Organisation and Corporate Culture
Addtech's subsidiaries are run using the 'freedom with responsibility' principle, and this independence is highly significant to Addtech's ability to retain and recruit business-driven employees and entrepreneurs. Freedom with responsibility means that the companies are free to run and develop their operating activities provided that they follow Addtech's business model and Group-wide rules. The Parent Company does not govern the details of the operating activities, but provides an array of tools that support efficiency and optimisation. The tools are used in areas such as law, accounting and finance, training, quality, IT and business systems as well as in framework agreements (master contracts) for purchase of services and consumables.
Business units create synergies
Addtech has grouped its subsidiaries with similar customers, products and solutions into 16 business units under the 4 business areas to harness the benefits of the Group's networks of suppliers, customers and competence. Each business unit is led by a manager who often doubles as managing director of one of the constituent companies. The business unit manager and business area management support the subsidiaries through board work and in matters of a more operational nature.
The main task of each business unit is to create exchanges between the subsidiaries to identify and capitalise on business opportunities in their respective market segments. Each unit has formulated its own vision for its market area or area of technology, and cooperation in the business units reinforces a broader and more customer-oriented business focus among the subsidiaries. The decentralised organisational model is dynamic and ready to accept new companies that contribute to growth and development. The business units help to further strengthen Addtech's positions in its selected market segments.
The development in recent years of our operations, new contacts between Group companies and new opportunities created by acquired companies resulted in a small-scale reorganisation in the Group effective as of 1 April 2012. Some companies were moved to different business areas and two new business units were formed. Industrial Products is a new business unit and was created in the Industrial Solutions business area. Industrial Products consists of the companies in the Mechanics business unit and several companies from the Motion Technology business unit. One result of the transfer of the Mechanics companies to Industrial Solutions is that the Energy & Equipment business area changed its name to Addtech Energy. Within Addtech Energy a new business unit was established named Energy Products, containing companies from Energy Supply and Customised Solutions. Furthermore, the MI Group business unit was moved from the Industrial Solutions business area to the Components business area.
The reorganisation aims to create greater potential for growth and efficiency in the companies. This is now possible, because the companies can share their networks, knowledge and experiences more easily and they have similar strategies, challenges, customers, products and solutions.
The reorganisation did not affect the Life Science business area.
Within Addtech's four business areas the subsidiaries are grouped in business units linked to overall areas of technology or market areas.
Organisation for individual development
Addtech depends on skilled, highly proactive employees, and its operations are designed to give these people scope to grow. The decentralised organisation safeguards employees' interest in developing their capacity to assume increased responsibility in their own subsidiary or other parts of the Group. Further career opportunities in a listed company may also be important to motivated entrepreneurs who are considering selling their business operation, but want to continue leading their companies within the framework of a larger company.
Business-driven corporate culture
Addtech's long established corporate culture and shared core values serve as a good source of guidance for employees in their work. The corporate culture is rooted in business skills and high levels of technical expertise, combined with individual freedom and a willingness to take personal responsibility.
The attitude and approach of Addtech employees are decisive factors when customers and suppliers choose to do business with Addtech. The Group's employees are known among customers for their ability to create innovative solutions that meet customers' needs.
Employees' business skills also include an ability to see to their company's long-term profitability and growth based on doing business that benefits all parties.
Investing in skills development
The Group takes a long-term approach on several levels aimed at increasing internal knowledge transfer, furthering the growth of employees and refining the corporate culture. The Addtech Business School and various internal Group projects are key mechanisms in this context. All employees go on the Vision & Corporate Philosophy course.