Nestle's Leadership Development Program

This case study examines Nestle's Leadership Program implemented between 2003 and 2006 to address the company's need for transformational leadership. It details the program's structure, including 360-degree feedback from peers, superiors, and subordinates provided by external facilitators. The success of the initial program led to its expansion to 4,000 middle managers, costing approximately $25 million in 2006 alone. The case highlights how the program fostered a culture of change, improved communication between generations, and contributed significantly to Nestle's overall development.

Running head: LEADERSHIP AND CHANGE MANAGEMENT
Leadership and change management
Name of the student:
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Table of contents
Literature review..............................................................................................................................2
Change management........................................................................................................................2
Leadership and change management...............................................................................................2
Role of management in implementing change................................................................................4
Lewins’s change management model..............................................................................................4
Kotter’s change model.....................................................................................................................6
Change management in Nestle........................................................................................................8
References:....................................................................................................................................10

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Literature review:
Change management:
According to Hayes (2014), change management is an organized way to deal with
progressing people, groups, and associations from a present state to a coveted future state, to
satisfy or execute a dream and methodology. It is an authoritative procedure went for engaging
representatives to acknowledge and grasp changes in their present condition. There are a few
unique streams of belief, which have molded the act of change management. Change
management is the formal procedure for hierarchical change, including an orderly approach and
use of learning. Change management implies characterizing and receiving corporate
methodologies, structures, systems, and innovations to manage change coming from inward and
outside conditions. Change management is a basic piece of any venture that leads, oversees, and
empowers individuals to acknowledge new procedures, advances, frameworks, structures, and
qualities. It is the arrangement of exercises that enables individuals to progress from their present
method for attempting to the coveted method for working. A change exertion or activity must
begin with a dream. Regardless of whether change is incited by outer (political, monetary, social
or technological) or interior variables (policy, frameworks or structure), making a dream will
clear up the heading for the change. Moreover, the vision will help in rousing those that are
affected to make a move the correct way (K. Vora, 2013).
Leadership and change management:
According to Burke (2017), leader implies somebody who has the leadership and power
to control a gathering of individuals and get it sorted out for a specific assignment or objective.
Leader has an unmistakable vision for the welfare of his association and improvement of his

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association. Administration is that nature of leader by which he drives the group or his gathering.
Leadership has six essential identity qualities named as; self-assurance, aspiration, drive and
perseverance, authenticity, mental transparency, craving for learning, inventiveness, decency and
devotion. To include different individuals from group in basic leadership is additionally the piece
of administration.
Hornstein (2015) shows three establishment attributes for a man to be in an influential
position in the advanced associations and they are of a designer, an instructor, and a steward.
These three qualities help with illuminating mission, vision and qualities; distinguishing
procedures, structure and strategies; creating productive learning forms; and encouraging
subordinates to build up their mental model persistently and think methodically.
For a compelling change, several researches have uncovered that charismatic leadership
and trust in top administration both are essential. They are firmly related with change executing
conduct, observing of anticipators, administration level, and division association. As indicated by
Bolman & Deal (2017), the leader, as a man, is the most critical device for change. The leader's
soul, knowledge, insight, empathy, qualities, and learning aptitudes are immeasurably imperative
features in the abilities to lead others to grasp change and upgrade. The leader who prompts
change inside a firm is regularly subject to rough idea. It is the leadership’s conduct that rolls out
the improvement circumstances more compelling. Because of the present financial condition for
fruitful authoritative improvement, the key characterized by Gollenia (2016) is epitomized in the
administrative leaders' states of mind, and the equivalent considerations and sentiments imparted
to the world, both inside and outside of their associations.

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Role of management in implementing change:
According to Goetsch & Davis (2014), management is responsible for distinguishing
inclines in the full scale condition and additionally in the microenvironment in order to have the
capacity to recognize changes and start programs. It is likewise essential to evaluate what affect a
change will probably have on behavior of the employees, work forms, innovative necessities, and
inspiration. Management must survey what employee’s responses will be and create a change
program that will offer help as specialists experience the way toward accepting change. The
program should then be actualized, spread all through the association, observed for adequacy,
and balanced where essential. Associations exist inside a dynamic domain that is liable to change
because of the effect of different change "triggers, for example, advancing technologies. To keep
on operations adequately inside this natural turbulence, associations must have the capacity to
change themselves because of inside and outside initiated change. In any case, change will
likewise affect upon the people inside the association. Viable change management requires a
comprehension of the conceivable impacts of the changes upon individuals and the ways to
oversee potential wellsprings of imperviousness to that change. Change can be said to happen
where there is an imbalance between the present state and the environment.
Lewins’s change management model:
The idea of change management is well-known in many associations today yet how they
oversee change (and how fruitful they are) fluctuates massively relying upon the idea of the
business, the change and the general population included. According to Gollenia (2016),
associations that handle change well seem to flourish, while those that don't may battle to
survive. A key piece of this relies upon how far individuals inside the association comprehend

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and manage the change management. One of the foundation models for understanding
authoritative change was produced by Kurt Lewin in the 1950s, is as yet utilized today. His
model is a simple and straightforward structure for overseeing change known as Unfreeze –
Change – Refreeze. Lewin clarified hierarchical change utilizing the similarity of changing the
state of a square of ice, i.e. unfreezing an expansive solid shape of ice to transform it and change
it into a cone of ice. By perceiving these three unmistakable phases of progress, one can plan to
actualize the change required. One begins by making the inspiration to change (unfreeze) as it is
important to change existing mentalities towards working practices and set up the ground.
Correspondence about the proposed change is important at this stage if individuals are to
comprehend and bolster it. One travels through the change procedure by advancing successful
correspondences and enabling individuals to grasp better approaches for working and learn new
esteems, states of mind and practices. Issues are distinguished and activity designs are created to
empower execution. Greatest adaptability is required in the arranging and execution of the
change (Matos Marques Simoes, & Esposito, 2014). The procedure closes when the association
comes back to a feeling of steadiness (refreeze) and the advantages of the change are
acknowledged, which is vital for making the certainty from which to leave on the next
unavoidable change. Acclaim, rewards and other fortification by managers are required on an
individual level and more successful execution at an authoritative level. Not until the point that
the change has turned out to be consolidated into the way of life would it be able to be said to be
solidified.

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Figure: Lewin’s Framework for change
(Source: Hayes, 2014)
Kotter’s change model:
Kotter believed that it is essential to go through several steps in order to successfully
implement changes within an organization. The first step involves creating a sense of urgency.
According to him, for a change to be successful, more than 75 percent of the management of the
company must feel the need and urgency of the change. The change must be implemented as
soon as it is identified as any delay in implementing change might lead to losses and inefficiency
of the organizations. The second step involves creating a guiding coalition. This step mentions
that it is necessary to involve the organizational people in order to successfully implement the
change because the senior management and executives can not alone implement the change. The
senior authorities are required to guide the employees of the organization and help them to adapt

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with the changes. The third step involves developing a vision and strategy. It is necessary to
develop a proper strategy and vision (Van der Voet, 2014). The change manager is responsible
for developing appropriate strategies that will guide the change process. They are required to
involve all the key stakeholders in the change management process.
The fourth step is conveying the change vision. It is very necessary to communicate the
changes that are to be implemented within an organization that shall affect the key stakeholders.
Change can not be implemented successfully by mere planning the change instead, it is
necessary to convey the changes to the related stakeholders so that they can prepare themselves
for the changes to be implemented within the organization. The fifth step involves empowering
employees. In this step, the change is not only conveyed to the related stakeholders but also they
are allowed to come up with their thoughts, fears and ideas regarding the change. It is essential to
involve the people who shall be affected due to the changes so that there is no resistance and the
change is implemented without any hurdles (Pollack & Pollack, 2015).
The sixth step involves generating short- term wins. Maintaining momentum is essential
for the successful implementation of change. Short- term wins is one of the strategies that help in
the successful implementation of changes by achieving early success. The seventh step involves
consolidating gains. In this step the short- term wins shall have a positive impact on the related
people and they shall be encouraged to further implement the change in order to obtain long-
term gains. The eighth step involves anchoring new approaches in the culture (Fullan, 2014). The
organizations must be constantly involved in developing new approaches that help in the
organizational development because the approaches that have been successful in the past might
not be successful in the future. Therefore, the organizations must be creative and innovative and
come up with a new approach when the previous approaches seem to be of no use.

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Change management in Nestle:
Nestle is a Swiss multinational company that is involved in production of transnational
food and drink. The company produces dairy products, confectionaries, coffee, tea, snacks and
several other food and drinks items. The company is ranked among the top 100 companies in the
world (http://www.nestle.com/). However, the company faced several issues in its pyramidal
model that required several changes. Several changes were required to be implemented in the
organizational structure in order to keep it functioning effectively.
The company moved towards becoming a non-pyramidal association that empowers a
system culture implied that Nestlé needed to decrease its various hierarchical levels. In 2002, the
company began to survey its overall association, with the motivation behind building a
coordinated and adaptable authoritative structure, while keeping up its development. Inspiring
administration Nestle needed to change the way directors wanted commitments from their staff.
Obviously, in the event that they needed greater arrangement, knowledge, collaboration, and
activity, it would need to begin with an adjustment in the way supervisors drove their kin.
Two projects were created to address this issue: The Nestle Leadership Program and the
Develop People activity (http://www.nestle.com/). According to the Nestle Leadership Program,
the company needed both leaders and managers. Nestle built up this program around four
principle convictions.
1. In a progressive association authority change should begin with the top line.
2. Authority abilities could be enhanced just if chiefs acknowledged that they could enhance and
in this way it should have been a self-advancement program, not an appraisal apparatus. Both
direct administration inclusion and any connection with pay were disposed of.

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3. Thusly, it must be keep running with an outside association, generally administrators may not
concede that they can make strides. Besides, they could feel that their conceivable shortcomings
would not conflict with them as far as reward.
4. The program ought to be founded on real criticism from every administrator's associates that
involved companions, bosses and subordinates. This input, additionally gathered by the outside
association and incorporated the individual himself/herself, was the most imperative piece of the
program. Results were given to the administrators by proficient mentors and full privacy was
guaranteed.
Around 450 administrators went to in the vicinity of 2003 and 2006. Besides, Nestle
broadened the program and moved it out to another 4,000 center supervisors beginning mid 2006
(http://www.nestle.com/). Nestle utilized a similar association to convey this decentralized
program. It had a universal system with three focuses: Singapore, Miami and London.
Extraordinary care was taken to guarantee that the decentralized program had an
indistinguishable attributes from the best line program and that it was of a similar quality. In
2006 alone somewhere in the range of 1,200 members went to at a cost of about $25 million
(http://www.nestle.com/). The Leadership Program did a ton to advance "Nestle on the Move"
amid the program. Top officials were as one with the more youthful era, which extraordinarily
helped the difference in mindset. This change helped in the further development of the
organization.

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References:
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
Burke, W. W. (2017). Organization change: Theory and practice. Sage Publications.
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Fullan, M. (2014). Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Gollenia, L. A. (2016). Business transformation management methodology. Routledge.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
K. Vora, M. (2013). Business excellence through sustainable change management. The TQM
Journal, 25(6), 625-640.
Matos Marques Simoes, P., & Esposito, M. (2014). Improving change management: How
communication nature influences resistance to change. Journal of Management
Development, 33(4), 324-341.

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Nestle.com. Retrieved 18 August 2017, from http://www.nestle.com/
Pollack, J., & Pollack, R. (2015). Using Kotter’s eight stage process to manage an organisational
change program: Presentation and practice. Systemic Practice and Action
Research, 28(1), 51-66.
Van der Voet, J. (2014). The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational
structure. European Management Journal, 32(3), 373-382.