October 2012 | Global

Nestlé Leadership
Framework
 Se nior
Lea d ers
These are the competencies which
apply for all senior leaders to drive
organisational success. These compe-
tencies are most relevant for employees
who are charged with leading busi-
Leaders nesses or functions and providing the
vision, strategy and inspiration to deliver
the Nestlé model.
These are the competencies which
apply for all leaders to enable success
through others. They are important in
roles that have direct people manage-
ment responsibility, individual contribu-
tors with indirect people management
responsibility (e.g. project leaders)
Al l or those with functional leadership
responsibility.
Em ployees
These are the competencies which
apply to everyone at Nestlé to ensure
success through their individual contri-
bution. They represent the behaviours
we should all display in living the values,
principles and Nestlé culture.

2 October 2012 | Nestlé Leadership Framework

What you need
to know...
The Nestlé Leadership Framework identifies the key behaviours that support the development of
our employees worldwide. It addresses the way we work within Nestlé – how people achieve their
targets and objectives.

The fundamentals of the Nestlé Leadership Framework are derived from our Nestlé Corporate
Business Principles – which are the basis of our company’s culture, and the Nestlé Management
and Leadership Principles – which articulate the core values and principles that have guided our
journey as a company and are fundamental to our success.

The evolved Nestlé Leadership Framework has 6 Success Drivers that address the way we work
within Nestlé today and in the future. They identify the key competencies and associated be-
haviours to achieve our performance targets and support the development of Nestlé employees
worldwide. The 6 Success Drivers are : Compete & Connect Externally, Lead to Win, Manage for
Results, Grow Talent & Team, Collaborate Internally and Make a Difference.

While each Success Driver is applicable to all employees, the competencies required of employees
at different levels of the organisation vary dependant on their position level in the company, wheth-
er or not they have a people management responsibility, or are responsible for leading a business
or function. To facilitate this, there are 3 position levels within which the associated competencies
relevant to that level are defined. These are : All Employees, Leaders and Senior Leaders.

Each competency has a set of behaviours that are described at two levels – Developed : the level of
performance or behaviour which we expect people to operate at within Nestlé; or Needs Develop-
ment : the performance or behaviours that an employee displays which are not at or only partially
meet the standards at which we expect people to operate within Nestlé.

The competencies and behaviours of the Nestlé Leadership Framework allow us to be consistent
in attracting, developing and engaging our employees, leading to greater individual performance
and business results.

We encourage you to apply the framework in everything you do, to support your continuous devel-
opment and success within Nestlé.

Thank you.

Corporate Human Resources

October 2012 | Nestlé Leadership Framework 3

Compete &
Connect Externally
Understand our external environment, develop strong
external relationships and create gaps versus competitors

4 October 2012 | Nestlé Leadership Framework

 Un d erstan d t h e
Bus i n ess En viron m en t
DEVELOPED NEEDS DEVELOPMENT
• Understands team goals and company business • Seldom takes initiative to understand patterns
drivers and trends that impact the business
All Employees

• Sees how personal contribution impacts the business • Takes short-term tactical approaches that fail to
address business conditions
• Takes action based on understanding of customer
and consumer needs • Fails to see how role impacts the goals of others
• Actively questions to learn about the business in
order to make appropriate decisions
• Understands the impact of our operations on the
community
• Participates in activities within the community

Insight
DEVELOPED NEEDS DEVELOPMENT
• Benchmarks to discover opportunities for • Sees details but fails to understand the whole picture
competitive advantage
• Has trouble finding the central issue of complex
• Considers the broadest possible views (internal problems or situations
and external) of issues and challenges
• Has a mainly internal rather than external focus
• Anticipates consequences and impacts of actions
on others
Leaders

• Draws connections between facts, ideas, and situations

• Simplifies complex issues into easily understood
elements
• Engages and partners with outside stakeholders
to maximise Nestlé’s contribution to society

Fost e r Com pe ti t i v e In t ensi t y

DEVELOPED NEEDS DEVELOPMENT
• Understands the local and global context and adapts • Has limited capability to pull together varying
accordingly elements into a coherent strategic view
Senior Leaders

• Is pragmatic • More comfortable with short term tactics

• Establishes key alliances and engages external • Doesn’t see the broader industry and market
stakeholders perspectives or opportunities
• Anticipates future trends and defines appropriate • Lacks a deep understanding of competitors
response
• Handles risk and ambiguity in a complex environment
• Implements programmes and activities to address
the main challenges within the society we operate,
in alignment with Creating Shared Value

October 2012 | Nestlé Leadership Framework 5

Lead to Win
Walk the talk, inspire and engage people

6 October 2012 | Nestlé Leadership Framework

 Prac tic e What Yo u Preac h
DEVELOPED NEEDS DEVELOPMENT
All Employees

• Takes responsibility for own actions and • Tends to blame others rather than taking personal
consequences accountability
• Shows consistency in words and actions • Treats people unfairly
• Lives the Nestlé values and principles • Does not comply with company policies and
regulations
• Acts with the organisation’s reputation and
best interest in mind • May use information or people for personal gain
• Interacts with integrity and honesty
• Admits mistakes

En ergis e & Engage

DEVELOPED NEEDS DEVELOPMENT
• Creates a climate of trust in which people want • Takes credit for the work of others
to do their best
• Avoids making tough people decisions when
• Understands and motivates diverse individuals and required
groups
• Does not always pick up on the needs of others
• Invites input from others and creates shared
• Shows favouritism
ownership and visibility
• Applies a one-size-fits-all approach to motivation
Leaders

• Supports team in successes and failures

• Recognises contributions and celebrates
successes
• Helps others to understand the importance of their
contribution to the overall vision and goals

Ins p i re t h e Orga nisa tion

DEVELOPED NEEDS DEVELOPMENT
• Is seen as credible and is respected • Overly complicates or fails to personalise key
Senior Leaders

organisational messages
• Inspires and motivates entire groups
• Has a tendency to abuse authority and overpower
• Unites people to share and commit to the
others
organisation’s strategy and goals
• Inadequately displays ownership / enthusiasm for
• Develops and communicates a compelling and
the company’s strategic vision
inspired vision of the future
• Respects and does not dismiss others’ views even
when they are contrary to their own
• Presents strategy so it is understood by everyone
at all levels

October 2012 | Nestlé Leadership Framework 7

Manage for Results
Passion to exceed ambitious goals and
deliver business results

8 October 2012 | Nestlé Leadership Framework

 Res ults Focus
DEVELOPED NEEDS DEVELOPMENT
• Achieves results in compliance with the Nestlé • Spends time and effort on non value-added activities
Corporate Business Principles
• Does not actively learn, apply, verify and share the
All Employees

• Shows a drive to achieve ambitious performance Nestlé Corporate Business Principles

objectives and quality standards
• Struggles with self motivation and setting
• Plans and prioritises work effectively challenging personal goals
• Takes every opportunity to do more than expected • Needs to be more confident in taking action
• Doesn’t hesitate to act
• Pursues goals with energy and drives through
to completion
• Takes ownership and accountability for delivering
expected results (what and how)

En a b l e Res ults Through Ot h ers

DEVELOPED NEEDS DEVELOPMENT
• Aligns the strategy across the organisation through • May delegate but micro-manages
a pragmatic combination of a clear long-term vision
• Needs to better track progress and intervene when
and the achievement of day-to-day goals
necessary
• Sets challenging team goals and clear standards for
• Performs tasks that could be easily delegated to
success
the team
• Aligns the work of team members toward shared goals
• Fails to prioritise and manage time effectively
• Creates alignment across functions where needed
• Delegates appropriately and trusts people to perform
Leaders

• Measures progress and results and ensures account-

ability
• Provides the information and resources to achieve results
• Empowers individuals to solve problems, make
decisions and improve processes

De v elop & Execu t e Strategy

DEVELOPED NEEDS DEVELOPMENT
• Focuses on long-term business development without • Spends more time on task execution rather than
losing sight of the necessity to continuously deliver developing strategy
sound results for our shareholders
• Is unaware of the bigger picture
• Ensures development and execution of Market
• Doesn’t fully consider the entire value chain in
Senior Leaders

Business Strategy (MBS) in the short and long term

planning work processes
• Creates a high performance culture to ensure sus-
• Is inconsistent in delivering strategic goals
tained growth and operating profit
• Simplifies and removes barriers to organisational
performance
• Enables and supports responsible risk taking
• Leverages opportunities for synergy through Nestlé
in the Market (NiM)
• Demonstrates an entrepreneurial spirit

October 2012 | Nestlé Leadership Framework 9

Grow Talent & Team
Develop self and others to create a diverse,
high performing team

10 October 2012 | Nestlé Leadership Framework

 Kn o w Yo urs elf
All Employees

DEVELOPED NEEDS DEVELOPMENT

• Actively seeks feedback from others • Acts without considering impact on others
• Creates and executes personal development plans • Gets defensive when receiving constructive
feedback
• Takes every opportunity to learn and grow
• May sometimes appear complacent and self
• Learns from successes and mistakes
satisfied
• Is resourceful in pursuing learning objectives
• Has high personal self-awareness – strengths,
weaknesses, opportunities and limits

Coac h & De v elop

DEVELOPED NEEDS DEVELOPMENT
• Leverages performance, development and talent • Does not adequately recognise and reward desired
processes to build people capabilities behaviours
• Provides challenging and stretching tasks and • Tends to provide solutions or answers rather than
assignments to drive development giving the opportunity for learning
• Coaches others (listens, questions, challenges) • Avoids the conversations required to align on career
to find their own answers and development opportunities
• Gives direct actionable feedback • Fails to reinforce developmental experiences and
Leaders

connect them to the individuals’ development plans

• Addresses difficult issues in a timely manner
• Aligns career expectations and actively supports
career development
• Builds diverse teams

De v elop Orga nisa tion a l Capa bi li t y

DEVELOPED NEEDS DEVELOPMENT
Senior Leaders

• Creates an environment for open and rigorous • Is unable to articulate future capabilities required by
talent assessment the organisation
• Considers the talent implications in long and short • Does not take a long term view of talent development
term business goals and strategies
• Is ineffective in assessing, developing, engaging and
• Establishes a diverse and robust talent pipeline deploying talent
• Holds managers accountable for people
development
• Actively shares knowledge and mentors others
including those outside own team

October 2012 | Nestlé Leadership Framework 11

Collaborate Internally
Collaborate and communicate effectively
and build long term relationships

12 October 2012 | Nestlé Leadership Framework

 Proac t i v e Coo p era tion
DEVELOPED NEEDS DEVELOPMENT
• Gains the trust and support of others • Fails to develop a network within or outside their
team or functional area
All Employees

• Is prepared to make compromises to achieve

the group objectives • Lacks clarity about roles and responsibilities of self
and others
• Actively contributes ideas, energy and the desire
to succeed as a team • Allows ego to influence decisions and actions
• Influences without authority
• Is interested in and listens attentively to the ideas
of others
• Works through disagreements without damaging
relationships

Infl u en c e wi t h In tegri t y
DEVELOPED NEEDS DEVELOPMENT
• Adapts behaviour and communication style to • Makes insufficient efforts to understand and respond
the needs of the audience effectively to the concerns of others
• Credibly communicates a well developed point • Is more insisting than persuading
of view
• Doesn’t always provide the appropriate context
• Finds common ground and solutions for the
Leaders

• Can appear to be insensitive to the needs of others

benefit of the group
• Develops relationships with key decision makers
• Anticipates reactions and objections from others
and is prepared for them

Creat e a n In c lus i v e Cul t u re

DEVELOPED NEEDS DEVELOPMENT
Senior Leaders

• Actively facilitates working across functional and • Tends to have a silo or individualist mindset
geographic boundaries
• May stereotype or pre-judge
• Embodies the spirit of One Nestlé
• Has difficulty understanding groups not similar
• Acts in a way that is respectful of other people to self in purpose or characteristics
who are less senior
• Appears arrogant and distant
• Values and leverages differences in people and
cultures
• Is modest, approachable and easy to talk to
• Creates an environment of openness and sharing

October 2012 | Nestlé Leadership Framework 13

Make a Difference
Proactively challenge the status quo and
drive continuous improvement

14 October 2012 | Nestlé Leadership Framework

 Ini tia t i v e
DEVELOPED NEEDS DEVELOPMENT
• Anticipates future problems and works to minimise • Lacks confidence to challenge the status quo
or prevent them
• Seeks unnecessary approval and direction before
All Employees

• Tackles new problems, breaks new ground and they act

develops contingency plans
• Puts things off until later
• Initiates and contributes to innovation and
• Unwilling to change point of view or approach when
continuous improvement
evidence suggests otherwise
• Is open minded towards new and different ways
of doing things
• Constructively challenges the “why” and asks
“why not”
• Acts decisively and proactively

Co urage
DEVELOPED NEEDS DEVELOPMENT
• Constructively questions current practices and processes • Avoids confrontation with others
• Willing to be the only champion for an idea or position • Disregards an idea without fighting for it as soon as
a controversy arises
• Acts as an ambassador for company change even
when the change is unpopular • May appear disrespectful in expressing their views
• Respectfully says what needs to be said, even with • Too worried about being liked, correct or above
those more senior criticism
• Supports team to take appropriate risks
• Remains composed, does not become defensive
Leaders

or irritated when times are tough

• Enhances understanding and commitment to
change by involving those affected
• Credibly communicates and leads change

Em brac e & Lead Chan ge

DEVELOPED NEEDS DEVELOPMENT
• Is a catalyst for change and innovation by • Tries to impose their point of view, by being forceful
Senior Leaders

communicating a compelling and inspired vision

• Fails to recognise people’s resistance to change
• Challenges others to generate breakthrough ideas
• Tends to close down other people’s ideas before
and initiatives
they are fully explored
• Fosters a culture that promotes adaptability and
• Hesitates to move away from the old and familiar
learning
• Takes decisive action in conditions of uncertainty
• Creates and maintains a sense of urgency for change
• Identifies unique approaches to deal with new or
ambiguous situations

October 2012 | Nestlé Leadership Framework 15

 © Copyright 2012, Nestlé Corporate Human Resources
Talent & Organisation Development