customer-oriented ways of working: lumene - a holistic beauty and well-being operator
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Presentation by Ms Terhi Ahvonen (VP Human Resources, Lumene Oy) on "Customer-Oriented Ways of Working: Lumene - a Holistic Beauty and Well-Being Operator" during the study visit of the sub-committee on Innovative workplaces to Helsinki on 25 January 2011TRANSCRIPT
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Excellent Future – Improvement ProjectCustomer-Oriented Ways of Working: Lumene – a Holistic Beauty and
Well-Being Operator
TEKES - Workshop on Innovative Workplaces 25.1.2011 VP HR Terhi Ahvonen, LUMENE Oy
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Topics
• LUMENE Oy
• Excellent Future –improvementproject
• Feedback from the employees aboutthe project and other indicators
• Q & A
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Focus on beauty and hair care.
LUMENE Oy –independent company.
LUMENE skincare and colour cosmetic products launced in Finland. Since 1973 Lumenehas been market leader in Finland.
Noiro was founded as a subsidiary of pharmaceutical
company Orion.
Lumene Vitamin+ C-Energy wins an independent European anti-age
cream test.
LUMENE Brand 40 years!
1948
1970
2001
2002
2003
2007 2008
40 Years of Natural Beauty
LUMENE the first to launch Arctic berry oils in cosmetics – wild ingredients beyond organic.
One company, two brands: LUMENE and CUTRIN
2010
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Mission
To enhance your beauty and vitality in every day life with the power of plants and
minerals from the Arctic Nature.
Vision
LUMENE will be a holistic beauty & wellbeing operator.
We will be the market leader in Finland and a bold challenger in the Key Markets
offering Arctic nature based skin care, color & hair cosmetics solutions.
Values
Satisfied customer
Mutual trust and respect
Delivering results
Innovation and Adding Value
Responsibility
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Water - Our InspirationLake Lummenne
Lumene was named after the sparkling
blue Lake Lummenne in Kuhmoinen in the
Finnish Lake District 40 years ago. Our inspiration is pure, crystal clear and
thrives under the white summer nights of
the North.
Lumen, which in Latin means “light”, also serves to complement our meaning and story.
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One Company LUMENE Oy
Professional Hair CosmeticsLumene Skin Care and Color Cosmetics
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• The World of Lumene today
Our Key Markets
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Key figures
• Net sales in 2009: 78 M€ (of which approx. 50% from export)
• LUMENE Oy has 320 employees in Finland
• When subsidiaries (Russia and USA) are included the number of employees is about 500
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HR – key figures
• Average age: 41.4 years (blue collar workers 44.6 years)
• Female / Male ratio: 76 % / 24 %
• Turnover rate: 7 %
• Sick leave rate: 9% (white collar workers 3 %)
• HR: 2 FTE (Finland) and 3 FTE (Russia)
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Excellent Future Improvement Project:
- ”Starting level” in the end of 2008 and project goals
- Phases
- Results
- Examples of metrics
- Feedback from the employees, union representatives, CEO and HR
- Continuing the project…?
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• New more consumer driven way to operate was introduced
• Two co-operation negotiations in 2008
• One company, two brands, three product categories, SKUs (stock keeping units) reduced by one third
• New, flat organisation: Group structure dissolved, Farmos separated, Lumene ja Cutrin operations integrated
• All costs to the minimum and under surveillance
• New managers / superiors and new team members
• People concerned, unsure and sad
• Biggest concern: Who will do the work of those who were given notice? How to move forward?
Concern of one’s own future, concern of the future of the company, concern of the Lumene brand…
Challenges in the end of 2008…
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Prime purpose of the improvement project was to change Lumene’soperations model from product driven to consumer driven.
Targets of the project:
• To promote the implementation of the new consumer and service oriented strategy
• To develop organising of work
• To streamline work processes and job descriptions
• To remove ”silos” and to improve cooperation between departments and teams and to improve atmosphere, i.e. well being at work
• To improve competences and skills for better communication as well as leadership and teamworking skills
• To act in a cost efficient way in this project
Targets of the improvement project
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Participants:- The whole personnel of LUMENE Oy
Occasions:- Workshops/meetings
- By departments- By teams- By cross-functional teams
- Townhall occasions - Monthly infos - Process simulations
Participants:-Among others LUMENE Oy’ssales persons, superiors, Management team
Occasions:- Introductions of the new key process- Training programme for new managers - Training of communication and presentation skills- Monthly infos- “Superior coffees”- Rehabilitation groups
January-June 2009 August-September 2009
Phase 1
To change the ways
to operate
Phase 2
To improve skills
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Phase 3
To utilize everything
that has been
learned
Participants:- The whole personnel of LUMENE Oy as well as handpicked groups
Occasions/Themes:- Excellent Leader training for new managers- “Superior coffees”- Monthly infos- Rehabilitation groups- Sales training for beauty consultants- Pilot for Occupational wellbeing card
January 2010 ->
CHANGE – COMMUNICATION – IMPROVING SKILLS
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The following topics, among others, were dealt with in the workshops/meetings – depending on the needs of each group
• Definition of the department/team targets and ways to reach them
• Definition of expectations and promises to the members of one’s own department/team as well as members of other departments/teams
• Personal development promises
• Identifying of motivation factors
• Improvement of efficiency of ways to operate, priorisation of activities
• Where to concentrate – not-to-do lists
• The importance of doing together was stressed
Workshops
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• Need to examine and develop activities cross-functionally, over department and team borderlines.
• We decided to evaluate Lumene’s key processes from customer’s perspective with the help of a process simulation. The latest big launch Excellent Future cream was simulated starting from product idea and ending up to consumers.
• The simulation was first carried out in Finland and then in Russia.
• The simulation of Lumene’s commercial process increased partipants’ understanding of how the process really works. Besides, many bigger and smaller development targets were discovered.
Process simulation
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• During 2009 the result of the company improved � annual bonus as well as bonuses for the first and third quarters we paid out to the personnel
• Strategic targets have been implemented in all levels in the organisation and operative targets have become more concrete
• Result and cost consciousness has increased in the whole organisation
• Cooperation between groups has become more effective
• Roles and responsibilities have become clearer
• Company’s atmosphere in general has improved dramatically
• Atmosphere and wellbeing survey was conducted in October 2009, participation level was over 80 and the results very good (the previous survey was in autumn 2007)
Results and metrics
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” Before the Excellent Future project
many colleagues were concerned of
their own wellbeing and how they
would manage their duties in the
future. As we went through together
all the duties at our own department
as well as the needs of the internal
customers, we got a clear picture of
who does, what and when. We also
decided together what can be left
undone and if it would be wiser to
do some things somewhere else.”
”As we did this together, people have
committed themselves to decisions
well.”Industrial safety delegate
Raija Vesterinen
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”The Excellent Future improvement project was really important for us because for the time being the team spirit is the best one during my time, that is in eight years. After the cooperation discussions the spirit was at its worse.”
” It feels that we blue-collar workers have come “closer to the upper floor”, i.e. Tapsa is now Tapsa and not only the CEO.”
” Monthly infos are important and we feel that everyone now understands that it pays to work because that is the only way to guarantee that we have work also in the future.”
” Nowadays your can often hear laugh at the packaging line!”
” Rehabilitation groups have inspired the participants to take care of themselves and this activity needs to be continued.”
Union representative
Hanna Helistenkangas
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”The most important thing was that we all got a common and shared picture of the future and that we all are building it together.”
”The Excellent Future improvement project was a good channel to deliver thoughts, ideas and visions – to both directions.”
”The work continues in the same way but we try to do things in an even more cross-functional mode.”
President and CEO
Tapio Pajuharju
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Reflections of the HR team
”A successful project – surprisingly good acceptance throughout the whole personnel.”
”Absolutely perfect timing.”
”Good price/quality ratio. Half of the costs of this project was covered by TEKES support.”
”Challenging for HR, because in every occasion at least the other representant of our team was present – but it was worth that.”
”Reliable partners are worth money because own resources are limited.”
”Extremely useful learning experience also for the HR team.”
”Rewarding because the results were so concrete: ”More laugh than complaints so the result can be regarded as good!”
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• Improvement of skills (superior skills, communication and presentation skills, international knowhow, sale skills etc.)
• Continuing of activities that support wellbeing at work: rehabilitation groups, lectures etc. Close cooperation with employee pension insurance company as well as occupational health care.
• Pilot for Occupational wellbeing card: participants are members of industrial safety commission, union representatives, production management and HR
• Now focus in doing and fulfilling the agreed activities.
How to continue?
25Perfecto Oy
THANK YOU !