DIAGEO VIETNAM VALUE SURVEY - INTERVIEW REPORT

I. PERSONAL INFORMATIONa) Location: Vietnam (15)b) Job level:

- Level 5: (8)- Level 6: (7)

c) Time stayed in Diageo:- 0-6 months:(3) - 7months-1year:- 1-2 years: (3)- 2-3 years: (5)- 3-5 years: (3)- 5-10 years:(1)- 10+ years:

II. LEADERSHIP

SUMMARY

There are six categorizes of leadership style in Diageo Vietnam:

- Charismatic leader: charm/grace, always open-minded, friendly with employee, create followers by admiration: 5 choices

- Participative leader: involving employees in making decision, rather than autocratic decisions: 8 choices

- Transactional leader: clearly distinguish between punish and reward, well-defined management structure, clear regulations/rules: 2 choices

- Transformational leader: passionate, enthusiastic, and energetic with their job and create followers by those characteristics: 8 choices

- Servant leader: serves other, commitment to growth of people, building community: 5 choices

- Other - autocratic leader: demanding, ambitious but not listening: 1 choices

Most of the interviewees are happy with their managers because of their professional management style. Managers usually trust the employees and create opportunities for them to develop themselves together with coaching and guiding them instead of involving too much in their tasks. Moreover, most of the informants feel comfortable with the working environment in which their managers are open-minded, caring and close to them. Especially, 14/15 respondents agreed that their manager’s communication style are very straightforward. Beside that, the interviewees said they can learn a lot of skills from their experienced and

1

knowledgeable managers such as defining clear vision, planning and execute those plans, presenting ideas and being determined.

However, there are still shortcomings that the managers are expected to overcome. Sometimes, they are not good listeners. For example, when an employee proposes a new way of dealing contract based on the real market situation, the manager do not consider it carefully but keep following their traditional way. Furthermore, some leaders do not understand deeply their employees’ strengths and weaknesses in order to assign them to the right positions. Besides, the power scopes of some line managers are not clear enough for them to make urgent decisions which cause the loss of business opportunities. Among those weaknesses, one interviewee complained that his/her manager always picking up on their mistakes instead of sympathize and supporting them.

RECOMMENDATIONS

In order to improve those weaknesses, it is recommended:

- Manager need to continue improving their communication skills: create information channels for better sharing business information with employees.

- Manager should have a clear understanding of the culture and requirement from the local market to make the right decision. Ex: Cannot apply the promotion program of Diageo Company in other regions into Vietnamese market.

- Manager should usually update market situation from employees’ report who work directly with stakeholders.

- There should be clear KPIs for evaluating employees’ performance, so they can better understand their employees’ abilities in order to give them the right tasks, positions and training.

- Diageo should conduct the training courses of management and communication for managers to improve their shortcomings.

III. DECISION MAKING

SUMMARY

When asking for the effectiveness of the decision making process, 8 answers are this process is effective to very effective, 2 answers are both effective and ineffective while there is no answers for totally non-effective.

Most of the interviewees said that the process of making decision has been improved from the beginning as less time has been taken, the procedures are less complicated and more flexible together with managers have more competence in giving decision.

2

However, as Diageo is a global company and the business size is growing significantly, sometimes the process still very slow as it has to go through many different levels for approval which can leads to the loss of business opportunities. For examples, people from Sale department complained that some of their contracts with client usually take 1-2 months to sign which might resulted in unsatisfied customers and as the middle man, the sale person also felt very frustrated. In contrast, departments with very few people can process the decision very quickly. Finally, most of the respondents said that there are still many people involving in making the decision that slow down the process due to too many different ideas.

RECOMMENDATION

- Develop and improve new model of making decision process so it can be done faster and more effective.

- Information must be updated regularly for better decision making.

- Redefined the power scope of line managers in order for them to make urgent decision and be less dependent on higher level of directors.

IV. ENGAGEMENT

SUMMARY

15/15 employees insisted that they do feel like a member of Diageo community. The main reason is the workplace culture is very friendly, comfortable, professional and suitable with their value. They also happy with their job and able to see the opportunities for promotion and self-development at Diageo as well as their contributions are recognized and appreciated well in the Company. Diageo also provides good offers and allowances for employees.

Beside, 14 interviewees are very active in participating Diageo sponsored employee events such as Happy Friday, Birthdays of the Month, Family Day, New Year Party and especially team celebration party. Normally, employees participated in weekly parties. The reasons that people attend these events are to build good relationship with colleagues from other departments as well as their own department in order to help to speed up their work, feel motivated and relaxed after work. Most of them are happy with the structure, content and ways of organizing those events and said that it helps a lot in engaging people within the company. Only one interviewee who only participates few times a year due to his/her conflicted timetable.

However, some commented that these events are not really stand out and the contents are still not interesting enough to attract people. Moreover, during the parties, people tend to gather into different groups instead of joining together. Therefore, the level of engagement between employees in different departments does not improve much.

Responses related to the workplace culture of Diageo are highly positive. 15/15 interviewees enjoyed their working environments. Although it is quite aggressive, they are able to freely develop themselves and bring into play their own abilities. Most of them said that their leaders

3

and colleagues are nice, friendly and professional. Especially, the distance between the direct manager and the employee is not so high. Therefore, they can communicate easily and more effectively.

RECOMMENDATIONS

Here are some of the recommendations from the interviewee for the employee’s events

- Happy Friday: Need to be announced properly (including topic, agenda), need to have an MC with creative activities in order to get everyone involve, topic should be changed regularly.

- Increase number of events for CSR (corporate social responsibility). Ex: collecting trash on the beach, planting trees, etc.

- Organizing events which can enhance the relationships between regional offices not only within one office.

- Organize offline meeting such as outside dinner for employees every month which they can monitor the market as well as have warm meeting.

- Need a team who are responsible for internal communication in order to improve both quality and quantity of events.

V. VALUES AND DIRECTIONS

SUMMARY

- 15/15 interviewees are aware of and totally agree with Five values of Diageo.

Reasons: They are important and key factors for the business to develop and succeed together with creating the strong and effective working environment. Also, by following these values, employees themselves can develop and improve.

- All of them said that it is important for them to work for a company whose values match with their own values.

- The interviewees plan to work for Diageo in

+ 6 months: 1

+ 1 years:

+ 2 years: 2

Do not see the opportunities to get promotion within 2 years

+ 3 years: 2

4

Seeking for higher position

+ 4 years:

+ 5 years: 2

+ 10 years: 1

Satisfied when working in here

+ Don’t know: 7

Plan to stay for long term

Study more

Seeking for different environment/promotions

- Effectiveness of communicating Diageo’s values and improvements

+ Effective: 3

Reasons: induction for new employees, repeat the values regularly within the company.

+ Ineffective: 3

Reasons: ineffective with sales person because they do not have the need to concern these values as much as the officers. Lower level of employees does not remember all and understand well. The way of communicating is general, hard to fully understand and still not specifically applied in reality. The link between these values and the real activities are unclear and also lack of appropriate associations and specific examples in order to educate and remind employees. Currently, those values as a slogan are just conceptual because people, especially mid level employees, are not able to feel and apply those values into their daily working. They are aware those values, but they do not engage these into real lives and works.

RECOMMENDATIONS

- Remind the five values through activities such as awards, celebration parties or compliments from managers to employee in order to make it easy to understand and remember.

- Make sure lower level of employees are well-trained about these values.

- Need stronger communication with mid level employees, especially sale department to imply those values into the real daily work.

VI. CHALLENGE EXISTING WAYS OF DOING THINGS5

SUMMARY

14/15 agreed that they are supported by the Company, Managers and colleagues in giving new ideas/methods of doing things. However, one of them said that they support all but never accept all. Moreover, as Diageo Vietnam is still small and new in the market, people tend to follow the same ways of doing things from higher level of management.

One employee said when he/she has a new idea, he/she does not know who to propose to and therefore, he/she does not feel much supported.

RECOMMENDATIONS

- Define clear process of proposing new ideas to higher level of management to support people speak out their opinions.

VII. INSPIRATION FROM MANAGERS

SUMMARY

In order to inspire the employees give their best, leaders in Diageo Vietnam have:

- Always close to the employees to understand and solve their problems.

- Trust in their employees and always provide good working opportunities for them to learn.

- Care for not only employees’ work but also their life.

- Give awards/bonuses at the right time, recognize contribution and performance of employees.

- Increase face-to-face communication.

- Being the mirror of passionate, hardworking, ambitious and enthusiasm.

RECOMMENDATIONS

Diageo can inspire their employees to give their best by investing more on facilities, training, improve communications, reasonable payments.

VIII. MANAGER IS CONSIDERATE OF EMPLOYEES’ LIFE OUTSIDE OF WORK

SUMMARY

- Are your managers considerate your life outside of work?

+ Yes: 7

6

Reasons: Understand and sympathize for employees’ personal problems to support their works. Organize many parties for employees in which they can invite their family/friends, establish Company Trade-Union, support insurances, medicines, etc.

+ Neutral: 5

Reasons: They have little concerns due to the huge workload and limited time.

+ No: 3

Reasons: No time allows, personal characteristics

- Most of the interviewee appreciate managers who are considerate their life outside of work but within a reasonable limitation.

+ Very important: 4

+ Important: 9

Reasons: Highly motivated, building and improve relationships, employees feel more respected and sympathized which lead to higher engagement and better performance.

+ Neutral: 2

Reasons: Managers are too busy to take care of their employees’ life. It is only necessary if there are big issues or problems. It is should be within a limitation of work.

+ Not important:

- However, some respondents wanted to be respected with their personal life (feel free to decide whether to attend in a parties/events or not).

RECOMMENDATIONS

- Enhance organizing activities for employees’ families to engage and build relationships.

Ex: Party that invites whole family (parents, wife/husband, and children)

IX. TEAM’S SUCCESS CELEBRATION

SUMMARY

From the interview, there are some methods of celebrating team successes which are currently used in Diageo:

- Awards and bonuses

7

- Incentives

- Praise/Compliments

- Recognition

- Organize celebrating party

Half of the interviewees satisfied with the reward systems. However, some complained that the amount of bonus is not reasonable and proportionate with their achievements. For examples, an employee has shaved billion VND for the company but only receive $100-$200 USD as a reward. Therefore, they are not motivated. Also, they expected to be rewarded right after they have done their job well, not delaying after a week or a month which will decrease their satisfaction and motivation. Also, there are no well-defined KPIs for employees to follow and managers to reward. They feel that the rewards are still mainly based on voting or subjective feelings which might decrease the fairness.

RECOMMENDATIONS

- Being flexible and reconsider the amount of reward in proportion with the achievements.

- Providing clear KPIs in rewarding.

X. PEOPLE CAN BE THEMSELVES REGARDLESS OF ETHNIC BACKGROUND, GENDER OR STYLE

SUMMARY

14 interviewees agreed that they are treated equally no matter they are Vietnamese people or foreigners. Some interviewees said that language is the barrier communication of lower and higher level employees. Moreover, few interviewees think that benefits for foreigners are higher than theirs, but they understand that these benefits are support for people working oversea. One informant said that there is still distance between foreigners and local employees due to different cultures. He/she also think that the amount of work is different between foreigners and local employees.

RECOMMENDATION

Employee treatment at Diageo are good and equal, thus Diageo should maintain its current policies.

XI. COMMUNICATION

SUMMARY

The most popular channel for internal communication at Diageo is email that did not support well employees’ work. Most interviewees said that they receive too many email per day, and it is not a good communication way to make decision or do business discussion. All interviewees

8

said that they prefer face to face communication or at least talk on the phone to speed up discussion and update information weekly. For example, people in sale department can receive new information through emails regularly because they spend most time in the market, not office. All of them think that email is the most effective mean for complicated messages that need to be saved for later usage. 7/15 interviewees agreed that they receive enough amount of information that support a lot for their work while 5 people think that they receive too much information that are not related to their work. These spam information sometimes disturb their work such as missing email, skimming information, costing time. In contrast, other 3 interviewees said that they do not have enough information for their business but they receive enough information of company events. As the result, internal communication at Diageo Vietnam is considered quite effective and all interviewees prefer face to face communication.

RECOMMENDATION

Some interviewees said that meeting should have a good agenda and should be flexible. Sometimes, meetings waste time of employees because these meetings do not relate to their works/business. Moreover, the interviewees addressed that sometimes they have to wait for the meeting to report and update the process, so it slow down their business.

XII. COMPLIANCE CONCERNS

13/15 respondents feel free and comfortable in raising and speaking out their different, opposite ideas and uncomfortable feelings, conflict in term of view point but after they can make sure that these ideas are reasonable and present in an appropriate manner. The reasons are they have a close and good relationship with their managers and the culture of Diageo is to enhance straightforward communication. However, for most employees in the low levels, they do not have a gut to do so. 2 interviewees said that they still affected by Asia culture and therefore do not usually directly present their conflict ideas. Also, language is also a barrier for some employees in expressing their ideas to the foreign directors.

XIII. FURTHER RECOMMENDATIONS

- Prefer interviewing to doing survey.

- Questionnaires should be more specific, focus on different department’s issues.

- Require more supports between departments to speed up the process.

- Avoid changing management positions too often since it will cause confusion among employees.

- More allowances for Sales staff when going on business trip.

9

10