We need to get our new joiners rapidly up to speed with how our business works.
Things that work, last. In 1998 Nestlé asked us to help them to expand business finance beyond the board room – to give thousands of managers an experience that would enable them to truly understand how their business works. More than twenty years later, the pro- gram sits at the heart of how Nestlé rapidly upskill their people.
The problem to solve
Nestlé had two key objectives:
Promote the use of a common financial language across the business, in all countries and at all levels, so that meaningful decisions could be made and acted upon with consistency.
Enable each employee to clearly understand how their decisions impact Shareholder Value and how each could contribute more value in the light of this understanding.
Things that work, last
Over 100,000 employees since 1998 have been trained to understand the exact workings of Nestlé’s business
“Managers who participate in this programme have a much greater understanding of the financial levers available to them and of their inter-de- pendent effect. When we talk about Economic Profit in a cross-discipline, crosscontinent meeting, everyone who has experienced ‘Value Creation’ has the same understanding.”
We worked with Nestlé to build an experience that went beyond the basics of financial management. We built something that truly reflected the reality of Nestlé’s business.
Called ‘Value Creation’, the simulation reflects the relationships between sales volume, price, cost of goods, brand support, research and the capital investment unique to their business. Specific context was created by choosing three product categories: coffee, chocolate and ice cream. As Nestlé’s managers participate in the experience, they can immediately see the commercial reality of their actions, as if it were really happening
More than 1,000 Nestlé managers go through the pro- gram each year, and Nestlé people now speak the same language and use the same terminology, no matter where in the world they work.
Over the past twenty years, we have been commissioned to build, customise and deliver five further programmes for Nestlé and these are embedded throughout their training centres to enable ongoing people development.