Optimising Capabilities – Integration and Clear Structures
International groups face a constant stream of new challenges in view of growing global competition. Clear management structures and the optimum dovetailing of the skills at hand are critical to success. As part of restructuring, Demag Cranes has laid the foundations for maximising the use of available potential: a crucial step for future growth and enhancing competitiveness.
An Integrated Group Creates Value Through Transparent Responsibilities and Team Focus
The past financial year saw the green light for a more intensive pooling of activities between our subsidiaries Demag Cranes & Components GmbH and Gottwald Port Technology GmbH. Under the Group’s integration agenda, available resources are to be shared as far as possible. The first step in this direction was made in the current restructuring programme. Key management functions are pooled centrally as shared services. Examples include functions from finance and accounting, human resources, IT, marketing and corporate development. For Aloysius Rauen, the CEO of Demag Cranes AG, the objective is clear: “This enables us as a Group to act more quickly, uniformly and flexibly. Responsibilities are clearly defined and teamwork is fostered by the fact that key personnel can work together virtually without any overlap in their areas of competency.” In a next integration step, the operating units development/design, production, product and contract management, services and sales will be pooled across the Group to further boost customer focus and efficiency. At the same time, the management structure will be adjusted accordingly.
- Aloysius Rauen
Chief Executive Officer (CEO) and Member of the Board for Services
“By centralising several key functional areas and drawing together operating units to make an integrated business we can respond quicker, more flexibly and more consistently. In this way, we raise added value for our customers and promote team thinking throughout the company.”
Customer Focus and Technology Leadership Pave the Way for Global Profitable Growth
By systematically implementing restructuring measures, we are sustainably reducing fixed costs and break-even points. In doing so, we are not only increasing the Group’s competitiveness and helping to secure its future, but also creating a basis for growth for the period after the economic and financial crisis. The foundation for extensive efficiency gains was already laid in previous years. A prime example of this is the successful restructuring of Mobile Harbour Crane production, where we have continuously optimised processes and the degree of standardisation. A core component of our general strategic focus is the expansion of sales activities in emerging markets, first and foremost in Asia. By expanding our sales network and adding new product innovations, we will boost sales of our premium products. Furthermore, we also see considerable potential in these markets from augmenting the product portfolio and developing the medium price segment. The aim is to respond to the specific needs of customers in these markets as well and to offer corresponding products. With our subsidiaries in Brazil, Russia, India and China (the BRIC countries), as well as in the United Arab Emirates, we are already extremely well positioned in these markets. We see ourselves as a technology and innovation leader and also intend to expand this role further in future. Logistical requirements for trimodal traffic in the hinterland of maritime and inland ports hold additional strategic potential for the future. The close interplay between water, road and rail transport – called for not least by transport policy – also gives rise to new requirements as regards cargo handling technology. We believe we are ideally positioned to benefit from this future trend.
Intelligent Human Resources Management Lays Foundation for Motivated Workforce and Needs-Based Training
- Aloysius Rauen
Chief Executive Officer (CEO) and Member of the Board for Services
Future-orientated human resources development is a central issue for us. As an international Group with a large number of global customers, career opportunities at Demag Cranes depend on flexibility and motivation. Our employees face ever more cross-border challenges. With companies and representatives in more than 60 countries spanning five continents, we generate the majority of our revenue abroad. In order to continue evolving our business successfully, we need highly qualified people on the ground who are capable of seeing the bigger picture. For this reason, we intend to further expand human resources development in all segments in the coming years. Another key function of the Company’s human resources management is to react to the shift in workforce age structure and to develop suitable response strategies. Aloysius Rauen explains: “Currently, more than 35 percent of our core workforce in Germany is over 50. Accordingly, we are already laying the groundwork for sustainable cross-generation knowledge transfer and, through strategic succession planning, ensuring that key positions are successfully filled.” Furthermore, within succession management, employees with well-above-average management and leadership potential are identified. By providing selective training and development activities and varying the tasks and responsibilities assigned, in-house talent in Germany and other countries is to be promoted for the challenges of international management positions.
Ethical Corporate Governance Sets Clear Standards and Fosters Trust
Compliance means ensuring our employees apply the principles, laws and corporate guidelines governing conduct. In order to help employees adhere to these laws and guidelines in their everyday work, a Group-wide Compliance System has been set up. A Compliance Officer has been appointed in each of our Group’s subsidiaries so that employees have someone close to their workplace whom they can contact about these issues. The central body is the Compliance Board headed by the Chief Compliance Officer of Demag Cranes AG. The Board meets with the local Compliance Officers at set intervals to continue to develop the system and organise regular group-wide audits, i.e. to conduct reviews and investigate any issues reported. More than a thousand training sessions have been held worldwide to give employees training on anti-corruption issues and antitrust law. This training incorporates ground rules and conditions for everyday business dealings that are defined by our Code of Conduct. In this way, we intend to increase risk awareness, straighten lines of communication and secure operational consistency worldwide. Compliance Officers in the subsidiaries of Demag Cranes ensure that all employees know the rules and keep to them. Demag Cranes CEO Rauen emphasises: “Above all, we have zero tolerance for any form of corruption, collusion or insider trading.” This means that Demag Cranes sets the highest standards for itself, in its operating business as in corporate management. Thus, we are not merely equipping the Group to cope in times of crisis but notably marking out the boundaries for targeted growth on the road to ensuring sustainable financial success.
