Strategy Review

People strategy

Bob Stack explains our People Strategy

Top Strengths

Colleagues:

are proud to work for Cadbury Schweppes

know what is expected of them in their job

constantly try and find better ways of doing things

Areas to focus on

Colleagues want:

freedom and support to achieve full potential

more frequent conversations about performance

to be given the opportunity to support local community activities as part of their development

Performance is about people and that is why we are committed to motivating, developing and rewarding our people. In the current competitive employment market, the culture and values of a company are criteria for potential recruits. Our values are recognised as a competitive advantage in attracting and retaining the best people.

Our approach to people management is guided by a global Human Resources (HR) strategy entitled Our People Strategy, supported by a set of HR implementation standards. These standards were updated in 2005 to take note of the changing nature of the global workforce and enable more innovative and cost-effective ways of working.

In 2004, we launched our first global employee survey amongst a sample of 10,000 managers, to help us understand and measure their commitment and engagement. In 2005, we extended this survey to all colleagues, undertaking it in 44 languages. The response rate of 81% was outstanding and the results were strong. Over 90% of employees around the world are proud to work for Cadbury Schweppes, know what is expected of them in their jobs and constantly try to finds ways of working better.

There are areas where we can improve and to help achieve this we have developed an innovative people management programme, called Passion for People. Aimed at increasing our people managers' skills to drive performance, it also embodies the behaviours and values that maintain the exceptionally motivating culture of Cadbury Schweppes. This programme will start rolling out during the course of 2006.

We operate a consistent performance management process globally. At the start of the year all employees are set clear and measurable objectives that are aligned toour five goals. A performance discussion occurs twice a year on what objectives were achieved and, just as importantly, how they were achieved, in the context of our eight behaviours - our Leadership Imperatives. We actively manage our managers' development through an annual talent review that covers assessments of potential, career and succession planning.

In 2006 our new Annual Incentive Plan will further strengthen the link to our externally communicated financial goals. Margin and working capital improvements have now been made part of our performance measures.

We track employee turnover, but we do not target a global rate. Rather, we aim to ensure turnover meets the needs of different parts of the business given the changes occurring at the local level.

Bob Stack
Chief Human Resources Officer