Fit and focused Dear colleague, Let me say from the outset that it has not been easy or pleasant to have to trim our organisation and say farewell to capable and talented employees. But it was necessary, and our highest duty as a company was therefore to do this in an orderly manner and with dignity. When we initiated a process to examine whether we could do things more simply and efficiently, this was also founded on another important fact. Over the last four years, our earnings have declined while our capacity costs and number of employees have risen steadily. You do not have to be a finance expert to realise that this is not a healthy trend. During this period our economic competitiveness declined, and continuing down this path would entail a real risk of Grundfos returning losses. We therefore concluded that a failure to act would neither be responsible nor sustainable. We have now changed our organisation to reduce complexity and clarify responsibility –to minimise doubling up and bureaucracy. Many employees raised these issues as obvious problems that needed to be addressed. This has been done. Fortunately an organisation like ours is constantly in transition, so it can adapt to conditions and deal with the challenges it faces. It has to be this way. Our organisation has been simplified, and procedures and relationships should become clearer with time. Our Business Development organisation is now headed by Lars Aagaard. The segments have been simplified so we can work with the regions with high impact to develop our business in buildings and industry, and the water sector. All marketing functions have been grouped under Poul Due Jensen, to avoid doubling up and wasting money. It is vital that our structure and operations are in tune with what the markets and customers need. We believe the foundation for this has now been laid. We feel optimistic in Group Management. We believe we are on the right path, and that our structural initiatives and organisational changes can pave the way for new progress. We have a strong brand on the global market, our customers still value us, and our products are energy-efficient and robust. But a more streamlined organisation is just the first step. No-one can achieve long-term success by cutting costs alone – we have to lay the foundation for our long-term competitiveness through clear priorities and new strategic initiatives. But each employee's wholehearted commitment remains most important of all. Many have experienced frustration and doubt about our direction. We are therefore striving to keep everyone as informed as possible about our thoughts and decisions on our future paths. This is also why we are determined to discuss the right course of action with as many as possible. I am personally very pleased to receive input from employees in all areas, as it gives me a sense of what is happening and what needs to be addressed. All our efforts aim to secure our future, win customers and conquer new territory based on a healthy and solid foundation. Ultimately it is about strengthening Grundfos' position. It is important, to this end, that everyone does their utmost. We cannot ask for more. Keep up the good work. I wish you and your family all the best in 2015. On behalf of Group Management Mads Nipper Group President & CEO Helping preserve Scotland's history 25 4 5 6 10 14 18 20 22 24 25 30 Clean enough to drink Number 1 in South Africa Unique chance sent Abel to Canada Two executives with a passion Ironman keeps machine well oiled Canadians create their own space In play around the globe Cold air for fresh bananas Søren changes direction Helping preserve Scotland's history Brewed using the best Czech water 2 Gmagazine December 14
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