GLOBE programmeThe Challenges of Changing

GLOBE Program Objectives

Implement the biggest SAP roll-out in the world to date;

Create a more integrated, coordinated organization;

Make Nestlé a faster-moving company.

→ “To transform Nestlé from a “collection of independent fiefdoms” into an integrated global company.”

The challenges of changing Managing change – the development of GLOBE based on

Ferrazzi’s (2014) framework.▪ Similarities between AA treatments & the business change behaviour

▪ What’s done/what’s not done

Future challenges for Chris Johnson and how can he make GLOBE’s implementation a success?▪ Exit situation – Problems – Solutions▪ Current situation

Question 1

Please discuss the development of the GLOBE Program on the basis of the framework suggested by Ferrazzi.

→ Why are Market Heads scared/resistant to the change?IMPACT hadn’t worked (bad past experience)Nestle performing wellConflicting tasks/additional work: what are the benefits?People are placed outside their comfort zone

“Organizations can’t change their behavior unless individual employees change their behavior - and changing behavior is hard” K. Ferrazzi, Harvard Business Review, 2014

Resistance to change

Ferrazzi’s framework & GLOBEPeer

support

Change old habits

Progress,not

perfection

No hierarchy

Readiness to change

You’re the company you

keep

C. JohnsonGLOBE

*Managing change, one day at a time, Ferrazzi, N., 2014

What CEOs/leaders learn from AA groups?

Change in mindsetSponsorship Celebrate

small winsIntrospecti

on

Michael Lee Stallard, President of E Pluribus Partner; Source: FOXBusinessNews, published August 21, 2014

Question 2

Based on your analysis, what would you recommend Chris Johnson for making the Program’s implementation a success?

What Chris did well

2001 - Exit Situation

Created a “dual operating system” (Kotter, J., 2012)Created a team of emotionally engaged leaders (the “guiding coalition” Kotter, J., 2012)Setting realistic targets (Executive Board Meeting)

How to make GLOBE a success?

Solutions Communication• Communicate clearly the vision• Presence of key members in the

meeting• User-friendly language /

Support from IT• Translation Internal team

problems• Low motivation/frustration

Internal team problems• Celebrate small wins occasionally

Market heads resistance:

• Short-term view on the issue• Frustration/Only criticising

Market heads resistance

• Long-term vision; sub-initiatives• Breakthrough through change of

perspective• Plant the seed for future change

ambassadors

"How many of you would like my job? Just raise your hand. If GLOBE doesn't work, I get fired. If I get fired, you know what's going to happen?

Peter Brabeck [Nestlé's chairman and CEO] is going to pick one of you to run it. So, here's the deal: If you don't want my job, you'd better make this work.”

What happened right after the lunch?

"How many of you would like my job? Just raise your hand. If GLOBE doesn't work, I get fired. If I get fired, you know what's going to happen? Peter Brabeck [Nestlé's chairman and CEO] is going to pick one of you to run it. So, here's the deal: If you don't want my job, you'd better make this work.

Nestle Investor Seminar

Exec. Board

GLOBE day GLOBE centres

GLOBE timeline

Q&A

Bibliography/Sources◼FoxBusinessNews. (2014) What CEOs Can Learn from Alcoholics Anonymous. [Online] Available from: http://www.foxbusiness.com/business-leaders/2014/08/21/what-ceos-can-learn-from-alcoholics-anonymous/[Accessed: 23th September 2014]◼Baseline. (2006) Nestle Pieces Together its Global Supply Chain. [Online] Available from: http://www.baselinemag.com/c/a/Projects-Processes/Nestleacute-Pieces-Together-Its-Global-Supply-Chain/[Accessed: 23th September 2014]◼Nestle Deutchland. (2014) GLOBE Centre Europe. [Online] Available from: http://www.nestle.de/karriere/arbeiten-nestle/nestle-international/globe-center-europe[Accessed: 25th September 2014]◼Nestle website. (2005) Transcript of GLOBE NIS [Online] Available from: http://www.nestle.com/asset-library/Documents/Library/Presentations/Investors_Events/Investors_Seminar_2005/GLOBE_Jun2005_Johnson_Transcript.pdf[Accessed: 25th Setpember 2014]◼Kotter, J. (2012). Accelerate! Harvard Business Review, 90(11), pp. 45-58.◼Ferrazzi, K. (2014). Managing Change, One Day at a Time. Harvard Business Review, 92(7/8), pp. 23-25.◼Kotter, J. (2008). A Sense of Urgency. GetAbstract; summarized version on permission of Harvard Business Press.◼Kotter, J. (1996). Putting Together the Guiding Coalition. In: Kotter, J., Leading Change, pp. 57-61. Boston: Harvard Business School Press