fostering enterprise talent in employees martin glenn president, pepsico uk & ireland
TRANSCRIPT
Fostering Enterprise Talent in Employees
Martin GlennPresident, PepsiCo UK & Ireland
Sun Tzu he say….
“He will win who’s winning spirit is spread throughout the ranks”
Winning spirit is competitive advantage
PepsiCo UK is big and complex
14mm Packets of Crisps per day
250,000 Points of distribution
People make strategy happen
“An average plan well executed beats a brilliant plan done poorly”
Quality “Every bag every bite”
Productivity “Every little helps”
Distribution “Arms reach”
Fostering the spirit of ownership
• Create the desire
• Share success
•Contribute to the community
• Business plans shared at the start of each year through the interactive and involving Learning Map mechanic to all 5000 employees• Individual and team KPI’s clearly linked to business goals
Create the desire
Create the desire
Performance is tracked continuously – team results vs targets visible to all
Create the desire
• Every employee in every plant takes time off the line every month to: - review performance - identify issues and solutions - agree how to action
• Continuous Improvement is a way of life
Share success
Sharepower Unique, global PepsiCo stock option programme
Every UK employee automatically enrolled
Annual grant of 10 – 15% of salary in options
Reinforce an ownership culture
Over $1.5 billion paid out in stock option gains since scheme began in 1989
Share success
Pension scheme Final salary pensions disappearing in
the UK
3 in 4 are now shut to new members
Security retirement is a priority for our employees and their families
Every UK employee, including new hires, can join a high quality, flexible final salary plan
Share success
MAD Awards
• Aspirational awards programme running across the total business• Recognises people who go significantly over and above• 340 award winners in the last 10 years• Annual winners enjoy a VIP trip to San Francisco• Some previous winners: - Farida from Leicester - Paul & Julian from Coventry
Contribution to the community
Peterlee Learning Centre
Learning facility in our Peterlee plant, East Durham
Accessible to our employees, their families, local schools, SME’s and community organisations
Funded in partnership with local government
Learn Direct support and infrastructure
Greatest demand for basic skills programmes –the foundation for future success
Contribution to the community
Reading buddies
• 9 year history• Over 20 schools across the country• Over 100 employees• Employees ‘buddy’ with schools to listen to children read• Donations of £200/year to each school to invest in books
Contribution to the community
Partners in leadership
• Head teacher mentoring
• Head teachers and business leaders partner to share expertise and build coaching skills
• 13 partnerships currently in place
Peepul Centre Enterprise project
£200,000 Donation• Leicester-based community organisation• Supports local people to fulfil their potential, e.g.
— new business start up— domestic violence support— Asian women into business
The business case
Costs
Employee regard
Costs 7.4%
11.1% 10.7%
4.3%
0%
2%
4%
6%
8%
10%
12%
2001 2002 2003 2004
• PepsiCo UK Net Revenue Growth
• 1998 – 04 Walkers reduced its manufacturing costs by 14% (2.5% per annum) funding innovation & growth no price rise for 6 years
• Front line turnover consistently <5%• Front line absence consistently <5%• Our people are proud to work here (70%+ in our employee surveys)