Productivity in Danish Companies

Anne-Kristine Moody JakobsenConsultant

Confederation of Danish Industries, DI

10 May 2007

Serving Our MembersCommitted Industry

DI aims to provide the best possible working conditions for the Danish industry.DI is also concerned with issues like education, the environment, and the integration of immigrants.

“The powers of the most central organisations have been mapped for the first time ever. And the unchallenged winner is: DI.”

Source: Berlingske Tidendes Nyhedsmagasin, December 2002

DI - Confederation of Danish Industries - is a private organisation funded in 1989.

DI has developed to become a strong common voice for industry and its role in society.

Currently 7,000 companies have chosen to join forces within DI.

DI negotiates with the trade unions to provide the best possible framework for labour agreements.

The agreements are made at the individual workplace by the people who are used to working together. The result is greater satisfaction for all.

DI promotes the views of industry - locally, nationally and internationally.

The Employer The Company's Partner

Internationalisation

On a global marketplace a consumer boycott in the US can affect a company in Denmark overnight.

DI provides the tools which companies need in the globalised world.

DI in Europe and the World

DI's export campaigns help Danish companies get a foothold in new markets.

DI is commited to find common European solutions for common European problems.

Mission and GoalsWaypoints for Corp. Development

Mission:We develop concepts and agendas for management resulting in competitivenes for the members of DI

Goals:In 2008 we will be the definitive organisation in Denmark to define, develop and teach main themes in the areas of leadership, productivity and cooperation in private companies

Introduction of teams in Danish manufacturing companies - in percent

DI investigation 2007

More than 70% of Danish manufacturing companies are team based at the shop floor

The Danish Companies has a long tradition for working in teams

Organisation and Leadership

Compared to the other Nordic countries our type of management is more alike than compared to the rest of Europe

How do we work?

73%

27%

Teams

Traditional organisation

Focus more on what happens between people in the process than what they bring with them

Create trust and discourage playing 'the culture card' - stereotyping

Negotiate differences openly to find common ground and a 'third way' - shared ways of relating and doing things

Organisation and Leadership

Team work and involvement

Motivation in Denmark has risen and is now all time high in the seven years it has been measured by European Employee Index (EEI)*

Denmark is in top and has been the last six years.

This years growth in motivation is, according to EEI, driven by salary and daily work content.

* Source: Ennova, "European Employee Index, 2006"

Organisation and LeadershipDanish workers the most motivated

Evt. efterfulgt af kommentarslide

Labour productivityThe Danish case

The Danish position is lower than in 2005 and we rank at number 15-20 in terms of productivity growth.

The growth in productivity in Denmark has decreased and will continue to decrease unless the companies gets more competitive.

The unemployment in Denmark it low and we will see a smaller labour force in the future. Therefore we need to introduce initiatives to strengthen the productivity.

DI investigation 2007

Lean in Denmark

Promising concept- Many cases has shown strong economic

results

Cultural fit- Danish management culture is characterized

by short power distance and empowered employees

- To reach the goal of the company through and together with other people

Committed Business Community- Confederation of Danish Industries- Vocational Training

A promising concept

Introduction of Lean in Danish manufacturing companies - in percent

46%

54%

Introduction of Lean

Traditional organisation

Lean Thinking

Organizing to lead the entire value stream for every product

– See the value stream– Create an experimental culture that seeks perfection

The right products are pulled through the company concurrently with consumption

– Understanding customer demands and flexibility– Creating availability and capability– Producing to customer orders– Levelling your value stream to customer orders

Based on capabilities to execute operations with high precision and detailed understanding of processes

– Make processes stable – Making material and knowledge flow

The Toyota Logic

DI investigation 2007

Lean in Denmark

The number one reason to use Lean Methods is focus on productivity

Development becomes the priority when companies have been working with lean for a longer period of time.

Does this also apply to Canadian companies?

Why Lean?

Why does the companies those to use Lean Methods?

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14,11

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OtherGoals

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Productivity Activities

Conferences:- Productivity Conference spring 2007 - Lean Service Conference autumn 2007

Open Courses:- Lean Facilitator - Lean Leadership - Including a study tour to Great

Brittan- Value Stream Mapping (VSM)

Corporation with and member of Lean Global Network

- Lean Enterprise Academy, GB- Lean Enterprise Institute

VIP sessions (Company specific courses)

Facilitation of Networking Activities - Lean Network- Lean Facilitator Network- Lean Leadership Network- Network among presidents and vice Presidents

Main Activities in 2007

Presentations on other's conferences etc.

Translation of books and articles

Workshops

Interviews

Survey

Several comments in Danish newspapers

Questionnaire among members

Productivity ActivitiesRelated Activities in 2007

ProductivityChallenges

”Business is going to change more

in the next10 years

than it has in the last 50”

Bill Gates

Source: Business at the speed of thought, 1999

Productivity

- Strategic mindset- Perform and satisfy shareholders- Understanding technology, culture

and language- Communicator- Being remote and visible- Leading change- Develop talents - Diversity- Learning- Develop a network- Holistic person - Values and beliefs- Courage in relation to other people

Todays challenges

- Ressource management - Develop skills and comptencies of

employees- Think in brands and stories- Build the right teams- More leadership - less management- Stakeholder relation - Leading fast changes- Create trust and credibility- Create ethics and moral- Relation and network

ProductivityChallenges of tomorrow