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Case Memo for Unilever Development Strategy
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A extremly accurate Case Memo style analysis of the future of work strategy and the use of technology at Unilever.
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To: Nick DaltonFrom: Jones HR Consultancy
Subject: Future of Work and Technology
Dear Mr. Dalton,
I am writing to you regarding the future of work and technology at Unilever, more
specifically the results and future of the Future of Work initiative. Unilever has a far reaching
portfolio and is easily one of the world’s largest businesses within the Fast-Moving-Goods
industry. This growth continued in decades after its formation, and since its exemplary
climate change adaption strategy, Unilever Sustainable Living Plan, they have successfully
pioneered an impressive approach to social and environmental responsibility. Moreover, Nick
Dalton’s concerns and estimations before 2016 highlight that Unilever recognised the
potential impact of rapid advancements within technology, rising new modes of work and
shifting HR practices. Thus, the launch of Future of Work was a logical and well-timed step
forwards.
The initiative was built on three pillars. The first one, ‘Changing the way we Change’,
focused on two aims: First, updating leaders and their mindsets so Unilever could turn the
upcoming period of technological change into a promising future, and second, improving
transparency, driving collaborative change, opening new dialogues, and building awareness.
Above all, a heavy importance was placed on “making change with employees, not to
them.”pp.4. Unilever’s had the goal to ensure that 80% to 100% of the workforce displaced
by automation would ultimately get a new internal job, external comparable position, or opt
for an appropriate early retirement. This led to the second pillar, ‘Ignite Lifelong Learning
and Critical Skills’, it focused on ensuring all Unilever employees were constantly in a
culture that promoted life long learning, positive change, and wellbeing. The third pillar,
‘Redefining the Unilever System of Work’ focused on forming stronger links to external talent
that would help the company expand its expertise and employee skillset. Finally, there was an
additional focus on automation and its consequences, Unilever took the following principles
, to heart: “leave no one behind. Create employability. Jobs become redundant, not
people.”pp.9.
Now, these have all been successful to some extent, yet, has the Future of Work
(FOW) initiative done enough to mitigate the impact of new technology? If not, what else
could be done? More importantly, what can be done regarding the challenges Unilever is still
facing? My evaluation will be dissecting the 3 pillars, their respective practices, and
Unilever’s focused plan to deal with Automation. This analysis will evidence their successes,
failures and my subsequent recommendations for improvement, all within the context of
future growth.
The first pillar focused on altering behaviours and mindsets before any real change
could be implemented. As outlined earlier Unilever was well aware of the possibilities
surrounding digitalisation and automation within HR, however they were also just as aware
of its consequences. Thus, an adaptable approach was taken to managing Unilever’s change
into an era of digital transformation. However, given the nature of Unilever’s operations, as
Dalton states “Contexts are very heterogeneous, and the local approach depends on the
geography, the leadership, the trade unions, and where people are”pp.4. If there were to
succeed, they had to also “Change the way” they “Change”, meaning, they had to actively
include workers in debates, discussions and decisions that would shape their future. This was
evidenced in Italy, where Unilever’s European Work Council co-created a joint-agenda with
the company, assigning “roughly €30 million”pp.5 to the FOW framework after discussions.
The behavioral and communicative goals laid by this pillar were extremely well
accomplished and thus, vital for all following pillars. My recommendations with regards to
this are that Unilever continue to ensure that all leadership and employees truly understand
the new missions and goals that come with the Future of Work Framework and its practices.
The second pillar, focused on the more direct consequences of Automation and AI.
Analysts had already estimated a variety of impacts these developments would undoubtably
have on employees and the organisation. This meant that if employees were to remain viable
there was a clear, widespread need for new knowledge and expertise, across both hard and
soft skillsets. Unilever addressed this by placing a productive focus on upskilling and
reskilling employees. As said by Nicola Braden, they recognised their own limitations and
worked to value their employees, “No Organisation can offer jobs for life anymore” but
Unilever “can offer skills for life”pp.5. Unilever ended up investing close to €25 million just
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