What can we learn from a leader who change the way we do business

?? Welcome to the second edition of my Game-Changing Minds Tips 4YOU newsletter!

First, I want to thank everyone who subscribed and left feedback on the first edition. It means a lot to me.

In this week's edition, we will explore the business transformation journey of Unilever under the leadership of Paul Polman, the former CEO who served from 2009 to 2019. We will be focusing on his leadership style and what lessons we can take from it to strives in our own environment.

A few words about Unilever

As you know, Unilever is one of the world’s biggest multinational consumer goods companies in the beauty and personal care, food & refreshments, and home care sectors. Unilever products are part of our daily life and there is a strong need for sustainable products nowadays. Therefore, businesses need to meet the demand. Unilever Sustainable Living Plan is one example that show how a company works to face with the need for sustainability.

Getting to know Paul Polman

Paul Polman is a Dutch businessman, when he was young, he considered becoming a priest and even spent time in Catholic seminary. After the seminary, he decided to become a doctor, but he was not chosen. ?Instead, he completed his Master of Arts in Economics and MBA in Finance and Marketing in University of Cincinnati. He ended-up to become a visionary leader.

He had a remarkable career in the consumer goods industry, working for companies such as Procter & Gamble, Nestlé, and the British/Dutch multinational. He realized that the concept of shareholder capitalism is flawed and advocates for a new way of doing business that prioritizes all stakeholders.

Under Polman's leadership, Unilever underwent a remarkable transformation, shifting its focus towards sustainability and social responsibility. His visionary leadership and commitment to sustainable business practices have set an example for companies worldwide.

During his initial years as the CEO, Polman discontinued the practice of quarterly financial reporting and earnings guidance, which typically focused on short-term financial projections. Instead, he emphasized the company's commitment to creating long-term value and encouraged investors who were not aligned with this vision to invest elsewhere. Additionally, he announced an ambitious plan to double revenue while reducing the company's environmental impact by half.

Polman's belief that businesses could create long-term value for shareholders by contributing to society's well-being and the planet was the driving force behind his actions. He implemented several initiatives, including the Unilever Sustainable Living Plan, which aimed to reduce the company's environmental footprint while improving social and economic impact.

What I really appreciate about Paul is the way he led by example, we need more business leader like him, with sense of shared purpose. He not only talks about his values and goals, but also, he actively demonstrate them through his actions.

About the Unilever Sustainable Living Plan (USLP)

Unilever Sustainable Living Plan (USLP) was launched in 2010 as a comprehensive blueprint for sustainable growth. The goal of the plan is to enable Unilever to continue to drive profitable growth for its brands, while also contributing to the well-being of society and the environment.

USLP spans Unilever’s entire portfolio and market. This means that the company has committed to implementing sustainable practices across all its brands, including food, personal care, and home care products. Secondly, the plan has a socio-economic dimension, which means that Unilever is also committed to improving the lives of people in the communities where it operates. Finally, USLP works across the entire value chain, from raw material suppliers to consumers, to ensure that sustainability is integrated into every aspect of Unilever’s business.

The USLP is based on three main goals: Improving health and well-being, reducing environmental impact, and enhancing livelihoods. Each goal is supported by a number of specific targets, such as reducing greenhouse gas emissions, improving water management, and sourcing sustainable raw materials.

Key insights from Paul Polman

“You cannot get a systems transformation or a business transformation if you don't have the leadership transformation.”

CEOs and leaders at all levels of a company should take responsibility and lead the way in creating a more sustainable and purpose-driven business.

However, it's essential to recognize that leadership is not limited to those in executive positions. Anyone with a vision and the determination to execute it can become a leader and inspire change within their organization and the broader system. Ultimately, it all begins with the individual, and becoming a courageous, purpose-driven leader is the first step towards driving positive change in the company and beyond.

According to Paul, you cannot have a company transformation without a leadership transformation, and you cannot have the wider system transformation without the company transformation, but it starts with that leadership transformation.

“We need to bring humanity back to business.”

Being a net-positive leader takes courage. It takes courage to prioritize values over short-term gains, and to redesign entire industries for the better. At the heart of this courage lies empathy, humanity, and purpose. The Covid -19 pandemic has highlighted the importance of these qualities, as purpose-driven leaders showed their ability to lead with empathy and humility, and to foster partnerships that drive systemic change.

Paul Polman's leadership style is characterized by a strong focus on long-term value creation, sustainability, and social responsibility.

?? Here are some lessons we can learn from his leadership approach:

Prioritize sustainability: Paul Polman believed that businesses have a responsibility to contribute to society and the environment. He made sustainability a core part of Unilever's strategy, and his focus on long-term value creation helped the company grow while reducing its environmental impact.

Take a long-term view: Polman discouraged short-term thinking and emphasized the importance of taking a long-term view. He stopped Unilever's quarterly earnings guidance and focused on creating sustainable value for shareholders, customers, and society.

Build a purpose-driven culture: Polman believed that a company's purpose should go beyond making profits. He emphasized the importance of creating a purpose-driven culture where employees are motivated to work towards a greater goal than just financial success.

Collaborate with stakeholders: Polman believed in the power of collaboration and engaged with a broad range of stakeholders, including investors, governments, NGOs, and consumers. He understood that addressing complex challenges such as sustainability required a collective effort and worked towards building partnerships.

Lead with integrity: Polman was known for his integrity and commitment to doing the right thing, even when it was difficult. He led by example and inspired others to follow his lead in building a better future for all.

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?? ?? In his book, "Net Positive: How Courageous Companies Thrive by Giving More than They Take," Polman emphasizes that CEOs and leaders at all levels of a company should take responsibility and lead the way in creating a more sustainable and purpose-driven business.

?? Unilever's transformation journey under Paul Polman's leadership is a testament to the positive impact businesses can make when they prioritize sustainability and social responsibility.

I hope this newsletter inspires you to act towards a more sustainable future and to disrupt your field.

Like what you read? Forward it to a friend. Let me know what you'd like to see me cover in future newsletters in the comments!

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HBR articles on Paul Polman – Business and Society

IMAGINE website

McKinsey Conversation with Global Leaders: Paul Polman of Unilever

Paul Polman – World Business Council for Sustainable Development (WBCSD)

Leadership Dialogues Featuring Former Unilever CEO Paul Polman