Fostering Enterprise Talent in Employees

Martin GlennPresident, PepsiCo UK & Ireland

Sun Tzu he say….

“He will win who’s winning spirit is spread throughout the ranks”

Winning spirit is competitive advantage

PepsiCo UK is big and complex

14mm Packets of Crisps per day

250,000 Points of distribution

People make strategy happen

“An average plan well executed beats a brilliant plan done poorly”

Quality “Every bag every bite”

Productivity “Every little helps”

Distribution “Arms reach”

Fostering the spirit of ownership

• Create the desire

• Share success

•Contribute to the community

• Business plans shared at the start of each year through the interactive and involving Learning Map mechanic to all 5000 employees• Individual and team KPI’s clearly linked to business goals

Create the desire

Create the desire

Performance is tracked continuously – team results vs targets visible to all

Create the desire

• Every employee in every plant takes time off the line every month to: - review performance - identify issues and solutions - agree how to action

• Continuous Improvement is a way of life

Share success

Sharepower Unique, global PepsiCo stock option programme

Every UK employee automatically enrolled

Annual grant of 10 – 15% of salary in options

Reinforce an ownership culture

Over $1.5 billion paid out in stock option gains since scheme began in 1989

Share success

Pension scheme Final salary pensions disappearing in

the UK

3 in 4 are now shut to new members

Security retirement is a priority for our employees and their families

Every UK employee, including new hires, can join a high quality, flexible final salary plan

Share success

MAD Awards

• Aspirational awards programme running across the total business• Recognises people who go significantly over and above• 340 award winners in the last 10 years• Annual winners enjoy a VIP trip to San Francisco• Some previous winners: - Farida from Leicester - Paul & Julian from Coventry

Contribution to the community

Peterlee Learning Centre

Learning facility in our Peterlee plant, East Durham

Accessible to our employees, their families, local schools, SME’s and community organisations

Funded in partnership with local government

Learn Direct support and infrastructure

Greatest demand for basic skills programmes –the foundation for future success

Contribution to the community

Reading buddies

• 9 year history• Over 20 schools across the country• Over 100 employees• Employees ‘buddy’ with schools to listen to children read• Donations of £200/year to each school to invest in books

Contribution to the community

Partners in leadership

• Head teacher mentoring

• Head teachers and business leaders partner to share expertise and build coaching skills

• 13 partnerships currently in place

Peepul Centre Enterprise project

£200,000 Donation• Leicester-based community organisation• Supports local people to fulfil their potential, e.g.

— new business start up— domestic violence support— Asian women into business

The business case

Costs

Employee regard

Costs 7.4%

11.1% 10.7%

4.3%

0%

2%

4%

6%

8%

10%

12%

2001 2002 2003 2004

• PepsiCo UK Net Revenue Growth

• 1998 – 04 Walkers reduced its manufacturing costs by 14% (2.5% per annum) funding innovation & growth no price rise for 6 years

• Front line turnover consistently <5%• Front line absence consistently <5%• Our people are proud to work here (70%+ in our employee surveys)