Quicklinks

Executive summary

There is one women on Nestlé's Executive Board out of 13 directors

  1. Nestlé‘s CEO is committed to building a better gender balance in the company, in order to improve business performance
  2. It is not about expecting women to be the same as men. On the contrary, the point is to encourage women to bring their different point of view to the business
  3. The change starts at the top. The aim of the programme is to show the leaders of the company what the business is losing in terms of talent and resources because of its gender imbalance

Women mean business at Nestlé

The long-term business goal of gender diversity

Paul Bulcke, championing the role of women at Nestlé

Nestlé has only two women on its main board and up until recently no women at all on its executive board, somewhat surprising for a company whose customers are primarily women. In May 2009, Nestlé executive Petraea Heynike became the first woman to be appointed to the company’s Executive Board. In her role as Executive Vice President, she is responsible for the strategic business units, marketing, sales and Nespresso.

In September 2008, Paul Bulcke, the current CEO appointed exactly a year before, delighted Nestlé‘s shareholders with an announced 6.1% increase in net earnings in the first half of the year. Not a bad performance at a time of global financial turmoil and widespread corporate malaise.

At the same time, away from the glare of the media spotlight, Bulcke, encouraged by Peter Brabeck-Letmathe (now Chairman of the Board) is leading a strategic move towards building gender diversity at Nestlé.

To discuss how this is happening, Bulcke spoke exclusively to Avivah Wittenberg-Cox, publisher of WOMENomics about its new gender diversity initiative at the company.


“I may be wrong but I believe that a woman is driven by a different dynamic. I would say she is more balanced and less aggressive. A woman’s style is more inclusive and less ‘winner-loser’ oriented when compared to men, whose nature is often more competitive.”


One of the issues hampering gender balance has been career mobility. Says Bulcke: “We are a multinational company and multinational means quite a lot of people travelling around and having their careers in one country and then moving from one country to another. Maybe we didn’t condition the practicality of how we organize this and that our approach was based on a ‘man’s’ world”.

Moving ahead, Nestlé aims to better utilise talent by evolving its corporate culture from a traditional male one into a more gender diverse hybrid. “I definitely think that it has everything to do with business, in the sense that gender balance is going to lead us to unlocking the resources that we have, the talent that we have, that we haven’t unlocked until today.”

Bulcke passionately dismisses the idea that women should try to be the same as men. “Definitely not, because then we would lose what we are looking for…the other angle, the other way of seeing things. It would be going 180 degrees in the wrong direction. It’s all about complementarity.”

So what is that difference? “I would say that a man is someone who wants to be in the forefront….I may be wrong but I believe that a woman is driven by a different dynamic. I would say she is more balanced and less aggressive. A woman’s style is more inclusive and less ‘winner-loser’ oriented when compared to men, whose nature is often more competitive.”


“Success is linked to women being women and flourishing as themselves. It’s only then that you have the complementary elements and that richness coming to the surface.”


As with other male leaders such as Carlos Ghosn, Head of Renault and Nissan, who has three daughters, personal experience and family life has led Bulcke to arrive at a very different vision for women in business in the future. “Success is linked to women being women and flourishing as themselves. It’s only then that you have the complementary elements and that richness coming to the surface.”

For a company of 276,000 employees worldwide with annual sales of $95 billion in 2007, Nestlé’s gender initiative is a large undertaking. If successful, the impact could inspire many other companies to follow suit. But Bulcke recognises, shrewdly perhaps, that “you cannot change a mindset such as this overnight.” The first step, he believes, is to make the leaders at the company aware of the lost business opportunities that gender imbalance creates and of the need for change through “inducing and convincing, rather than legislating.”


“It is about understanding our consumers…who can understand female consumers better than women?”


At this delicate moment, Bulcke does not want to be too prescriptive about more gender balance at the top. “Let’s do it…we have to balance this. But I am not saying this has to be a 50-50 balance or a 90-10 one. But perhaps somewhere in between. I don’t want to put a figure on this. Otherwise, we could fall into the trap of fixing it into a time when we might have our ‘photo-finish’ moment for an annual report, for example, but then everything stops. That’s not how we work as a company.”

The focus will be on making the current leaders understand how much talent and resources are being squandered by the current gender imbalance. At the same time, Bulcke wants to make sure the process does not become too threatening to men in the company. “It should happen naturally….it should not be threatening, otherwise the men will become defensive and when people are defensive they are not successful.”

At the core of his message to his top leaders will be the hard business case that company such as theirs must understand women, who make up the bulk of their consumers. “It is about understanding our consumers…who can understand female consumers better than women? I am not saying men cannot understand them. But again it is about having a complementary perspective. Above all, it’s the business opportunity that will drive the gender balance initiative at Nestlé.”

Share

Bookmarks

Bookmark at: Digg Bookmark at: Del.icio.us Bookmark at: Facebook Bookmark at: StumbleUpon

Comments

This article hasn't been commented on yet.

CAPTCHA image

Paul Bulcke, CEO, Nestlé

“Gender balance is going to lead us to unlocking the resources that we have, the talent that we have, that we haven’t unlocked until today.”