Human Resources in Current
  Business Environment


    Moscow, April 24-th, 2010
Coca-Cola Hellenic at a glance
         Developing
    markets
  Croatia
  Czech Republic
 Estonia
Hungary
Latvia
 Lithuania
  Poland
    Slovakia
      Slovenia
              •
                                                  •
                                   Emerging
                                           markets
                                                Armenia
     Established
                      •                               Belarus
                                         Bosnia and Herzegovina
               markets                                     Bulgaria
                     Austria                                FYROM
                       Cyprus                               Moldova
                        Greece                         Montenegro
                           Italy                        Nigeria
              Northern Ireland                      Romania
        Republic of Ireland                         Russia
         Switzerland                           Serbia                 2
                                          Ukraine
HR Centers of Expertise


        Traditional                        Renewed

Selection & Recruitment           Talent Acquisition

Training & Development            Career Path & Career Planning

Performance Management            Employer Branding

Compensation & Benefits           Change management

Employee/Industrial Relations     Coaching

HR Administration                 HR Systems
HR Centers of Expertise


        Traditional                        Renewed

Selection & Recruitment           Talent Acquisition

Training & Development            Career Path & Career Planning

Performance Management            Employer Branding

Compensation & Benefits           Change management

Employee/Industrial Relations     Coaching

HR Administration                 HR Systems
Recruitment: The STAR Model



                                                  STAR
                                                  S - Situation
                                                  T - Task
                                                  A - Action
                                                  R - Result
STAR

ST Identify the situation and/or task the person was doing.
A   Describe the actions – what was done.
R   Describe the results of the actions with the consequence
    on you, others, the organization, etc.
CCH University: Year 2005 - 2013


Welcome                                                        Support business
Training                                            growth through employees’ capability                                                                     Passion to Lead
                                              development, knowledge management, experience
                                                    sharing, both leadership and technical




                                                                                                                                           Human Resources
                        Management Faculty




                                                                                                  Supply Chain Faculty
                                               Commercial Faculty




                                                                       Marketing Faculty




                                                                                                                         Finance Faculty




                                                                                                                                               Faculty
                                                                                    2005 - 2013

                                             Focus on potential development

     Training Results                                               Trainers Certification                                                 Other CCU Initiatives
CCU: Training Programs
                            Support business growth through employees’
                                capability development, knowledge
                               management, experience sharing, both
On-boarding (Welcome Training)        leadership and technical                    BSS, SPIN, Channel
Leadership Pipeline deployment                                                   Activation, Key to Success,
P2L and Leadership Excellence                                                    Coaching
EFC and Wind of Change                                                            RPA, Customer Business
                                                                                 Planning
GMU / LDP /Excel
                                         Management     Commercial                Segmented Execution (RED)
Coaching / Mentoring
                                           Faculty        Faculty                 Sales Excellence Center


Targeted Selection                                                               Creative Thinking Program
GR: C&B programs
                                   Human
                                                   Coca-Cola                     Building Innovation Culture
Developing T&D capability                                            Marketing   Essential of Marketing
                                  Resources       HBC Eurasia         Faculty
Facilitation skills development                                                  Marketing Research
                                   Faculty         University
E&I Relations                                                                    Media Training Program
CIPD                                                                             Other Professional Courses


                                                          Supply
                                              Finance      Chain
                                              Faculty                             Advanced Procurement Skills
 Finance for Non Finance                                  Faculty
                                                                                  PPDS / SNP CoE
 Finance for Commercial
 Professional Finance Programs                                                    SC: Delivery & Warehouse
                                                                                 Universities
(CIMA, CMA, ACCA)
 Project Management                                                               Health & Safety Program
                                                                                  Change Management
 Negotiation Skills
                                       Focus on Potential Development
Purpose of Performance
                   Management



                  1. Identify the work that is getting
                     done

Purpose of        2. Identify the work that is not
Performance          getting done

Management?       3. Make a plan & develop direct
                     reports to get it done

                  4. Improve performance
Performance Management &
                             Development Cycle


                 OBJECTIVE SETTING
                                                 Annual                      People
                                               Performance                 Development
                                                                             Forum
                                                 Review
                  Dec         Jan
                                                               Franchise
                                                Feb
                                                                  PDF
          Nov
                                                                              Management
 Annual                                               Mar        MIP        Incentive Plan –
                                                               Payment       annual bonus
Business
  Plan   Oct

                                                      Apr       Country
                                                                 PDF
          Sep
                                                            Salary
                                                May
                Aug                                          Plan
                                         Jun
                             Jul


                        Interim Review
The Performance/Potential Matrix
                                                           Terminology
                                                           SUSTAINED PERFORMANCE
                                              Exceptional                           Full                             Not Yet Full
                                              Performance                           Performance                      Performance
                                      1 Exceptional/Turn                   3   Full/Turn
                                      EXCEPTIONAL TALENT                                                    6 Not Yet Full/Turn
            Turn Potential                                                 TALENT
                                      • Exceptional performer ready                                         POTENTIAL TALENT
            able to do the work at                                         • Full performer with turn
                                        to turn i.e. to move to the next                                    • Recently moved/promoted to
            the next level in three                                          potential who should further
                                        passage or higher leadership                                          a new job; requires some
            to five years or sooner                                          improve performance before
                                        layer                                                                 time and experience
                                                                             being asked to make a
                                                                                                            • Stretch performance, wait
POTENTIAL




                                      • Move now                             leadership turn
                                                                                                                and see
                                                                           • Stretch performance



            Growth Potential          2   Exceptional/Growth               5   Full/Growth                  8   Not Yet Full/Growth
            able to do the work       HIGH PERFORMER WITH                  PERFORMER WITH POTENTIAL         POTENTIAL PERFORMER
            of bigger jobs at the     POTENTIAL                            •These persons should be         • Performs parts of the job
            same level in the                                              considered for bigger jobs
                                      • Exceptional performer                                                 well, other parts poorly
            near                                                           along current path if they can
                                        capable of continued growth                                         • Get the whole job done
            term                                                           deliver better results
                                        along current path
                                      • Develop for next layer             •Stretch performance


                                      4                                                                     9 Not Yet Full/Mastery
                                          Exceptional/Mastery              7   Full/Mastery
                                                                                                            UNDERPERFORMER
              Mastery                 HIGH PERFORMER                       PERFORMER
              Potential                                                                                     • These individuals are
                                      • Exceptional performer likely to    • Full performer not likely to     frequently working at the
              able to do the same       remain at current level, but         grow beyond the scope of         wrong leadership level
              kind of work, only        whose contributions should be        current job
              better                    recognized                                                          • Performance manage and
                                                                           • Stretch performance                coach tightly for improved
                                      • Reward and recognize
                                                                                                                performance
Elements of Feedback



Motivational                            Developmental
   (Praise/Encouragement):                 (Improvement/further
                                           development):

Tells the person what he or she         Tells the person what needs to
did well and should continue to do      be improved or further developed
                                        and explores possible actions




                  The right balance is key
Possible Remuneration Map


            General Population                     Managers & Senior Managers


                                                                  Stock Options

                                                  Long-term Incentive




                                                                                  Total Remuneration
                  Supply
       Sales       Chain       Other
     Incentive   Incentive   Incentives         Management Incentive


                                           Base Salary


            Employee Stock Purchase Plan (not for all Business Units)
                                            Benefits

13
HR Centers of Expertise


        Traditional                        Renewed

Selection & Recruitment           Talent Acquisition

Training & Development            Career Path & Career Planning

Performance Management            Employer Branding

Compensation & Benefits           Change management

Employee/Industrial Relations     Coaching

HR Administration                 HR Systems
The Leadership Pipeline Model



Passage # 6

                          Passage # 5

Passage # 4

                          Passage # 3

Passage # 2

                          Passage # 1
The Concept

There is a natural hierarchy of leadership work in any
business organization. The required results change
dramatically at key breakpoints in the hierarchy. So when
you are promoted past one of those breakpoints a
transition is required in:
       • Skills
       • Time application
       • Work values


In addition, all the transition points require a letting go of
things that make you successful at one layer and adopting
entirely new ones in order to:
   1. succeed at the new layer and
   2. make those around you successful.
Управление Карьерой
Каждый сотрудник может                      Перспективы Развития
 учиться и развиваться в своей должности      Отдел Продаж

 участвовать в открытом конкурсе на любую     Транспортный Отдел
 вакансию                                     Доставка
                                              Производство
                                              Склад




                             Доставка                        Склад
Breakthrough Model
                                                                     It all Starts with the Business Plans….
                                                                                                                  1

                                                                                                                Destination
                                                                                                                What is the business unit
                             What will it look like in the Market?




                                                                                                                striving to create?
        Market Objectives




4

                                                                     3




                            Current Reality                                       Organizational Capabilities
                            What is the “state” of the business               5
    2                                                                             What are the Work Processes, People, Measurement
                            today?                                                Systems, Knowledge, and Environment we will need?
Employer Branding
20
Introducing Our Road Map for
               Successful Change

                            I
                    Prepare & Increase
                     sense of urgency
          VIII                                II
    Make it stick                        Build guiding
                                            teams



    VII                                            III
                                                 Get the
Don’t let up            Project mgt
                       & Leadership            Vision right



            VI                              IV
    Short-term wins                   Communicate


                            V
                     Empower action
Our 8-Step Change Process

Steps                                      Purpose
1. Prepare and Create a sense of Urgency   Help others see the need and importance of the change

2. Pull together the guiding team          Make sure there is a powerful group guiding the change – one
                                           with leadership skills, credibility, communication ability,
                                           authority, analytical skills and a sense of urgency

3. Get the Vision right                    Clarify how the future will be different from the past, and how
                                           you can make that future a reality

4. Communicate for Understanding and Buy   Make sure as many others as possible understand and accept
in                                         the vision and the strategy


5. Empower action                          Remove as many barriers as possible

6. Produce Short Term Wins                 Plan, create and celebrate some visible, unambiguous
                                           successes as soon as possible

7. Don’t let up                            Continue with wave after wave of change until the vision
                                           becomes a reality

8. Make Change stick                       Hold on to the new ways of behaving, and make sure they
                                           success, until they become strong enough to replace old
                                           traditions


                                                        Source: J. Kotter’s 8 step process
Two approaches to Change:
               Logic and Emotion




     John P. Kotter and Dan S. Cohen ; The Heart of Change: Real-Life Stories of How People Change Their Ogranizations, 2002




Both thinking and feeling are essential, but the true heart of
                change is in our emotions
Stages of Change

Active                                                        Anger               Acceptance
                                      Trigger
                                                                       Bargaining
   Emotional Response




                                                                                                  New State
                        Old State                                                                 • Habits
                                                                                                  • Roles
                        • Habits
                                                                                                  • Identity
                        • Roles                              Performance
                        • Identity
                                                                                        Testing
                                                           Denial




                                          Immobilization                   Depression

Passive
                             Ending                  Transition/Neutral Zone                      Beginning

Hr in current environment

  • 1.
    Human Resources inCurrent Business Environment Moscow, April 24-th, 2010
  • 2.
    Coca-Cola Hellenic ata glance Developing markets Croatia Czech Republic Estonia Hungary Latvia Lithuania Poland Slovakia Slovenia • • Emerging markets Armenia Established • Belarus Bosnia and Herzegovina markets Bulgaria Austria FYROM Cyprus Moldova Greece Montenegro Italy Nigeria Northern Ireland Romania Republic of Ireland Russia Switzerland Serbia 2 Ukraine
  • 3.
    HR Centers ofExpertise Traditional Renewed Selection & Recruitment Talent Acquisition Training & Development Career Path & Career Planning Performance Management Employer Branding Compensation & Benefits Change management Employee/Industrial Relations Coaching HR Administration HR Systems
  • 4.
    HR Centers ofExpertise Traditional Renewed Selection & Recruitment Talent Acquisition Training & Development Career Path & Career Planning Performance Management Employer Branding Compensation & Benefits Change management Employee/Industrial Relations Coaching HR Administration HR Systems
  • 5.
    Recruitment: The STARModel STAR S - Situation T - Task A - Action R - Result STAR ST Identify the situation and/or task the person was doing. A Describe the actions – what was done. R Describe the results of the actions with the consequence on you, others, the organization, etc.
  • 6.
    CCH University: Year2005 - 2013 Welcome Support business Training growth through employees’ capability Passion to Lead development, knowledge management, experience sharing, both leadership and technical Human Resources Management Faculty Supply Chain Faculty Commercial Faculty Marketing Faculty Finance Faculty Faculty 2005 - 2013 Focus on potential development Training Results Trainers Certification Other CCU Initiatives
  • 7.
    CCU: Training Programs Support business growth through employees’ capability development, knowledge management, experience sharing, both On-boarding (Welcome Training) leadership and technical BSS, SPIN, Channel Leadership Pipeline deployment Activation, Key to Success, P2L and Leadership Excellence Coaching EFC and Wind of Change RPA, Customer Business Planning GMU / LDP /Excel Management Commercial Segmented Execution (RED) Coaching / Mentoring Faculty Faculty Sales Excellence Center Targeted Selection Creative Thinking Program GR: C&B programs Human Coca-Cola Building Innovation Culture Developing T&D capability Marketing Essential of Marketing Resources HBC Eurasia Faculty Facilitation skills development Marketing Research Faculty University E&I Relations Media Training Program CIPD Other Professional Courses Supply Finance Chain Faculty Advanced Procurement Skills Finance for Non Finance Faculty PPDS / SNP CoE Finance for Commercial Professional Finance Programs SC: Delivery & Warehouse Universities (CIMA, CMA, ACCA) Project Management Health & Safety Program Change Management Negotiation Skills Focus on Potential Development
  • 8.
    Purpose of Performance Management 1. Identify the work that is getting done Purpose of 2. Identify the work that is not Performance getting done Management? 3. Make a plan & develop direct reports to get it done 4. Improve performance
  • 9.
    Performance Management & Development Cycle OBJECTIVE SETTING Annual People Performance Development Forum Review Dec Jan Franchise Feb PDF Nov Management Annual Mar MIP Incentive Plan – Payment annual bonus Business Plan Oct Apr Country PDF Sep Salary May Aug Plan Jun Jul Interim Review
  • 10.
    The Performance/Potential Matrix Terminology SUSTAINED PERFORMANCE Exceptional Full Not Yet Full Performance Performance Performance 1 Exceptional/Turn 3 Full/Turn EXCEPTIONAL TALENT 6 Not Yet Full/Turn Turn Potential TALENT • Exceptional performer ready POTENTIAL TALENT able to do the work at • Full performer with turn to turn i.e. to move to the next • Recently moved/promoted to the next level in three potential who should further passage or higher leadership a new job; requires some to five years or sooner improve performance before layer time and experience being asked to make a • Stretch performance, wait POTENTIAL • Move now leadership turn and see • Stretch performance Growth Potential 2 Exceptional/Growth 5 Full/Growth 8 Not Yet Full/Growth able to do the work HIGH PERFORMER WITH PERFORMER WITH POTENTIAL POTENTIAL PERFORMER of bigger jobs at the POTENTIAL •These persons should be • Performs parts of the job same level in the considered for bigger jobs • Exceptional performer well, other parts poorly near along current path if they can capable of continued growth • Get the whole job done term deliver better results along current path • Develop for next layer •Stretch performance 4 9 Not Yet Full/Mastery Exceptional/Mastery 7 Full/Mastery UNDERPERFORMER Mastery HIGH PERFORMER PERFORMER Potential • These individuals are • Exceptional performer likely to • Full performer not likely to frequently working at the able to do the same remain at current level, but grow beyond the scope of wrong leadership level kind of work, only whose contributions should be current job better recognized • Performance manage and • Stretch performance coach tightly for improved • Reward and recognize performance
  • 11.
    Elements of Feedback Motivational Developmental (Praise/Encouragement): (Improvement/further development): Tells the person what he or she Tells the person what needs to did well and should continue to do be improved or further developed and explores possible actions The right balance is key
  • 12.
    Possible Remuneration Map General Population Managers & Senior Managers Stock Options Long-term Incentive Total Remuneration Supply Sales Chain Other Incentive Incentive Incentives Management Incentive Base Salary Employee Stock Purchase Plan (not for all Business Units) Benefits 13
  • 13.
    HR Centers ofExpertise Traditional Renewed Selection & Recruitment Talent Acquisition Training & Development Career Path & Career Planning Performance Management Employer Branding Compensation & Benefits Change management Employee/Industrial Relations Coaching HR Administration HR Systems
  • 14.
    The Leadership PipelineModel Passage # 6 Passage # 5 Passage # 4 Passage # 3 Passage # 2 Passage # 1
  • 15.
    The Concept There isa natural hierarchy of leadership work in any business organization. The required results change dramatically at key breakpoints in the hierarchy. So when you are promoted past one of those breakpoints a transition is required in: • Skills • Time application • Work values In addition, all the transition points require a letting go of things that make you successful at one layer and adopting entirely new ones in order to: 1. succeed at the new layer and 2. make those around you successful.
  • 16.
    Управление Карьерой Каждый сотрудникможет Перспективы Развития учиться и развиваться в своей должности Отдел Продаж участвовать в открытом конкурсе на любую Транспортный Отдел вакансию Доставка Производство Склад Доставка Склад
  • 17.
    Breakthrough Model It all Starts with the Business Plans…. 1 Destination What is the business unit What will it look like in the Market? striving to create? Market Objectives 4 3 Current Reality Organizational Capabilities What is the “state” of the business 5 2 What are the Work Processes, People, Measurement today? Systems, Knowledge, and Environment we will need?
  • 18.
  • 19.
  • 20.
    Introducing Our RoadMap for Successful Change I Prepare & Increase sense of urgency VIII II Make it stick Build guiding teams VII III Get the Don’t let up Project mgt & Leadership Vision right VI IV Short-term wins Communicate V Empower action
  • 21.
    Our 8-Step ChangeProcess Steps Purpose 1. Prepare and Create a sense of Urgency Help others see the need and importance of the change 2. Pull together the guiding team Make sure there is a powerful group guiding the change – one with leadership skills, credibility, communication ability, authority, analytical skills and a sense of urgency 3. Get the Vision right Clarify how the future will be different from the past, and how you can make that future a reality 4. Communicate for Understanding and Buy Make sure as many others as possible understand and accept in the vision and the strategy 5. Empower action Remove as many barriers as possible 6. Produce Short Term Wins Plan, create and celebrate some visible, unambiguous successes as soon as possible 7. Don’t let up Continue with wave after wave of change until the vision becomes a reality 8. Make Change stick Hold on to the new ways of behaving, and make sure they success, until they become strong enough to replace old traditions Source: J. Kotter’s 8 step process
  • 22.
    Two approaches toChange: Logic and Emotion John P. Kotter and Dan S. Cohen ; The Heart of Change: Real-Life Stories of How People Change Their Ogranizations, 2002 Both thinking and feeling are essential, but the true heart of change is in our emotions
  • 23.
    Stages of Change Active Anger Acceptance Trigger Bargaining Emotional Response New State Old State • Habits • Roles • Habits • Identity • Roles Performance • Identity Testing Denial Immobilization Depression Passive Ending Transition/Neutral Zone Beginning