Productivity in Danish Companies Anne-Kristine Moody Jakobsen Consultant Confederation of Danish Industries, DI 10 May 2007

Serving Our Members Committed 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 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 Goals Waypoints 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?

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 Leadership Danish workers the most motivated

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Labour productivity The Danish case The Danish position is lower than in 2005 and we rank at number 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

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? Goals %

Productivity Activities Conferences: -Productivity Conference spring 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 Activities Related Activities in 2007

Productivity Challenges ”Business is going to change more in the next 10 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 Productivity Challenges of tomorrow