(lively music)
Hello and welcome.
Today I'm joined by Thibaut Boidin,
the Chief Transformation Officer at Heineken Europe.
Thank you so much for joining, Thibaut.
Thank you for having me, Christian.
Thibaut, can you briefly describe
the supply chain transformation at Heineken Europe?
So Europe is a big region for Heineken.
It's 25 operating companies.
We worked on four key areas.
First one is around the complexity of our product
and our packaging, so trying to simplify this complexity.
The second one is about leveraging our network
in the 25 operating companies.
The third one is, where it's relevant, to improve
and harmonize our way of working.
The fourth is to design a low-carbon footprint in Europe.
What were the first results that you have achieved?
So it's quite amazing
because even the first year of our transformation,
we already had some significant results.
So in platforming, for instance,
we reduced by 52% our unique bottles.
Also reduced by 50% our secondary packaging.
If we look at our functional excellence,
we went from 25 S&OP tools and teams into only one.
And now in Europe we have one S&OP team
and one S&OP tool.
And we also have a carbon ambition.
And here compared to 2018,
we already reduced carbon emissions in production by 24%.
As the CTO, you lead the Transformation Management Office,
the TMO, how important is the CTO
and the TMO for the success of this transformation?
This is absolutely critical
because while you drive a transformation,
you have also, at the same time,
to drive your day-to-day business.
So if you don't have an engine that helps you
to drive this transformation, while the rest
of the organization is also focusing
on the day-to-day business,
it's quite a challenge to run it.
The human and people element.
So the change management that you mentioned is critical
for the success of such a transformation.
Can you explain how the TMO orchestrated
around that element?
People are really at the core
of our transformation because people really...
We really care about people in Heineken.
We cannot run a transformation
without really focusing on our people.
So what we decided to do is to shape our change management,
part of this transformation around three components.
The first one is leadership
because everything starts with us as leaders,
how we run transformation, how we are able
to engage the organization around what has to be done.
The second element is around the capabilities
and the competencies of our people.
And here it's about filling the gap
between where they are today
and where they should be tomorrow.
And the last one is about communication
because, of course, in such a big transformation
happening in a lot of, you know,
different operating companies,
you have to make sure that you have at the same time
a very concrete 'why' at the regional level
but also at the operating company level,
but also a clear 'what' and clear 'how'
tailored to the local reality.
And this communication always evolves.
So you always have to find exactly the right way
to communicate the messages and also
to hear the feedback to make sure
that you're always aligned with people.
So these are the three components:
leadership, capabilities and communication.
You mentioned change management
as a crucial element of this transformation.
How have you addressed this issue?
Yes, so we worked around the model
that is quite efficient,
I have to say, around head, heart and hands...
because when you have to deal with a big transformation,
you have to talk to head.
So why are we doing this transformation?
What is the case for change?
You have to talk to the hearts of the people
so they are engaged also in the transformation.
And the hands
because you also have to understand concretely
what's in it for you.
So how can you contribute on your day-to-day basis
to this transformation?
For you as a seasoned CTO,
how would you summarize the key success factors
of your role?
I will maybe highlight three elements.
The first one is enthusiasm and can-do mindsets.
It's super important when you run a transformation.
The second one is humility.
You have to be extremely humble
just to be able to listen to the feedback
from the organization, to adapt also your governance
and to make sure that what you're doing
is also perfectly aligned with the needs.
And the third element is about discipline and structure.
So this is about making sure
that you have the right drum beat
and also that your team
and the organization is working in a disciplined way.
These are great learnings, Thibaut.
Can you share one or two concrete examples?
Yes, let me share an example linked to what I just said.
We have a very structured governance,
as you can imagine, at the regional level
with all our stakeholders and with the operating companies.
But this governance sometimes has to be adapted.
And last year over the summer,
we were maybe not aligned with exactly the needs
of the organization but also looking forward,
what would come, biggest risks for 2023 actually.
The feedback also from the organization
was "are you not too much process-driven
or isn't it too bureaucratic?"
And so it was a bit hard to hear
but at the same time, it was exactly the good feedback.
So we decided immediately,
with a bit of humility, to say, okay, maybe it's not good.
Maybe we have to adapt our governance
and to make it much more aligned with what is needed
but also focused on the coming risk for 2023.
Ultimately, what will be the legacy
of this transformation?
The first one is having a future-proof
and sustainable supply chain.
And the second one that is even more important
is to build this transformation capability within Heineken.
So today we are training this muscle,
but at the end of the day, what we want to achieve
is to have this capability able to drive transformation
for Heineken in the future.
Thibaut, thank you so much for being
with us today and sharing your insights.
Thank you, Christian.
It was a pleasure.
(lively music)