The DIAGEO Way of Business Performance

Management: Introductory Learning Event

Note: in addition to this slide pack, you will need a short video for this
workshop. To obtain a copy, please contact Andrew Derodra, Director of
Performance Management, Diageo London
Business performance management
To energise teams so they can lead the new ways of
working that boost performance and growth.
To equip participants with the ability and willingness to
implement BPM their respective businesses.
To stimulate further development of the skills and
behaviors needed to make the DIAGEO Way of
Managing Business performance happen.
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BPM Learning Event: Objectives
BPM Learning Event: Outcomes
You will go away with:
A shared understanding of, and mindset for, BPM
An appetite to use what you have seen and learned.
An action plan to implement BPM, starting from
next Monday.
Actions on your Be the Best development plan to
further develop your BPM behaviors and capabilities.
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BPM Learning Event: Guidelines
Target audience: this learning event has been designed primarily for business
unit management teams.
Timing: the proposed duration of this event is a half day. However, as the level of
implementation of BPM varies widely across DIAGEO, business units may decide
to extend or cut back the duration of the event.
Pre-read: it is strongly recommended that participants familiarize themselves with
the BPM manual prior to this event.

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I) The WHAT: Developing a shared understanding of BPM
II) The WHY: Why BPM can add value to your business
III) The HOW: A diagnostic of BPM in your business
IV) The HOW: Getting the right enablers
V) The WHO / HOW / WHEN: Developing your action plan
IMPLEMENTATION
BPM Learning Event: Flow
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I) The WHAT: Developing a shared understanding of BPM
The DIAGEO Way of BPM:
Introductory Learning Event
Sponsorship message from the Diageo Exec
Business performance management
Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
Exercise 1: Developing a shared understanding of BPM
I) Break out into teams (or individually) for 15 minutes and:
Define what BPM means to you*.
Define an end state vision of BPM in your company.
II) Reconvene in one group: identify the common themes that define BPM and the
ultimate vision for your management team.
Note: you may want to place separate headings of tools, enablers and vision, then place/group
individual post it notes by common themes.
BPM definition
A fully rounded suite of management processes and
behaviours that can deliver exceptional performance
on a continuous basis.
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BPM Vision
DIAGEO is committed to becoming an organisation that consistently exceeds performance
expectations by creating a high performance culture. Such a culture is characterised by:
A clear and transparent target setting process based on the principle of equal stretch in
tune with demands of stakeholders.
A dynamic strategic planning process whose objectives / initiatives are clearly
documented in an annual Performance Promise, owned / executed by cross functional
teams at every level of the organisation through a culture of commitment to deliver
(promises made, promises kept).
Clear expectations and accountability for all employees through KRAs that directly link
strategy to action and reward to performance.
Objective, timely and transparent performance measures through single monthly
reports that include balanced scorecards.
Performance dialogues centered around QBRs, callovers and HPC moments that focus
on tackling issues and opportunities that ensure delivery of the Performance Promise and
strategic initiatives.
Note: Section 2.1 of the DWBPM document brings this vision to life in the words of a GM.
You should also now run the Video (7 minutes), which covers perspectives on BPM from
around the Diageo world.
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Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
II) The WHY: Why BPM can add value to your business
BPM and the DIAGEO Way Framework
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BPM is a central element of the DIAGEO Way
DWBB DWBT/PPM
Strategy
TARGETS
PERFORMANCE
PROMISE
Brand KPIs KRAs
What
How
GAME Plans/
Trade strategy
Capabilities
RESULTS
PERFORMANCE
Objectives
Execution
BPM report
Execution
Be the Best
Consumer
Understanding
review
Consumer &
customer
Goals
BRAND GROWTH REWARD
FEEDBACK LOOP
- QBR, call over &
BPM meetings
DWBPM
Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
III) The HOW: A diagnostic of BPM in your business
Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
The BPM Diagnostic tool an overview
Business Performance Management Diagnostic tool



N
o.

Sub Process

From

Rating
(x = current, z = target)

To

Comments



1

2

3

4

5

6





1

Targets

A protracted process of iterative
bargaining between the centre and
the IMC local management to agree
future targets.













Local teams embrace
the principle of equal
stretch across the
group, and as such are
in tune with the
demands of
stakeholders. In all
areas, targets are
owned and in
themselves stimulate
a culture of
continuous
improvement in
performance.




2

Strategic Planning

Annual strategic planning exercise
not linked to the day to day
working.













Strategic planning is
an ongoing dynamic
process owned and
shared by all
employees.
Continuous learning
is fed back to enrich
the strategic thinking
and execution plans
are amended as
required.




Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
Exercise 2: Developing a gap analysis of BPM in your business
The BPM Diagnostic tool can help you identify key gaps and priority areas for
implementing BPM in your business, as follows:
Break out from the group and complete the tool individually.
Reconvene the team and collate the results.
Discuss / agree the gaps.
Prioritise the gaps to address.

Note: for a more effective session you may decide to include a facilitator.
Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
IV) The HOW: Getting the right enablers
To Be BPM
Process
Technology
Jobs, capabilities &
structure
Management systems,
Metrics, KPIs
Values & behaviors
Exercise 3: Using the BPM manual as a guide, identify the key enablers for
each of the key processes identified through the Diagnostic tool.
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The Hammer Diamond for
Business Change may prove
useful please adopt the tool
most effective for your team.
The DIAGEO Way of BPM:
Introductory Learning Event
Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
V) The WHO / HOW / WHEN: Developing your action plan
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BPM: Barriers & risks to
implementation
I
m
p
a
c
t

Likelihood
What are the barriers / risks of
implementation, and what action
can you take to mitigate these?
Carefully consider your
experience to date rolling out
BPM.
Exercise 4: identify barriers and risks to implementation of BPM in your
business.
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BPM: Blockers & Enablers
Not invented here
BPM = another initiative
BPM seen as the responsibility of
the Finance function
Weak systems
Doing all the BPM processes at
once

Sponsorship from the GM
Clear Vision and Strategy, Clear
Targets and Metrics
Solid Systems
Cross-functional teams
Diageo Values and how we work
DWBPM Manual and Tool Box

Blockers Enablers
Exercise 5: develop an action plan for your business.
Business performance management
The DIAGEO Way of BPM:
Introductory Learning Event
Develop a high level, SMART implementation plan that:
Includes what, how, when, who.
Builds on your understanding of BPM, gap analysis, key enablers and barriers
to implementation identified in the above exercises.
Identifies a senior sponsor and BPM champion/s.
Establishes an ongoing mechanism for tracking progress e.g. a BPM
agenda item in your QBRs.

Tip: Remember that there is a natural business cycle with which BPM fits - you
dont need to do all of BPM on day 1
BPM: Critical Success Factors
Business Performance Management
Business unit GMs formally sponsor BPM as a top priority.
Business units adopt BPM process and enablers (or 80/20 implementation of
highest impact / value adding processes).
Employees to (at least) level 5 can articulate the link between their KRAs and
business strategy and their performance to reward.
The use of search & spin to call upon the wider global support network.
Dedicated & appropriate local resource, e.g BPM champions.
What are the critical success factors for your business?
BPM Implementation: bringing it all together.
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Shared
understanding
Gap analysis
Critical success
factors
Risks & barriers
Implementation:
What, how, when, who
The DIAGEO Way of BPM:
Introductory Learning Event