Agenda 2

Knowledge Management:
01 Objectives & Challenges

Networking Attitude
Initiative Assessment 02

03 Recommendations

Q&A 04
1. Knowledge-Management: Challenges (1/2) 3

The decentralized structure of Danone focuses on innovations and local responsiveness among CBU’s. However, whithout a centralized governance, innovative expertise is hardly
shared across the organization and leveraging knowledge becomes a real challenge.

Overcome Communication
Leverage Knowledge
Barriers
Leverage company talents Language, cultural, time and
without centralized distance barriers between
governance frontline managers

1st 2nd 3rd 4th

Decentralization Quantified
Decentralized structure is Organizational Expertise
essential for Danone’s strategy
and entrepreneurial spirit,
although it brings up challenges Knowledge is spread among
individuals, no data base
about processes and good
practices
1. Knowledge-Management: Objectives (2/2) 4

To define a proper strategy, the company needs proper goals. By focusing on decreasing the time-to-market (TTM), the company needs to increase its internal synergy to properly leverage its talent. Doing so
will require effective processes to channel innovations toward different CBUs, a system that is universal and adaptable to any country or unit and a very well developed IT system.

Target One
Time To
Keep TTM low in order to
preserve the company’s 1 Market
comparative advantage

Ultimate
Target Two Goal
Innovation
Channel the right practices to
employees and provide means for
2 Efficiency
implementing them

Target Three Adaptability

Knowledge management strategy
has to be universal and accessible
3 Accessibility Increase
from all subsidiaries
Competitiveness &
Maintain Social
Goal
Target Four Information
Proper data base needs to be
created as well as a structured
4 Technology
network
2. Factor of success of the different social tools of the NAI (1/3)
Ranging from a large scope of scenarios, the social tools used for the Networking Attitude Initiative effectively managed to put employees in contact and exchange important knowledge from inside the company.
Marketplace
Element of surprise, Little
Book of Good Practices,
designed to be informal, to
make people relax and have
fun, loosened-up environment
with lot of music
Who’s who
Same objective as the market
place but online, if you have a
problem, you will find
someone inside the company
who can share with you and
help you resolve your
problem
T-shirt
Simple ideas at a low cost,
structure even that is
informal, alternative and
innovative at the same time
5
Message-in-a-bottle
 
Smaller audience of potential
givers. During the session, the
givers would also become
takers. These spontaneous
interactions, and sessions took
place without observers
 Communities
 Every one of the 59 networks
had a leader, discussions were
 
maintained during the year to
keep the group alive. Meeting
were done every 6-18 months
 
   Innovation
Challenge/Task
 Similar to the market place,
connects and develops
external people of Danone
2. Networking Attitude Initiative Assessment – PROS (1/3)
The Networking Attitude Initiative fulfils the different objectives set by the top-management of Danone and are aligned with the company corporate’s culture.
Strengthened Reduce barriers for
personal networks sharing best practice
Far more 1st line managers Marketplaces were
know who to ask for help successful. Employees
now effectively contributed and
participated
Particularly in regions such
as LATAM and Asia it had a Considerable gain when
big impact different countries exchange
together
Example: Collaboration
between France and Brazil
This was the right strategy to maximise results in regards to Danone‘s corporate structure
Empower people
People are proud to present
their ideas to someone else
because is comes from them
and not the head office
Make the company more
flexible and innovative
Employees tend to work harder
and take more tasks
6
Push toward face to
face relationship
IT Systems are not part of
the corporate culture. There
was no system to look for
data, therefore people had to
network and discuss to
obtain information
2. Networking Attitude Initiative Assessment – CONS (2/3) 7

The Networking Attitude Initiative still has space for improvement. However, the changes required wouldn’t need drastic efforts to implement and could be done in accordance to
Danone’s corporate culture.

No networking Networking is not Networking differs Lack of IT as a support

performance rewarded across divisions platform
assessment

Networking is not part of Employee agenda is already Due to cultural history, “IT is an absolute key success
employee performance too tight to further increase networking intensity varies factor for Danone, but it is seen
evaluation workload across groups as a cost nowadays.”

No real incentive and
represents opportunity cost for
employees
Example: “Well, if it is not in
my objectives, then I’m not
going to help you.”
Networking is not rewarded in I.e. dairy division is more Danone needs IT to support
any form likely to network than the networking activities
beverage division because of
Example: “Networking has to differences in culture
be acknowledged, and you
have to create rewards for the
best contributors.”

Further improvements can be applied in order to sustain the NAI in the long term and increase its efficiency and effectiveness.
2. Global Assessment and reaching the ultimate goals (3/3) 8

Since its implementation in the company, the Networking Attitude Initiative has promoted innovation in the company and its assessment nowadays is highly positive. Thus, the NAI should be continued.

The NAI has a positive

impact

1 Enables Danone to outperform its competitors

Transforms the culture of the company to enhance the

2 autonomy of the employees

3
Mobilizes your global workforce with local knowledge to
tap into metanational innovation

4 Constantly re-innovates your innovation process

Finds solutions from within the company at low cost in

5
comparison with outside the company at high cost
3. Comparison of approaches to extend the “Networking Attitude” (1/4) 9

The focus of the extension should be on “Going Richer” and on fostering innovation, because this is needed in order to keep up with the big players in the industry.
If the extension is functional and implemented, events for outside parties, as well as events for different organizational levels can be added.

Go deeper Go wider Go richer

∨ Down the organizational latter
< > Outside the company ★ Towards innovation

“Going deeper” empowers Danone’s “Going wider” and including outside “Going richer” ensures that Danone fosters
workforce and gets knowledge together parties, e.g. supplier, sheds a new innovation, not solely knowledge, to compete
from all organizational level. perspective on Danone’s practices. against big market player.

+ Workforce empowerment and appraisal on all
organizational levels
+ Possible high commitment
+ Collection of ideas and knowledge from all
organizational level within Danone
+ Specialized outside parties can bring in new
ideas from their field
+ Strengthening the relationships to outside
parties can foster innovation
+ Detect the best outside party for Danone
+ Need for innovation to reduce the time-to-
market time and be able to compete with big
players
+ Only sharing old best practices is not enough
to enhance the company

- Possible language barriers between employees
from different countries
- Quality vs. Quantity regarding the quantity of
Networking Actions
- Feedback Culture easier for Managers
- Risk of duplicating of ideas (Risk can be
managed with legal tools and regulations)
- Very high organizational effort & cost
- Risk of loosing best practice approaches to
outside parties
- Even more organizational effort & cost, as
innovation workshops tend to be around one
week long
- High motivation of employees is
required/needs to be fostered
3. Structure and Implementation of Networking & Innovation Events (2/4) 10

Sharing knowledge and fostering innovation is one of Danone’s competitive advantages compared to big players in the market.
To implement regular events, but still keep the informal spirit, designated HR employees should be recruited to organize the “Networking Attitude”.

Professionalize
Organisation
Implementation of HR
Networking & Innovation 2008 2008
First Innovation Events Team composed of
dedicated HR employees
Events to organize Networking
Fostering innovation Events.
through forums
and first events.
2007
First Networking
Events Success of Regular
Sharing of knowledge and Events
best practices on Implementation of diverse
management level. Networking & Innovation
2004 2007 Events in Danone’s
culture.

Go Deeper & ★ Full implementation of

nt Wider follow ups; Online market
eme When events are fully place to allow
nc
d va functional and knowledge/innovation
2002 A implemented, invitation to insights for all employees
more employees and at all time.
Go Richer outside parties.
Enhancement of
Innovation Events,
implementation of
feedback culture & further
development
of events.
3. How to motivate people to participate in the “Networking Attitude” (3/4) 11

Employees participating in Danone’s networking events need to invest time, work and commitment.
In order to keep up the motivation, Danone should invest in small incentives, which, however, still keep up the “free” effort.

✪  
Implement Networking
Point Reward Foster Networking in
Great Recognition Small Gifts Coffee Breaks
in Performance
System Objective

Well-designed Coffee Spots at

Points for participating in
Best practice and Innovation
events/online knowledge
Contests.
sharing.
Award ceremony and honour
Points can be converted into
for the winner.
free hours.
Small gifts for successful
participation in online
competition.
First incentive and appeal to
actually participate.
Networking gets implemented
which employees from
in the job description and
different departments can
performance objective.
share knowledge.
Supervisor gives feedback on
Daily exchange and
networking initiative and
communication between
success.
employees.

Implementation of Networking as an
integral part of Danone‘s culture.
3. How to measure the success of the extended “Networking Attitude” (4/4) 12

When extending the “Networking Attitude” and implementing professional organization, Danone can track its progress and success with six KPIs that asses different levels.
Numeric Values need to be computed in order to evaluate the progress.

Time to Market Number of Participants

Shorten the time to market in order to Get many employees from different
keep up with big competitors. nations/backgrounds/divisions involved.

Innovation Rate
Increase Danone’s Innovation Rate, also
Success of the Networking Geographic Reach
Spread the geographical reach and
regarding its principle
“health through food”.
Attitude conduct events in all countries.

NPD Rate Division Diversification

Increase the rate of New Product Diversify the topics and divisions that are
Developments. involved in knowledge sharing.

Respecting your approach:

NAI should always reinvent itself, change and be flexible. It should be person oriented and empower employees.
 13
Questions
 14
Appendix

  

 





Appendix 1. The History of Danone 15

From a company operating in the industrial glass sector to Danone: spreading health and nutrition

Danone Groupe Danone

- 1919: Isaac Carasso established - Launch of the Danone Way: focus
Danone in Barcelona on embracing socially responsible
- Move to France after WW2 corporate values
- M&As into industrial food - Working on sustainable
processing development of BoP

1920s BSN 2001

- 1960s: French glass bottle
company Souchon-Neuvesel merged
with glass manufacturer Glaces du
Boussois
- M&As in the food business Networking Attitude
1960s 21st
- 1970: BSN leading French Circulate good practices and share
manufacturer of Beer, water and century
Groupe Danone knowledge
baby food
1990s - Partnerships and buyouts: Groupe
Start Danone becomes a global company
- New direction to health and
Here nutrition To remain
1970s - Jeu de jambe: flexible organization
competitive
BSN Gervais Danone
- 1973: BSN and Gervais-Danone
merge to create the largest food 1980s
company in France
- New focus on social economic
goals BSN Danone
- Refocus on food and sell off of
industrial glass business
- Strong European base through
acquisitions of food companies

15
Appendix 2. Information Technology System as a Networking Catalyser 16

IT system to ensure a proper flow of information, to keep track of processes, to analyse and develop innovation, and to ensure a sustainable knowledge management strategy.
Substantial investments have to be triggered in order to provide a strong base for the networking strategy. THEMIS failed because it was going against the entrepreneurial spirit of
the company.

$
Investment $$$ Use of the data base
The company has to give enough $ D Managers will be rewarded each
financial input for the platform to time they implement an existing

D
be effective and reliable. process, according to the time
earned from “not re-spinning the
wheel”


Build the data base Information User-friendly
Make sure that all Danone Technology ;) The database needs to be user-
processes are saved, detailed and friendly and accessible to any
translated (in different languages)
Web staff members. Any flaws of the
into the system. platform regarding its interface
needs to be reported.

Constant Innovation ;)
Provide incentive to manager to
update processes. Incentives will
be provided ONLY if the newly My
implemented processes proof to W
be more effective. s t i eb
c is
frie ky, it not
nd ’s
ly