F&C Functional Competency Framework
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April 2014
F&C Functional Competency Framework
What
 A functional specific complement to the Nestlé Leadership Framework
 A combination of knowledge, skills and behavior that can be observed,
measured and evaluated
 An identification of the broad competencies which make the biggest
difference for performance in our function, globally
 A reflection of the key elements that contribute to success in a given job
across all F&C functional areas
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F&C Competency Framework
Why
The Needs…..
Of the Business
Functionally-based competencies

Globally consistent standards of skills,
knowledge and behaviors that support
Nestlé’s strategy

In Finance, these should support the
OMP, align to the 4 pillars and thus
identify the most acute capability gaps


Of line managers


Clarity and focus around
developmental activities for their
people including trainings and job
rotations
The implications….
The Solution

Globally aligned standards around
skills, knowledge and behaviors
that clearly differentiate
performance
A system of communicating what
these competency standards are
for specific types of jobs
A model robust enough to cover
the most important elements, but
compact enough to be practical
and user-friendly
Content for completing ‘technical
competency’ section in PDGs and Job
Success Profiles
For the Business

A way to clearly communicate
capability expectations across the
organization

A tool to help make people choices that
best support strategic goals
For line managers

A framework to better direct
development opportunities

Content for completing PDGs and
JSPs according to global standards
Of Individual employees

Better understanding of capability
expectations which will help them
perform better in their current job

Better understanding of where to focus
development to meet the needs of
future jobs
Of Individual employees

Clarity around current expectations
and what is required to change
positions.

A framework for understanding
developmental needs and focus
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F&C Functional Competencies – FLT key messages*
1/2
 Broad business understanding, with early exposure to non-finance functional
areas such as Sales and Supply Chain; developing better business acumen in
which to apply sound governance and controls, link cause and effect to drive
meaningful decisions, act strategically to help shape the future of the Nestlé
Group
 Deep financial knowledge with end-to-end vision of the business value
chain, developed via the traditional building blocks of Accounting, Costing,
Audit, Controlling, etc.; enabling solid analysis for sound judgment calls and the
ability to challenge while delivering insights with the right perspective
 More influential stakeholder management, both internal and external,
through advocacy and the “right of voice” gained by integrating sharp F&C
analytical skills with deep business knowledge
* from interviews conducted with members of the Finance Leadership Team: essential elements for an effective F&C function, which
you will find embedded across the 5 competencies according to their relevance
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F&C Competency Framework
F&C Functional Competencies – FLT key messages
2/2
 Deeper emphasis on the balance sheet, particularly Liabilities which requires
sustained exposure to specialist areas such as Corporate Finance/Treasury,
Tax, Pensions, M&A; enabling full custodianship of the health of our
business
 Mastery of business processes and systems, to drive efficiencies across the
organization
 Soft skills or the behavioral aspects of how we apply our technical skills
and knowledge are equally important and must be reinforced throughout the
development journey
* from interviews conducted with members of the Finance Leadership Team: essential elements for an effective F&C function, which
you will find embedded across the 5 competencies according to their relevance
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F&C Competency Framework
Finance & Control Functional Competencies - Definitions
Ensures rock solid financial
management, effective organizational
oversight and an integrated approach to
Governance, Risk Management and
Compliance (GRC)
Acting as a trusted business partner,
integrates strong F&C skills and
experience with comprehensive
enterprise knowledge to drive
stakeholder alignment behind the
strategic goals of the business
Rock Solid Financial
Management,
Governance, Risk
& Compliance
Strategy
& Stakeholder
Alignment
Effective Business
Planning
Building on internal and external insight,
develops business relevant scenarios and
forecasts, promoting the implementation of
aligned plans that project realistic business
targets and objectives
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F&C Competency Framework
Ensures optimal design and
maximum leverage of business
processes and systems,
promoting simplicity, efficiency and
effectiveness through innovation
and continuous improvement
Insightful Business
Analysis & Reporting
Has a deep understanding of what
information is relevant for the business,
and the ability to analyze and interpret
the data, providing meaningful insights
for sound decision making
Finance & Control Functional
Competencies – Activities*
 Internal & External Standards and Laws (NAS, NIBS, Costing,…)



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 Portfolio management
 Business partnering
 M&A and strategic
advisory
 Industry & other external
networking / influencing
Data & Process Integrity
Internal Control System (ICS)
Enterprise Risk Management / BCP
Technical finance skills (Accounting, Costing, Tax, Treasury, Pensions, Insurance,…)
Rock Solid Financial
Management,
Governance, Risk
& Compliance
Strategy
& Stakeholder
Alignment
Effective Business
Planning






MBS, DF, CAPEX
Target setting
Scenario Planning
Pre-evaluations
Cash Flow / Treasury Forecasting
Tax Planning
* illustrative and non-exhaustive
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F&C Competency Framework
Period End Close
MBP / DF Cycle, DPF tool
GLOBE solutions / BE
Nestlé Audit Tool
Treasury, Tax, Pensions &
Insurance & other financial
systems
Insightful Business
Analysis & Reporting

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
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Internal & external benchmarking
Data modeling & valuations
Sensitivity analysis
Value Chain simulation
Post-evaluations
Business reporting
KPI Dashboards
F&C Competencies - Proficiency Levels
Knowledge not acquired / required
1
8
1/3
2
3. Can practice with help
4. Can do alone
5. Can transform
Basic knowledge but no skill
Ensures rock solid financial management, effective organizational oversight and an
integrated approach to Governance, Risk Management and Compliance (GRC).
Rock Solid Financial
Management,
Governance, Risk
& Compliance
Financial Management
 Caries out timely and accurate
data capture according to a defined
set of standard procedures,
ensuring that all accounting /
financial data is backed by relevant
supporting documentation
 Consistently applies revenue, cost,
asset and/or liability assignments
and allocations in strict accordance
with established procedures and
guidelines, according to job scope
 Delivers complete, accurate and
timely financial statements and
reports according to a defined set
of requirements for the business
 Carries out all relevant /
established set of cross-checks
and reconciliations to ensure
consistency and plausibility of
financial figures
 Tracks and reports on key
elements of the P&L, Balance
Sheet, Cash Flow statements
and/or other F&C related data,
according to job scope
 Ensures completeness, accuracy and
timeliness of all data capture as well as
the relevance and authenticity of
supporting documentation or other
evidence for all accounting / financial
data by monitoring and enforcing
procedures across the business
 Ensures that all revenue, cost, asset &
liability assignments and allocations
drive optimal value for the business and
are made in strict accordance with
established principles
 Identifies the information needs and
requirements of internal and external
stakeholders, then ensures the
completeness, accuracy and timeliness
of all financial statements and reports
 Applies technical knowledge of
accounting & finance, as well as good
judgment, to ensure consistency and
soundness of financial figures
 Ensures constant monitoring and
interpretation of financial transactions &
statements, and can justify any
conclusions reached
 Defines the parameters for relevant
accounting / financial data needs
and all related procedures of the
business, while ensuring alignment
with local and/or international
statutory standards & requirements
 Sets the parameters for optimal
revenue, cost, asset & liability
assignments and allocations, and
defines protocol for the way they are
applied in the business
 Seeks out relevant developments in
the area of financial management
and drives the evolution of financial
options and related information
requirements for the organization
 Uses sound financial and business
judgment to define the scope of
information to be disclosed, both
internally and externally, as well as
the optimal way to present it
 Defines the scope and materiality
levels for data monitoring and
reporting, and ensures required
transparency
April 2014
F&C Competency Framework
F&C Competencies - Proficiency Levels
Ensures rock solid financial management, effective organizational oversight and an
integrated approach to Governance, Risk Management and Compliance (GRC).
1
2
3. Can practice with help
Rock Solid Financial
Management,
Governance, Risk
& Compliance
2/3
4. Can do alone
5. Can transform
 Ensures adherence to Company
principles, policies and procedures
within the execution of assigned
responsibilities; including but not
limited to NAS, NIBS, Costing
Standards, retention policies and
local laws
 Promotes the enterprise-wide
understanding and adherence to
Company principles, policies and
procedures, leading expert networks
and/or driving change as required
 Ensures application of sound
business ethics and rock solid
governance across the organization,
leading by example and continuously
reinforcing the importance and nonnegotiable character of these
principles
 Champions Corporate Governance
and actively promotes the Corporate
Business Principles and Code of
Conduct across the organization to
include challenging or escalating
instances where business integrity or
ethics are under threat
 Effectively applies the various
components of the internal control
system, with the purpose of helping
the organization to retain and protect
value by supporting an integrated
and sustainable internal control
environment within Nestlé
 Steers or implements innovative
changes to manage the internal
control system (ICS) to include both
internal and external views of
emerging risks and trends in GRC
related areas
9
Basic knowledge but no skill
Knowledge not acquired / required
Governance (G)
 Understands applicable
internal/external principles,
policies and standards and is able
to apply them during their daily
operational work; including but
not limited to NAS, NIBS, Costing
Standards, retention policies and
local laws
 Demonstrates a general
understanding of business ethics
and the significance of ensuring
rock solid accounting & GRC
activities
 Understands the expected
outcomes of having an
effective and efficient internal
control system in place which
includes the following
components:
Control Environment, Risk
Assessment, Information &
Communication, Control
Activities, Monitoring
April 2014
F&C Competency Framework
F&C Competencies - Proficiency Levels
Ensures rock solid financial management, effective organizational oversight and an
integrated approach to Governance, Risk Management and Compliance (GRC).
10
2
Basic knowledge but no skill
Knowledge not acquired / required
1
3. Can practice with help
Risk Management (R)
 Identifies and analyzes risks
within a specific business area or
process, including both internal
and external factors, and
escalates when a known or
potential material risk is observed
 Understands how key risk and
control activities are applied
within the scope of current job
Compliance (C)
 Ensures data integrity before
producing output, using data
validation and integrity checks
 Understands the importance of
the proper execution of control
and compliance activities in
support of the internal control
environment, and further executes
routine control activities as
defined within areas of
responsibility
April 2014
Rock Solid Financial
Management,
Governance, Risk
& Compliance
3/3
4. Can do alone
5. Can transform
 Skilled in the identification and
analysis of risk within a specific
business area or process, including
having a broader understanding of
their impact on the interfaces with
other business areas or processes
 Takes timely corrective action to
address known or anticipated business
risks, ensuring that all relevant
decision makers are informed and
decisions carried through
 Steers the systematic application of
processes and structures that enable
an organization to identify, evaluate,
analyze, optimize, monitor, improve or
transfer risk, whether financial or other
 Ensures that all compliance gaps are
resolved in a manner to promote
effectiveness and efficiency via
sustainable solutions
 Coordinates and develops measures
to ensure compliance with both
internal and external policies and
procedures, audits and compliance
activities
 Executes and monitors identified key
control activities to give reasonable
assurance that the internal control
environment is operating as designed,
and provides appropriate and timely
guidance on policy remediation to
drive controls improvement
 Effectively adapts the identified key
control activities and monitoring
processes to the changes within the
environment including new
requirements and/or business units,
and further builds capabilities within
others to do the same
F&C Competency Framework
 Drives the discussion, with all relevant
stakeholders, on changes in the risk
profile of a business or specific area of
operations, adapting the associated
risk tolerance or appetite accordingly
F&C Competencies - Proficiency Levels
Ensures optimal design and maximum leverage of business processes and systems,
promoting simplicity, efficiency and effectiveness through innovation and continuous
improvement of the End to End (E2E) process.
11
2
Basic knowledge but no skill
Knowledge not acquired / required
1
Business Processes
& Systems
3. Can practice with help
4. Can do alone
5. Can transform
 Understands the full scope of
systems and related E2E
processes relevant to their area
of responsibility, and has the
operating knowledge required to
perform all activities within the
scope of their work in a timely
way
 Ensures effective use of business
systems in optimizing F&C activities,
while ensuring flawless execution of
E2E processes by establishing, driving
and monitoring the objectives and
timelines for the relevant organizational
entity / business
 Drives development and implementation
of critical E2E business processes, tools
and systems, balancing cost
effectiveness, statutory compliance and
ethical obligations, leading continuous
improvement through internal
benchmarks and industry best practices
 Understands the Procedures,
Guidelines and Standards
applicable within a defined set of
business processes, and can
exercise a disciplined approach
in following them
 Exercises full knowledge of
Procedures, Guidelines and Standards,
ensuring their execution across the
relevant business processes, and is
able to clearly articulate the rationale
and purpose when process and system
gaps are identified
 Develops capability and knowledge
within the function to ensure flawless
execution and active contribution to the
improvement, innovation and
streamlining of business processes and
systems, so as to eliminate gaps and
optimize performance, accuracy, costs
and visibility across the organization
 Does simple problem solving
using systematic methodology,
such as Nestlé Continuous
Excellence Go/See/Think/Do
(GSTD), to help identify system
and process gaps; provides
feedback for ongoing
improvement
 Identifies system and process
innovation or improvement
opportunities, conducts complex
problem solving to identify root causes
and benchmarks to propose concrete,
implementable solutions
 Drives integration and change
management cycle during the
implementation phases of new
processes and systems, instilling a
problem-solving mindset with early
identification of potential barriers and
timely execution of solutions
April 2014
F&C Competency Framework
F&C Competencies - Proficiency Levels
Has a deep understanding of what information is relevant for the business, and the ability
to analyze and interpret the data, providing meaningful insights for sound decision making
3. Can practice with help
4. Can do alone
5. Can transform
 Finds and links financial information
that is relevant to the business,
using internal and external data
sources
 Applies solid enterprise & industry
knowledge to define and carry out
meaningful business analysis, using
relevant competitive, industry and
macro-economic data to draw
correlations and interpret trends
 Uses strong business acumen and financial
literacy as well as solid enterprise &
industry knowledge to (a)define and steer
focus areas of analysis in relation to
business risks & opportunities, (b)lead
competitive advantage value chain
analyses and competition reaction studies,
and (c)define scenarios and scope of
assumptions relevant to the business
Basic knowledge but no skill
2
Knowledge not acquired / required
1
Insightful Business
Analysis &
Reporting
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April 2014
 Understands the business’ data
structures and draws on the
relevant information to populate
financial models
 Understands and applies
simulations and other financial
analysis models such as variance,
trend, break-even, cost benefit and
sensitivity, to monitor or control
activities and provide input for
decision making
 Identifies basic irregularities or
material variances in financial
figures that help identify business
issues or opportunities based on
sound financial analysis
 Delivers financial analyses to the
business following an agreed upon
reporting framework, providing
relevant data points and analytics
as input for decision making; can
clearly identify when analytical
outcomes need to be escalated
 Masters data structures and connections
and fully exploits multidimensional
information sources to create or leverage
financial models
 Builds impact analyses and complex
studies with multiple variables that
provide actionable business insight (e.g.
portfolio analyses)
 Spots, thoroughly investigates and
diagnoses root causes, then takes
appropriate action on irregularities or
material variances in financial figures
and related business issues
 Clearly communicates business relevant
financial analyses to support informed
decision making, explaining, commenting
and challenging deviations while
highlighting opportunities, all in an
actionable manner based on a good
understanding of the level of financial
acumen of the audience
F&C Competency Framework
 Defines the parameters for business
relevant data and data structures, ensuring
an optimal level of financial information and
data flows across the organization
 Steers the development of data models that
anticipate the evolution of business needs,
to ensure accuracy and relevance of
financial analysis
 Actively addresses the root causes of
irregularities or variances, driving
heightened awareness and concrete action
to improve reliability and usability of
financial data
 Drives informed decision making across the
organization while ensuring timely action,
by weighing in the most relevant outputs of
data analysis and simulations needed by
the business; ensures full understanding by
all
F&C Competencies - Proficiency Levels
Building on internal and external insight, develops business relevant scenarios and
forecasts, promoting the implementation of aligned plans that project realistic business
targets and objectives
3. Can practice with help
4. Can do alone
5. Can transform
 Quantifies and validates defined
number of drivers & assumptions
relevant to the business plans
 Identifies key business drivers and draws
on internal / external insights to develop
relevant assumptions for long and short
range planning and business forecasting
 Defines the objectives, priorities,
milestones and resources needed to
achieve the agreed business strategy, and
ensures the relevance of all assumptions
throughout the planning cycles
 Models forward looking data,
ensuring integrity of the model as
well as accuracy of inputs and
results
 Provides the business with fact-based
and forward looking decision making
support, then develops and monitors
implementation plans based on agreed
decisions
 Ensures that adequate planning &
forecasting capability is developed,
resourced and cascaded through the
organization, driving forward looking
business acumen across the organization
 Quantifies impact of different
scenarios when evaluating
forecasts or business plans /
strategy
 Develops and validates scenarios and
impact assessments with key
stakeholders, ensuring alignment with
business objectives and resources while
continuously evaluating and comparing
courses of action
 Links the interdependencies and their
impact between market issues, business
opportunities and external events, to
provide strategic and tactical direction for
scenario development, to lead idea
generation and to define focus areas for
impact assessment
 Applies knowledge of allocation
keys and methodology to determine
the apportionment of budgets
across the business
 Ensures the correct and consistent use
of allocation keys and methodology,
seeing to a fair, defendable and
transparent apportionment of budgets
across the business
 Ensures that a business-aligned and
coherent allocation framework is defined,
regularly benchmarked and consistently
deployed, taking into account all of the
complexities of the organization and the
external environment
Basic knowledge but no skill
2
Knowledge not acquired / required
1
Effective Business
Planning
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F&C Competency Framework
F&C Competencies - Proficiency Levels
Acting as a trusted business partner, integrates strong F&C skills and experience with
comprehensive enterprise knowledge to drive stakeholder alignment behind the strategic
goals of the business
1
2
3. Can practice with help
Strategy
& Stakeholder
Alignment
4. Can do alone
5. Can transform
 Is familiar with Nestlé strategic
documents and how it relates to the
business; can explain to others
 Guides own business area based on a
well-developed understanding of the
overall business strategy
 Takes a key role in defining and
implementing mid to long term overall
business & functional F&C strategy
 Contributes to short /medium term
strategy development and provides
support in defining key drivers for
tactical implementation
 Explains implications of business
decisions, continuously assesses existing
direction and opportunities, constructively
challenges areas of concern, identifies
potential issues and provides alternatives
 Ensures alignment between long and
short term interests of the business and
establishes a framework in which
opportunities can be evaluated, using
business insight to drive decision making
 Brings strong financial expertise and
business acumen to strategic projects,
ensuring an active role in their definition,
development and deployment
 Drives strategic projects, such as target
identification for acquisitions & business
development, divestitures, restructuring,
tax, financing, pension, insurance,…
Knowledge not acquired / required
Basic knowledge but no skill
Strategy Development & Execution
14
 Provides basic financial acumen and
techniques in support of strategic
projects (e.g. M&A, competitive
assessment, portfolio management,
tax & treasury planning)
Stakeholder Alignment (internal & external)
 Communicates financial information in
a clear and convincing manner, in
support of strategy development and
implementation
 Understands the needs and point of view
of key stakeholders and ensures they have
the relevant level and transparency of
financial information for informed decisions
 Pro-actively seeks guidance on the
needs of key stakeholders for financial
information and ensures transparency
of data for informed decisions
 Draws on financial acumen and an
understanding of how data relates to stated
business objectives, to present and defend
arguments with all business stakeholders
 Seeks involvement with external
organizations, to gain insight and build
conduits to raise industry issues
 Participates actively with external
organizations and individuals, building
alliances and bringing financial and other
insight to the business
April 2014
F&C Competency Framework
 Leads key stakeholders in defining,
sharing and exploiting the relevant level
of financial information required to align
the organization against the business
objectives
 Influences key decisions amongst all
business stakeholders through authority
of knowledge and expertise
 Has an active share of voice with external
organizations, institutions and other
influencing bodies, benefiting the
business and the industry as a whole
Acknowledgments
This Finance & Control Competency Framework was made possible through
the full support and active contributions of the F&C Leadership Team, as
well as the devotion of several close colleagues who committed long hours
to bring this initiative to fruition
Cornera Wiskott, Terri Hill, Joanne Wood, Peter Scrivener, Robert Paty and Gustav Quast
Thanks also to Corporate Training & Learning for their help with the
methodology.
Mike Scales
April 2014
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F&C Competency Framework