Strategy Updates
Growth and Innovation
Through the Pandemic:
Through the Pandemic:
URC Strategy
Updates
URC’s success in navigating through the pandemic and accelerating growth amid new challenges is built on a vigorous strategy focused on innovation and acquisition, effectively positioning the company to hit key objectives, cultivate growth, and exceed expectations.
Throughout 2021, our How-To-Win and Where-To-Play ideals served us well, continuing to strengthen the business moving forward. With the gradual ease of health restrictions worldwide and steady reopening of the economy, new opportunities emerged to bounce back and further growth agendas.
Our Where-To-Play strategies centered on amplifying our core businesses while simultaneously expanding into new adjacencies, categories, and geographies.
Throughout 2021, our How-To-Win and Where-To-Play ideals served us well, continuing to strengthen the business moving forward. With the gradual ease of health restrictions worldwide and steady reopening of the economy, new opportunities emerged to bounce back and further growth agendas.
Our Where-To-Play strategies centered on amplifying our core businesses while simultaneously expanding into new adjacencies, categories, and geographies.
On the other hand, our How-To-Win strategies focused on sustaining our 4 Ps Wheel — enabled by a people and planet-friendly culture, we continue to develop products and brands people love, solidify our stance as a preferred partner of choice for both customers and suppliers, and transform our product supply chain to better serve all consumers.
With an unwavering commitment to people, a robust innovation pipeline, and new category entries, URC was able to sustain wins across the board and take even bigger strides toward its long-term ambitions in 2021.
The following section outlines the highlights and leading breakthroughs across our four
main platforms.
With an unwavering commitment to people, a robust innovation pipeline, and new category entries, URC was able to sustain wins across the board and take even bigger strides toward its long-term ambitions in 2021.
The following section outlines the highlights and leading breakthroughs across our four
main platforms.
Products and Brands
People Love
URC is uniquely strong with a wide, diverse, and beloved portfolio of products — from discretionary to staples and value to premium.
Staying true to our mission to delight customers with good food choices, we continued to invest in our brands even through an industry-wide downturn.
URC firmly believes that strong brands are a major competitive advantage and that spending on brands pays off. By continuing to increase brand equity, we pivoted to where our consumers’ eyes were, with a strong focus on digital media in 2021.
We built up better distribution through the pandemic and scaled our e-commerce presence rapidly, making concrete progress in future-proofing our growth.
Our Innovation Process Management (IPM) system remained the guiding framework and strategic thrust in 2021 for improving processes, driving new product development, and refreshing existing brands without compromising entrepreneurial speed and agility.
We continued to integrate the Grow-The-Core and Expand-For-More mindset, securing leading positions in most categories and markets while diversifying our portfolio and geographic footprint.
Staying true to our mission to delight customers with good food choices, we continued to invest in our brands even through an industry-wide downturn.
URC firmly believes that strong brands are a major competitive advantage and that spending on brands pays off. By continuing to increase brand equity, we pivoted to where our consumers’ eyes were, with a strong focus on digital media in 2021.
We built up better distribution through the pandemic and scaled our e-commerce presence rapidly, making concrete progress in future-proofing our growth.
Our Innovation Process Management (IPM) system remained the guiding framework and strategic thrust in 2021 for improving processes, driving new product development, and refreshing existing brands without compromising entrepreneurial speed and agility.
We continued to integrate the Grow-The-Core and Expand-For-More mindset, securing leading positions in most categories and markets while diversifying our portfolio and geographic footprint.
NEW FEATS IN BOTTLED REFRESHMENTS
In 2021, we reached new milestones for bottled drink brands C2 and Great Taste.
C2 Milk Tea is now #1 in the country with a 45% market share in the ready-to-drink milk tea segment. In Vietnam, a timely revamp of our product variants bumped C2 up to #2 in the country in terms of volume.
Great Taste Iced Coffee also showed significant growth with an 11% market share in one year.
C2 Milk Tea is now #1 in the country with a 45% market share in the ready-to-drink milk tea segment. In Vietnam, a timely revamp of our product variants bumped C2 up to #2 in the country in terms of volume.
Great Taste Iced Coffee also showed significant growth with an 11% market share in one year.
SHARE-WORTHY CHIPS AND FLAVORS
Building on last year’s shift to in-home consumption, we continued developing larger variants in the chips category, satisfying customers looking for supersized snacks they can share with friends and family.
In the Philippines, Piattos Supersized contributed incremental growth to the nation’s #1 Snack brand, while Vcut Party Pack contributed further growth to the country’s #1 Potato Chips brand. In Thailand, Roller Coaster became the fastest-growing brand in the potato chips category. Meanwhile, Piattos Jumbo Pack contributed substantial growth to Piattos Indonesia, solidifying its position in modern trade.
Consumers are also on the lookout for new and exciting products. We took this as an opportunity to set the trend with mouthwatering new flavors for Piattos and Nova.
In the Philippines, Piattos Supersized contributed incremental growth to the nation’s #1 Snack brand, while Vcut Party Pack contributed further growth to the country’s #1 Potato Chips brand. In Thailand, Roller Coaster became the fastest-growing brand in the potato chips category. Meanwhile, Piattos Jumbo Pack contributed substantial growth to Piattos Indonesia, solidifying its position in modern trade.
Consumers are also on the lookout for new and exciting products. We took this as an opportunity to set the trend with mouthwatering new flavors for Piattos and Nova.
INTRODUCING NEW PREMIUM SELECTIONS
Nips Dark Chocolate is the #1 NPD of 2021, accompanied by the launch of the Strawberry Delight variety. Cloud 9 also released Cloud 9 Gold, with almond fudge and caramel nut crisp flavors.
We also created a new premium segment in Bakery across Vietnam and the Philippines. With it came the introduction of Cream-O Premium, Cream-O Cake Bar, Cream-O Crunchy Cookies in chocolate and caramel or chocolate and coconut flavors, as well as Magic Crackers.
Innovation intensity also propelled URC Thailand to greater success in the wafers category, featuring two new mega brands. Tivoli added more diversity to its line of coated wafers with the launch of a product with Ovaltine and a variant that is filled with strawberry coated in chocolate. Lausanne, on the other hand, launched its chocolate and vanilla cream-filled wafer.
We also created a new premium segment in Bakery across Vietnam and the Philippines. With it came the introduction of Cream-O Premium, Cream-O Cake Bar, Cream-O Crunchy Cookies in chocolate and caramel or chocolate and coconut flavors, as well as Magic Crackers.
Innovation intensity also propelled URC Thailand to greater success in the wafers category, featuring two new mega brands. Tivoli added more diversity to its line of coated wafers with the launch of a product with Ovaltine and a variant that is filled with strawberry coated in chocolate. Lausanne, on the other hand, launched its chocolate and vanilla cream-filled wafer.
VALUE-FOR-MONEY COFFEE PRODUCTS
In coffee, we made steadfast progress by continuing to offer value-for-money varieties for consumers who enjoy products at more appealing price points.
Great Taste Instant Soluble grew compared to the previous year with its Premium Classic and Strong Granules varieties. At the same time, Great Taste Duo, the first 2-in-1 mix, made its mark in strong coffee mixes in just half a year.
Great Taste Instant Soluble grew compared to the previous year with its Premium Classic and Strong Granules varieties. At the same time, Great Taste Duo, the first 2-in-1 mix, made its mark in strong coffee mixes in just half a year.
BOOSTING HEALTH
We also took deliberate steps toward healthier snack, candy, and beverage options.
Presto cookies enhanced with B vitamins were marketed to help busy consumers stay focused. In addition, customers can now find Maxx Vitamin C in stores, offering honey lemon-flavored candies with extra vitamins for immunity.
Meanwhile, C2 Fiber to help with digestion continued growing while C2 Plus Immuno-C catered to consumers looking to boost immunity while enjoying a rich orange-flavored beverage. In Vietnam, we also introduced C2 Plus Immunity in lemon flavor.
Presto cookies enhanced with B vitamins were marketed to help busy consumers stay focused. In addition, customers can now find Maxx Vitamin C in stores, offering honey lemon-flavored candies with extra vitamins for immunity.
Meanwhile, C2 Fiber to help with digestion continued growing while C2 Plus Immuno-C catered to consumers looking to boost immunity while enjoying a rich orange-flavored beverage. In Vietnam, we also introduced C2 Plus Immunity in lemon flavor.
Preferred Partner
of Choice
URC maintains strong partnerships that generate win-win opportunities for everyone involved, whether for strategic engagements or community-building efforts. We ensure that our partners receive the support they need, which leads to building trust, arriving at meaningful solutions, and sharing success.
With our trusted brands and strong growth, URC has become one of the top suppliers for major retailers in the Philippines. We have gained ground in implementing productive systems and processes that strengthen our integrated supply and distribution network, all aligned with our strategy to the Preferred Partner of Choice.
With our trusted brands and strong growth, URC has become one of the top suppliers for major retailers in the Philippines. We have gained ground in implementing productive systems and processes that strengthen our integrated supply and distribution network, all aligned with our strategy to the Preferred Partner of Choice.
STRENGTHENING
ROUTE-TO-MARKET
We spent the past few years integrating and optimizing Sales Force Automation (SFA) into our sales process to further upgrade our distributors’ capabilities.
The platform catalogs our list of products into a single application, which allows salesmen to present our wide product portfolio to store owners through a smartphone or tablet. It also highlights the latest URC merchandise and promotions, providing our salesmen with upsell opportunities.
After the URC team helped distributors familiarize themselves with the program, sales personnel were able to better showcase our offerings to store owners, while also being able to solicit orders in the field and send them back to the distributor for order fulfillment in real-time. With the new platform, the sales force was able to spend less time on administrative work and more time selling. In addition, SFA also allowed the sales force to cover more outlets in a time-efficient manner, through dynamic route planning based on a master database of customers in each area.
SFA had a significant impact on the improvement of URC’s availability and distribution. At present, URC now covers over 250,000 doors – a tripling of coverage in the span of three years. Store owners were also pleased with the overall convenience and performance of the program, as their
After the URC team helped distributors familiarize themselves with the program, sales personnel were able to better showcase our offerings to store owners, while also being able to solicit orders in the field and send them back to the distributor for order fulfillment in real-time. With the new platform, the sales force was able to spend less time on administrative work and more time selling. In addition, SFA also allowed the sales force to cover more outlets in a time-efficient manner, through dynamic route planning based on a master database of customers in each area.
SFA had a significant impact on the improvement of URC’s availability and distribution. At present, URC now covers over 250,000 doors – a tripling of coverage in the span of three years. Store owners were also pleased with the overall convenience and performance of the program, as their
orders were transmitted immediately into our system, ensuring fast and accurate delivery of products. In setting our distribution priorities, we went back to basics to solidify our fundamentals. We set clear KPIs with our distributors, which include must-carry SKUs and specific coverage targets for key channels. On URC’s end, we focused on improving order fill rates and the availability of our products, to minimize any stocking issues and inventories.
E-COMMERCE EXPANSION
Similarly, we also sprinted to scale our e-commerce presence and ramp up our digital growth. We examined the positive outcomes from our digitization efforts that have helped us overcome trade limitations during the pandemic, identifying practices we could carry over into a better normal.
We expanded our availability across distribution channels and engaged in new partnerships that would help broaden our reach. In the process, we gained valuable insights as we worked closely with our distributors, touching upon market strategies that inform our plans for the future.
URC also established a dedicated e-commerce sales force responsible for leading our online operations, managing our online offerings, engaging with interested customers, and developing features that enhance the digital consumer experience. The team also oversees our Customer Relationship Management (CRM) system, which provides us with data and analytics to improve our services based on how consumers engage with our platforms.
Looking forward, we are concentrating our efforts on interface development, prototyping, and rapid roll-out of new innovations that will accelerate our growth and presence in the e-commerce space.
We expanded our availability across distribution channels and engaged in new partnerships that would help broaden our reach. In the process, we gained valuable insights as we worked closely with our distributors, touching upon market strategies that inform our plans for the future.
URC also established a dedicated e-commerce sales force responsible for leading our online operations, managing our online offerings, engaging with interested customers, and developing features that enhance the digital consumer experience. The team also oversees our Customer Relationship Management (CRM) system, which provides us with data and analytics to improve our services based on how consumers engage with our platforms.
Looking forward, we are concentrating our efforts on interface development, prototyping, and rapid roll-out of new innovations that will accelerate our growth and presence in the e-commerce space.
PRODUCT SUPPLY CHAIN
TRANSFORMATION
URC’s global operations continued adapting to the new normal in 2021, minimizing disruptions caused by the impact of restrictions and the lingering challenges the COVID-19 pandemic posed for our workforce. By capitalizing on new trade opportunities, URC realigned its capabilities and successfully boosted product manufacturing where economies exist.
URC also took the opportunity to identify new ways to improve its product supply chain with its Fuel For Growth program, building on its supply chain transformation program which began in 2018.
URC also took the opportunity to identify new ways to improve its product supply chain with its Fuel For Growth program, building on its supply chain transformation program which began in 2018.
The Fuel for Growth program identifies Php 5B in potential savings over the course of the next 5 years, coming from further optimization of our supply network, manufacturing operations, and product portfolio.
These savings will translate into improved operating income, but we intend to reinvest these gains back into the business — both in brand-building and in capacity building for future growth.
In 2021, URC acquired two new sites for planned expansion, reinforcing our commitment to continued investments in new production lines. Our capacity investments will support future growth and aid in achieving a more sustainable supply chain network across the business.
These savings will translate into improved operating income, but we intend to reinvest these gains back into the business — both in brand-building and in capacity building for future growth.
In 2021, URC acquired two new sites for planned expansion, reinforcing our commitment to continued investments in new production lines. Our capacity investments will support future growth and aid in achieving a more sustainable supply chain network across the business.
As URC continues to transition and transform its supply chain, our focus on innovating manufacturing processes and improving operational efficiencies remains — while solidifying our operations further in all the communities we serve.
Our Fuel for Growth journey touches on
The LEAN Manufacturing methodology has supported countless businesses across industries to minimize waste and optimize conversion costs. We began incorporating the LEAN method in 2019, piloted in one of our largest manufacturing facilities in Calamba, Philippines.
Since then, we have successfully replicated the results across all our facilities and operations under the Branded Foods Business. In line with our Supply Chain Transformation strategy, the program enabled significant savings through lowered production downtime, reduced waste, and optimized use of resources. This has also had the benefit of improving both water and energy usage ratios, aligned with our Sustainability commitments.
Since then, we have successfully replicated the results across all our facilities and operations under the Branded Foods Business. In line with our Supply Chain Transformation strategy, the program enabled significant savings through lowered production downtime, reduced waste, and optimized use of resources. This has also had the benefit of improving both water and energy usage ratios, aligned with our Sustainability commitments.
The LEAN mindset also improved URC’s response to issues in manufacturing and logistics by empowering its operations teams with appropriate training and education, enhanced immersion in the workplace, and the ability to use the company’s analytical tools and techniques. By upskilling our people’s expertise through exposure to more LEAN initiatives, we were able to effect notable improvements in manufacturing and beyond.
With prices for commodities remaining volatile and experiencing multiyear highs in 2021, URC expanded and accelerated its LEAN Savings Program further, addressing fluctuation and cost inflation and effectively minimizing the cost passed on to consumers.
As we move forward with our LEAN initiatives, we will continue to strengthen our supply chain network across the company, improve efficiencies, and reduce wastage in input material and finished goods.
With prices for commodities remaining volatile and experiencing multiyear highs in 2021, URC expanded and accelerated its LEAN Savings Program further, addressing fluctuation and cost inflation and effectively minimizing the cost passed on to consumers.
As we move forward with our LEAN initiatives, we will continue to strengthen our supply chain network across the company, improve efficiencies, and reduce wastage in input material and finished goods.
We continued developing our procurement process across all business units, striving for the best value at favorable costs.
In 2021, URC explored opportunities with new suppliers across the region for single sourced key materials, continuously looking for better and more cost-efficient alternatives that will contribute to the sustainability of the business.
In the years to come, we aim to further optimize procurement by upholding our procurement policies and raising awareness in our workforce on the best practices that will drive up our efficiences.
In the years to come, we aim to further optimize procurement by upholding our procurement policies and raising awareness in our workforce on the best practices that will drive up our efficiences.
URC is committed to providing its customers with good choices, offering more quality, healthy, and flavorful options while still ensuring they are priced accessibly.
In 2021, the company continued to work on harmonizing material specifications of its products to leverage scale for better pricing. We are also looking at improving our cost structure through the use of alternative materials but still ensuring that we give the same, or even better, products to our consumers.
In 2021, the company continued to work on harmonizing material specifications of its products to leverage scale for better pricing. We are also looking at improving our cost structure through the use of alternative materials but still ensuring that we give the same, or even better, products to our consumers.
We took actionable steps in our Supply Network Redesign roadmap over the last few years to consolidate facilities, balance costs, and improve supply resiliency further. This allowed URC to continue optimizing its supply points, assigning key areas of high demand within their proximity to minimize transportation costs.
We also continued implementing our multi-phased approach across domestic and international operations, investing in sufficient production capacity in areas where strong demand growth was projected for the coming years, while also ensuring a sustainable supply of quality materials at low costs via strategic regional procurement.
With the acquisition of Munchy’s, URC was also able to take bigger steps to improve long-term cost efficiencies while supporting business expansion in Malaysia, with plans to tap the new Munchy’s facility to produce Jack ‘n Jill
We also continued implementing our multi-phased approach across domestic and international operations, investing in sufficient production capacity in areas where strong demand growth was projected for the coming years, while also ensuring a sustainable supply of quality materials at low costs via strategic regional procurement.
With the acquisition of Munchy’s, URC was also able to take bigger steps to improve long-term cost efficiencies while supporting business expansion in Malaysia, with plans to tap the new Munchy’s facility to produce Jack ‘n Jill
branded products. With all these efforts, we were able to generate meaningful results in enhanced regional sourcing and more upscaled global exports, most especially in Southeast Asia.
As the business continues on its growth trajectory, we have continued to optimize our fixed overheads, investing purposefully to support business requirements. We have also reorganized certain commercial functions to more effectively serve customers across different channels and geographies, without sacrificing quality or service levels.
As we enter 2022, we also see opportunities to establish better customer and end-consumer experiences through building new capabilities such as advanced digital analytics, customer care, and product or services feedback mechanisms, which also allows our teams to work more efficiently while optimizing resources.
As we enter 2022, we also see opportunities to establish better customer and end-consumer experiences through building new capabilities such as advanced digital analytics, customer care, and product or services feedback mechanisms, which also allows our teams to work more efficiently while optimizing resources.
People and Planet Friendly Culture
Among URC’s priorities are covering multiple social sustainability dimensions that uphold the welfare of the lives we touch both within the company and outward. It captures the growth of our organization, stewardship for the environment, and uplifting partner communities.
This commitment is best summed up in our strategy for a People and Planet Friendly Culture, where we spearhead programs that ensure we leave a positive impact in the areas where we operate.
This commitment is best summed up in our strategy for a People and Planet Friendly Culture, where we spearhead programs that ensure we leave a positive impact in the areas where we operate.
OUR ENGINE FOR GROWTH
People are our engine for growth that will drive us well into the future and URC is passionate about upskilling talent and creating new homegrown leaders. This year, we wanted to encourage holistic growth within the organization by focusing on three capability development goals: Shift to Digital Learning, Develop Next Generation Leaders, and Build Agile Academy.
Shift to Digital Learning
In the past few years, the company experienced unprecedented changes in our ways of working with some teams working from home while others were engaged in on-site operations. The circumstances pushed us to innovate our upskilling methods, as we saw this as an opportunity to digitize our programs.
We ramped up our shift to a centralized digital learning platform that people could access with ease in the form of agile and innovative channels. In 2021, we launched URLearning EdFlix Season 1 which offers various types of content, catering to the various learning styles of our employees. It features front-loading content that introduces learners to more courses they can participate in and view at any time, encouraging them to stay on the platform to learn more and learn better.
We ramped up our shift to a centralized digital learning platform that people could access with ease in the form of agile and innovative channels. In 2021, we launched URLearning EdFlix Season 1 which offers various types of content, catering to the various learning styles of our employees. It features front-loading content that introduces learners to more courses they can participate in and view at any time, encouraging them to stay on the platform to learn more and learn better.
The first installment of the URLearning EdFlix series includes:
• Code of Business Ethics: A Netflix-inspired, self-paced learning subseries that aims to cultivate the value of ethical practices that should be applied in day-to-day business and professional dealings. It also contains five episodes that depict actual work scenarios based on relevant sections from the URC Employee Handbook.
• URC Workplace Essentials: A walkthrough of the essential tasks employees will accomplish in the company, such as filing attendances and leaves and logging into the URLearning platform and Employee Self Service platforms among others. These modules also teach employees how to maximize URC's digital systems, which is especially important for remote work.
• Values Learning Series: A values-based, self-paced learning series through bite-sized content like articles, podcasts, book summaries, micro-learning, and videos.
• Agile Basics: A series of 8 to 10-minute videos discussing specific topics of our Agile Transformation, including the different agile roles, ceremonies, units, and agile principles.
We have also broadened our digital learning platform catalog to offer functional learning courses, like virtual instructor-led training sessions. This was received well by our employees with a significant increase in the number of accounts created as of December 2021. At present, the platform caters to 1,619 learners who continue to access and complete courses.
Develop Next Generation Leaders
On top of our virtual learning programs, we created avenues for our people to journey into larger leadership roles to future-proof the business. Thus, we designed leadership capability-building programs rooted in our core values and management competencies.
Excellerate Innovation Bootcamp
is a learning journey that equips participants with the basic toolkit, frameworks, and theories for innovative leadership.
is a learning journey that equips participants with the basic toolkit, frameworks, and theories for innovative leadership.
The Excellerate program touches on five key areas, namely:
- Strategic intent
- Insights generation
- Ideation
- Refining through shaping and pre-mortem
- Discipling experimentation
We designed the Leadership Excellence and Advancement Development (LEAD) program for our middle managers, orienting them on vital management practices to develop through coaching culture. Similarly, the Leadership Enrichment and Advancement Program (LEAP) was made for managers and supervisors to hone their basic management skills, better conversations, and team development.
In 2021, 30 Excellerate participants graduated from the program with an average presentation score of 85.03% while 15 LEAD participants graduated with an average presentation score of 86%.
Separately, we have also enrolled all the BCFG Philippines Plant Mancoms in LEAP for Line Managers; they graduated last July with an overall learning experience of 3.82 over 4.00.
The program has been launched in URC Thailand and URC Myanmar under the management of their respective Human Resource (HR) business partners.
Build Agile Academy
Lastly, one of our most notable undertakings this year was expanding our agile capability across the organization in conjunction with our organizational transformation. To help our people build knowledge and gain awareness of agile practices, we established the Agile Academy.
The Academy is designed to equip employees with an in-depth understanding of Enterprise Agile, teaching them its key elements and showing the step-by-step process within our journey. In doing so, the program encourages participants to move from understanding Agile theories to committing to this ambition and applying them, revolving around four elements: Knowledge, Experience, Peer Interaction, and Tools.
In 2021, learning sessions under Agile Academy contributed a total of 57,227 training hours covering Executive MBA, Agile Bootcamps, and Agile in Sprint sessions.
Altogether, these programs are designed to create a unique learning experience that targets the needs of our workforce and enhances their skill set. The programs are not only a physical facility but a well-built foundation, combining a collection of leadership and a skilled curriculum that aligns upskilling with the requirements of the business.
Altogether, these programs are designed to create a unique learning experience that targets the needs of our workforce and enhances their skill set. The programs are not only a physical facility but a well-built foundation, combining a collection of leadership and a skilled curriculum that aligns upskilling with the requirements of the business.
INITIATING DIGITAL EVOLUTION
This year, we invested in streamlining our upskilling initiatives, which requires having the right tools and automation solutions to act as a vehicle for what we hope to achieve.
Internally, we have modernized our HR operations with our partner Darwinbox, a fast-growing HR technology platform provider. It is an end-to-end solution that meets the demands of our organization through a comprehensive human
capital management system with remarkable agility.
The company-wide platform allows us to consolidate a variety of HR functions into a secure database, including retirement, onboarding, performance management, and talent management.
Using Darwinbox, we launched URJourney, the company’s career development program that guides employees of all levels to grow and develop through a range of modules. The platform generates data into a performance management system, which we use in the formation of our assessment and career plans. From here, we create development plans specific to employees, as well as an Advancement Planning system.
Digitization and process simplification initiatives are vital in developing new skill sets in our people for project collaboration. Through these programs, we actively take part in supporting our people in advancing their careers by monitoring their progress, providing feedback, and having the fundamental resources readily available to them at any time.
PLANS FOR THE PLANET
Following the sustained success of our Live Sustainability. Live URC. program, we calibrated our increased capabilities within the year to refresh our targets – all towards acting upon our commitment as a sustainable global enterprise.
In our 2030 Sustainability Roadmap and Commitments, we sought to expand our goals and consolidate our programs under six focus areas that are important to the business and its stakeholders: People and Communities, Climate Action, Water, Product, Packaging, and Sourcing. It is the foundation of URC’s Purposeful Transformation journey, in which we underwent materiality and benchmarking processes, plotted our short and long-term plans, and set them in motion.
To discuss each of our initiatives in detail, we consolidated URC's programs and progress in our our 2021 Sustainability Report. It illustrates how the company meets the standards of the Global Reporting Initiative (GRI) guidelines, UN Sustainable Development Goals and multiple
government agencies.
Sprints That Sustain
Agile@Scale Transformation
One of the essential aspects of URC’s Purpose, Values, and Ambition is our commitment to empowering people toward future-proof solutions. We are passionate about creating opportunities for our people to achieve their full potential through upskilling and evolving the ways we work.
This enthusiasm encouraged us to improve our organizational approach through Agile@Scale Transformation which allows people to organize in cross-functional teams to drive efficiency. It incorporates the principles of systems thinking to resolve concerns with swiftness, deliver requirements, and build relations with more of our customers and consumers.
This enthusiasm encouraged us to improve our organizational approach through Agile@Scale Transformation which allows people to organize in cross-functional teams to drive efficiency. It incorporates the principles of systems thinking to resolve concerns with swiftness, deliver requirements, and build relations with more of our customers and consumers.
REFINING FUNDAMENTALS
Agile@Scale Transformation was established in order for people to venture out of their functional silos and into multidisciplinary teams to solve complex problems or accomplish a shared mission. Each member of the team is able to contribute their ideas to ensure that their assigned objectives are achieved, such as launching a new beverage or boosting digital distribution.
There are a variety of key results and goals that our Agile tribes strive to accomplish, all working toward a singular Tribe Mission: grow revenue, profitability, and market share of our core categories within our existing portfolio and accelerate new product development (NPD).
There are a variety of key results and goals that our Agile tribes strive to accomplish, all working toward a singular Tribe Mission: grow revenue, profitability, and market share of our core categories within our existing portfolio and accelerate new product development (NPD).
Beyond this core mission, going Agile poises us for promising wins across different facets of the business:
Quality, Quantity, and Speed
Innovation
Accelerating our New Product Development (NPDs) and launches to achieve sizable gains and sustained success rates.
Operational Excellence
Execution
Foreseeing and addressing gaps in demand planning, reaching savings targets, and maintaining consistent manufacturing standards.
Resource Optimization
Upskilling and Team Morale
Improving employee engagement score, supporting career advancement, and preventing burn-out and over-stretch in the workforce.
DESIGNED TO SUSTAIN
The new Agile structure is composed of several group compositions namely: Tribes, Platforms, Chapters, Squads, and Plant Clusters.
A Tribe is a customer-facing collection of Squads driven by an overarching mission linked to delivering customer value. Platforms are similar to Tribes, but they are not customer-facing; their mission is to design and deliver processes or services that can be used by Tribes to achieve their goals.
To monitor performance and delivery, every Tribe and Platform will have their corresponding Leads who will manage and strategize with the team. There will also be an Agile Coach for each one to ensure that the unit is synchronized with the Agile mindset and methodologies while providing feedback and guidance throughout the process.
Each Tribe member will have two affiliations – one as a member of their respective Chapter and another for their assigned Squad.
A Tribe is a customer-facing collection of Squads driven by an overarching mission linked to delivering customer value. Platforms are similar to Tribes, but they are not customer-facing; their mission is to design and deliver processes or services that can be used by Tribes to achieve their goals.
To monitor performance and delivery, every Tribe and Platform will have their corresponding Leads who will manage and strategize with the team. There will also be an Agile Coach for each one to ensure that the unit is synchronized with the Agile mindset and methodologies while providing feedback and guidance throughout the process.
Each Tribe member will have two affiliations – one as a member of their respective Chapter and another for their assigned Squad.
Chapters are groups of people with similar capabilities who meet to discuss the day-to-day priorities each member will work on when deployed to their own Squad.
On the other hand, a Squad is comprised of people with cross-functional capabilities who use their complementary skills to work on a project. They are an autonomous, co-located team who have end-to-end responsibility in accomplishing the mission entrusted to them.
Through Agile@Scale, we were able to assign specific and urgent tasks to specialized, independent teams. It is designed to expedite constructing solutions in actionable steps – may it be for Category Tribes who address product and brand concerns or Sustainability Squads that sprint to make progress in their conservation programs.
On the other hand, a Squad is comprised of people with cross-functional capabilities who use their complementary skills to work on a project. They are an autonomous, co-located team who have end-to-end responsibility in accomplishing the mission entrusted to them.
Through Agile@Scale, we were able to assign specific and urgent tasks to specialized, independent teams. It is designed to expedite constructing solutions in actionable steps – may it be for Category Tribes who address product and brand concerns or Sustainability Squads that sprint to make progress in their conservation programs.
UPSKILLING TALENT
An essential proponent to the success of our Agile Transformation is educating our people on the best practices and strategies that will walk them through new ways of work. This is why we established the Agile@Scale Academy, a one-stop learning portal with a curated blended learning journey, created in partnership with McKinsey and Company.
The Agile Academy is a comprehensive program that combines self-paced learning, facilitator-led webinar workshops, virtual sessions with leading agile companies, and hands-on boot camps. It’s a platform that caters to different learning styles during the onboarding process of our people, covering all the fundamentals with an array of resources.
Each Squad follows our URC-wide operating model provided by the Agile Design Council, which is composed of key movers within the company. The model maps out our organizational structure, Tribe roadmaps, and sprint sessions for projects.
We’ve also established the Agile Center of Excellence (CoE), a self-sustaining program that continuously equips critical capabilities, instills governance guidelines, and embeds the Agile mindset in our transformation process.
The Agile Academy is a comprehensive program that combines self-paced learning, facilitator-led webinar workshops, virtual sessions with leading agile companies, and hands-on boot camps. It’s a platform that caters to different learning styles during the onboarding process of our people, covering all the fundamentals with an array of resources.
Each Squad follows our URC-wide operating model provided by the Agile Design Council, which is composed of key movers within the company. The model maps out our organizational structure, Tribe roadmaps, and sprint sessions for projects.
We’ve also established the Agile Center of Excellence (CoE), a self-sustaining program that continuously equips critical capabilities, instills governance guidelines, and embeds the Agile mindset in our transformation process.
GEARED FOR GROWTH
As of 2021, we’ve established approximately 130 Squads and 4 Plant Clusters with over 1,370 people taking part in our Agile Transformation. It served as a venue for our people to step into larger leadership roles with approximately 50 members participating in a series of EMBA sessions while having the freedom to apply them in their projects.
Agile has already generated positive returns in operational savings through the optimization and strategic efforts of our Tribes. They have also contributed to our pipeline of innovative NPDs, pursued digital distribution, and streamlined plant operations all within its pilot year.
URC’s Agile Transformation has been a rapidly expanding and fulfilling journey that has produced an abundance of ideas and developments, which we have banked for the future with some well underway. It shifted our methods of working into a progressive and holistic system that fosters regular upskilling, leadership training, and targeted issue resolution that accelerates our growth, powered by the company’s engine for growth – the talent, dedication, and commitment of our people.
Agile has already generated positive returns in operational savings through the optimization and strategic efforts of our Tribes. They have also contributed to our pipeline of innovative NPDs, pursued digital distribution, and streamlined plant operations all within its pilot year.
URC’s Agile Transformation has been a rapidly expanding and fulfilling journey that has produced an abundance of ideas and developments, which we have banked for the future with some well underway. It shifted our methods of working into a progressive and holistic system that fosters regular upskilling, leadership training, and targeted issue resolution that accelerates our growth, powered by the company’s engine for growth – the talent, dedication, and commitment of our people.