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Diageo
Embedding Shareholder Value Creation into everyday decision-making
“Best explanation of EP I’ve ever seen”
Training participant
Diageo, the premium drinks multinational, was formed in 1997 and now trades in over 180 markets around the world. The company is listed on both the London and New York Stock Exchanges
The Challenge
The company was looking to embed the concepts of Economic Profit, Managing for Value, and Shareholder Value Creation into the daily language and decision making of managers throughout four very diverse divisions – Guinness, Pillsbury, Burger King and United Distillers & Vintners.
Our Approach
ProfitAbility designed four different business simulations, one for each division, and which reflected Diageo’s overall business strategy. Teams competed to increase market share, while maintaining prices, and managing costs and the balance sheet. Shareholder Value Creation was the ultimate measure of success.
The Outcome
The language of Value Creation became completely embedded in the company’s culture, and in the thinking of managers in every discipline. Each group of participants reported back enthusiastically. Guinness liked the programme so much that the division continued the training out of its own budget, and ran courses for another 800 managers and staff. Pillsbury also continued using the programme, and a modified version runs today within General Mills.