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