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Winning with Employee Engagement MARY BETH DENOOYER, CHIEF HR OFFICER

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Page 1: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Winning with Employee EngagementMARY BETH DENOOYER, CHIEF HR OFFICER

Page 2: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Overview of KDP

Why Engagement Matters

Engagement at KDP

Every Day Engagement

Q&A/Discussion

2

Agenda

Page 3: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Who is Keurig Dr Pepper?

Page 4: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Keurig Dr Pepper

4

July 2018

Page 6: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Brewer line up targets consumer needs to drive houseful penetration

K-Compact™

VALUE

K-Mini™

IMAGE

K-Select™

CONVENIENCE

K-Elite™

IMAGE

K-Latte™

VARIETY

K-Cafe™

VARIETYNeedState

2017 2017 2018 2018 2018 2018

Page 7: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

WAREHOUSE DIRECT

INDEPENDENT DISTRIBUTOR

PARTNERS

COMPANY-OWNED DSD

FOUNTAIN & FOODSERVICE

We Have an Unrivaled Distribution SystemDISTINCT ROUTE-TO-MARKET MODELS OFFER NEAR-UNIVERSAL DISTRIBUTION COVERAGE

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COLA SYSTEM

E-COMMERCE AWAY FROM HOME

AT HOME

Page 8: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

We Have Best-in-Class Manufacturing Capabilities

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K-Cup®Pods

BaggedCoffee

Applesauce

FountainSyrup

Ready-to-Drink

Beverages

CoffeeRoasting &

Formulation

Page 9: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

We Have Robust Research & Development Expertise Across Hot and Cold Beverages and Appliances

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Flavor,Ingredient &

SensoryScience

AnalyticalChemistry

AromaFormulation

ApplianceDesign

Nutrition &Regulatory

Affairs

Thermo-dynamics

Page 10: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

7th largestfood and beverage company in the U.S.

$11Bnet sales in 2019

NYSE: KDP25,000+employees

100+owned, licensed, partner & allied beverage brands

Beverage availability in 600,000coolers and vending machines in the U.S.

7of the TOP 10non-cola soft drink brands

American homes have a Keurig brewer

~745,000 hotel rooms in the U.S. have Keurig

brewer

28M

principal warehouses / distribution centers 27 manufacturing

locations

125+10

3.5M Canadian homes have a Keurig brewer

Page 11: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Why Engagement Matters

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Engagement level impacts behavior… which impacts results

Highly Engaged

Bring their heads and hearts to work. Highly

participative in day-to-day activities, contribute

ideas, positive customer interactions.

Consistently contribute, intend to stay with the organization, strive to effectively meet their

goals.

Moderately Engaged

Going through the motions. Generally satisfied, but not

motivated to act in ways that positively impact

business results.

Passive

Unhappy and willing to share their

unhappiness with others. Minimal participation;

dissatisfaction and lack of discretionary effort are

apparent. Can be disruptive.

Actively Disengaged

Page 13: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Why does Engagement matter?

Productivity

Collaboration

Innovation

Profitability

Retention

Page 14: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Engagement at KDP

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What is Engagement at KDP?

EMOTIONAL (Heart)

INTELLECTUAL (Mind)

Commitment to the organization

The concept of employee engagement is often confused with satisfaction or happiness. However, the true definition is deeper in meaning. Engagement at KDP is defined as:

Page 16: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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AON Engagement Survey

25,000 employees invited to give feedback

Page 17: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Aon’s Model Ties Together Drivers, Engagement Outcomes, and Business Outcomes

16 dimensions, 47 engagement driver items, 1 open-ended item 6 Engagement items

TalentFocus

The Work

The Basics

Agility

EngagingLeadership

TheWork

Experience

Fou

nd

atio

nB

est

Emp

loye

rsD

iffe

ren

tiat

ors SAY

STAY

STRIVE

TalentRetention

Absenteeism

Wellness

OperationalProductivity

Safety

CustomerSatisfaction

Retention

FinancialRevenue/Sales Growth

Op. Income/Margin

Total Shareholder

Return

Business Outcomes

Engagement Drivers Engagement Outcomes

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Page 18: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

INDIVIDUAL EMPLOYEES ARE CONSIDERED TO BE “ENGAGED” WHEN THEY DISPLAY THE FOLLOWING THREE ENGAGEMENT BEHAVIORS.

Employee Engagement Behaviors

Engagement Behavior Question

SAYI would not hesitate to recommend Keurig Dr Pepper to a friend seeking employment.

Given the opportunity, I tell others great things about working here.

STAYIt would take a lot to get me to leave Keurig Dr Pepper.

I rarely think about leaving Keurig Dr Pepper to work somewhere else.

STRIVEKeurig Dr Pepper inspires me to do my best work every day.

Keurig Dr Pepper motivates me to contribute more than is normally required to complete my work.

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Page 19: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

CREATE AN ENGAGEMENT CULTURE AND EMBRACE CHANGE

Everyone has a Role in Engagement

CONFIDENTIAL: FOR INTERNAL USE ONLY19

SENIOR LEADERS MANAGERS

TEAM MEMBERS

HUMAN RESOURCES

Page 20: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

This is a continuous process

CONFIDENTIAL: FOR INTERNAL USE ONLY20

Our survey is a company-wide activity...

But results and actions are only impactful at a local level

Page 21: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Local Execution is What Matters

CONFIDENTIAL: FOR INTERNAL USE ONLY21

125+ distinct locations

5-500 employees each

Page 22: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Simple Model for Engagement Action Plans:

Ask employees for their

thoughts, opinions and

ideas to make it better

Concentrateefforts on the 1

or 2 things within your control that will have impact

Talk to the group about the plan

and provide regular updates

on progress

A C T

CONFIDENTIAL: FOR INTERNAL USE ONLY

Simplicity and continuity of dialogue and

action will create real engagement and help activate

the people strategy

Page 23: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Every Day Engagement

Page 24: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

What drives engagement?

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WHAT:The Work You Do

WITH WHO: The People You

Work With

HOW IT FEELS:The Work

Environment

WHO FOR:The Company You

Work For

Page 25: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

The day-to-day work is a primary driver of engagement

Kasey LaddMaster Data Analyst II 25

Engagement: What You Do

Things such as:• Competence/ability to do the work• Scope of work• Ability to learn and grow• Opportunity for impact• Match to personal motivators

Page 26: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Kim FooteAdministrative Assistant26

Engagement: Who You Do It With

Relationships at work are also critical engagement drivers

Things such as:• Relationships with supervisor/manager• Relationships with teammates• Customer interactions• Inclusion & diversity

Page 27: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Engagement: How It Feels

The work environment has distinct elements for employee engagement

Things such as:• Physical work environment• Employee safety• Policies and procedures• Training and development• Feedback and recognition

Bitodi NsangaMaintenance Technician I

Page 28: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

Jessica Hopper Inventory Analyst I28

Engagement: Who You Do It For

The organization you work for creates a sense of connection and pride

Things such as:• Company reputation• Words and actions of leaders• Ethical behavior• Customer satisfaction

Page 29: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Table Discussion

WHAT:The Work You Do

What actions can you take in your store(s) with your team(s) to drive engagement?

How could you get employee input?

WITH WHO:The People You Work

With

WHO FOR:The

OrganizationYou Work

For

HOW IT FEELS:

The Work Environment

Page 30: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Wrap-Up

Page 31: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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Employee engagement drives business results

Engagement happens each day with individual interactions at individual locations

Employee input creates the best actions

Focus on 1-2 actions

Page 32: Winning with Employee Engagement · Strong brand portfolio across categories + ~100 Partner Brands. Key Brands. CSDs. Water. Juice. Tea. Coffee. RTD Coffee. Energy. Mixers. 6

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THANK YOU!

Mary Beth DeNoooyerChief Human Resources Officer

Keurig Dr Pepper

[email protected]