A NEW

DIRECTION

4.2016

STORIES

FROM THE WORLD OF VOLVO GROUP

SPECIAL

ISSUE

WHAT DOES THE FUTURE HOLD FOR THE VOLVO GROUP?

VOLVO GROUP MAGAZINE 4.2016

CONTENT

What’s next for the Volvo Group?

In this

special issue of Volvo Group Magazine, we

explore the new strategic direction – the mission,

the vision, the aspirations, the values and the way

the Group now operates.

4.2016

T HE MI S S I O N

Why are we here?

T H E V I S I O N

Where are we going?

The Volvo Group is driving prosperity

throughout the world. In Mumbai, this

is done through efficient transport

solutions. Research into new

innovations is also important.

In the UK, the Volvo Group has excelled

in packaging tailor-made total solutions

for customers and becoming true

partners rather than just suppliers. Many

markets want to learn from this example.

T H E M IS S I ON

T H E V IS I ON

VALUES

VISION

MISSION

VOLVO GROUP

ASPIRATIONS

A S P I R AT I ONS

A SPIR ATIONS

How do we get there?

inspiration and energy. Take

two steps back and five steps

forward.

CHANGE

We are curious about the

world around us.

We are innovative and find

smart ways to create new

solutions and business.

We see change and

transformation as a source

of inspiration and energy.

We are open-minded and

share our knowledge.

Are you op

ideas? The

VA L U E S

M A K I N G I T H A P P E N

VALUE S

MAK ING IT HAPPE N

How will we do it?

There are two key elements to how the

Who are we?

What does it take to be number one in

Values are important for good

customer satisfaction and the most admired

results – in work and in play.

business is run in the new organisation:

employer, while also having the highest

Find out how with our new

an increased focus on continuous

profitability in the industry? We asked

board game.

improvements and decisions that are

customers and employees.

taken closer to the customer.

VOLVO GROUP MAGAZINE

is aimed at all the co-workers within the Volvo Group. It is published five times a year in Swedish, English, German, French, Portuguese for Brazil, Polish, Russian, Japanese,

Dutch, Korean, Thai, Chinese and Spanish.

PRINT RUN

approx. 88,000 copies

ADDRESS

Volvo Group Magazine, Volvo Group Headquarters, Dept AA13400, VHK3, SE-405 08, Göteborg, Sweden

PHONE

+46 (0)31 66 00 00

E-MAIL

groupmagazine@volvo.com

EDITOR RESPONSIBLE UNDER SWEDISH PRESS LAW

Markus Lindberg

EDITOR-IN-CHIEF

Ann-Mari Robinson

EDITORS

Lotta Bävman

(Operations), Carita Vikstedt (Technology), Tobias Wilhelm (Sales), Joanna Dembicka (Volvo CE). A Group-wide Editorial Network also contributes content.

MARKET LANGUAGE REVIEW

Markus Lindberg

EDITORIAL PRODUCTION

Spoon (project team: Maria Sköld, Linda Swanberg, Nic Townsend, Lina Törnquist, Pernilla Stenborg, Ken Niss, Sofia Hammarin)

PRINTED BY

RR Donnelley

CHANGE OF

ADDRESS

Contact your local HR

TRANSLATED BY

Lionbridge

hen I am out talking

to people in the Volvo

Group, I usually ask

two questions. The

first is whether the

future demand for

transport is going to

increase globally. The other is whether this will

take place in a sustainable fashion. Needless to say,

the answer is ”yes” to both these questions.

Sustainable transport is the basis of building a

prosperous society. Our role is to be part of this

development and we definitely have the capacity.

In my view, there are few companies with the

same potential to contribute that we have. This is

one of the reasons my job is so much fun.

To succeed with our goals, to guide and

determine the decisions we take, we have set a

number of strategic priorities. They tell us what

we should do and how.

THE IMPORTANCE

of strengthening our brands is

one example. The competition is razor sharp; we

have lost market share and need to get back on

the right track. Leading positions cannot be taken

for granted.

This is why we are going to strengthen

Volvo Trucks’ position as the leading global brand

for heavy-duty trucks in the premium segment.

At the same time, we need to recapture market

shares for the Renault Trucks, Mack Trucks and

UD Trucks brands in their regional markets.

A stronger, more brand-specific sales

organisation is one way of achieving this. Meetings

with customers at dealerships play a decisive

part in our success. So, I want a less complex

organisation where decisions are made in closer

collaboration with customers. The same thing

applies to our service operations. This is vital to

enable us to reach our targets.

We can also strengthen profitability by finding

better, more straightforward solutions in product

development, purchasing and production using

continuous improvement. Once again, our focus is

our customers. Our investments must give value

to our customers.

But our Group is not only made up of

truck operations. Our other business areas

also contribute to profitability and technical

innovation. I am proud to report that Volvo’s

electric buses are in great demand globally.

Volvo CE offers a fantastic range of machines and

the development of our engines is really exciting.

To succeed as a Group, we need to collaborate

and make use of synergies whenever possible.

THESE ARE JUST

a few examples of the way we

are working to realise our vision. I hope those of

us in the management team have succeeded in

conveying the importance of this strategy to all of

you. I also hope you will be inspired and, like me,

feel that we are on the right track.

Together, we are going to lift our Group to the

next level.

“Together we

lift our Group

to the next level”

MARTIN LUNDSTEDT

PRESIDENT AND CEO, VOLVO GROUP

VOLVO GROUP MAGAZINE 4.2016

EDITORIAL

VOLVO GROUP MAGAZINE 4.2016

MISSION

WHY

ARE WE

HERE?

With effective transport and new technology to

meet future challenges, the Volvo Group wants to

help raise prosperity. Come along to Mumbai where

Volvo buses are making life easier for city residents.

The historic Bandra train

station is an important hub

in bustling Mumbai. But with

the constant influx of new

residents, the city needs to

upgrade its infrastructure

and transportation system.

VOLVO GROUP MAGAZINE 4.2016

T HE

M IS SION

Driving prosperity

through transport

solutions

MISSION

INDIA

MUMBAI

ON THE MOVE

Like a growing number of rapidly urbanising cities globally,

Mumbai is congested and needs new solutions. Volvo

Group aims to get the people of this megacity moving again.

T E X T

K E V I N CA R M I C H A E L

P H OTO S

K I R A N N A M A

Mumbai resident Anrullah Husaini

explains why he chooses to travel with

Volvo buses: “On the Volvo bus, you

don’t feel tired.”

VOLVO GROUP MAGAZINE 4.2016

A ticket seller outside the central Bandra

station in Mumbai. Due to the extra

comfort, customers are willing to pay

extra for a “Volvo ticket”.

lose to the historic Bandra train

station in central Mumbai,

Anrullah Husaini’s family runs the

Lucky restaurant and hotel. It has

been a favourite spot for

biryani

the popular mixed rice dish, since

1937, which has even made it a navigational

landmark in the city.

Anrullah Husaini remembers a time when a car

would pass the restaurant only every few minutes.

Now, the sound of horns, engines and voices is

constant.

Anrullah Husaini drives to work because

there are no decent public transportation links

between his home and the restaurant. But when

he needs to get out of the city, he catches an

air-conditioned Volvo coach at the stop around

the corner. “On any other transport, when you

reach the destination you are tired,” says Anrullah

Husaini. “On the Volvo bus, you don’t feel tired.”

India is urbanising at a pace that the World

Bank estimates will be the biggest this century. 10

million people a year move to Indian cities from

the countryside – this influx is making cities like

Mumbai chaotic and congested.

DIVYA MAHAJAN

is travelling to the

nearby city of Navi

Mumbai. It is her

second time on a

Volvo bus but she

is already a fan: “It’s

less complicated

than getting there by

train and a lot more

comfortable.”

VOLVO GROUP MAGAZINE 4.2016

TAGLINE

The

Mumbai Mirror

newspaper reports that

if all of the private cars registered in the city

were lined up, they would occupy a distance

of more than 3,000 kilometres — yet the city

has only 2,000 kilometres of roads. Then add

tens of thousands of black-and-yellow taxis,

auto-rickshaws, and motorcycles. There isn’t

enough space for everyone. “You suffer,” says

Anrullah Husaini.

TO ACCOMMODATE AN

urban population that

is expected to reach 600 million by around

2030, billions of dollars will be spent in

India in the coming decades. With its broad

portfolio that stretches from solutions for

infrastructure development to transport,

Volvo Group is well placed to participate in

MISSION

INDIA

A Volvo bus from the neighbouring city of Navi Mumbai navigates the crowded

streets of Mumbai. Other than these city buses, long-distance Volvo coaches

are a strong presence in Mumbai, connecting it to various parts of the country.

NEHA DULERA AND

PRAJAKTA DIWAN

travel regularly with

air-conditioned Volvo

buses from Mumbai

to Belapur, the Central

Business District in Navi

Mumbai, a nearby city.

They prefer travelling by

bus. Since it is relatively

quiet, they can spend

their time relaxing and

chatting with each other.

VOLVO GROUP MAGAZINE 4.2016

THE INDIAN

government is attempting to replace a number of state

taxes with a single national goods and services tax (GST). The change

is set to dramatically alter the trucking industry. Today, companies have

to pay taxes every time goods cross a border, which is time-consuming

and can leave trucks waiting at border crossings for days.

With a single tax, many of these delays could be avoided. And

with more time on the road, trucks that carry larger loads and achieve

higher uptime will be more competitive. “The proposed new GST

regime will be a game-changer, not only for transportation and

logistics industry, but also for smart urbanisation and infrastructure

development. It is set to bring down India’s high costs of logistics and

realise the benefits of technology,” says Kamal Bali, Managing Director

for Volvo Group India.

A game-changing tax

one of the best in the world. And Volvo

buses are becoming the preferred choice for

commuters.

The bus Anrullah Husaini travels on goes

to Navi Mumbai, a newer city of more than 1

million people to the east of Mumbai. There

are some other premium bus brands on the

route as well, but locals know the service

only as the “Volvo bus”. Jheel Nayak who

often travels by bus on intercity routes thinks

Volvo buses are “great”. The problem is they

aren’t part of the Mumbai inner-city service,

Kamal Bali, MD of Volvo Group India

VOLVO GROUP MAGAZINE 4.2016

this historic shift. There are profits at stake;

there also is an opportunity to help improve

the quality of life in a country of more than

1.2 billion people.

Volvo Group is already making its mark on

cities like Mumbai. Volvo CE loaders were part

of building the approach to Mumbai’s Bandra-

Worli Sea Link, a US $240-million suspension

bridge that reduced the north-south commute

by an hour at peak times. Volvo CE equipment

demolished the old airport, clearing the

way for a new facility that is recognised as

“Many Indians feel that

AC buses are expensive,

but people aren’t thinking

about how much it costs

to buy the fuel they need

to idle for hours a day in

traffic jams.”

FA R D E E N H U S A I N I , M U M B A I R E S I D E N T

TAGLINE

PEOPLE FROM ALL

over India come to Mumbai for work and

travel. The city is home to a flourishing financial sector, Bollywood

and several of India’s leading universities. Mumbai also hosts the

country’s largest port, which handles around one fifth of India’s

foreign trade. More than 400 Volvo Penta engines are in operation

in the port. There are an additional 100 marine engines operating

in the Mumbai region.

The gateway to India

M ISS ION

INDIA

VOLVO GROUP MAGAZINE 4.2016

EICHER-BRANDED TRUCKS

account for about one-third of the light-and-

medium duty truck market in India, with a strong presence in the 5T-12T truck

segment. They are also available in the heavy-duty truck segment (with close

to 4 percent of the national market). Meanwhile, Eicher-branded buses make

up some 15 percent of the bus market, including a large proportion of school

buses. The Eicher trucks and buses business is part of VE Commerical

Vehicles (VECV), a joint venture between Eicher Motors Limited and the Volvo

Group. In operation since July 2008, the company includes the complete

range of Eicher trucks and buses, VE Powertrain, Eicher’s components and

engineering design service businesses, the sales and distribution business of

Volvo Trucks as well as aftermarket support to Volvo Buses in India.

Volvo Group’s joint venture in India

Jheel Nayak

VOLVO GROUP MAGAZINE 4.2016

so she avoids it altogether.

Jheel Nayak isn’t alone: fewer

people ride municipal buses

today than a decade ago. The

red behemoths are old and

crowded. Jheel Nayak prefers

to navigate the roads on her

motorbike for about an hour

each day and then catch a train to get to

Bandra station from south Mumbai. It is a

risky route – with frequent accidents due to

overcrowding.

IT IS ONLY A

matter of time before Mumbai

and other municipalities upgrade their

bus systems. It may not happen at once,

India’s local and national government have

tight finances. But since large-scale bus

infrastructure such as Bus Rapid Transport

is much less costly than building a subway

system, Volvo Group aims to be part of the

solution.

“As the pace of urbanisation in India

increases, finding sustainable solutions

has become a national priority. At Volvo

Group we have the potential to create real

value on this road to progress,” says Kamal

Bali, Managing Director of Volvo Group

India. “Whether that is about developing

infrastructure or motivating citizens to leave

their cars behind and take public transport

– our solutions with buses, construction

equipment, trucks or engines are there to

help create change for the better.”

TAGLINE

VOLVO GROUP MAGAZINE 4.2016

MISSION

INDIA

BETTER

INFRASTRUCTURE

CUTS COMMUTE

India’s rapid urbanisation

is opening up both

business opportunities

and opportunities to make

a positive impact. Volvo

CE loaders were part of

building the approach to

Mumbai’s Bandra-Worli Sea

Link, a US $240-million

suspension bridge that

reduced the north-south

commute by an hour at

peak times.

Just the right cure

A trucking company based in Mumbai is changing the business of

delivering medicine. And entrepreneur Rahul Agarwal is doing it

almost entirely with Eicher trucks made with Volvo Group technology.

RAHUL AGARWAL, DIRECTOR

of Bhorukas

Transporting Solutions, sits down for an interview

in front of a wall full of trophies and certificates

of achievement. Rahul Agarwal says he is

proudest of a designation of excellence from

GlaxoSmithKline, the British pharmaceutical

company. The award is evidence that the risk he

took a couple of decades ago is starting to pay off.

Rahul Agarwal comes from a family that has

been in the trucking business since 1952. In the

late 1990s, he decided to try to make it on his

own. The Indian transportation industry was

badly disorganised. Few companies were equipped

to track their trucks or guarantee delivery times.

Rahul Agarwal thought he could do better. He

bought computers and installed global positioning

units in his trucks. The investment allowed him

to win business from drug companies, which were

frustrated by the fact they had so little control

over their high-value shipments.

Today, the business is growing by a whopping

80 per cent a year. In 2013, Rahul Agarwal had

12 refrigerated trucks. Today, he has 100. “We are

hungry,” he says.

The Bhorukas fleet is supplied almost entirely

by VE Commercial Vehicles Ltd., an eight-year

old joint venture (JV) between Volvo Group and

Eicher Motors Ltd. VE Commercial Vehicles,

which makes

commercial trucks

and buses, sold

almost 5,000 units

in April, a 37

per cent increase

from the same

Vinod Aggarwal Rahul Agarwal

month a year

earlier. The surge in sales reflects India’s status as

the fastest growing major economy in the world;

the International Monetary Fund predicts India’s

gross domestic product will expand 7.5 per cent

in 2016, compared with 6.5 per cent in China.

“The JV is an entry into the mass market,” says

Vinod Aggarwal, Chief Executive Officer of VE

Commercial Vehicles.

One key to success has been driver comfort.

Rahul Agarwal pushes his drivers further

than most trucking

companies. He says he

can do so because of

the superior quality and

reliability of the Eicher

brand.

“It has a more efficient

engine, there is more

comfort for the driver.

He has to stress less.”

BHORUKAS TRANSPORTING

SOLUTIONS

Innovation:

A network of cold-storage facilities

few Indian logistics companies offering controlled

temperature door-to-door.

Total fleet:

225 trucks; 95 per cent supplied by

the Volvo Group’s JV with Eicher Motors.

AS DIRECTOR OF

Strategic Research & Studies

at Volvo Group, Reef Larsson explains how the

Volvo Group’s new mission statement reflects the

social and economic environment we live in.

“Many people associate the word prosperity

with material wealth, but the meaning is broader

than that,” says Reef Larsson. “It also means

access to the shared conditions we need to sustain

well-being and quality of life. On a societal level,

that includes, for example, education, health care,

good infrastructure and safe transportation, and of

course caring for the environment.”

Around the world, Volvo Group’s customers

contribute to the prosperity of societies by

transporting people and goods, constructing

buildings and infrastructure and providing many

services needed in daily life. The Volvo Group

enables this work through its products and

services.

Making an impact is also about developing

solutions that are accessible. In a diverse market

like India, that means providing solutions for both

the value and premium segments.

Reef Larsson believes that the Volvo Group,

with its research capacity and global reach, can

drive innovations in fast-growing fields such

as automation, connectivity and alternative

drivelines. These areas can contribute to safety

and productivity gains, as well as environmental

sustainability.

Ultimately, using a broad term like prosperity in

a mission statement can create more possibilities

to motivate and empower people: “The ways

the Volvo Group can fulfil the mission may

evolve as we grow and change as a company, and

as transport solutions are adapted to our ever-

changing world,” says Reef Larsson.

HOW TO

CONTRIBUTE

TO SOCIETY

TEXT

MARIA SKÖLD

PHOTO

CHRISTER EHRLING

The Volvo Group’s new mission is

“driving prosperity through transport

solutions”, but what does that really

mean?

Volvo Group Magazine

asked

Reef Larsson.

MISSION

DRIVING PROSPERIT Y

VOLVO GROUP MAGAZINE 4.2016

MISSION

AUTOMATION

AUTONOMOUS

FMX MINING TRUCK

The truck is being tested as part of an R&D

programme in the Boliden mine. It includes:

Special sensors

Lidar – radar system

(The truck does not use

GPS to navigate.)

Extra sprinkler system

Special mine tipper

Automation can be described as having 5 levels

FEET

HANDS

EYES

HEAD

DRIVER

Driver

Partial

Conditional

High

Full

Assistance

Automation

Scaling up

automation

T E X T

L I N A TÖ R N Q U I S T

P H OTO S

C H R I S T E R E H R L I N G

This Volvo FMX is a

tour

de force

. The advanced

automation technology in

this research vehicle is set

to boost productivity and

improve safety, while lowering

emissions. But don’t expect all

automation to look like this.

VOLVO GROUP MAGAZINE 4.2016

UTOMATION IS A

hot topic

in the vehicle industry.

But it is also widely

misunderstood.

“When people think about

vehicle automation, they

tend to think of robot trucks

but vehicle automation is something we have been

working with since the introduction of automatic

gearboxes in the 1970’s. We see it more as a

stepwise development,” says Torbjörn Holmström,

Chief Technology Officer of Volvo Group.

Automation is redefining a number of areas of

Volvo Group’s business, from its manufacturing

to aftermarket services. Vehicle automation is set

to be one key part of developments. At its most

advanced, it is illustrated by this completely self-

driving Volvo FMX truck, which is being tested at

the Boliden mine in northern Sweden as part of

an R&D programme. The truck is controlled by

two computers, six Lidars (a radar system), and a

number of sensors.

Since there is no human driver behind the

wheel, the truck can operate 24 hours a day and

in conditions that are unsafe for people.

This advanced technology was made possible

by several important hardware milestones,

including advances in autonomous braking

systems and the introduction of Volvo Dynamic

Steering in 2013.

“Volvo Dynamic Steering was the last big

piece of puzzle to fall into place,” says Torbjörn

Holmström. “It allowed us to quickly scale up

software applications.”

NOW, AS THE RACE

for greater vehicle automation

heats up, Volvo Group is set to test automation

across several vehicle categories. But even with

advances on several fronts, the technology is not

expected to be a one-size-fits-all solution.

The first levels of automation includes

platooning technology, such as the convoy of

trucks which drove through Europe in April. For

that event, trucks were linked together using Wi-

Fi, while braking and speed were controlled by

computer. Human drivers help steer the vehicles

and can take over if necessary.

On the highest level of automation are vehicles

that can operate without any human interaction.

Torbjörn Holmström

Anders Kellström

This includes the FMX truck in the Boliden mine.

Ongoing advances in automation are set to

bring tangible, broad-scale benefits.

“This FMX can cut costs and emissions while

increasing safety. Mines are often full of dust

and gases that can be unsafe for humans. After a

detonation, for example, operators often need to

stop transport temporarily to let the dust settle.

When that happens a lot of productivity is lost,”

says Anders Kellström, Senior Product Planning

Manager at Group Trucks Technology.

“In the long run, by making the Boliden mine

more productive, we hope these types of solutions

can help contribute to the sustainability of

communities that are dependent on the mine.”

Interest from around the world

THE IMPORTANCE OF

vehicle automation in

society is reflected in the attention that the

technology is generating in the media.

Starting with European Truck Platooning

Challenge in April 2016, Volvo Group’s

ongoing campaign to communicate its

advances in research and development have

been met by strong media interest.

Kina Wileke

“This spring, we’ve had journalists from

several European countries and Japan visit and

test our trucks,” says Kina Wileke, Head of Volvo Group Media Relations.

The end goal is to build broad-scale buy-in. “Ultimately, we are

trying to reach everyone from politicians and decision makers, to future

employees. We want to communicate both the opportunities these

technology advances make possible and to show that the Volvo Group is

at the forefront of developments.”

VOLVO GROUP MAGAZINE 4.2016

MISSION

CONNECTIVIT Y

IT’S ALL

CONNECTED!

By 2020, an estimated one million Volvo

Group vehicles are going to be connected.

This is creating a huge potential to turn data

into value for customers.

T E X T

L I N A TÖ R N Q U I S T

I L LU S T R AT I O N

P E T T E R L Ö N E GÅ R D

he world is becoming more

and more connected. Using

a range of technology from

telematics, Wi-Fi, sensors

and social media apps –

people, things, vehicles

and infrastructure are sharing increasing

amounts of information.

Today’s connected vehicles are already

creating value in a myriad of ways. For

one, connectivity improves uptime by, for

example, predicting when a component

needs maintenance. Vehicle connectivity

also helps to lower costs through better

fuel and transport management. It can

also increase safety. Volvo Buses, for

example, operates Zone Management,

a GPS-based service that alters how

an electric-hybrid bus functions based

on where it is, lowering speeds and

running on electricity in sensitive areas.

Connectivity solutions also help keep

drivers entertained and safe.

As the number of connected vehicles

increase, the eco-system of connected

objects is also growing.

Connectivity is transforming each

step of the customer journey –

from how the Volvo Group

sends its brand message

to customers, to selling

vehicles online, to

how goods are tracked and

delivered. It is also making

automation possible.

Customer benefit is

the main goal. Take for

example a truck that

needs servicing – if it

Hans Ristner

can be steered to a service

workshop that has an available slot, this

creates value. If a mining customer is

informed that a truck is 80 per cent full

or that the dumper trucks are standing

still 25 per cent of the time, further value

is generated.

“The challenge we are working

with every day is to build services to

extend their reach and the usefulness

for customers,” says Hans Ristner, Vice

President Volvo Group Strategy. “The data

we have create lots of opportunities – it is

up to us to turn them into smart value-

generating services.”

VOLVO GROUP MAGAZINE 4.2016

Creating value

through connectivity:

Connectivity is transforming each step of

the customer journey – from how the Volvo

Group sends its brand message to customers,

to selling vehicles online, to how goods are

tracked and delivered. Connectivity makes

automation possible.

Connectivity allows vehicles to receive

information from infrastructure and

vehicles. This helps in areas such as traffic

management, accident-avoidance and

automated tolls.

The ability to broadcast location, speed

and direction to all neighbouring vehicles

increases safety through collision avoidance,

convergence and cooperation applications.

VOLVO GROUP MAGAZINE 4.2016

MISSION

DRIVELINE S

FUELS

OF THE

FUTURE

T E X T

M A R I A S KÖ L D

P H OTO S

VO LVO G RO U P

There is a lot of research going on

to develop efficient and sustainable

drivelines. For buses, construction

equipment and lighter trucks,

electrification holds great promise.

But for long-haul transport, other

alternatives are needed.

VOLVO GROUP MAGAZINE 4.2016

TRUCKS:

For long-haul transport, diesel fuels will most likely remain the dominant

fuel in the foreseeable future, due to their relatively low cost and high energy density.

Changes in fuel supply will take time.

But different markets and segments have different needs and there is a lot of

ongoing research into alternatives. Increasingly, renewable fuels are mixed with diesel

and other fossil fuels to reduce CO

emissions.

Volvo Group is the first manufacturer to develop an efficient diesel engine fuelled by

methane (for example, from natural gas) and ignited with a small amount of diesel. In addition,

the Volvo Group is prioritising the use of dimethyl ether (DME), which burns almost soot-free

and with the same efficiency as diesel in slightly modified diesel engines. Over the past 20

years, the Volvo Group has developed four generations of prototypes with DME.

For short distances and city transport, compressed natural gas will continue

to be important, while electric trucks are also gaining some ground.

Leading the way

A wide range

of solutions

BUSES:

The Volvo Group wants to be the

world leader in electromobility for buses.

Developing this technology is key to tackling

many of the problems associated with urban

living, such as air pollution, noise and greenhouse

gas emissions.

More than 7,700 electric and hybrid buses have been

delivered from Volvo Group’s bus brands and joint ventures.

In Europe, Volvo Buses is the market leader when it comes to

hybrid buses, with a market share that is close to

40 per cent.

There are several factors that point to a

growing demand for electromobility in

the future: cities around the globe

are imposing increasingly strict

regulations on emissions and

noise, as are many nations. At

the same time, there have been

important breakthroughs in

battery technology.

CONSTRUCTION EQUIPMENT:

Electricity will be key to the future of

construction equipment.

In September, Volvo CE presented

its new hybrid loader which can deliver

up to 50 per cent better fuel efficiency, compared to

traditional machines.

The Electric Site project was also met with great

interest. This system solution for working in quarries

aims to reduce carbon dioxide emissions by up to

95 per cent, and includes electrified products such

as a new electric autonomous load carrying unit.

The future

is electric

VOLVO GROUP MAGAZINE 4.2016

WHERE

ARE WE

GOING?

Satisfied customers are what it’s all about.

Great Britain is at the forefront when it comes

to listening to customers and developing a

strong service offering.

T HE

VISION

Be the most desired

and successful transport

solution provider in

the world

Ian Ashley (left) from

Faccenda Foods knows

what to expect from Martin

Williams and his colleagues

at Volvo Truck and Bus

Centre in Milton Keynes.

VOLVO GROUP MAGAZINE 4.2016

VISION

VOLVO GROUP MAGAZINE 4.2016

VISION

THE UK:

CUSTOMER & CULTURE

The UK is one of the world’s toughest markets yet Volvo

Trucks has successfully established itself as a leading

provider of complete transport solutions. The key has been

building a customer-centric organisation and a culture

based on respect, trust and empowerment.

T E X T

N I C TOW N S E N D

P H OTO S

C R A I G E CC L E S TO N

“It is all

music to

my ears.”

Arne Knaben is excited

about the new direction

of the Volvo Group.

VOLVO GROUP MAGAZINE 4.2016

HEN THE VOLVO GROUP

VOLVO GROUP MAGAZINE 4.2016

unveiled its new

mission, vision and

values, few people

were as excited as Arne

Knaben, Managing

Director Volvo

Trucks UK. “I’m incredibly happy when I see

the direction of the Group – it is fantastic,”

he stresses enthusiastically. “It is completely in

line with what we believe in: customer focus,

market focus, providing complete solutions, the

importance of culture and trust – it is all music to

my ears.”

The UK is the world’s fifth biggest economy

and an extremely mature truck market. It is also

very competitive and customer expectations

Susan

Spencer

THE UK TRUCKS BUSINESS

Market:

approx. 35,000 trucks

Market share

Volvo Trucks:

15-20 per cent

Renault Trucks:

5-10 per cent

Brian Mills (right), Dealerpoint

Manager, Volvo Truck and Bus

Centre Milton Keynes, with

technician Darren Trim.

Stuart

Napier

are high. For Arne Knaben, who has extensive

experience from across Scandinavia, India and

Australia, working with total offers is not only the

right way but also the only way. “A customer said

to me recently that to operate a truck company

in the UK is almost like operating an airline –

because it is so heavily regulated. Customers

expect us to help with compliance. They also

want help with finance, repair and maintenance,

special features – everything. Obviously the truck

is still very important but it is absolutely vital that

we can package and deliver services too.”

IN RECENT YEARS,

Volvo Trucks has been able

to distinguish itself in the UK market through

its focus on customer needs and ability to

devise tailor-made solutions to meet those

needs. It is something that has been born out of

necessity. “We’re good at it because we have to

be – customers demand it of us. And because

this has been our daily reality for some

time, we have learnt to work well together

cross-functionally. Commercial sales, used

trucks, finance, aftersales – we all work as a

team. This is important because to offer a

customer the right price, you have to have

everything else right: capital costs, finance,

residual value and repair and

maintenance costs.”

But the key foundation behind

Volvo Trucks’ success in the UK

is what Arne Knaben calls “the

mother of all enablers”: culture.

“When you look at a truck, you

cannot see the driveline but you

know it is there and that the

truck cannot function without it,”

he explains. “Culture is the same

– it is essentially the driveline of

an organisation.”

IN THIS REGARD,

the Volvo

Group globally provides a perfect

template to emulate throughout the whole

organisation. “The Volvo Group culture

is a winning culture. It respects people,

they are allowed a lot of freedom, they

are empowered to make decisions. There

is no secret recipe – just treat people

with respect and trust – regardless of

whether it is a customer, an employee or a

dealership.”

In any business, there are many figures and KPIs

for measuring progress and success, but when

it comes to the Volvo Group’s vision, there is

only one opinion that counts: the customer. For

Faccenda Foods, one of the strengths of Volvo

Trucks is its willingness to be a partner rather

than just a supplier.

“WE HAVE A GOOD

RELATIONSHIP”

ODAY FACCENDA FOODS

is one of the

UK’s largest food businesses with a

turnover of over £500 million. What

originally started out in 1962 as a one-

man poultry business is now a national company

that supplies fresh chicken, turkey and duck,

and its customers include almost every major

supermarket chain.

“We are very focused on how we grow our

product to a really good quality and how we grow

our business,” says Ian Ashley, Head of Transport

and Safety Operations, Faccenda Foods.

Faccenda Foods currently has a fleet of 128

large goods vehicles, which not only transport

produce to customers, but also transport

deliveries between the company’s different sites.

Each vehicle is typically on a five-year operational

lease and every year, the company calls for

tenders for vehicle renewals, which must then be

carefully evaluated. For Ian Ashley, this decision is

about more than just the truck’s price. “If you’re

using a truck for five years, it’s no good looking

At Faccenda Foods, we do

a lot of things ourselves

and don’t really contract

out. We have our own

hatcheries, breeder farms,

feed mills, abattoirs and

distribution network. We

want to ensure we are

compliant and operate as

efficiently as possible, and

a lot of the time the best

way to do this is to do it

ourselves.”

Ian Ashley:

Ian Ashley (left) and Martin Williams have built their partnership based on trust and transparency.

VOLVO GROUP MAGAZINE 4.2016

“

VISION

at how much you saved with a cheaper truck

knowing that at the end of the five years, they’ve

caused us all sorts of problems because of their

reliability, which costs us money.”

Faccenda Foods prides itself on its excellent

service delivery record. Downtime not only

threatens that reputation, but a single late

delivery could cost a sale in the region of tens of

thousands of pounds. Uptime is also important

internally, in order to keep up with production.

“The way we plan our factories is very much ‘just

in time’, so if something is not on time, it delays

what we do,” explains Ian Ashley. “For example,

our processing plant expects delivery from us

every two hours. If they don’t get it in time, it

can basically stop the factory and that can cost us

thousands of pounds an hour.”

IN 2015, AFTER

a concerted effort from the Volvo

Truck and Bus Centre in Milton Keynes, Volvo

Trucks won the contract to supply Faccenda

Foods with 32 vehicles. In 2016, they won the

contract again, this time for 29 vehicles.

By his own admission, Ian Ashley is a demanding

customer. “I like things to be right and therefore

I’m quite specific on what I want on the trucks and

how I want them done. They know that if I have a

bad experience, I won’t hold back on telling them

so, but they’re really responsive to that.”

What has particular impressed Ian Ashley has

been Volvo Trucks’ openness and transparency.

“Volvo is more upfront in what they can offer.

When you talk to other manufacturers, they’ll

say ‘that’s the deal’. But with Volvo they’ll come

and say ‘we’ve got a deal, however don’t forget we

can help manage your fuel economy, we can help

with the telematics, we can help by doing this or

help by doing that’. We have a good relationship.

It’s more of a partnership rather than a ‘you sell it,

I’ll buy it’, type of scenario.”

AS PART OF THEIR

partnership, Volvo Trucks

sends a fuel watch manager to Faccenda Foods

on a regular basis, who then analyses fuel and

driver data. When he identifies potential areas for

improvements, a driver development manager will

then work with Faccenda Foods’ drivers. “Some

people think you take an order for a truck, you

deliver it, and that’s it – but that’s actually the

start,” says Martin Williams, Sales Director, Volvo

Truck and Bus Centre Milton Keynes. “For us,

it’s then about helping them after they’ve got the

trucks, to make the trucks more profitable.”

Volvo Trucks may have won over Faccenda

Foods two years running, but they also know

there is no room for complacency. In fact each

year it gets tougher as the competition are

forced to improve their offer. “Every deal gets

that bit tighter and that bit harder,” adds Martin

Williams. “In every business, whether it’s Sky

TV or a phone provider, there always seems to

be a lot of support at capturing new customers

– half-price deals for a year and so on. But it’s

important to throw all your support at keeping

customers too.”

FACCENDA FOODS

Founded:

1962

Employees:

Approx. 3,500

About:

Faccenda Foods delivers fresh

and convenience food solutions for

the UK retail and food service sectors.

The company is wholly owned by

the Faccenda family and has been

successfully supplying UK consumers

for six decades. Their fleet delivers over

20m cases a year, hitting 99 per cent of

the distribution targets agreed with their

customers.

“It’s more of a partnership

rather than a ‘you sell it, I’ll

buy it’, type of scenario.”

I A N A S H L E Y, H E A D O F T R A N S P O R T A N D S A F E T Y O P E R AT I O N S , FA C C E N D A F O O D S

VOLVO GROUP MAGAZINE 4.2016

Sam Taylor

A C T I O N S E R V I C E T E C H N I C I A N

Sam Taylor has been a Volvo Action Service technician for

nine years. Recently Faccenda Foods (see page 24) saw

three of their trucks break down on the same day, and

Sam worked overtime to ensure all three were back on

the road before clocking out. Ian Ashley from Faccenda

Foods described his efforts as above and beyond his

expectations. “It’s highly unlikely to have three trucks

break down at once. But I didn’t mind working over time –

that’s what VAS is for,” says Sam Taylor.

HEATHROW

AIRPORT

65 MILLION

VISITORS

EVERY YEAR

8,500

buses, 700 routes and 9,500 bus stops.

This makes London’s bus network one

of the largest in the world.

is the busiest airport

in Europe and sixth

busiest airport in the

world.

8.5 million

The population of London (the wider

metropolitan area has an estimated

population of 12–14 million).

LONDON FACTS

largest city in Europe (behind Moscow and

Istanbul). 19th biggest city in the world.

VOLVO GROUP MAGAZINE 4.2016

VISION

“EVERYTHING STARTS

WITH THE CUSTOMER”

For 15 years, Volvo Truck and Bus Centre London was losing money

and increasingly looking like a lost cause. But by changing the culture

and values, and putting the customer first, the business has completely

turned around and is now firmly in the black.

HEN PETER GROOME

was

appointed Managing Director,

Volvo Truck and Bus Centre

London was a mess. High living

costs and property values make London a tough

market even at the best of times, but the region

was also still reeling from a rapidly declining

vehicle population after the 2008 recession,

which was having a knock-on effect on services.

Peter

Groome

Dealer points had to be closed and no new

investment was coming in. REx (retail excellence

survey) scores were the lowest in the UK, VGAS

results were not much better, and the business

had not made a profit for well over a decade.

“Anything you could imagine going wrong was

happening,” recalls Peter Groome. “Dissatisfied

customers, disengaged employees and there was

no focus or motivation to change things. After a

period, people just got used to not making money,

and because it was owned by the Volvo Group,

people assumed it would never be shut down, so

there was no urgency to do anything different.”

ORDINARILY A BUSINESS

in such strife would

be under threat of closure, but London is

no ordinary market. Greater London has a

population of 8.5 million (up to 12-14 million

including London’s wider metropolitan area)

making it one of the biggest in the world. Its

GDP is greater than many European countries,

including Sweden. “Strategically London is too

big and too important not to have a presence –

we cannot afford not to be here,” stresses Peter

Groome.

No business can survive while continuing to

lose money, but with closure out of the question,

that only left one option – turn the business

around. For Peter Groome, that change started at

the top with virtually an entire new management

team. This was followed by new dealer managers,

supervisors and workshop controllers until the

entire workforce consisted of “the right people”.

VOLVO GROUP MAGAZINE 4.2016

“Knowledgeable, well-trained, experienced,

have the right attitude, the right people

management skills, and are entrepreneurial,”

explains Peter Groome on what he was looking

for in his new team. “The ethos we try to instill in

the business is to allow people to run their own

businesses, and feel empowered to make their

own decisions.”

The next step was to change the culture and

values, and establish a shared vision. “As a team,

we decided what our values would be, and they

are a lot like the values the Volvo Group now has

globally. It’s about being the best possible partner

for our customers. It’s about having the best offers

to match our customers’ needs and it’s about

finding the

right

customers. Not any customer but

customers whose needs we can best match.”

THE RESULTS HAVE

been immediate. In just 18

months, truck sales have increased from 250

a year to 400. But where the London region

has been particularly successful has been with

services. Three years ago, just 25 per cent of

vehicles were sold with a service contract – that

is now up to 75 per cent. Being able of offer

customised total solutions has been a big part of

their success, especially concerning compliance.

London is a heavily regulated market, with

customers affected by legislation concerning

safety, visibility and carbon emissions. “We

have had a lot of success in being able to offer

customers a solution that takes care of all their

compliance issues, so that they get on with their

own jobs,” says Peter Groome. “Our aim is to

make ourselves so important to the customer,

they can’t take us out of the

equation.”

WITH THE BUSINESS

now back

on track, Volvo Truck and Bus

Centre London is proactively

looking at the many exciting

growth opportunities its

region offers. High Speed 2

(HS2), a planned high-speed

railway between London

and Birmingham and later

Manchester, will be one of the

biggest construction projects in

Europe. In close collaboration

with Volvo Construction

Equipment, Volvo Trucks is

already in discussions with

potential customers on how

they can assist with a total

solution that incorporates both

machinery and transportation.

Ben Marzac jokes with a colleague. In the London region, changing the

workplace culture has been key to turning around the whole business.

“Our aim is to make ourselves so

important to the customer, they

can’t take us out of the equation.”

P E T E R G R O O M E , M A N A G I N G D I R E C T O R , V O L V O T R U C K A N D B U S C E N T R E L O N D O N

VOLVO GROUP MAGAZINE 4.2016

VISION

Susan Spencer:

Susan Spencer, Parts, has worked at the Volvo

Truck and Bus Centre Milton Keynes for seven

years and never wants to leave.

“EVERYONE HAS DIFFERENT

skill sets and ability

to bring something – and it’s important that a

company and managers recognise this and help

people use those skills. That is what Volvo does.

“In other jobs I’ve had, you get to a stage

where you realise you’re not happy there anymore.

You feel they’re not utilising your skills or not

listening to you, but that is not the case here. My

manager and supervisor have picked up on areas

where I have skills and they just chuck challenges

at me knowing that’s what I want.

“When I first started here, I was a van driver

delivering parts. I was then asked if I wanted to

have a go at selling parts. I took to it like a duck

to water – absolutely loved it – so they asked if I

wanted to go into the parts business and I took

on the challenge.

“PEOPLE HERE NOTICE

what you have a skill

for and are ready to offer you a new challenge,

so you’re always progressing. But you’re never

thrown in the deep end and told to learn it

yourself. There is as much help and guidance as

you want.

“My manager (Brian Mills) is one of the

best things about this job – I cannot speak of

him highly enough. He keeps giving me new

challenges, because he knows what I can do

and what I like. Recently he sat me down and

said ‘you’ve got these skills, are you up for a new

challenge?’ He then put me into service doing job

cards. Straight away I got all the help and training

I needed. You’re never made to feel you can’t ask

a question. Everyone is so happy to sit down and

say ‘I’ll help you’.”

“I love the people,

I love my job”

As London continues to move towards more

sustainable modes of public transport, Volvo Buses is

also in a leading position with its hybrid and electric

hybrid vehicles, and is continuously in discussions

with London’s public transport providers.

“When I started this process, I needed people

to believe that we could be profitable,” says Peter

Groome. “I firmly believe that if we can come up

with solutions that enable

our customers to be more

profitable, that will enable

us to be profitable. If our

customers are not profitable,

we never will be. Everything

starts with the customer.”

VOLVO TRUCKS AND BUS

CENTRE LONDON REGION

Dealerships:

Eight plus one Vehicle

Maintenance Unit

Market share:

Approx. 11 per cent

Sales:

400+ trucks (up from 250)

Contract penetration:

75 per cent

Main segments

Trucks:

Construction, waste

managements, general haulage

Buses:

London public transport

VOLVO GROUP MAGAZINE 4.2016

VISION

SCOTL AND

SERVICE THAT COUNTS

HERE IS AN

easy-going atmosphere at

The staff at Volvo Truck and Bus Centre North &

the Volvo Truck and Bus Centre in

Scotland are clearly doing something right. They

Glasgow. It’s clear that the staff enjoy

have consistently scored impressively in the Retail

each other’s company and take pride

in their work. Like several others here, Neil Park

Excellence Survey, and have received praise for

started as a technician. Today he is Aftersales

how they listen to their customers.

Director and also acting Managing Director at the

time of writing.

T E X T

A L A S TA I R M AC D U F F

P H OTO S

SA R A H RO B E RT S

“The customer has always been at the centre

VOLVO GROUP MAGAZINE 4.2016

Making time for a laugh. (left to right) Derek

Henderson, Area Aftersales Manager; Craig Fisher,

Transport Manager, European Metal Recycling;

Kevin Bertram, Customer Relationship Management

Coordinator.

of our strategic focus, but in recent years we have

changed our tactics on how we deliver service on

a daily basis. We have proactively worked with

tools like REx to engage all our customers and

staff in the drive for greater customer service.”

Volvo Group’s Retail Excellence Survey

(REx) is a questionnaire for customers who have

recently visited a workshop or purchased a truck.

The questions cover all aspects of customer

“We would mostly just react

to negative feedback from

customers. Now the feedback

we receive is distributed to

every level of the company.”

K E V I N B E R T R A M

, C U S T O M E R R E L AT I O N S H I P M A N AG E M E N T C O O R D I N ATO R

service and information from the survey is sent

to Volvo Trucks’ and Buses’ regional headquarters

and then distributed to each dealership. In

the UK’s North and Scotland regions, it was

introduced in 2013.

“Previously there was a tick-box culture,”

says Kevin Bertram, Customer Relationship

Management Coordinator. “We would mostly just

react to negative feedback from customers. Now

the feedback we receive is distributed to every

level of the company and we share and celebrate

the positive.”

In contrast to previous customer surveys,

REx offers quarterly performance feedback to

the dealerships. These are used to gain a more

updated view of how things stand, enabling

them to promptly address issues of concern and

continuously improve their service.

Kevin Bertram thinks it is important to follow

up on all customer surveys, even when feedback

has been good. “Often we’ll contact the customer

to simply thank them for their feedback, or to

look at one specific point that we could improve

upon. It is important for us to make sure that

every aspect of our service is first class and, if

possible, to do that bit extra for a customer

that makes the difference between us and our

competitors.”

ONE IMPORTANT ASPECT

of the REx is the Hot

Alert system.

When customers award a low score of between

one and five out of ten and signal that the

dealership may contact them, a Hot Alert is

VOLVO GROUP MAGAZINE 4.2016

generated. Prompt action is taken to solve the

customer’s issue satisfactorily, with the dealership

also ensuring that operations are improved and

the problem does not reoccur.

Kevin Bertram’s role is central to the Hot Alert

chain in the North and Scotland region.

“The Dealership Manager is notified when

a Hot Alert is received. I then send out an

acknowledgement to the customer, confirming

the actions we will take to resolve the issue

detailed by the customer in the survey. The

Dealership Manager contacts the customer within

one week, and the complaint should be resolved

within a maximum of two weeks. It is vital that

we act quickly in order to maintain our positive

relations with every customer, no matter their

business.”

This customer-focused strategy has also led

to power being handed to the twelve individual

dealerships in the region.

“Local autonomy is making our dealerships

accountable for their own successes,” says Neil

Kevin Bertram (left) and his colleague Raymond Hill chat with Andy Barr from WH Malcolm. “You get to know people better in a friendly

atmosphere,” says Kevin.

VOLVO BUS AND TRUCK CENTRE

NORTH & SCOTLAND

There are 12 Volvo dealerships in the region, with 420 employees.

The Volvo Group’s first import and distribution service in the UK started in

Glasgow in 1967.

It moved to the current site at Cardonald in Glasgow in 2003.

Volvo Truck and Bus Centre North & Scotland was formed in 2009 after a

merger between dealers in Scotland and the north of England.

VOLVO GROUP MAGAZINE 4.2016

VISION

SCOTL AND

Park. “We are focusing on insight driven sales.

This means listening to individual customers and

understanding their needs. The dealerships have

the freedom to create services for the customers

that adequately resolve any issues they may have.

It all comes down to adding value and helping the

customers improve their business.”

AT THE CENTRE

in Glasgow, we meet customer

Craig Fisher, Transport Manager with European

Metal Recycling. The company has 15 articulated

Volvo trucks and 15 rigids in service in the North

and Scotland region.

Craig Fisher has travelled from Salford in

north-west England for a meeting, and is happy to

be here. “Our relationship goes back a long way.

The company I work for had some third party

maintenance issues that we were unhappy about,

but we managed to work together with the guys

here and we haven’t looked back. I know they

have got my interests and the interests of the

business at heart.”

As Craig Fisher says goodbye and sets off on

his journey home, there are hearty laughs and

firm handshakes all round. “The natural touch is

very important to us here,” says Kevin Bertram.

“If customers have to wait, offer them a cup of

tea or something to eat. It’s easy to get wrapped

up in business, but we always make sure to have

a chat and a laugh. We always prioritise time for

our customers, as they are at the centre of our

strategic vision to be the Customer Company.”

A list of customer comments and staff responses hangs on the wall at the Truck and Bus Centre.

RETAIL

EXCELLENCE

There are different

customer satisfaction

surveys within the Volvo

Group.

The Retail Excellence

Survey (REx) is carried out

in more than 40 countries.

The Hot Alert System is

part of REx.

The telephone survey

consists of 13–14

questions to customers

and takes around five

minutes to complete.

Categories of questions

include Loyalty, Sales &

Delivery, Workshop, and

Soft Offer.

Dealerships receive

quarterly updates from the

survey including customer

service performance

ratings.

VOLVO GROUP MAGAZINE 4.2016

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

PHOTO: AZIMUTH/ FILIBERTO ROTTA

HOW DO

WE GET

THERE?

Engagement, contribution and strong relationships

are important for both employees and customers.

Together with Volvo Penta, boat builder Azimut

has strengthened its position.

T HE

ASPIR AT IONS

Have leading customer

satisfaction for all brands

in their segments

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

CUSTOMERS

In 2011, Volvo Penta invited

Azimut to a customer event

to demonstrate Inboard

Performance System (IPS).

On location in Gothenburg,

representatives from Azimut

were able to test drive a number

of boats, including one with a

triple installation IPS 600. “The

biggest benefits are excellent

manoeuvrability, low fuel

consumption, reduced noise and

vibration, integration, and better

boat handling in general,” says

Giovanna Vitelli.

AZIMUT YACHTS

Based in:

Avigliana, near Turin, Italy

About:

Azimut Yachts was founded

in 1969 when Paolo Vitelli started

chartering sailing boats. In 1985

Azimut acquired the historical brand

Benetti and started constructing its

own yachts.

Market:

The yachts are sold all

over the world. North America is the

company’s biggest market.

Volvo Penta engines:

IPS is used in

the models Azimut 55S, 68S and 77S.

In 2011, Volvo Penta sold 80 engines

to Azimut. In 2015, it sold 295.

VOLVO GROUP MAGAZINE 4.2016

Volvo Penta and Azimut Yachts

A winning team

By focusing on customer success, Volvo Penta has created new

business. Now both Italy’s most prestigious boat builder and

America’s biggest boat retailer, are investing in Volvo Penta IPS.

T E X T

P H OTO S

L I N DA

TA L O S

S WA N B E RG

B U CC E L L AT I

N AVIGLIANA, JUST OUTSIDE

of Turin in

northern Italy, some of the world’s most

luxurious boats are being built. Giovanna

Vitelli is the owner of Azimut Yachts, a

company founded in the 1960s.

“We are a product-based company

with innovation in our DNA. Our daily

goal is the continuous improvement of our boats,

achieved by on-going research into new desires

and market trends,” she says.

With a shared focus on product innovation,

Azimut and Volvo Penta have been working

partners for many years. Central to this

partnership is Volvo Penta’s unique integrated

propulsion system, IPS. Several years ago, Azimut

decided to invest in IPS for an entirely new

model, the 55S, which became an important

milestone in the two companies’ cooperation. “As

a product innovator, we have to be ahead of the

market and this role is far from risk-free. Our bet

on Volvo Penta and IPS was brave,” says Giovanna

Vitelli.

AZIMUT’S BOATS ARE

sold all over the world, but

support with spare parts and service,” says Johan

the largest customers are in the US. There the

Wästeräng, Vice President Product Management

boat market is dominated by MarineMax, one of

Marine at Volvo Penta.

the country’s biggest retailers of leisure boats. For

Success depended on close cooperation

Azimut, it was crucial that MarineMax accepted

between many different departments and regions

its choice of Volvo Penta and IPS.

within Volvo Penta. Marcia Kull, Vice President,

“It was not just a matter of convincing

Marine Sales North America, was among those

MarineMax of the benefits of IPS, the most

who played an important role. She met with

important thing was to show how we can

Azimut and MarineMax representatives early in

Nicola Pomi, Head of Marine Sales at Volvo Penta Italy, and Giovanna Vitelli, owner

of Azimut, have a good collaboration. “Both companies invest continuously in new

products, even in difficult periods. Not everyone has the power to remain focused

on innovation and the prioritisation of resources to create unique products,” says

Giovanna Vitelli.

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

CUSTOMERS

MARINEMAX

The largest

leisure boat and

yacht retailer in

the US.

The headquarters

are in Clearwater,

Florida.

MarineMax

has 56 retail

locations.

Sells Volvo Penta

powered boats

from Azimut,

Ocean Alexander,

Galeon and

Aquila.

Some of the world’s

most luxurious boats are

being built in Avigliana,

just outside of Turin in

northern Italy.

Bill McGill, CEO MarineMax

“To get customer satisfaction in the long term, you have to take care of your customers. We

see problems as an opportunity. If you take care of their problems – no matter what caused

them – you make your customers happy and strengthen the relationship. Volvo Penta has the

same approach, the issues we had they solved in a very good way.”

the process to answer questions about service

and support. At the same time, Marcia Kull

and her colleagues initiated different training

activities with MarineMax. “We needed to get the

salespeople to understand the IPS system, how

it works and its overall value. We also needed to

demonstrate to MarineMax that we value easy

boating and exceptional customer experiences as

much as they do,” says Marcia Kull.

THE INVESTMENT IN

training salespeople at

MarineMax got results. Three years ago, the

company’s sales of boats with Volvo Penta engines

was almost non-existent. The prognosis for this

year is 125 boats powered by about 250 Volvo

Penta engines. MarineMax has also extended the

range of boats with IPS, and now also sells the

brands Galeon, Aquila and Ocean Alexander.

VOLVO GROUP MAGAZINE 4.2016

WHAT IS IPS?

What are the lessons from

“CREATE GOOD

Volvo Penta’s Inboard Performance System (IPS)

was introduced in 2005.

your work with Azimut and

Since then, thousands of applications with the

distinctive, forward-facing, twin counter-rotating

propellers have been installed on hundreds of

boat models worldwide.

MarineMax?

Some of the benefits are: outstanding

manoeuverability, higher top speed, lower fuel

consumption and fewer CO

emissions.

“Our teams were a bit apprehensive at first, but

once they got to know how Volvo Penta works

that changed and now they are very pleased.

Volvo Penta offers the complete package. It’s

a huge benefit that we only have to deal with

one manufacturer,” says Bill McGill, CEO and

President MarineMax.

Today, MarineMax is considered a key account

within the Volvo Penta organisation. That means

that they have a sales professional assigned

to manage all aspects of the account – from

partner network and sales training to distribution

development.

Volvo Penta conducts conference calls and

meetings with MarineMax executives to ensure that

their expectations are met. Which

so far they are.

Besides selling several brands

with Volvo Penta, MarineMax is

working to drive its other major

boat lines towards Volvo Penta

and IPS. ”The performance is

incredible and when it comes to

services Volvo Penta has been

very proactive. With Volvo Penta

you make boating easier – that’s

what we are here for,” says Bill

McGill.

Giovanna Vitelli at Azimut is

also very happy with the good

collaboration between Volvo

Penta and MarineMax, which has

been strategic for sales growth in

the US.

“Through a proactive approach

and excellent coordination, the

new products launched have been

extremely successful,” she says.

N I C O L A P O M I ,

H E A D O F M A R I N E

S A L E S , I TA LY

M A R C I A K U L L ,

V I C E P R E S I D E N T,

M A R I N E S A L E S ,

N O R T H A M E R I C A

J O H A N

W Ä S T E R Ä N G ,

V I C E P R E S I D E N T,

P R O D U C T

M A N AG E M E N T

M A R I N E

RELATIONSHIPS”

“To make customers happy and

successful, you have to create good

relationships at all levels of the

customer organisation. It must be

easy to work with us and very hard to

leave us. With the IPS in their boats,

Azimut got the opportunity to launch

a new product that made them more

competitive. Thanks to the support

provided by our network in the USA,

we managed to make them successful

in the most powerful retail nautical

marketplace in the world.“

“A GLOBAL CUSTOMER

IS OUR CUSTOMER”

“The understanding that a global

customer, even if it does not buy

products directly from our market

unit, is our customer and should be

treated like one. Volvo Penta holds a

unique position as a global brand in

an increasingly global marine market.

Today’s customer expects a consistent

global experience. That’s one of our

value propositions which cannot be

easily replicated by our competitors.”

“THERE IS NO

US AND THEM”

“For us there is not ‘us’ and ‘them’.

We work cross-functionally, across

regions, different segments and

parts of the organisation. We all

have the same focus, we listen to the

customers and address their needs.

By doing so, we open up for new

business. The investment in Azimut

was a strategic choice. They have

a good vision, and just like us, they

believe in innovation.”

VOLVO GROUP MAGAZINE 4.2016

Making the job easier

ASPIR ATIONS

CUSTOMERS

“They just make it really easy for

us. We can reach them at any time

and they go over and beyond what I

would expect from such a service.”

T E X T

A L A S TA I R M AC D U F F

P H OTO

V M C G E E T RU C K I N G I N C .

HRISTY CAUSEY IS

Office Manager at

V McGee Trucking Inc. in Mississippi,

USA. A dump truck material hauling

company, they have an ongoing

cooperation with Mack Financial Services (MFS),

who provide a variety of business solutions in

conjunction with the company’s fleet of 50 Mack

trucks.

“We started our collaboration three years

ago, when we were looking to upgrade our

fleet of trucks. All our drivers said the same

thing – they wanted the Macks! This was the

initial reason why we went with their services.

We later realised that what they offered us was

to way more than just a fleet of trucks,” says

Christy Causey.

Mack Financial Services provide a range

of solutions to V McGee, including leasing

agreements and payment plans. They are the sole

VOLVO GROUP MAGAZINE 4.2016

“We subsequently realised

that what they offered us

extended to way more than

just a fleet of trucks.”

C H R I S T Y C A U S E Y

, O F F I C E M A N AG E R AT V M C G E E T R U C K I N G I N C .

Timothy Vanzant

V MCGEE

TRUCKING INC.

Based:

Memphis,

Tennessee

Founded:

1997

Business:

Dump truck

material haulage

Fleet:

50 Mack Granite

dump trucks

source of financing on the company’s fleet of

dump trucks.

Timothy Vanzant is District Finance Manager at

MFS, and works as a liason between V McGee, the

Mack dealership and financial services. “When I

began, the relationship was already in place. It was

just a matter of building and maintaining a personal

relationship of trust with our customer. It’s my job

to make sure that V McGee are satisfied with the

financial solutions we provide them with and to

effectively aid in the implementation of these into

their business model.”

V McGee, which is headquartered just south

of Memphis, Tennessee, was founded 20 years

ago by Kevin and Venesia McGee. Today, the

company covers the southern US ‘tri-states’

of Mississippi, Tennessee and Arkansas, their

expertise has brought work on projects in

Alabama and Louisiana – they were a prime

subcontractor on the clean-up operation after

Hurricane Katrina in New Orleans in 2005.

CHRISTY CAUSEY HAS

40 drivers and 20

subcontractors under her charge, and says that

MFS has made her job easier. “My greatest

challenge is keeping my paperwork in order on

a day-to-day basis. MFS have been so helpful in

helping us maintain our fleet on the road. If we

have any financial issue to discuss, they are ready

with the paperwork when we need it. Recently

they worked directly with our insurance company

to get the vehicle certificates we required.”

Apart from the overall financial support MFS

offers V McGee’s operations, it’s the personal

touch that Christy Causey values. “TJ (Timothy

Vanzant) is just the best. We recently had a

situation where a file was too large to send via

email and he offered to drive to our office and

pick it up. It really is the extra special touch

these guys give, from the sales team to the

finance team. They help with every aspect from

beginning to end and it just makes everything so

much easier.”

FACTS:

VFS/MFS

Volvo Financial Services (VFS) was formed in

2001 when the Volvo Group merged several of its

existing business units.

Mack Financial Services (MFS) is part of Volvo

Financial Services global coverage.

MFS global headquarters are located in

Greensboro, North Carolina.

MFS offers loans, leases and payment plans to

Mack customers in the USA.

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

CUSTOMERS

Right

on time

At Bourg-en-Bresse in France,

the GTO assembly plant has

improved its performance –

now 95 per cent of trucks are

delivered on time.

T E X T

A L A S TA I R M AC D U F F

P H OTO S

N I CO L A S DA RT I A I L H

LANT MANAGER FRÉDÉRIC

Brun is

delighted with the results of working with

continuous improvements at his location.

“We now spend a lot of time with

customers, working on quality of service and on

delivery.” Two years ago, 80 per cent of the trucks

that were assembled at Bourg were delivered

to customers on time. This was a statistic they

wanted to improve.

To achieve better delivery performance,

communication between various parties involved

in the process had to change. Laurent Genillon

is Area Manager and responsible for coordinating

five line managers at different stages in the

assembly process. “We started by trying to

understand what created the gap between the

production process and the delivery process.

An action plan was drawn up, which involves

communication between the plant, Sales,

and Logistics Services, led by Laurent Brunel

DELIVERY PRECISION

Delivery Precision is one of the main KPIs at Group

Trucks Operation.

A key element to delivery precision is to have

effective standardised processes on the production

line, to ensure a predictable and consistent output.

Problems that are identified should be documented

and shared throughout the organisational chain.

from GTO COE Logistics. When a customer

requests a truck, various IT systems calculate

the required milestones for each organisation,

as to what exact date the truck must leave the

plant. Then we enter in discussions to give the

same priorities to all involved departments. It

is this precise coordination between production

process and delivery process that we have greatly

improved. We then leave the trucks to Logistics

Services, who are responsible for delivering to the

customer.”

Making improvements in delivery precision also

highlighted the importance of the relationship

between the plant and the sales organisation.

Eric Belles is manager Invoicing & Delivery at

Renault Trucks. “Compared to three years ago,

there is a much greater understanding of the

Customer Delivery Date and why it is important.

We now see full commitment at the plant, from

all stages of the assembly line. We have a meeting

every week with the plant, Logistics Services and

Sales & Marketing. We go through our orders

truck-by-truck. If there is an issue, we at the sales

organisation can communicate with customers to

ensure they are kept informed.”

THE CHANGES MADE

at Bourg have meant that

around 95 per cent of the

trucks produced there are

now delivered on time.

According to Frédéric Brun,

simple communication

has been the key factor on

the assembly line. “We are

working in a big organisation

Frédéric Brun

and realised that we

should use our colleagues

to support us more. It is the complete flow of

information that has helped us achieve this.”

VOLVO GROUP MAGAZINE 4.2016

Two years ago, the Bourg-en-Bresse assembly plant

in France set out to increase its delivery precision

by working cross functionally. Today, 95 per cent of

trucks are delivered to customers on time.

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

EMPLOYEE S

As Paulina Persdotter Örtendahl sees it, engaged co-workers

and an inspiring culture are by far the most important factors.

“Everything starts with ourselves. Engagement and having

fun at work is contagious and the best way to attract the

employees of tomorrow.”

T E X T

L I N DA S WA N B E RG

P H OTO S

RO B I N A RO N O L S S O N

“The Volvo Group’s

co-workers are our most

important ambassadors”

AULINA PERSDOTTER ÖRTENDAHL

is Director Employer Branding,

Group Human Resources. Her

job includes setting the direction

on how to work with employer

branding, to give the Volvo Group

better access to a strong pool of

talent worldwide. Meeting these requirements is

a truly rigorous task. One of the Group’s three

aspirations in its new direction is to be the most

admired employer in the industry.

What is needed for the Volvo Group to succeed?

“A long-term and conscious approach both

internally and externally. Employer branding does

not stand alone, it is a part of everything we do

within the Group every day. In a time where

transparency is constantly increasing, it is of great

importance that our external employer brand

reflects our values and the internal employer

brand.

“It’s basically a question of creating pride and

engagement, as engaged co-workers share positive

experiences and stories with the outside world.

This will enable us to turn our aspirations into

reality.”

Co-workers are crucial for how the Volvo Group is

perceived. How do you make people feel engaged?

“Engagement can be achieved first when people

understand why changes are being made and are

able to see their role in the big picture. In the light

of all the changes that have taken place, our leaders

need to act as role models in showing openness

and trust to communicate a motivating vision of

the future that makes our employees passionate

and proud. The way people are treated in their

day-to-day work also plays a vital role. We all need

to feel that other people listen to us, that we have

the opportunity to develop and that our ideas are

heard and taken into account.”

How does the Group work with employer branding?

“We are working on many different levels,

focusing on different target groups, not just

university students but also pre-university

students and young professionals.

“One very important factor is to ensure that

the programmes and activities that are run are

linked to our business needs in each individual

market or area. In this context, workforce

analytics and demographics are important tools.

They give us information about the areas in

VOLVO GROUP MAGAZINE 4.2016

Paulina Persdotter Örtendahl works on

employer branding at Group level.

“What our co-workers feel and think

has an incredibly important impact on

the way the Volvo Group is perceived

as an employer. Do we convey a sense

of frustration or happiness at the

dinner table or when socializing with

our friends after work?”

T HE

ASPIR ATIONS

Be the most admired

employer in our

industry

VOLVO GROUP MAGAZINE 4.2016

AS PIR AT IO NS

E M PLOYE E S

which there is movement and the way global

events impact our needs and access to important

skills. To be an attractive employer, we need

to understand the skills and competencies we

require and be clear about that. If everyone is

pursuing the same target group, it will be difficult

to stand out from the crowd.”

Why should people choose to work for the Volvo

Group?

“Because working with the sharpest and

most creative people in the transport and

infrastructure industry generates motivation and

engagement. The Volvo Group really regards

its co-workers as its leading driving force and it

is always striving to be at the cutting edge. At

the Volvo Group, people have the opportunity

to work in a multicultural environment, where

collaboration across all the time zones really

changes the future step by step every day.

The Volvo Group is the obvious employer for

everyone who is driven by the desire to make a

difference in a fast-changing world.”

Looking ahead, what are the greatest challenges?

“The Volvo Group is a large employer and

it needs many different professional groups.

Reaching everyone in the best way calls for a huge

effort.

“The knowledge gap between different

generations is another major challenge. While

the younger generation has generally grown up

in a connected world, we have co-workers who

have spent most of their lives outside the digital

world. There’s a large discrepancy in the way

people perceive the potential that new technology

creates. New technology is also generating new

roles on the labour market. Today, as an example,

young people can be very successful, self-

supporting bloggers and their skills, influence and

networks could also be of interest to us.”

TA M M Y SC OT T,

TECHNICIAN ON THE CAB LINE

IN NEW RIVER VALLE Y, GTO, USA:

“It’s important that the company cares about its employees. Here, they give

us benefits and classes. They interact with us. Continuous improvement

gets employees involved, and the Volvo Group should continue to be open

to ideas from people on the production floor. If we take everyone’s ideas,

and continue to make sure processes are done the same way each time,

we can make a better work environment.”

RENATO NARDELLI DE SOUZ A

ASSEMBLY WORKER, GTO

CURITIBA, BRAZIL:

It is important to feel valued and

recognised. A good employer is

concerned about the health and

well-being of its employees, and

there is competence development

and different career opportunities.

I also appreciate that the company

has a good relationship with the

local community, through social

and environmental projects. The

Volvo Group can be the best

employer in the industry by keeping

the employees motivated and

continuously strive for excellence.”

QUESTIONNAIRE

What is a good

employer to you?

HICHAM EL AMBRI

, WAREHOUSE

EMPLOYEE, GTO REMANUFACTURING,

LIMOGES, FRANCE:

“A good employer is a company

that listens and where there is

a possibility to discuss things.

Strong safety and job security are

important and to know there is the

possibility to advance and to try

out different things. To become

‘the most admired employer’ in

the industry, I think diversity is

important. Employing women and

people with different backgrounds

brings different points of view. It also

helps when employees get a sense

of the company’s long-term goals.”

“The knowledge gap

between different

generations is another

major challenge.”

P A U L I N A P E R S D O T T E R Ö R T E N D A H L

, D I R E C TO R

E M P L OY E R B R A N D I N G , G R O U P H U M A N R E S O U R C E S

VOLVO GROUP MAGAZINE 4.2016

“

NEETA DULHANI

, VERIFICATION

ENGINEER AT VOLVO BUSES,

GOTHENBURG , SWEDEN:

“Three years ago, I moved from Bangalore

in India to Sweden, together with my family.

In India, I worked as an electronic design

engineer, but getting a new job in Sweden

wasn’t easy.

“Last year, thanks to ‘A job at last!’, an

initiative run by the governmental employment

agency in which the Volvo Group is a partner,

I got a six-month trainee position at GTT in

Gothenburg. This has been really important

for me, as, among other things, it helped me

to attain the experience I needed to get the

job I have now.

“I have been working at Volvo Buses since

February. In India, many companies are more

hierarchical, so it has taken a while for me

to get used to a flat organisation. Here in

Sweden, co-workers are expected to take

more responsibility. It’s a challenge, but it’s

also really positive.

“A good employer regards employees as

an asset and gives them the opportunity

to develop. As I see it, it’s important that

the team I work with has a clear picture

and vision of the future. This enables me to

understand what is expected of me and to

see how I can develop in the organisation.

Two-way communication is also important –

having a manager who is interested in their

colleagues’ views and ideas.

“However, the most important thing of all is

being given the chance to feel that I am doing

a good job.”

“It’s important that the team

I work with has a clear picture

and vision of the future.”

N E E TA D U L H A N I

VOLVO GROUP MAGAZINE 4.2016

RIE KOBAYAK AWA

, FINANCIAL

CONTROLLER , UD TRUCKS

OPER ATIONS, AGEO, JAPAN:

“Learning new things is important.

With proper mentoring, even a

routine job can become fun. There

should be an atmosphere where

employees can challenge their

managers to find better solutions

and the freedom to decide how

work should be carried out. We

don’t have as much work flexibility

here as there is in Sweden. But

there are discussions going on to

try to change that.”

ROSANGEL A PEREIR A DA

SILVA

, ASSEMBLY WORKER , GTO

CURITIBA , BR A ZIL:

“It’s about quality of life. The

company must respect the

employees and establish a

relationship of trust.

In my view, the Volvo Group can

achieve its goal of becoming the

most admired employer in the

industry by encouraging personal

and professional development for

all employees.”

CHRISTOFFER MOTEUS

HR BUSINESS PARTNER AT GT T,

GOTHENBURG , SWEDEN:

“For me freedom with responsibility

and challenging work tasks are

important, as is flexibility in terms

of work hours. To become the most

attractive employer, we need to be

more active on digital platforms.

We must go out and show off

all innovations and new ways

of thinking. There is enormous

knowledge and pride in our

products within the company.”

K ATIE GUE ST

, OPER ATIONS

COORDINATOR, VOLVO GROUP UK ,

WARWICK , UK:

“Supporting the staff, so that those

that want to learn and progress get

help with their career progression.

In terms of becoming the most

admired employer, I can’t think of

anything the Volvo Group needs to

do. I’ve been here for three years

and I feel like the Volvo Group

supports you 100 per cent. It all

comes down to culture. Everybody

is proud to work here and it is like a

family really.”

“IT’S IMPORTANT

TO MANAGE THE

NEEDS OF DIFFERENT

GENERATIONS”

“A COMBINATION OF SKILLS,

BEHAVIOURS AND VALUES”

“I think the biggest challenge for us is

to offer careers with cross-functional

opportunities and clear career paths

for advancement. It’s also important

to manage the needs of different

generations. Being the most admired

employer in our industry is definitely

a goal we want to achieve. Starting

out, we will continue to recognise and

appreciate diversity and focus on better

work-life balance opportunities. We

are also raising our involvement and

visibility in community and university

relations.”

I R I S A U S T I N ,

TA L E N T &

C O M P E T E N C E / H R B U S I N E S S

PA R T N E R AT M A C K T R U C K S

“We are looking for people in various fields, especially in sales. There

is no secret formula – it is more a combination of skills, behaviours

and values that we are looking for. Of course, we value the ability to

make decisions, think creatively and find solutions for customers. In

France, to become an admired employer, we are focusing on strong

relationships with schools and universities and we are active in local

forums and diversity networks. I think the most powerful lever to reach

this goal will be our business success – our best ambassadors will be

our employees and our customers.”

T H I E R R Y G U E R I N ,

H R M A N AG E R , R E N A U LT T R U C K S

Talent directors on their

biggest challenges

We asked talent directors from around the Volvo Group about what

talent is hard to find. What are the challenges to attracting and

retaining talent? And, how are they working to achieve the goal to

become the most admired employer in the industry?

T E X T

L I N A TÖ R N Q U I S T

VOLVO GROUP MAGAZINE 4.2016

AS PIR AT IO NS

EMPLOYEE S

“WE CONSTANTLY FOCUS ON RECRUITING

MORE FEMALE ENGINEERS”

“Our challenge is always to find skilled engineers in the different

job areas we have at GTT. At the same time, we need to recruit

people who have the ability and potential to continuously grow as

the technology environment becomes more and more complex.

One specific area we constantly focus on is recruiting and

developing female engineers and talent. To give one concrete

example of how we are tackling this challenge, we are creating a

specific Engineering Graduate Program and reaching out to female

candidates at the universities that we collaborate with.”

G U I L L A U M E VA U C H E R ,

H R D I R E C TO R TA L E N T & C O M P E T E N C E ,

G R O U P T R U C K S T E C H N O L O GY

“ARE THEY ABLE

TO MAKE THINGS HAPPEN?”

“When looking for potential employees, on top of professional and

leadership skills, we put extra focus on their motivation. Are they able

to make things happen? Do they have the will and skill to work and

to adapt to the complex environment? We believe these qualities

are needed for all employees, regardless of profession. From a

company’s perspective, being the “most admired employer” means

we are a respected company, and our work is meaningful and good

for society. It also means we need to engage and develop our

employees, and help them take care of their health and professional

development.”

R A C H E L X I AO ,

TA L E N T & C O M P E T E N C E M A N AG E M E N T D I R E C TO R ,

VO LVO G R O U P C H I N A

CAREER OBJECTIVES

AROUND THE WORLD

Every year, analytics firm Universum

conducts a survey among students at

universities in different parts of the world.

One of the questions relates to the

students’ most important career goals.

Here are answers from some of the

countries in 2015.

USA

To have work-life balance

To be secure and stable in my job

To be dedicated to a cause or to feel that I

am serving a greater good

INDIA

To be a leader or manager of people

To be secure and stable in my job

To have an international career

JAPAN

To have work-life balance

To have an international career

To be dedicated to a cause or to feel that I

am serving a greater good

SWEDEN

To have work-life balance

To be secure and stable in my job

To be challenged, competitively or

intellectually

THREE PROGRAMMES

TO FIND NEW TALENT

Academic Partner Programme (APP)

This strategic, long-term programme

covers 12 selected universities in Sweden,

France, USA, China, Japan and India.

The APP has two types of collaboration –

Preferred Research Partners and Preferred

Talent Partners. It aims to cooperate on

specific projects and increase the Group’s

visibility to students and researchers.

International Internship Programme

Every year, some 20 students from

universities included in the Academic Partner

Programme spend two to six months working

abroad for the Volvo Group in France, India,

USA, Sweden or Japan.

Volvo Group International Graduate

Programme

A programme for recent graduates all over

the world with a maximum of two years’

work experience. The programme runs for

12 months and includes a combination of

common and individual graduate activities,

day-to-day work at the home company and

an assignment abroad.

In 2016–2017, 29 participants have been

selected from a total of 4,529 applicants.

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

EMPLOYEE S

Awards, lunch roulette and time

to generate ideas. Here are three

initiatives within the Volvo Group

that create engagement.

“IT’S A WIN-WIN

FOR EVERYBODY”

T E X T

L I N DA S WA N B E RG

T THE GTO

powertrain plant

in Hagerstown, engine

assembly operator Cory

Bishop thought of an

improvement that saves 15 seconds

and 32 steps per engine.

“Last year, we started a new line,

so there were of course things that

could be improved. I submitted a

quick kaizen with suggestions on

how the work instructions could be

changed. It not only improved the

work at my station, but also the station

before mine. And it resulted in higher

quality,” says Cory Bishop.

A quick kaizen is a simple form

where employees describe a problem

and submit an improvement

proposal, including the

expected benefits and

the cost of the change.

The quick kaizen

that Cory Bishop

submitted was

not only

Cory Bishop’s illustration

in his quick kaizen.

P H OTO S

J O R DA N L O H R

implemented, it was

also recognised as the

best improvement

suggestion at the plant

in 2015.

Powertrain

Production in

Cory Bishop

Hagerstown started

working with a

reward and recognition programme

in 2010. A year later, the Operational

Excellence Award (OEA) became

standard at all Powertrain Production

plants worldwide. Every month, award

winners are selected from each of the

six sites, located in Sweden, France,

Brazil, USA and Japan.

The main purpose of the recognition

programme is to create engagement

and encourage more employees to get

involved in improvement work. Every

year, a winner is selected from each

site and invited to a global ceremony.

EARLIER THIS YEAR,

Cory Bishop

attended the recognition ceremony in

France together with his wife.

“We were there for four days. We

went on a tour to two different plants

and we also got the chance to do other

things like wine tasting,” says Cory

Bishop.

Since the start of the programme

in 2010, around 400 teams and

Cory Bishop works as an operator

at the engine assembly in

Hagerstown, USA. Last year he

was awarded for an improvement

proposal at his work station. The

improvement saves 15 seconds

and 32 steps per engine.

61,116

Numbers of quick kaizen in

the OEA program for 2015.

129.3

million SEK (approx.

15,7 USD). The total

cost saving for 2015.

It’s a new record!



OPERATIONAL EXCELLENCE AWARD

The purpose is to get more employees involved in

improvement work and contribute to the success of GTO, and

by extension the whole Volvo Group.

The first monthly Powertrain Production Operational

Excellence Award ceremony was held in May 2011. Monthly

award winners are selected at each of the six sites in Skövde,

Köping, Venissieux, Hagerstown, Curitiba and Ageo.

There are plans in place to implement similar programmes at

all GTO sites. Plants in Tuve and Umeå in Sweden, for example,

started reward and recognition programmes last year.

Tom Evans, Supervisor, Brad Heinbaugh, Value Team Captain, and

Cory Bishop beside the quick kaizen board.

employees at Powertrain Production

in Hagerstown have been rewarded for

their improvement work. And there

are a lot of changes to choose from

– as of June this year, the number of

suggestions submitted averaged five

per employee. Every month, the top

three improvements are presented by

the employees who submitted them.

The employees and leadership use

Gemba ("go and see") to learn about

the improvements on the plant floor.

Nominees are then invited to a lunch,

where the winner is announced.

“I definitely think the rewards are

positive. Some people submit a quick

kaizen hoping to win, but for me the

reward is only a bonus. Improvements

help you do a better job. If it can help

the company to save some money

at the same time, it’s a win-win for

everybody,” says Cory Bishop.

VOLVO GROUP MAGAZINE 4.2016

HAPPY FRIDAYS

filled with new ideas

Robert Valton,

Erik Andreason

and Magnus

Löwenadler

ASPIR ATIONS

E M PLOYE E S

Welcome to Happy Friday!

One Friday a month, the employees

at Volvo Group Telematics are

given an extra chance to work on

their own ideas and help to develop

those of other people.

T E X T

L I N DA S WA N B E RG

P H OTO

J U L I A BÄC K - J O N S S O N

HE HAPPY FRIDAY

concept

is now in its second year,

but this year it has a new

format. In addition to employees

being given time to develop their

own ideas, lectures by people from

other parts of the Volvo Group are

organised. The aim is to create an

exchange of knowledge, dialogue

and new ideas.

“Happy Friday is a way

of creating engagement and

participation, factors that are

absolutely essential in an innovative

culture,” says Robert Valton, who is

responsible for innovation at Volvo

Group Telematics (VGT).

ON THIS PARTICULAR

Friday, the

theme is “The challenge of reducing

warranty costs” and the guests –

Magnus Löwenadler and Elham

VOLVO GROUP MAGAZINE 4.2016

WHAT IS

VOLVO GROUP

TELEMATICS?

Operations:

Volvo Group

Telematics is responsible

for development, integration

and operation of connectivity

services for entities

within Volvo Group, as

well as external vehicle

manufacturers (through

WirelessCar). The function

belongs to Group IT.

Number of employees:

600

Established in:

China,

Japan, Brazil, USA, India and

Sweden

Pirina – are from GTT. Some 20

employees have made themselves

comfortable in the lunch-room at

the office in Gothenburg, while

another 50 participants from other

offices are taking part via Skype.

During the hour or so in which

the lecture is held, a number of

ideas are suggested on how GTT

can benefit from the knowledge

and data available at VGT – and

vice versa.

ERIK ANDREASON IS

a project

manager at VGT and he is

participating in Happy Friday for

the first time.

“I will definitely attend again. It’s

important to have a forum where

you can express your ideas and

where there are people you can

discuss them with. Otherwise, it’s

possible that valuable ideas aren’t

spread or realised,” he says.

Erik Andreason also has one

concrete suggestion. Use regular

reports to give more people access

to the analyses and data available in

different parts of the Group.

“In just this short time, a number

of really good ideas came up. Just

think what would happen if we

shared these insights with 100 or

500 people…”

Lyon plays Lunch Roulette

OULD CHANGING WHO

you

lunch with also build a

stronger company culture?

The team behind a concept called

Lunch Roulette at the Lyon

Purchasing division hopes so.

About once a month, registered

participants are automatically

matched with a randomly selected

group of four lunch companions.

And what difference does

lunch make? Well, varying meal

companions is linked to team

effectiveness, according to research

from Google. And a culture of eating

together with people from different

disciplines is even cited as a factor

behind why Cambridge University

has won so many Nobel Prizes.

Christelle

Domercq, Project

Manager at Group

Trucks Purchasing,

first read about

Lunch Roulette

on the internet

and is now one

Christelle

of the organisers

Domercq

of the initiative

in Lyon. For her, it has been

a chance to have unexpected

conversations and meet people in

a relaxed setting. “It’s a fun way

to break from my normal routine.

It brings a little bit of randomness

to the work day,” says Christelle

Domercq.

LINA TÖRNQUIST

“It’s a nice informal

way to network. The

conversation shifts

from technical issues

to vacation.”

“It’s an easy way to

meet people and a fun

thing to have in your

calendar.”

Lunch Roulette is part

of the Purchasing

Lions initiative. Right

to left: Julien Jamain,

Elodie Chevallier,

Fanny Laborie-Fulchic

and Michel Garin.

PHOTO: NICOLAS DARTIAILH

VOLVO GROUP MAGAZINE 4.2016

ASPIR ATIONS

PROFITABILIT Y

“There is no

magic formula”

T HE

ASPIR AT IONS

Have industry leading

profitability

Jan Gurander is the Chief Financial Officer who would

rather talk about trust than figures.

“Performance is about delivering on our promises to

one another. It’s about keeping our word. If we do that,

we can also achieve strong financial results.”

T E X T

M A R K U S L I N D B E RG

P H OTO

C H R I S T E R E H R L I N G

OPERATING MARGIN:

Trucks and buses

15%

12%

-3%

-6%

-9%

12Q1

12Q2

12Q3

12Q4

13Q1

13Q2

13Q3

13Q4

14Q1

14Q2

14Q3

14Q4

VOLVO GROUP MAGAZINE 4.2016

or many years, the media image of

the Volvo Group has been one of a

huge company with good products

but flagging profitability, a company

lacking the ability to manage upswings

and downturns in demand. After the

first quarter of this year, however, the

tone totally changed. Profitability has continued

to develop in a positive direction despite sharp

downturns in both North and South America. News

headlines have included “Time to believe in Volvo”

and “Volvo stands steady in a tough truck market”.

JAN GURANDER IS

not so interested in discussing how

the media describe the Volvo Group, but he says

that the confidence of investors and the media has

gradually increased.

“Our annual turnover is

approximately 300 billion

Swedish kronor. Over

the past three years,

we have reduced our

structural costs – in

15Q1

15Q2

15Q3

15Q4

16Q1

15%

12%

-3%

-6%

-9%

VOLVO

SINOTRUK

SCANIA

PACCAR

NAVISTAR

MAN

IVECO

DAIMLER

VOLVO GROUP MAGAZINE 4.2016

25.7 billion SEK

The Volvo Group’s operating income,

excluding restructuring charges, in 2015.

12Q1

12Q2

12Q3

12Q4

13Q1

13Q2

13Q3

13Q4

14Q1

14Q2

14Q3

14Q4

15Q1

15Q2

15Q3

15Q4

16Q1

OPERATING MARGIN:

Construction

15%

12%

-3%

-6%

-9%

TEREX

VOLVO

CAT

BRUNSWICK

DEERE

CNH

HITACHI CON

KOMATSU

CUMMINS

AS PIR AT IO NS

PR O FI TA BIL I T Y

PHOTO: VOLVO GROUP

VOLVO GROUP MAGAZINE 4.2016

“Profitability is

proof that we are

on the right path.”

J A N G U R A N D E R , D E P U T Y C E O A N D C F O

other words, the costs that are not impacted

in the short term by how much we sell – by

about 3 billion Swedish kronor every year. This

reduction corresponds to about one per cent of

our turnover. This money directly improves our

profit. Producing long-term sustainable results like

that in an industrial company our size, is a pretty

impressive achievement,” says Jan Gurander.

IN THESE SENTENCES,

he summarises a journey

that began a few years ago. The Volvo Group

had grown sharply by acquiring a number of

companies, but it had not been as successful

when it came to transforming an increase in size

to an increase in profits. What followed was a

challenging period of restructuring and cutbacks

among employees and consultants. Then slowly,

the trend reversed.

In answer to the question of how he would

describe the current situation, Jan Gurander

has the following to say: “We can’t be satisfied

with our current profitability, but we can see

that we are approaching the best performers

in our industry. Our previous costs were too

high, but they are now closer to the average. So

we can move from major structural changes to

continuous improvements.”

So why is profitability so important? Jan

Gurander addresses the question from different

angles. The obvious answer is that money is

needed to continue developing the company

and its products, services and employees. Profit

brings freedom that

allows the Group

to create a good,

stable future. The

automotive industry

is incredibly capital

intensive and huge

sums of money are

needed to develop

products and

services that will

also comply with

future expectations

for sustainability and

fuel efficiency.

Another

important aspect

is the fact that

the Volvo Group

borrows money and

then lends it to its

CUSTOMER

BENEFITS

WILL RAISE

PROFITABILITY

“We’ll be successful by

making our customers

successful,” says Jan

Gurander. He mentions

four important areas to

focus on:



Sales of services



Delivery precision

in truck operations



Parts availability



Quality

The common factor

for all four is that

they create value for

customers and the

Volvo Group alike.

customers in the form of financing solutions when

they purchase trucks or machinery. The same

logic applies to people applying for a mortgage. If

you want a good rate of interest on your loan, it is

important to have stable finances.

The Volvo Group’s shareholders – in many

cases institutions that secure pension capital for

millions of people – also expect their investment

in the company to be managed efficiently.

FINALLY, IT IS IMPORTANT

to remember that

the automotive industry is notorious for its

fluctuations. So, when times are good, you need

to make money in order to have a reserve when

the tide turns.

According to Jan Gurander, profitability is also

a sign of quality.

“If we look after our customers and generally

run our operations effectively, we can achieve it.

Profitability is proof that we are on the right path.

Why shouldn’t we want to be better than our

competitors also when it comes to profitability?”

The road to get there does not involve any

dramatic change of direction. In concrete terms,

it includes dividing large initiatives into smaller

projects, for example, to make things slightly less

complex and easier to achieve. It is also important

to make use of economies of scale where they

actually exist, without believing that one-size-fits-

all solutions apply to every aspect of the Group’s

operations.

Jan Gurander is also keen to underline the

importance of controlling and developing the

modular system when it comes to trucks.

Then he takes a break from the business

economic reasoning.

“There is no magic formula. Performance is

about delivering on our promises to one another.

It’s about keeping our word. If we do that, we can

also achieve strong financial results.”

VOLVO GROUP MAGAZINE 4.2016

WHO

ARE WE?

Values are the key to achieving great results together. Play

The

Values Game

and go on a journey through the Volvo Group and

this issue of the magazine. The first to cross the finish line wins!

HOW TO PL AY

You need a dice and playing

pieces. Before you start, each player

throws the dice and the highest

number goes first. Land on a yellow

circle and either jump forwards,

backwards, skip a turn or get

another throw. Good luck!

Change can be a source of

inspiration and energy. Take

two steps back and five steps

forward.

CHANGE

We are curious about the

world around us.

We are innovative and find

smart ways to create new

solutions and business.

We see change and

transformation as a source

of inspiration and energy.

We are open-minded and

share our knowledge.

“On the Volvo bus,

you don’t feel tired.”

In Mumbai, Volvo buses are already becoming a

refuge for frustrated commuters. And when India’s

megacities need to upgrade their bus networks,

the Volvo Group is ready to play an important role.

Hop onto a Volvo bus and go to stop number 12.

Having fun at work creates

passion. Move forward four steps.

PASSION

We are proud of the work and

business we do.

We are engaged and committed

to meeting our goals.

We see how diversity

strengthens us and try to bring

out the best in everyone.

We admit mistakes, fix them and

learn from them.

We are proud of our

achievements, have fun and

celebrate our successes.

Are you open to new experiences and

ideas? Then you should try Lunch Roulette.

Skip a turn and eat lunch with colleagues

at the Purchasing division in Lyon, France.

START

VOLVO GROUP MAGAZINE 4.2016

VA LU ES

Customer success is the first of the

five carefully chosen values. Skip

a turn and read up on what this

stands for.

CUSTOMER SUCCESS

We truly understand our

customers’ business.

We listen to and talk with our

customers about their needs,

desires and challenges.

We focus on transport solutions

that make customers successful

and create value for society.

We deliver on our promises.

Performance is necessary for reaching

business objectives. Wait one turn.

PERFORMANCE

We have a strong business instinct.

We have the skills, knowledge and

intuition to do the right thing.

We expect a lot from ourselves and others,

and walk the extra mile to do a great job.

We see the big picture and know when to

let go of an idea, a project or a plan.

The values serve as a guide

and drive decisions. Trust is an

important part. Take another turn.

TRUST

We are transparent and have

respect for the individual.

We trust other teams to do

their best and we respect the

decisions made.

We collaborate easily and

create excellent results through

teamwork and open dialogue.

We are empowered and have

the courage to act.

“We see problems as an opportunity.

If you take care of your customers’

problems – no matter what caused them

– you make your customers happy.”

Volvo CE’s work

with continuous

improvement began

with notes on an A3

piece of paper, but

lead to significant

gains. Hitch a ride on

one of their machines

to number 68.

It is controlled by two different computers,

radar systems and a number of sensors.

Sit back and go on a ride in the self-driving

Volvo FMX, an innovation that saves fuel and

improves safety. Skip a turn.

15 years ago Volvo Truck and Bus

Centre London had problems

with dissatisfied customers and

disengaged employees. But by

changing the culture and values,

the business has turned around.

Jump ahead four steps.

As CEO of

MarineMax, USA’s

biggest retailer

of leisure boats,

Bill McGill knows

everything about how

to make customers

happy. Join him on a

boat trip to number 42.

PHOTOS: COLOURBOX, CHRISTER EHRLING, CRAIG ECCLESTONE & PONTUS JOHANSSON

GOAL

VOLVO GROUP MAGAZINE 4.2016

HOW

WILL WE

DO IT?

Decisions that are made close to the customer,

and work characterised by continuous

improvement. These are two key parts of the

Volvo Group’s new way of working.

VOLVO GROUP MAGAZINE 4.2016

MAKING IT HAPPEN

Melinda Axelsson works as a

welder at Volvo CE in Arvika,

Sweden. By levelling out production

over the whole year, the plant can

maintain a stable tempo.

VOLVO GROUP MAGAZINE 4.2016

MAKING IT HAPPEN

ARVIK A

Small changes can lead to big improvements.

Here are three examples of the way work on continuous

improvement can really make a difference.

Andreas Eriksson, supervisor, has noticed a big difference

since the plant started working with production levelling.

In the background: Magnus Forslund, teamleader.

Michele Ntandikiye is an assembly worker at Volvo CE in

Arvika. Now he and his collaegues have more time for

improvement work.

Room for

improvement

Fewer temporary employees, higher quality and greater

flexibility. For Volvo CE in Arvika, Sweden, a more

uniform production rate is producing major benefits.

T E X T

L I N DA S WA N B E RG

P H OTO S

P O N T U S J O H A N S S O N

VERY YEAR, THOUSANDS

of wheel loaders

constantly adapted. All these changes in the

leave the Volvo CE plant in Arvika,

production rate was tough for the employees

Sweden. Until the start of 2016, the

and took time from improvement work,” says

production rate was based entirely on the

Dan Nykvist, Manager Order/Planning/VPS.

monthly forecasts made by dealers in the region.

One of the results was that the plant was

“Every month was like a blank sheet of

almost always overstaffed. Last year, in addition

paper. The problem with forecasts is precisely

to more than 900 permanent employees, it had

that – they are just forecasts and they are

around a further 100 temporary employees

seldom correct. But here at the plant, we had

working at production. Like any other plant,

to treat the forecasts as truths to which we

Volvo CE in Arvika is expected to be more

VOLVO GROUP MAGAZINE 4.2016

Better every day

The concept of continuous improvement

at work comes from Japan, where it was

developed at the beginning of the 1960s.

It has subsequently been used by many

companies in different parts of the world.

Work on continuous improvement has

become increasingly important for the

Volvo Group. Interest now focuses on

working in a more standardised manner

throughout the organisation.

Christian Nolander,

assembly worker at

Volvo CE in Arvika. The

plant produces L60-L350

wheel loaders.

VOLVO GROUP MAGAZINE 4.2016

VOLVO GROUP MAGAZINE 4.2016

MAKING IT HAPPEN

ARVIK A

With a more stable tempo in production, Madelene

Hjärpe and the other assembly workers can plan

their every day work more easily.

Looking at data from previous years, the planning team

found a way to level out production. From left to right:

Tore van Baalen, Anders Gustavsson, Daniel Backlund,

Christian Secund and Dan Nykvist.

“By levelling out production over the

whole year, we can maintain a stable tempo

without impacting deliveries to customers.”

D A N N Y K V I S T

, M A N AG E R O R D E R / P L A N N I N G / V P S

efficient and increase productivity. This was

not possible as long as the plant had to adapt

the staffing to forecasted peaks in production.

SO, AT THE

end of last year, the planning

team in Arvika started to look at the way

Volvo Trucks and Volvo Cars were working

on production levelling. They then collected

data and identified relevant metrics such as

forecasts, stocks and lead times.

By also examining the annual volume from

previous years and dividing it by the number

of weeks in which production takes place, they

arrived at the number of units that have to be

produced every week.

“When we looked at previous years, we

found that demand peaked during the second

quarter and that it tended to fall away at

the end of the year,” explains Dan Nykvist.

“By levelling out production over the whole

year, we can maintain a stable tempo without

impacting deliveries to customers.”

One prerequisite when it came to successful

production levelling was to include every link in

the chain – finance, sales, market and production.

“In the past, everyone worked individually,

but we now made sure that we did our

homework together, so that everyone had the

same picture of the real-life situation,” says

Tore van Baalen, Capacity Planner.

One of the most clear-cut results of the

improvement programme is the reduction

in temporary employees. In addition to the

financial savings this represents, this new way

of working has also generated other benefits in

the shape of enhanced quality.

“A stable production tempo results in

Magnus Ellneskog

M A N AG ER CO M M ERCI A L A N A LYSIS & VO LU M E

PL A N N ING , SA L E S REG IO N EM E A

“The principal benefit is that we now have far

greater transparency in the organisation and that

there is more understanding of the challenges

we are setting for the plants. Customers can

also benefit. In the longer term, they will benefit

from the reduction in costs and the improvement

in quality.”

Melinda Axelsson,

welder at the

CAST-flow, is one

of around 900

employees at

Volvo CE in Arvika.

Volvo CE machines

are produced at eight

plants in Europe – four

in Sweden, two in

Germany, one in Russia

and one in France.

A plant in Scotland

produces articulated

and rigid dump trucks

under the Terex Trucks

name.

The savings Volvo CE

in Arvika expects the

new working method

to generate in 2016.

25–30

MILLION

SEK

NUMBERS

fewer mistakes which affects both quality

and safety. What’s more, the employees are

able to improve their skills when they are not

constantly forced to adapt to a higher or lower

production tempo,” says Dan Nykvist.

EVERY MONTH, A MEETING

is held at which

representatives from every part of the

organisation are present. Mathias Asplund, Vice

President Production Planning, is the person who

has coordinated and established these changes in

the organisation.

“The interfunctional work is the key to

success. All the changes have been checked

with and accepted by the sales regions in order

to validate them and ensure that they don’t

impact the customer offer,” he explains.

The working method that has been

developed in Arvika will now be standard at all

the Volvo CE plants within EMEA.

“The team in Arvika has done a fantastic

job. We can see that working in the same

way throughout the region will generate huge

benefits,” says Mathias Asplund.

DO YOU WANT TO LEARN MORE?

In June, Volvo Group University arranged Group Talks with six speakers

from different parts of the Volvo Group. They shared their personal stories

on how working with continuous improvement drives performance,

collaboration, engagement and personal development. You find the talks in

Navigator, the learning tool on Violin, and also on the new portal hosting all

Group Talks http://knowledge.volvo.net/SHARE/.

VOLVO GROUP MAGAZINE 4.2016

Renault Trucks launched a

completely new range in 2013.

Development of the

award-winning Volvo FH,

launched in 2012.

MAKING IT HAPPEN

PROD UC T DE VE LOPME NT

“It is important

not to lose

manoeuvrability,

we need to be able

to respond rapidly

to the needs of our

customers.”

C H R I S T I A N C E L L I E R , S E N I O R V I C E P R E S I D E N T

T E C H N O L O GY P R O D U C T P R O J E C T AT G T T

VOLVO GROUP MAGAZINE 4.2016

Smaller projects –

greater efficiency

Lower costs, greater flexibility and fewer risks.

These are some of the advantages of Volvo

Group’s switch to a more stepwise approach

to product development.

T E X T

M A R I A S KÖ L D

S PART OF

the Volvo Group’s new

connectivity, hybridisation, and increased

strategic direction, research and

electronic monitoring. We need to develop

product development will increasingly

products and introduce new technology in a

be characterised by continuous

way that involves low risk, since uptime is only

improvements and smaller projects.

becoming more and more important to our

Christian Cellier, Senior Vice President

customers,” says Christian Cellier.

Technology Product Project at GTT, sees several

This new way of working means important

advantages of this new way of working.

changes for the brands. For example, they will

“We have recently gone through major

have greater freedom to choose when they want

Loic Mellinand,

renewals, so we have the necessary foundation

to push promotions and news, reducing the risk of

Renault Trucks

to work in a different way when we improve

important new features being drowned out in the

our products. A lesson we have learned is that

general flow of information.

efficiency often is higher in medium-sized

Ricard Fritz, SVP Product and Vehicle Sales

projects than in the really big ones,” he says.

Volvo Trucks, believes this opens up new

In addition, the present volatility in the world

opportunities. “It will be easier to present things

economy calls for a more cautious approach. With

in stages and explain what we have done and

a stepwise evolution rather than major renewals,

why. It will therefore be easier to work with

the process is more flexible, since there is less risk

price strategies and charge accordingly for

that a delay at one step will affect development

improvements that we make,” he says.

in other areas. It therefore becomes faster to bring

Ricard Fritz,

Loic Mellinand, SVP Product and Vehicle

new products into the market and start generating

Volvo Trucks

Sales Renault Trucks, is also positive. “Smaller

income. The ambition is also to make product

projects with shorter lead times to market create

planning and resource utilisation more efficient.

good leverage for us. For now, we will prioritise

“It is important not to lose manoeuvrability,

maintenance and quality, which will send a strong

we need to be able to respond rapidly to the

signal to customers. But of course, over time there

needs of our customers. At the same time, we’re

will be a balance between our short-term focus

in the middle of a technology shift, including

and long-term perspectives.”

VOLVO GROUP MAGAZINE 4.2016

MAKING IT HAPPEN

MEETINGS

Maria Rosenkrantz Sundemo

(left) and Anna-Lena Karlsson

have two meetings every

week. Nine out of ten

meetings are held at the

appointed time and they are

not interrupted as often.

The golden rules

for effective meetings

Meetings that are cancelled, moved or interrupted are a daily

reality for many executive assistants. But through continuous

improvements, Anna-Lena Karlsson and her colleagues have

created three golden rules for effective meetings.

T E X T

L I N DA S WA N B E RG

P H OTO

J U L I A BÄC K - J O N S S O N

NNA-LENA KARLSSON

works

could use methods for continuous

as an executive assistant

improvement in their work.

to Maria Rosenkrantz

“At the start, we were fairly sceptical.

Sundemo. In her role as

After all, our work isn’t that easy to

SVP for Human Resources at GTO,

measure. It required both time and

Maria has a busy diary, with at least

patience before we understood what

10 meetings a day. “My job includes

the real problem was. When the

keeping an eye on her agenda and

penny dropped, it was a real ‘wow!’

helping her to plan in advance,”

experience,” adds Anna-Lena Karlsson.

explains Anna-Lena Karlsson.

Last year, she took part in a course

HER WORKING GROUP

chose to focus

within the NEXT STEP programme

on meetings with managers. Executive

for executive assistants. One of

assistants are expected to be proactive,

their tasks was to find out how they

but this is made difficult since

planned meetings are often moved or

interrupted.

“We started by looking back over

the past two months and documenting

how the meetings had gone. It

emerged that fewer than half of them

had been held as planned,” says Anna-

Lena Karlsson.

The group then created some golden

rules for better meetings, together with

a simple tool in Excel to measure the

result.

ANNA-LENA KARLSSON

and Maria

Rosenkrantz Sundemo have two

meetings every week. They go through

the agenda for the following weeks and

get a joint picture of what is important.

“When you’re well prepared, it’s

easier to handle anything that turns up

ad hoc. If we have effective meetings,

Anna-Lena knows what to prioritise

and she can make her own decisions.

This also means that the quality of

what I deliver improves,” explains

Maria Rosenkrantz Sundemo.

Anna-Lena Karlsson can see a

number of advantages from working

with continuous improvement. “It

helps me to see and structure problems

that steal time. By understanding the

methods, I can also be even more

active and contribute more to the

management team.”

The next step is to pass on this way

of working to other executive assistants

at GTO.

“We may not be assembling

gearboxes and engines, but it is still

actually possible to measure the work

we do. More effective meetings are a

small step in this process,” says Anna-

Lena Karlsson.

GOLDEN RULES FOR

BETTER MEETINGS

It is held at the appointed

time

The participants go

through the planned topics

It is held without

interruption

VOLVO GROUP MAGAZINE 4.2016

that the production rate matches demand.

Other decisions call for multi-billion

kronor investments and have such a

major impact on operations that they

require the involvement of the

The set-up could be

described as decisions

relates to

the day-to-day operations in

which the Volvo Group supports

its customers with products, services

and financial services. All the business

areas have an income statement to

follow and objectives to realise. This level

business area to present its customers with

an attractive offer and, at the same time,

convert it to a successful, profitable

business.

At the

strategic level,

perspective is even longer.

How will business look

in the future? How

will the business

landscape change and

how will the Volvo

Group be involved and

drive these developments?

At this level, decisions are

made about strategy, long-term

plans and major investments, but

the discussions also relate to corporate

culture and the leadership that is needed

to realise the set objectives.

T E X T

M A R K U S L I N D B E RG A N D J O N ATA N S J Ö S T RÖ M

PHOTO: ISTOCK

VOLVO GROUP MAGAZINE 4.2016

MAKING IT HAPPEN

DECISIONS

How the Volvo

Group is run

Who decides what in the Volvo Group? Here is a guide

to the way decision-making at the highest level in the Group

can be organised in different scenarios.

AKING THE RIGHT

decision is decisive,

regardless of whether it is a question of

creating value for customers right now

or choosing the right route for the future in a

changing world.

The Volvo Group’s so-called governance model

is a way of explaining how the company is run in

purely practical terms or, to put it another way,

who decides what.

The basic concept is that the people closest

to the customer should be able to make the

right decision whenever possible. Needless to

say, this naturally also requires collaboration.

For example, the sales organisations need to

work with the production function to ensure

board of directors.

being made at three

levels: operational

level, portfolio level

and strategic level.

Operational level

also involves constantly following upswings and

downturns in demand, handling quality issues and

looking for new, smarter working methods.

Portfolio level

relates to the products and services

that must be available. The word “portfolio”

refers to the portfolio of products and services

the Volvo Group needs to have and develop in

order to help its customers to be successful in the

future as well. The limits in this context are set

by both strict legal requirements and advanced

technology, which help to make the development

costs in the automotive industry so high. This

explains why it is so important that money is

invested correctly, to enable each individual

the

VOLVO GROUP MAGAZINE 4.2016

MAKING IT HAPPEN

DECISIONS

Examples of decision making

CUSTOMER

Developing

our business

Balancing our resources – Business Area and

Group perspectives

Making key decisions for our offering portfolio

Protecting and developing synergies

KEY DECISION

FORUMS

Product Board

PORTFOLIO LEVEL

PRODUCTS

SERVICES

FINANCIAL

SERVICES

MARKETS/HUBS

S C ENARIO :

Demand

is increasing on several

markets and production

needs to be stepped up.

DEC I SIO NS:

Important

decisions about production

capacity are made at the

Sales & Operations Planning

Executive Decision Meeting,

S&OP. Here the executive

management decides on

an S&OP Plan, in order to

balance demand with supply

chain capabilities and use

resources efficiently.

S C ENARIO :

Investment

in a new dealer is needed.

DEC I SIO NS:

This is the

type of question that is

dealt with at a Business

Review Meeting. In some

cases, two or more business

areas share dealers and the

question is then referred to

the Group Executive Board,

ExB, to ensure that the best

decision is made from a

Group perspective.

OPERATIONAL

LEVEL

Managing

our current

business

Delivering current offers to customers every day

Managing each P&L (profit and loss) according

to agreed targets

Continuously improving our business

KEY DECISION

FORUMS

Business Review

Meetings

S&OP Meeting

Quality Board

OPERATIONAL LEVEL

THE VOLVO GROUP GOVERNANCE MODEL

S C ENARIO :

A quality

problem has been

identified.

DEC I SIO NS:

Major quality

problems are addressed by

the Quality Board. Decisions

can, for example be made

to allocate extra resources

to resolve a quality problem

as quickly as possible and

minimise the impact on our

customers’ operations.

Developing

beyond our current

business

Setting the strategy for the Group

Managing key strategic items

Deciding the long term offering plans

KEY DECISION

FORUMS

Executive Board

STRATEGIC LEVEL

VOLVO GROUP MAGAZINE 4.2016

PORTFOLIO LEVEL

S CE NARIO:

It’s time to

S CE N A RIO:

How should

define the targets and

the R&D resources be

activities for next year for

allocated between different

each individual business

types of projects and

area.

business areas?

D E C I S I O N S :

At Business

DE CIS ION S :

The Product

Review Meetings (BRM), t

Board is where the executive

managers discuss

business

management creates an

development for their

overall balance for the

respective business areas,

Volvo Group’s development

and set targets and activities.

resources from both

Business Area and Group

perspectives. Key decisions

related to the offer portfolio,

as well as the protection and

development of synergies,

are made here.

The Quality Board is where

the executive management

addresses quality-related

matters in order to support

rapid decision-making and

customer focus in this area.

STRATEGIC LEVEL

S C ENARIOS:

The Group’s overarching strategy is

reviewed.

A new country has been identified in which

it could be interesting to sell the Group’s

products.

The framework for how much the Group

can afford to spend and invest in various

areas has to be defined for the years to

come.

Future targets need to be set for the next

year for each individual business area.

DECISIONS:

Strategic decision are made at

the very highest management level, by the Volvo

Group’s President and CEO, Martin Lundstedt,

and his management team, the Group Executive

Board (ExB). They meet for a whole day once a

month and, in between, they have short weekly

checks to monitor the situation. Strategic

decisions that impact the entire Group are made

at this level. They can include the areas in which

the Group is going to do business, the way the

different brands are going to be positioned in

relation to one another and whether the time has

come to enter a new market or leave an existing

one. The Executive Board also sets the financial

targets for the different parts of the Group and

approves long-term plans that set the direction

for future product offers and determine the

industrial structure, for example.

What is the greatest difference

compared with before?

There are now precisely defined

decision-making forums for different

questions/areas at top executive level.

Large parts of the top executive team

allocate a full week a month to this.

What are the greatest benefits of

the new model?

It will now be clearer who makes

which decisions and there will be

a clearly defined focus on the most

important questions.

Where can I find more information

about the decisions that are made?

There is plenty of information on

Violin. In the Volvo Group Principles

for Operational Governance,

governance is described in greater

detail.

QUESTIONS

AND ANSWERS

FACTS AND

GLOSSARY

AB Volvo Board of Directors

The ultimate decision-makers are

the shareholders. They appoint the

Board of Directors, which in turn

appoints the President and CEO.

Business Areas

The Volvo Group has 10 business

areas: Renault Trucks, Mack

Trucks, UD Trucks, Volvo Trucks,

Group Trucks Asia and JVs, Volvo

CE, Volvo Buses, Volvo Penta,

Governmental Sales and Volvo

Financial Services. The business

areas are responsible for driving

the business and realising their

business objectives.

Business Area Business Review

Meetings (BRM)

These review meetings are

established in all business areas

and are the forums at which top

managers discuss operational and

strategic topics, with an emphasis

on their individual BA.

Group Executive Board (ExB)

The highest decision-making body

within the Volvo Group, led by the

Group President and CEO.

Product Board

Where the executive management

creates an overall balance for the

Group’s development resources.

Quality Board

Where the executive management

addresses quality-related issues

in order to support rapid decision-

making and customer focus.

S&OP Meeting

The Sales & Operations Planning

Executive Decision Meeting is

where the executive management

decides on a S&OP plan that

optimises the Volvo Group’s overall

chain capabilities, drive

profitability. The purpose it to

balance demand with supply

capacity management

and provide directions

for sales and

operations.

Tell us

what you

think!

Volvo Group Magazine

aims to deliver interesting and engaging

content, but to do that we need your help! Let us know what

you would like to see and how the magazine can be improved.

Email us at

groupmagazine@volvo.com

DID YOU WIN

THE QUIZ?

The winners of the quiz in Volvo

Group Magazine #2 were Fredrik

Larsson, Group IT, Sweden, Sally

Wu, Volvo CE, China and Emmanuelle

Roux, Renault Trucks Defense, France.

Congratulations!

The right answers were:

1-B, 2-A, 3-B, 4-A, 5-C, 6-B, 7-A.

Volvo Group Magazine

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