STRATEGIC CHANGE

AND STRATEGIC
LEADERSHIP OF
UNILEVER
Initiated by the Unilever CEO, Paul Polman Presented by:
BBA 3rd Year
 Content

Introduction
Case Study Analysis
Conclusions
 INTRODUCTION
Margarine Unie & Lever Brothers founded
Unilever in 1930

Unilever NV in Netherland and Unilever PLC

in UK.

Strategic change and leadership models -

constructive insight for transformation

Adjustments undertaken by Unilever CEO Paul

Polman before he became CEO
(Rothaermel, 2015). (Eppink, 2013)
 CHANGE KALEIDOSCOPE

Proposed by Julia Balogun and

Veronica Hope-Hailey
identifying essential contextual
aspects to consider while organizing
change programs.
Unilever's change kaleidoscope

(Harvad Business Review, 2021).

(Eppink, 2013)
CHANGE KALEIDOSCOPE OF UNILEVER

Time: Scope:

Needed very quickly. A revolutionary change was

For a long period of time needed.
because the five-year growth Major changes have far
strategy failed. implications for the whole
industry. Changes were for the
organization
(Rothaermel, 2015).
(Eppink, 2013)
CHANGE KALEIDOSCOPE OF UNILEVER

Preservation: Diversity:

Unilever NV and Unilever Plc Employees dropped down from

criticizing Anthony Burgmans more than two lakh to 174000
and further actions should be in 2008.
taken. Due to number of acquisitions
Vast product segments and and disposals.
developing new and improved changes affect the BOD but the
products frequently. impact of changes will be faced
by every level of employees.
(Rothaermel, 2015).
(Eppink, 2013)
CHANGE KALEIDOSCOPE OF UNILEVER

Capability: Capacity:

Major change - was to remove

old CEO and hire new one. A long history in the business of
Paul Polman was chosen as a fast-moving consumer goods.
CEO. Worked for many years in
Does not have any history in Procter & Gamble and was
Unilever, innovative ideas and Nestlé’s CFO.
ways of thinking will be
developed.
(Rothaermel, 2015).
(Eppink, 2013)
CHANGE KALEIDOSCOPE OF UNILEVER

Readiness: Power:

Continued reductions in employee Has the expertise and

numbers and continued financial knowledge necessary to work
decline shows change was on Unilever's five-year growth
required immediately. strategy and improve its
All employees were aware of the performance
change inside the organization. For change to occur, the whole
Everyone was enthusiastic about board of directors has
the new transformation. approved.
(Rothaermel, 2015).
(Eppink, 2013)
 LEWIN'S FORCE FIELD
ANALYSIS:

Compares the forces at work in an

Step 1: Describe Your Plan or Proposal for
organization acting either to prevent Change.
or to facilitate change. Step 2: Identify Forces For Change
Step 3: Identify Forces Against Change
It involves identifying those who Step 4: Assign Scores, Draw arrows.
favor change, those who oppose it,

and those who are more or less

neutral.
(Rothaermel, 2015).
(Eppink, 2013)
Page 04 of 15
 LEWIN'S FORCE FIELD
ANALYSIS OF UNILEVER

(Eppink, 2013)
 CULTURAL WEB:

Behavioural, physical and

symbolic manifestations of a
culture that inform and
are informed by the taken-for-
granted assumptions or
paradigm, of an organization

(Rothaermel, 2015).
Page 06 of 15
(Eppink, 2013)
 CULTURAL WEB OF UNILEVER:

Pre-2009 Post-2009
'Significant economic crises and
weak markets’. Stories ·Polman was announced as the
CEO of Unilever and was able to
Turnover had declined due to the
increase the sales of products in
negative effect of currency
developing and emerging countries
changes.
by using his growth-orientated
Due to the rapid decrease in the
strategy.
values of the company employees
·This helps Unilever to create high-
and other board of directors asked
growth markets.
for change new CEO.

(Eppink, 2013)
 CULTURAL WEB OF UNILEVER:

Pre-2009
Symbols Post-2009
The 'U' shape brand's logo was
Unilever continued attaching
designed to be symbolic of its
their same logo to the products of
“vitality mission”. The 'U' is made
their brand and they also do
up of 25 distinct symbols, each
various advertising and marketing
representing Unilever's sub-brands
by using its official logo for
or corporate values.
creating more responsible
business model.

(Unilever Logo, 2022).

(Rothaermel, 2015).
(Eppink, 2013)
 CULTURAL WEB OF UNILEVER:

Pre-2009 Power Post-2009

In common with other

companies that were early to
Structures ‘Compass Strategy’, detailing how
the company would win in four
ways:
internationalize, demonstrates
winning with brands and
that regional managers had a
innovation
high level of decision-making
winning in the marketplace
power.
winning through continuous
improvement
Winning with people

(Eppink, 2013)
 CULTURAL WEB OF UNILEVER:

Pre-2009 Post-2009
Organization
Structure
Customers' insight and innovation
centers in London in 2009 and
Customers insight and
centers in Paris, Shanghai, and Sao
innovation centers was
Paulo in 2010. Helps to work
previously opened in New
directly with customers on issues
Jersey in USA only
such as merchandising, store layout,
displays and packaging.

(Rothaermel, 2015).
(Eppink, 2013) (Eppink, 2013)
 CULTURAL WEB OF UNILEVER:

Pre-2009 Post-2009
Control
Control of the department was
Systems Departments are controlled by
manual based upgraded technological tools

(Eppink, 2013)
 CULTURAL WEB OF UNILEVER:

Pre-2009 Post-2009
Routines and
More strict rules and
Rituals The flexible and fun
regulation was set by CEO. environment was st by Paul
Manual Attendance after being CEO.
Used technological, biometrics
attendance which is more
accurate.

(Eppink, 2013)
 SIMILARITIES & DIFFERENCES

Similarities Differences:

a). Unilever logo

a). Control system.
b). Brand Image.
b). Power System.

(Eppink, 2013)


Strategic Leadership:

Process of providing the guidance and

inspiration
To develop and implement a vision,
purpose, and strategies
Its goal is to successfully implement and
guide the strategic management process.
(Rothaermel, 2015).
(Eppink, 2013)
LYNCH
MODEL
 Developing and communicating the organization’s purpose:

First few months, understand the portfolio of brands and

categories, and the business across different countries and
regions.
The main priority was now to put electricity through the
wires, to get consistent business results.
Must make clear decisions, have an integrated activity
system, and be supported by a high-performance
organisation

(Rothaermel, 2015). (Eppink, 2013)

 Sustaining Competitive Advantage over time:

'Unilever Sustainable Living Plan,' introduced in 2010.

Unilever Sustainability Plan updated components of the
Compass Strategy.
win the market, which he plans to achieve through driving
market expansion, winning customers, and being a strong
executor.

(Rothaermel, 2015). (Eppink, 2013)

Managing human resources & organizational decisions:

Managers are responsible for promoting the vision and

beliefs, motivating and developing the skills and abilities of
their employees.
Previously, the regional manager had complete control
over all decisions.
Polman change and modified the decision-making power to
be more category-driven and centralised

(Rothaermel, 2015).
 Setting ethical standards:

Unilever's ethical and corporate social responsibility launched

in 2010 for Sustainable living plan were:
To help a billion people take action to improve their health
and well-being.
To halve the environmental cost involved in the
manufacture and use of its products.
To enhance the livelihood of hundreds of thousands of
people while growing the business.

(Rothaermel, 2015).
 Defining and delivering to Stakeholders:

New CEO- huge changes have taken place in Unilever.

Interest has improved in a fast, flexible, and competitive
way.
Share price had responded positively to the changes
Rose from €17.34 on 31 December 2008 to €39.05 on 11
December 2015.

(Rothaermel, 2015). (Eppink, 2013)

 Transcendent Leadership:

A strategic leader who leads

within and among the levels
of self, others, and
organization.

 Leadership of Organisation:

Management structure was unstable and needed to be changed.

Visualize the need for using non-human factors- strategy,
structure, rules, and protocols.
Recognised the importance of information for employees and
created learning procedures and incubators.

(Rothaermel, 2015). (Eppink, 2013)

 Leadership of Others

Little differentiation between top and average performers and no

opportunity for managers.
Organization made changes to improve focus, speed, and
efficiency.
Polman communicate and asked about the thoughts and
viewpoints of workers used it.
What the change in strategy has to be decided and then for that
change to happen leader must find the right people that fit with
(Rothaermel, 2015).
(Eppink, 2013)
the new strategy.
 Leadership of Self:

Polman - an effective leader.

Visualize and write down the potential obstacles to the
changes before putting them into action.
implement the knowledge and viewpoints of all of his
employees.
Changes could only be made with the participation of
Unilever employees.
engages each and every employee in the change and
(Rothaermel, 2015).
(Eppink, 2013) decision-making process.
Paul Polman’s leadership of Unilever.

Focus on changing behavior of people.

To help change the system and
economies around the various part of
world.
Utilize skills and resources to make the
world better by providing resources.
Average growth rates of 5% per year
and more than 290% shareholder return.

(Eppink, 2013)
 Conclusion:
Unilever was successful in implementing the
transformation process.
New heights by managing the firm in a highly effective and
successful manner.
Used a good strategy and efficiently implemented in the
Change Kaleidoscope.
change process implemented & utilized in the cultural web
stronger plans for change and transmitted them down to
the entire organisation

(Rothaermel, 2015). (Eppink, 2013)

 References:
Eppink, D.J. (2013) Paul Polman: turnaround and development of strategy at Unilever. In STRATEGY DEVELOPMENT PROCESSES. 11th ed.
United Kingdom: Pearson. pp.750-57.

Harvad Business Review. (2021) Harvad Business Review [Online]. Available from: https://hbr.org/2021/11/former-unilever-ceo-paul-polman-
says-aiming-for-sustainability-isnt-good-enough-the-goal-is-much-higher [Accessed 05 May 2022].

Johnson, G., Whittington, , Scholes, & Angwi,. (2017) EXPLORING STRATEGY. 11th ed. United Kingdom: Pearson.

Rothaermel, F.T. (2015) Strategic Choices. 2nd ed. New York,: CREATE.

The Logo. (2022) Unilever [Online]. Available from: https://www.unilever.com/our-company/the-logo/ [Accessed 06 May 2022].

Crossan, M., Vera, D and Nanjad, L. (2008) Transcendent Leadership: strategic leadership in dynamic environments, The Leadership
Quarterly, Volume 19, Issue 5, October 2008, Pages 569-581

Lynch, R., (2009) Strategic Management, 5th Edition, Prentice Hall, chapter 16
Thank you: