We are off to a good start – but there is still a lot to achieve Dear colleague We launched our new Group strategy over a year ago, setting very specific goals for what we expect of ourselves, each other and Grundfos. One of our most important short-term goals was to achieve a good annual profit, and turn around the negative trend in our earnings. We have done this, and we can all be proud of that. But it is important to emphasise that this milestone is not the last stop on our journey together. There is still a lot we have to achieve together. We must not make the mistake again of taking profits for granted. It is NOT our goal to maximise profits, as our purpose is something far more important than that. But reasonable earnings are an essential condition in order to do the right things – so we must maintain a high degree of discipline in continuing to ensure good earnings. And it is no less important during times where market conditions are difficult, as they were in 2015 and will be in 2016. Put another way: If you are riding a bicycle with the wind against you, you have to pedal a little harder than if you have the wind behind you. One of the things we in Group Management are not fully satisfied with looking back on 2015 is our ability to ensure our employees' motivation and satisfaction (EMS). Our financial results must not come at the expense of our employees or customers! It is therefore a special focus area for us all, and particularly all managers, to improve our EMS result in 2016. Grundfos has to be more than just a workplace, and this is something we all have to fight for. Our strategy journey has begun, and it has begun well. But there are still things that can and should be adjusted, and we need to create changes to reach the destination we are seeking. We are currently introducing a new structure for Operations at a global level, which we are confident will help improve our ability to service our customers better. We are also working systematically on how our companies and colleagues around the world use our strategic guidelines to map out their own routes. We in Group Management have therefore held intense strategic discussions with all the regions over the last eight months, to ensure we are all doing what we can to remain competitive in the markets. It has been a great experience to have the whole Group Management team involved in these meetings, where it has been clear that the lateral cooperation has dramatically increased our impact. At a time when there are numerous changes, both in our world and the world around us, it is important to have everyone on board. I realise that many might feel insecure and unsure about where we are going. It is therefore extremely important for managers to communicate even more than they normally do, and that we are all involved in our common journey and give thought to what contribution we can make to it. The changes are necessary. If we are to continue to be able to meet our goal of creating advanced solutions that can make a major difference in our world, our strategic journey is absolutely central. Based on the strong foundation in our aims and values, we have to renew ourselves, create even more value for our customers, increase our growth and earnings capability, and do it all in such a way that Grundfos is the best workplace in the world. This sounds ambitious – and it is! But our role in the world is far too important for us to be anything less than extremely ambitious. Let us help each other to ensure that our goals become reality. Mads Nipper Group President & CEO
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