Donna Stella Partner A.T. Kearney

2. Donna StellaPartner A.T. Kearney

3. Sales Force Talent Management Study: “Talent Triage” Raising the Bar for CPG Sales Talent July 16, 2009

4. GMA / NEW Sales Force Talent Management Study Vision Statement “To enable the GMA and NEW’s corporate members and their employees to succeed in an ever-changing marketplace by identifying, developing and retaining a high-performing and diverse sales force.” Primary Objectives • Develop an industry perspective on the leading practices in sales force talent management • Understand the importance of CPG sales force diversity to business outcomes • Strengthen business results with a pragmatic, actionable roadmap for CPG companies to improve their sales force talent management approaches A.T. Kearney was selected to partner with the GMA and NEW to complete the “Talent Triage” study given our deep experience in the Sales & Talent space

5. What talent is required of top sales people today? Stamina General Manager Magician Politician CreativeThinker /Innovator ClientRelationship Manager Intelligence Stand-upComedian Road Warrior

6. Retailers told us that top CPG sales people are analytical thinkers with a general management view of the business Forward-Looking CPG Sales Competency Model • Strategic Merchandising Skills: • General Management – Guide managerial action in the face of uncertainty / complexity • Analytics– Analyze financial data to provide sound business advice • Category Management – Contribute to cross-category strategies and promotion • Consumer Insights – Provide information on segmentation, target marketing, creative merchandising • Partnership– Identify opportunities to increase volume and revenue, raise profitability, and reduce unnecessary costs • Cross-functional Collaboration – Understand why and how functions interrelate; build cross-functional teams Strategic Merchandising Skills Leadership & Personal Characteristics Core Sales Capabilities

7. Sales Talent Management plays a vital role in driving profitable growth A.T. Kearney Sales Force Optimization Framework Sales Talent Management CustomerStrategy We use this framework to driveprofitable growthfor our clients • Alignment of go-to-market strategy with customer needs and business/marketing strategies Strategy/ Planning Strategic Focus Capabilities/ Resources/Deployment • Clearly defined sales talent, organization capabilities and structure including size,roles, responsibilities and decision rights Go-To-MarketApproach Organization Design (Structure/Size) Channels Staffing/ Skills Enablers • Supporting systems and tools to optimize sales productivity and effectiveness IT/ SalesTools Training SupportingCapabilities Compensation/ Recognition Metrics/ Accountability Supporting Processes • Processes to improve quality, productivity and provide a differentiated customer experience Sales Fore- cast’g & Mgmt. Lead Gener- ation & Mgmt. Service Delivery/RelationshipMgmt. Account Set-Up/ Pricing Post- Sales Support RFP Response Environmental Drivers • Business and Market Contexts • Existing Channels • Geographic Scope • Buyers/ Intermediaries • Market Pricing • Fundamental Economics • Market Dynamics • Product • Promotion • Regulation We have helped clients achieve double-digit revenue and profit improvement with SFO

8. The talent management lifecycle involves strategically identifying, developing and retaining sales talent Objective: Having the right sales talent in the right place at the righttime to achieve business objectives Talent Management Lifecycle Executive Sponsorship Tools & Technology Metrics & Measurement 3 1 Attract / Identify Talent Retain / Deploy Talent Sales Talent Pool 2 Develop Talent Incentives Transparent Communication Diversity 5 Strategic Enablers Provide Support Throughout Talent Management Lifecycle

9. What did we learn from the Sales Talent Management Study? Leading Sales Talent Management Practices Build The Right Sales Force Skills • CPG sales superstars have general management mindset – “thinkers,” not just “doers” • Sales talent management is considered highly ineffective today in most CPG companies – only 9% of responses gave a rating of sales talent management activities as “highly effective” • Stand-alone talent and diversity programs do not work; talent management must be closely tied to the rest of the organization and consistently applied • Holistic sales talent management programs are scarce • Only 8% of CPG companies reported having a strong holistic sales talent management program • Effective talent management blends formal process with personal engagement • Smaller CPG companies tended to be culture-driven; large CPG companies tended to be process-driven, whereas best-in-class companies combined both • Incorporating a broad concept of diversity (demographics, experiences, perspectives) into corporate DNA drives innovation, enhances market insight, and increases access to top talent • CPG companies are behind the diversity curve • Profile of participating companies • More male employees than US workforce • More middle-aged employees than US workforce • More Caucasian employees than US workforce Drive a Consistent Message HR Focus on the Process and the Person Capture the Benefits of Diversity

10. CPG companies should embrace inclusivity and diversity of thought to benefit from changing demographics • CPG Companies are Behind the Diversity Curve… • Minorities are under-represented compared to US workforce • Basic diversity programs are in place, but not integrated throughout Talent Management Lifecycle US Working Population: 71% in 2000; 51% in 2050 US Working Population: 54% US Working Population: 23% …but can benefit from highly diverse workforces • Diversity promotes innovation and resilience, which helps attract potential candidates and increase employee productivity Innovation • Reflecting the population’s demographics helps improve market insights and marketing / product development Marketing Edge • To maintain access to the full talent pool in light of workforce demographic shifts, companies must provide a diverse work environment Access to Talent Source: US Bureau of Labor Statistics

11. Study participants indicated diversity programs are in place – but most are stand-alone and not linked to broader talent management and corporate strategy Targeted Diversity Practices (% of Surveyed Companies Reporting Specific Diversity Programs) … Diversity Tracking …Targeted Recruiting …Targeted Affinity Groups (n=26) (n=21) (n=21) Gender Race Sexual Orientation Age Gender Race Sexual Orientation Age Gender Race Sexual Orientation Age Source: GMA/NEW/A.T. Kearney 2009 Sales Talent Management Survey

12. What did CPG executives have to say? Quotes from CPG Sales and HR Executives • Different mindset on sales talent expectations • “We used to hire people in account management roles, and expect them to do it all—be successful, hit their numbers, grow the account. Now the primary question for sales people is: “How can you make full use of internal resources to help our company and its customers to succeed?” • Driving strong performance and satisfying careers • “The objective components of talent management [such as salary and bonuses] are easy. It is the emotional engagement that is harder to achieve. Depending too much on rigid, formal talent management activities will meet the letter, but not the spirit, of a talent management strategy.” • Leveraging diversity to drive business • “This industry is dominated by white males. Diversity means more than meeting a hiring quota, it means creating collaborative, sustainable and mutually-beneficial relationships.”

13. What did Retail executives have to say? Quotes from Retail Merchandisers • How CPG sales people can differentiate themselves • “CPG sales people differentiate themselves by leveraging their entire organizations to meet collaborative goals” • Retailers seek CPG sales forces that can team with them and provide support across functional areas to drive business performance • Desired sales experience • “We like to interact with general management talent with experience in different geographies, functions and categories” • Pushing product and pleasing the buyer is no longer sufficient. Retailers expect CPG Sales talent to not only provide consumer insight, category management and merchandising, but more of a general management capability to improve the overall business • Desired sales skills • “CPG companies with top sales force talent—people who think beyond their brand, the standard promotions and new product introductions, toward a collaborative relationship with tailored solutions for the retailer’s most important segments—will increase both the retailer’s and the CPG company’s sales volume” • Retailers look to CPG Sales talent for solutions, not just products and for diversity to fully penetrate the market

14. 34 CPG companies participated in the study – many requested an in-person debrief with Sales and HR leaders Study Participants: Manufacturers, Sales Agencies, and Retailers

15. How can you identify and act on Sales Talent Management opportunities in your organization? Diagnostic: How strong is your sales talent management? No Yes Can you articulate your sales talent strategy right now? Can you name the 3 things your top customer wants from your sales rep? Do you have tailored skills and competencies by customer segments? Does your sales force reflect consumer diversity? Can you identify the next three potential heads of sales? Do all your highest performing sales reps have experience outside of sales? Do you measure sales talent management on your leadership dashboard? Can your sales reps articulate the category strategy and shopper experience needed to sell more of your product? Have you ever had to replace a sales rep at the request of a customer? Do your customers tell you that you are helping them drive their business? “No” to any of these questions points to untapped opportunities to make your sales organization more effective

16. A high level of collaboration made this study a success – Thanks to all!!! Study Team Members • Robert Hill, • President & CEO • Rena Holland, • Group Director, • Human Resources • Sherri Toney, • VP, Diversity & Inclusion & Engagement • Denny Belcastro, • VP, Customer Development & Industry Affairs • Brian Lynch, • Director, Sales & Sales Promotion/Industry Affairs • Joan Toth, • Executive Director • Sales & Talent Experts • Beth Bovis • Donna Stella • Melanie Mityas • Julia Bouvet • Jamie Ponce • Marketing/Communication • Jim Brown • Sean Flynn • Patricia Sibo • Kevin Peschke