Lesson's learned from recession

1. Lesson’s Learned by
Paul Polman
UNILEVER CEO

2. Presentation
Outline
How to manage people
in a global context?
The obligations corporations
have to society
Why you should never waste
a good crisis ?

3. INTERVIEW CONDUCTED BY ADAM BIRD A DIRECTOR
IN MCKINSEY’S IN 2009
QUESTIONS;
The opportunities and challenges of being a new CEO
The importance of corporate social responsibility
Value-based management
The future of the consumer goods industry

4. WHERE DOES THE WORLD ECONOMY GO AND WHAT DOES IT MEAN FOR YOUR
SECTOR AND MORE SPECIFICALLY FOR UNILEVER?
Never waste a good crisis!
The plan is slow and long recovery
Companies and financial institutions need to
deleverage
To Move Forward;
Different role of government and consumer
expectations will affect

5. Since 2nd World War different consumer behaviors coming out of can
turn into an advantage
Big ticket items postponed to be purchased
F.E: not going movies watching at home, not eating out but eating
at home
New trend for home consumed products like Hellmanns & savoury
products
Switch from dicrenatiory items So the new line started to be launced
F.E; P. F. Chang’s meals at home or Starbucks ice cream
“DON’T LET A RECESSION GO TO WASTE.” WHAT ARE THE SILVER LININGS FOR
UNILEVER IN THESE CHALLENGING TIMES?

6. The Story is
Execution
is the
Strategy %90 The business is a very
simple one of getting
the right products at the
right place at the right
quality at the right price
People like them Share movements are
often happening because
of lack of execution on the
other side while others
don't tend to
Disipline
You’ve commented many times about the need to increase the metabolic rate, or
the execution ability, of Unilever. Many struggle with that. How are you going
about it?
Accountability

7. YOU’LL GET
RESULTS FAIRLY
QUICKLY
Talk to consumers
Put the products on the
shelf that are needed
Follow the important KPIs
Hold people accountable
Customer service is a
priority
Retailer supply
Reward structures and
measurements in place
How are you signaling
the importance beyond
communicating?
Any tools that you’re using
to drive home the
importance of execution?

8. How do you see margin evolution— the
profit pool, if you will—for the industry
growing?
Can margins continue to grow the way
they’ve been growing?
Very competitive industry
It’s never good enough belief
If the industry continues to innovate
well, there is no reason why you
cannot have continuous margin
expansion World population
estimatedly will increase
Convenient and healthier products
which will provide opportunities to
create value and translate into margin
expansion…

9. What Does
UNILEVER Do
marketing and engaging with consumers

10. NEW ADAPTED MODEL
From “The Push Model”
to
"Receptive model "
Quite a lot of choice
“Cocooning”
Trend back, a little toward fewer
brands rather than bigger brands.
Consumer cannot afford to take
the risk to experiment with others

11. in tune with society
very close to new technologies
being more global of doing
things with a broader
perspective
selling from the benefits of
brand rather than just selling
Brand manager should be;
That’s why we’ve created in
Unilever the global categories
now.
What does
mean for
Brand
Managers
of this
explosion
of choice
and media
and so
forth?

12. HOW DO YOU SEE WESTERN EUROPE EVOLVING?
a region where we have to create shareholder
value
provide a consumer with a good value
proposition
value is not only price, is overall performance
and experience of a product.
IN EUROPE MARKET 2, 3, 4 % RANGE FOR
COMPANIES LIKE OURS WOULD BE VERY GOOD
CONSIDERING BELOW STRUGGLES
Terrible economic situation
Tough government
Unreasonable retailers
Private label

13. WHAT HAVE YOU
PICKED UP FROM
NESTLE, P&G AND
UNILEVER?
strong values
doing the right thing for the
long term
high level of integrity and
trust
investing in their people
desire to be a force for good

14. First thing is purpose driven and
values
if the personal values aligned with the
company's values you will be more
successful otherwise be actor or split
personality.
Second is to İnvest into people in
return they will invest on you
If you were to isolate a lesson
—a key lesson—that you’ve learned as a
manager, what would it be and how did
you learn it?

15. Tremendous challenges in
Global Warming and
Climate Changes
A key element of a values-driven
corporation is contributing to
society and a broad range of
stakeholders.
And you, personally, are also
very engaged in a number of
social causes. How do you see
that role evolving ?
Reduced our emissions at all
levels of our supply chain
+natural ingredients+respect
We’ve installed a bio-digester
at factory
the earth and the environment
in the Netherlands that turns
ice cream
waste to clean energy
In 2020 will be
sourced sustainably, using
practices that reduce the use
of pesticides and are
considerate of the
environment
and the health, safety and
livelihood of farmers.

16. Unilever is one such
company, recognizing
early on that the
challenges of running
a business in a chaotic
world are precisely
where the economic
growth is found
more than $5.3 trillion a year and
rising at a staggering rate
CLIMATE CHANGE COSTING
PLANET
the consumers today
have deep insight into
the products they
purchase and will reward
companies that behave
responsibly

17. AND YOU SEE THAT AS A LONG-TERM PROCESS? GETTING
TRUST BACK IS OFTEN A
PAINFUL, EXTENDED EFFORT?
Sustainable Sourcing
Palm oil ; deforestation is 15 to 20
percent of the global warming
Trust is easily destroyed and takes a long time to rebuild!
so we focused on;
Nutrition & Hygiene
Water
Those are the areas that affect
business where we can make a
positive contribution.

18. How has marathon running affect your leadership?
I run it for a charity to fundraise every blind student in East Africa
has a Braille machine in his class.
I hate to have,the day when I pass on, people talk about me building
market share rather talking about me making a difference in
society...
MARATHONE

19. FIRST BOSS
GHANDI
If you seek enlightenment for yourself just to enhance yourself,
you missed the purpose.
If you seek enlightenment for yourself by helping others, you are
with purpose.”
DALAI LAMA
MENTORS
MOTHER TERESA
MANDELA
“to put the interest of
others ahead of
themselves”

20. Although you’ve had many
senior leadership
positions, this is your first
stint as a CEO.
What’s changed?
LOTS OF
PRESSURE
HIGHER
RESPONSIBILITIES
Think
I’ve had
to learn
to set
priorities
clearer
and
better

21. How would you say
the folks at Unilever
would describe you as
a leader?
Integrity
Long Terms
Caring

22. thank you
Y E S I M B A L K A Y A
H A S N A A A H M E D