relations management people analytics mutuality

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
OUR PLAN

Unilever sustainable living plan

IMPROVING HEALTH REDUCING ENHANCING

AND WELL-BEING ENVIRONMENTAL LIVELIHOODS
for more than IMPACT For

1 billion by 1/2 millions

health and hygiene greenhouse gases fairness in the workplace

nutrition water opportunities for women

waste inclusive business

sustainable sourcing

#collectiveaction
3 BIG GOALS
● HELP MORE THAN 1
BILLION PEOPLE IMPROVE
THEIR HEALTH &
WELLBEING
● HALVE ENVIRONMENTAL
FOOTPRINT OF OUR
PRODUCTS
● ENHANCE THE
LIVELIHOODS OF MILLIONS
OF PEOPLE AS WE GROW
OUR BUSINESS
SUSTAINABLE LIVING GREW 46%
FASTER
BRANDS HELP THAN THE REST OF
GROW OUR THE BUSINESS

BUSINESS
70% GREW
OF UNILEVER’S
GROWTH
FASTE
R
SUSTAINABLE LIVING

SUSTAINABLE
PURPOSE

= + 2x
LIVING

BRANDS THAN THEY DID

SUSTAINABLE LIVING IN 2014
PRODUCT THE RATE OF
S GROWTH
 EVERY VOICE MATTERS.
EVERY STORY NEEDS TO BE
CELEBRATED.
The People The Positives The Negatives

Wave • Focus on ‘Purpose’ at Org

and individual levels
• Excessive focus on
consensus and political
• Diversity & Inclusion correctness
become strategic • D&I agenda seen as
imperatives as ‘marketing’ exclusionary
changes • Speed and agility and
• Focus on Relationships and individual initiative slowed
Teams as drivers for down due to need for
growth and move away consensus
from ‘ star players’ • Rejection of all hierarchy
• collective recognition including healthy hierarchy
grows leading to accountability
• ‘Team leadership becomes fogs.
key
 The seven great waves of HR

HR 1.0 HR 2.0 HR 3.0 HR 4.0 HR 5.0 HR 6.0

Paternalism Power Process Profit People Paradox

Health & Safety, Industrial Personnel HRBP, Purpose, Disruption

Welfare relations management people analytics mutuality AI, robotics

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
 WE HEAR THE NEED TO CREATE
CAPACITY
WORKLOAD
ON THE RISE
SHORT
TERMISM
PREVAILS
LINE
MANAGEMENT
FEELS
PRESSURE TRUST IN
LEADERSHIP
DROPPING
UNLIMITED RESOURCES & SKILLS
OUTSIDE-IN & INSIDE-OUT !

D.A.P
“Open Digital Agents
Platform
Talent
Economy”
CASUAL-T CAMPAIGN
 “We need an entirely different
way of responding to the
challenges of the 21st century.

Our failure to understand complex systems

and networks, and learn new ways of
influencing them, may well be the death
knell for many 20th century organizations
and institutions.”

- Sudhanshu Palsule
Cambridge University
UNILEVER STANDARDS OF LEADERSHIP
Make Sustainable Living
Commonplace

5. TALENT
CATALYST
Develops and
1. PURPOSE magnifies the
2. PERSONAL & SERVICE power of people
MASTERY Works from
Always brings purpose for the 4. BUSINESS 6. CONSUMER
their best self good of others ACUMEN LOVE
Generates Creates better
value in futures for our
channels and consumers,
customers everyday
7. PASSION FOR
3. AGILITY HIGH PERFORMANCE
Constantly curious & Inspires the energy
courageous needed to win and
grow

These Standards of Leadership sit alongside the enduring values of Unilever

Respect Pioneering Integrity Responsibility
The Paradox The Positives
Wave • Closure of ‘ say : do ‘ gap
as Business governance
addressed ( B corp etc)
• Focus on Vertical
Leadership and people
development as ‘
wellbeing’ becomes
strategic
• Widespread use of ‘agile’
as way of working – full
enablement of
digitalization
• Increased ‘ employee
voice’ as hierarchies get
replaced by networks
• ‘ Leaders’ become ‘
integrators’
The Negatives
• Planetary concerns not
fully addressed
• Paradox leaders create
confusion and not
followed
• Paradox leaders fail to
address the ‘say : do’ gap
• Networks too weak and
underdeveloped
• Government unable to
legislate to enable &
inhibit development
 The seven great waves of HR

HR 1.0 HR 2.0 HR 3.0 HR 4.0 HR 5.0 HR 6.0 HR 7.0

Paternalism Power Process Profit People Paradox Planet

Health & Safety, Industrial Personnel HRBP, Purpose, Disruption Integral solutions,
Welfare relations management people analytics mutuality AI, robotics crowdocracy

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
The Planet The Positives The Negatives

Wave • Jobs/ jobs/ jobs – as • Planetary concerns not

focus on saving planet fully addressed
• Human development • Paradox leaders create
becomes prime goal of confusion and not
organisations followed
• Democratic workplaces • Networks too weak and
– networked teams ‘ underdeveloped
Dunbar number’ • Government unable to
legislate to enable &
inhibit development
 The seven great waves
( S Curves) of HR

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Back UP
 ‘HR’ Job Titles
Welfare officer/ Safety Officers
HR 1.0:
Paternalism May be called HRBPs today – but transactions – recruitment, HR admin,
key is the focus on the day to day payroll.
activity
Industrial Relations Officers/
HR 2.0: Power Employee Relations officers
Management Development
managers
Similarly, do not be deceived by
an all embracing “HRBP’ title –
look at activities.
Personnel Officers- may also be
HR 3.0: Process called HRBPs – see activities.
HRBP
HR 4.0: Profit HR Expertise
HR Services
People Development Managers
HR 5.0: People
Chief of Staff Offices/ Chief
Productivity Officers / Services
platforms
Chief of staff/ Productivity
HR 6.0: Paradox Officer/ Services / Platforms
People & Team Performance
Consultants/ specialists
HR 7.0: Planet
Day-to-Day HR Activities
Generalist HR officers focused on
welfare, safety, facilities. Main time on
Industrial Relations Officers focused on
managing conflict between owners and
workers. In some geographies focus also
on Union avoidance. Management
Development specialists may also be
deployed.
Generalist HR Officers focused on
codifying rules. Employee record keeping,
payroll, hiring and firing. Management
development function will be evident.
Other specialist areas such as Reward &
Remuneration also apparent.
Human Resource management –
organised along the Ulrich model of
HRBP/Expertise/ Shared Services.
Outsourced shared services in place
People Development Managers work
alongside ‘Core HR Service’ organisations. employees can decide how
Service organisations. Expertise roles
integrate into People Development
manager roles or if junior become part of health insurance, short
the Services platform.
HR Services organisation integrates into a Total Reward approach
cross functional Chief of staff office
providing a ‘platform’ of services to one employment models
or many organisations in a network.
People Development activities specialise
– being
Line Managers replace core People
Development leaders- curating expertise
as needed. Services Platform supports all
routine activities and provides an eco-
system for multiple employment models
Pay and Reward
Piece rates.
Non- wage benefits
Collective bargaining
Fixed pay based on job
evaluation. Each role
thoroughly assessed and
ascribed a value.
Non- wage benefits
Defined benefit pensions.
Reward more based on
individual contribution.
Individual Performance
bonuses
Share awards and long-
term remuneration
Defined contribution
pension schemes
Emergence of total reward-
to distribute total reward –
fixed, variable, non -wage,
term, long term.
broadened to enable Flex
Rise of flex employee- flex
benefits- accrued time
banks. Paid by project not
job.
Training approach Appraisal & Performance Culture Dominant Org Dev. Leadership Teams Employee Relations strategies
Management systems Theory Style Style
‘Sitting with Nellie’ – Silent monitors/ line-based The business is operated as ‘Father’ knows best. Trust Father-Figure or Individuals operate pre-teams. Often ‘look after’ people. Conservative
learning by watching measurements. ‘father-figure’ a family for the family. the father-figure leader. pairing that rules for in family units or specialist groupings approach to change. Will ensure proper ‘
someone else. or supervisors enforce day to everyone in the duty of care’
day performance. company’s own good.
‘Father knows what his people want’
Apprenticeship Role or job-based performance Business is a clash of ‘Management right to Charismatic leadership- Battling Experts. Cross functional Whoever has the most power wins-
schemes/ systemic system- pace dictated by interests – ‘Us and Them’ manage’ Dominant control- conflict evident/ Industrial relations charismatic leaders battle it out for power
professional training machine or process (calls in call evident in the workplace. based hierarchy. conflict evident.
centres etc) Functional organisations Management High incidence of industrial action
Hierarchy of control on hierarchies very High use of third party agency labour Employee voice starts to organise but
military model. evident. resisted by Management
Work Study to Job or role-based performance Rule based- work to rule Scientific Management or Technocratic Dependant Experts -rules provide Procedure based approach to ER,
deconstructing each system- pace set by process / and compliance culture. Taylorism. TQM. leadership- Do the focal point for integrating plans. Procedural agreements provide the
task to establish best work study. Process is the reference right thing in the right Management by objectives deployed ‘Rules’. Bias towards a ‘compromise’
way to do each task point. Functional or Product or way. Rules not opinions being reached when a dispute. Co-
and optimise each Geography orgs determine approach. – determination may be prescribed by law.
process. Work study Hierarchy of control on valuing of professional Minimal transformational change evident.
instruction manuals. professional model. managers/ specialists Employee voice via representative
structures
Skills training People/ individual focused Empower people and teams Team working/ QWL ‘Transformational’ Independent Achievers work more Direct to employee communication either
supplemented by reward. Attitude assessed as to work end to end – speed leadership with focus constructively - ‘Mission statement by passing or in parallel with existing
attitude/ cultural well as results. of decision making valued. Matrix Orgs but with defined on productivity and used as uniting focus’- performance procedures.
and lead of either Product, profit. management systems deploy goals Transformational l Leaders seek to
‘Transformational’ ‘Rank and Yank’ assessments Hierarchies supplemented Geography & product and targets uniformly convince through compelling narratives.
training every year by cross departmental Employee voice via employee surveys
interventions. teams
Focus on Individual Annual reviews replaced by Purpose becomes a driving Matrix Orgs now seeking to Inclusive & Purpose Interdependent Achievers value the People focused approach to ER. Not
needs, purpose and more regular project reviews force- corporate mission integrate product, geography orientated leadership- team diversity. Leaders and teams process.
employability Performance management statements become and product as equals renewed focus on working spontaneously to anticipate Purpose initiatives integrated into ER
more collective, and linked to purpose focussed. Diversity purpose, people and and resolve issues. Not simply debate approaches.
people and purpose. 360 and inclusion became wellbeing them. Meetings deploy IDMP process. Co-invention of change
feedback. Rating systems important. Balanced scorecards deployed Use of hackathons/ crowdsourcing
discontinued in favour of use of Network orgs become Emphasis on employability/ reskilling and
tech to provide immediate evident. Agile working upskilling as part of ER processes.
feedback methods become the norm
Focus on collective/ Performance management The Culture embraces Network Organisations ‘Nelson Mandela’s of Diverse Pluralists are skilled at Co-created change as part of continuous
purpose and lifelong withers away – flow to work complexity and is able to within sectors- limited the business world’ integrating diverse views. Skilled change
learning and project assessment manage ambiguity as a networks enabling shared 2nd tier thinkers. deployment of IDMP process and use Agile ways of working deployed in
methodologies introduced competitive advantage capability building clusters/ Complexity embraced of mindfulness techniques in meeting employee relations approaches
Functions disappear -end to employee sharing platforms/ management.
end units emerge- scaled innovation platofrms Refocus of purpose re- defines goals-
via shared ‘platform’ orgs social goals included in target
‘modern chaebols’ deployment
Focus on collective Performance management Orgs integrate into Network organisation across Network leaders – Integrated Pluralists can integrate Agile approaches complemented by Trade
societal withers away as extended cross networks across sectors sectors. working cross sector ideas from inside and outside the Union / emp reps as change agents
development needs sector working emerges. People Networks focus on planetary business. Scope of leadership team provided key nodes in the organisations
and lifelong learning work for the planet not an org. and social outcomes impacts crosses sectors and wider network of companies.
enabling them to also act as boundaries. Goals primarily social.
buying/selling alliances