Vitality in business: executing a new strategy at Unilever

Abstract

Purpose

Unilever, the giant consumer goods company, needed a new strategy and a new way of executing the strategy to reverse declining sales and profits. This paper describes how the concept of “vitality” inspired a new strategy and a new way of working through the whole organization and how its disciplined implementation over three years revived the company's competitiveness.

Design/methodology/approach

Modern strategy execution techniques were used to align the complex global organization and deploy the strategy to every level. Strategic choices were constrained into a one‐page common strategic framework for unity and consistency.

Findings

The restriction of strategic choices proved to be popular with executives, creating a sense of common purpose while allowing local interpretation. The disciplined execution process deployed the strategy down through every leadership team, connecting ultimately with the work‐plans of all employees. The successful execution of the strategy led directly to the improvement of sales growth, productivity, margins and cultural cohesion.

Practical limitations

The strategy execution methodology and techniques are applicable to any organization but have most relevance to large, complex businesses.

Originality/value

Many research studies have shown that strategy execution is an elusive management practice and that most senior executives are disappointed with their own efforts in this area. This case study shows that disciplined strategy execution can be effective and beneficial.

Citation

Steve Smith, W. (2009), "Vitality in business: executing a new strategy at Unilever", Journal of Business Strategy, Vol. 30 No. 4, pp. 31-41. https://doi.org/10.1108/02756660910972631