NOVEMBER 2005
PRIORITIES
FOR ACTION
Usually the Heineken Head Office, located in Amsterdam, is a busy place.
Not today though. Here, in the middle of a workday afternoon the place is
deserted as the Head Office is—temporarily—relocated. It's fitting that the
only person in the building today is Jean-Frangois van Boxmeer, newly
appointed Chairman and CEO of Heineken.
In the now empty corridors of the Head Office, Jean-Frangois and his
partners in the Executive Board and Executive Committee have set in
motion the next stage in the evolution of the company: a focus on speed of
decision making and faster implementation of the Heineken strategy. "It's in
the execution that we'll make real changes, not in the strategy," he says.
It is obvious that the new management team is committed to improving
performance and challenging the competition. Four priorities for action
clearly set out the new agenda: accelerating top-line growth, accelerating
efficiency improvement, accelerating speed of implementation and decision
making and focusing on selective market opportunities.
When Jean-Frangois outlined these priorities at the half-year results
presentation on September 7th of this year, the media was quick to claim
that he was about to make a radical shift in culture. "But", says Jean-
Frangois, "you don't change culture by decree, you change it by behaviour,
and that starts at the top."
This extends even to the point of sale in pubs, clubs, bars and
restaurants; places where Jean-Frangois has made a call for performance
better than that of his competitors, and a 'do it' culture. "I think that a
perfect cold beer served with a smile is still an important element of
success. We have to start with a smile from ourselves when we meet the
pub and restaurant owners, when we present our business proposals,"
explains Jean-Frangois. "We're here to make the best beer and to ensure
that we and our trade partners can make money selling it," he continues.
"A lot of it is about putting the right people in the right spot and
recognising the value of excellent implementation. When we speak about
commercial excellence, the execution of our plans and strategy should be
at the top of the list alongside driving top-line growth. So we need 'doers',
as well as thinkers. In short, people who will go for it, who have the self-
confidence and who will just go out and do it", he explains passionately.
Jean-Frangois could be describing his own career. He is, and always has
been, a 'can-do' manager whose experience with Heineken mirrors the
fortunes of the company. "I had my first sip of Heineken in New York City,
July 1984, and I started working with Heineken in September that same
year. I was still in New York when my father phoned to tell me that I had
received my contract to begin working at Heineken. It all fitted together
very well," he recollects.
He also knew why a Belgian would want to work for a Dutch-based
brewer. "Unlike the Belgian brewers who were very inward-looking, I wanted
to work for a company with an international vision." Starting his traineeship
with a placement in Cameroon, Jean-Frangois got what he was looking for.
His next placement was Rwanda in 1987 and he moved from there to
the Democratic Republic of Congo in 1990. He returned to Europe as head
of the Polish operation in 1996, and in 2000 became Managing Director of
Heineken Italia. He was there only one year before he was recalled to
Amsterdam and promoted to the Executive Board.
What you immediately realise about Jean-Frangois when you meet him is
that this passion for action and speed is not management speak; it is a
personal belief and it drives his desire to react faster to market
opportunities and realities. Here again though, Jean-Frangois is clear. "Like
every business, we have limited resources and we can't do everything. Life
and business is about making choices and we will choose where we want to
compete in the world. And where we compete, we must win. It's as simple
as that."
With the four priorities for action (accelerating top-line growth,
accelerating efficiency improvement, accelerating speed of implementation
and decision making and focusing on selective market opportunities), the
top management of Heineken is setting out their action plan for the future.
Whilst these will develop over time, one thing will not. And that is the
reliance on people and empowerment if it is to succeed—something clearly
recognised by Jean-Frangois.
"At our half-year results, I was asked what makes me confident that we
can succeed. I answered quite simply that we will succeed because of our
people -their passion for the company and their desire to see Heineken as
one of the world's leading beer businesses."
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