http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/RSS.ashxDanfoss Group Global PagesFri, 11 Jul 2008 11:39:06 +0200http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=1http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=1MAKING MODERN LIVING POSSIBLE New book on Bitten Female Factury Manager Oil in the blood Portrait of a manager 16 4 9 14 Global Danfoss 2 /08 • A Stakeholder Publication English edition2008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=2http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=2Global Danfoss July 2008 Table of contents Page 1 The heart of Danfoss Gertraudt Jepsen has written a book about Bitten Clausen, the widow of Danfoss’ founder. Read an extract on page 16. 1 10 14 23 4 Page 4 First woman at the head of the table Danfoss’ first female factory manager is Chinese. Daisy Xu has worked hard to get her current job. Now she is ready to reach higher targets – and to pay the price. Page 10 “Thank God they all got out” Almost two years ago, a spark from André Pommé’s welding equipment started a blaze that burnt the Danfoss Deleage factory in France to the ground. Only two chairs escaped the fire. Now André and his colleagues are ready to move into a new factory – and his world is not quite the same. Page 14 This is what a Danfoss manager should look like Page 23 Helping save India’s lost girls The Fabrikant Mads Clausen Foundation is supporting the creation of a children’s village in India. Global Danfoss Published by Danfoss A/S Total number printed: 27,500 Address: Danfoss A/S, L24-212 DK-6430 Nordborg globaldanfoss@danfoss.com Responsible: Ole Daugbjerg Editor: Niels Chr. Larsen Prepress: Christa Hartmann Photographer: Glenn Simonsen Print: Laursen Grafisk A/S Published in Danish, English, French, Spanish, Polish, Slovenian, German, Chinese, Slovakian and Russian. Printed with vegetable colours on environmentally approved paper. Reproduction only by permission of the Editor and always with acknowledgement to Global Danfoss2008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=3http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=3Leader Five new goals for managers By Vice-CEO Niels B. Christiansen In Danfoss, we have struggled with leadership and the principles that define good leadership for many years. Basically, we should be at the top of the league, because our resources are at least as good as those companies at the top of their game. However, some aspects of leadership – in particular, the human side – can be a bit of a challenge for a company like Danfoss, where the engineering spirit prevails. If we can translate something onto a spreadsheet, we can agree on it and deal with it easily. However, human feelings cannot be categorised: they do not fit into our usual model. Playing this sort of game is more about a manager’s ability to empathise, rather than mechanics. Also, it is not easy to be a manager in a global company. Our managers must be able to embrace many cultures and the challenges this brings – though, I would say that motivating employees and filling them with enthusiasm does the trick everywhere. The new Danfoss Leadership Competencies, which are featured in this magazine, consist of the five areas that we want our managers to work on. A certain degree of flexibility has been incorporated into the five competencies managers should possess. We are aware that there is more than one approach and we want to show that we accept the fact we are not all alike. But we did not want to go into too much detail. For this reason, we have not written a novel: we have defined five simple areas for leaders to focus on – and against which they will be measured. Behind the five competencies is the simple observation that organisations perform well if staff find energy and joy in business-related activities; that you should have fun at work; and that good leadership is a prerequisite for satisfied employees – and, consequently, a prerequisite for everything running perfectly. I believe a central part of the secret behind success lies in the way that the management – the coach – deals with the task. The world of sport can make you think. When I watch sport, I have often thought that, for a spectator, the teams can seem rather alike. The players on the best teams are all expensive and well-known – but then one team performs so much better than the other. Why? I believe a central part of the secret to success lies in the way that the management – the coach – deals with the task. ” 32008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=4http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=442008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=5http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=5Working Life First woman at the head of the table Danfoss’ first female factory manager is Chinese. Daisy Xu has worked hard to get her current job. Now she is ready to reach higher targets – and to pay the price. The previous manager’s office in the Danfoss Qinbao factory had a very masculine feel: black leather, dark wood and, behind the solid desk, a high-backed manager’s chair, in which Daisy Xu almost disappeared. “I am not very fond of it,” she admitted when she looked around her office at the factory, which is close to Hangzhou, on China’s eastern coast. Since then, the factory – which produces heat exchangers – has relocated to new premises and Daisy had the chance to select less imposing furniture that reflected her leadership style better. But it should be noted that it was simply the office layout she did not like. Her role as a leader suits her just fine. And judging by what employees say about her, she has no problem living up to her role as a leader. Forty-year-old Daisy Xu is the first female plant manager – General Manager – in Danfoss, which, in general, is a maledominated company. Furthermore, it was not a coincidence that it was a Chinese woman who was the first to step into such a role. For several years, Danfoss has had more female leaders in China than anywhere else; although most are midlevel managers. “I have considered why this is the case. It may be because Chinese women tend to study engineering subjects which, of course, are in great demand at Danfoss. But, generally, it is not at all common to have female managers in China,” she says. Tiananmen changed everything Daisy trained as an engineer at a university in Shanghai. The short version of her career is that she graduated in 1989 and was employed in a state-owned company. During those years, China had opened up for communication with other countries. The company planned to enter into a joint venture with an American business partner, but the project came to a halt after the Tiananmen Square protests. Daisy was the only person out of 50 Chinese staff in the state-owned company to get a job with the American company, but she left when it was moved to Shanghai some years later. She wanted to stay in Tianjin in the northern part of China, where she comes from. She recalls: “I had just had my first child, and my husband and I did not want to move. This was how I joined Danfoss, which, as far as I remember, only had around 50 employees back then.” At Danfoss, she has gained knowledge within production and logistics, and she has worked in Denmark and Poland. But she jumped at the chance to become General Manager of the newly-acquired company, Qinbao. Text and Photo: Niels Chr. Larsen Facts Daisy Xu’s top tips for leadership: • Work hard and enjoy managing people. • Understand your employees and give them the chance to grow. • Don’t be afraid to hire someone smarter than you. Unfortunately, some women tend to avoid this, especially at the lower mid-management level. 52008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=6http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=6“Right from the beginning, I knew she was something special. She is tough and independent.” Gerhard Teschl, Daisy’s manager “My wife was concerned about how things would develop but after Daisy joined, things improved a lot.” Yuchen Chen, Vice General Manager “To begin with, we were quite unsure about the implications of having a female leader but now people have accepted it.” Chen Zhongchao, Foreman Daisy says: “Qinbao was part of my career plan. I wanted to gain leadership experience and RA had been lacking the product we produce here. I thought that if I began with the product at an early stage, my future chances would improve – the product’s prospects are bright and I stand a good chance of introducing improvements here. I am familiar with the expectations, I know about the current low level of productivity – and I know how to reach the target.” Computer keeps mother and daughter in touch All this is very committed and rational but she has still paid a price for her career - especially during the past few years when she has not been able to spend much time with her husband and daughter. In 2006, she went to Denmark without her family and now she has signed a three-year contract, which means that she works a two-hour flight away from her family, whom she sees at weekends. A few months after she took over the high-backed manager’s chair in Qinbao, she was still living out of a suitcase. But you must accept things like this if you want to get ahead, she says. “The five years between the ages of 35 and 40 are very important if you want to get a high-level position. If you give up, you will never advance again. I was not able to bring my daughter with me to Denmark. Of course, she did not want to be away from her mother but, at the time, she was about 10-11 years old, so it was ok. My husband has a career of his own to take care of at the university in Tianjin and he has always been a great support to me and has looked after our daughter. She is now 13 years old and we are in close contact via Skype and MSN.” At the Qinbao factory, Daisy has introduced major changes. She has not noticed any particular opposition to the fact she is a woman. “No, I think I am treated fairly. I have power because of my job and the title but I am also able to convince the employees because I have new paths to follow – I have experience and I have shown that I can obtain results. The challenge is to change some employees’ mindset, and, because I am a woman, perhaps I am better at putting my heart into motivating and coaching. But I can also be tough. If someone cannot develop or does not want to follow the company’s direction, I am prepared to let him or her go,” she points out. It’s still a man’s world The employees describe Daisy as hard-working and she thinks that she is prepared to work harder than the men. In her opinion, men tend to shift jobs more often in order to advance. She is prepared for the long haul – which, according to Daisy, is the way most Chinese women generally are. They are tough, reliable, loyal and are willing to take responsibility. Do female leaders have to work harder than their male colleagues? “Up to a certain level, no – from there onwards, yes. Then men have more opportunities – it is a male-dominated world.” Where will you be in ten years’ time? “I am very results-orientated and I enjoy the process of watching something grow. But I wouldn’t stay too long anywhere … except maybe at a larger factory or another newlyacquired company.” 62008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=7http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=7Notes Keeping it in the family. At the Danfoss A/S Annual General Meeting in late April, Bente Skibsted said goodbye to the Board after 43 years and gave her seat to her brother, Jørgen M. Clausen. “Such length of service is almost unheard of: I do not know of anyone in Denmark who has been a member of a Board for such a Values Ambassadors enjoy two-day celebration Jørgen and Anette Clausen were the hosts when Danfoss’ Values Ambassadors were invited to a celebration in Nordborg, Denmark, in May. Each quarter, the Executive Committee appoints an employee who particularly personifies the Danfoss values. In 2007, the Values Ambassadors were Lu Ling, Gitte Kamma Schwartz, Pedro Paulo de Oliveira and Rasmus Caspersen. Kathy Tian was also invited this year because, although she was appointed in 2006, she could not take part at that time. The special event stretched over two days, beginning with a visit to Nordborg on the first day, including a dinner in Jørgen and Anette Clausen’s home, and moving to Copenhagen on the second day, where the ambassadors visited the Danish Parliament and Tivoli. Ideas lead to 86 improvements Ideas have been flowing in Poland following the kaizen project launched in January 2007. After a sluggish start with just 50 suggested improvements in the first quarter, things sped up and, by the end of the year, more than 800 proposals had been submitted. Of these, 110 were supplied by – from the left - Cezary Sztych, Joanna Jurkowska and Maciej Opas who all were paid a bonus of an extra month’s salary for their ideas. A total of 86 of their proposals became reality. Cezary and Maciej are still supplying lots of ideas, while Joanna has been promoted to works manager, so cannot participate in this year’s kaizen competition. long time and I would like to thank Bente so much for her fine efforts,” said Chairman of the Board, Henrik Nyegaard. At the Annual General Meeting, the share price was set at 2,127 DKK, a fall of 6 per cent compared to last year. However, this was less than the 20 per cent drop in share prices that comparable companies have seen in the same period. 72008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=8http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=8Notes One man’s passion for pens Forty-year-old René Asmussen, a warehouse employee from Egernsund, Denmark, came home from a business college back in 1984 and began to tidy up his pencil case… a simple task that started an obsession for ballpoint pens. The three promotional ball pens he found at the bottom of his pencil case that day have now grown into a collection of 53,000 pens – all different. And 70 have the Danfoss logo. Each day, he receives five to ten more ball pens to add to his collection in the cellar. What does his wife say? “She thinks it’s ok, as long as I keep them down here. I did suggest that I hang some of them in the living room. She did not even reply to that!” he says, laughing. René is happy to receive more Danfoss ball pens. Contact him at kuglepennen@mail.dk A clean sweep in the USA The Danfoss offices in Baltimore are cleaned using environmentallyfriendly detergents and the tissues for drying hands are made of recycled paper. The cleaning service that keeps Danfoss spic and span only uses cleaning materials that do not harm the environment. Kristin Grabowski, secretary, carried out the research to find a new cleaning company. “Our previous cleaning service used bleached paper and liquid soap. They are expensive solutions and not as green as the recycled paper and foam soap we use now. And the green detergents dry and clean just as well,” she says. More new initiatives are on the way. Kristin Grabowski says that there are several shades of ‘green’. Currently, Danfoss is light green but there are plans to become dark green and, consequently, increase efforts to protect the environment. Danfoss employs 230 people in Baltimore. VLT® for new TV skyscraper When the Chinese state-owned television channel CCTV moves into its new premises in Beijing, more than 100 Danfoss frequency converters will control the ventilation and pumps in large HVAC applications. The building covers more than 550,000 square metres and is 52 storeys high. It is located close to Danfoss China’s headquarters in the capital and will come into use when the Olympic Games begin later in the summer. It only took 19 days for the frequency converters to be delivered to the developer after the final order was signed. 82008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=9http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=9Oil in his blood By Ole Kanstrup Oil, wires, screws – these things are like magnets to Štefan Szegény. So, if a machine needs repairing, adjusting, programming or simply checking, he is the man. The Values Ambassador for this quarter is a production employee in the machining area at Danfoss Compressors, Slovakia. To him, the recipe for a perfect afternoon at home is when the lawn mower breaks down or the washing machine suddenly won’t spin-dry anymore. And, according to colleagues, he beams at the sight of the rows of machines when he arrives in the factory hall in the morning. “Then he is really in his element. He is incredibly curious and has learnt to operate six different machines grinding crankshafts, pistons, and rotors. In the machining area, two or three is the norm,” says machining manager Pavol Tonka. Pavol adds that Štefan is so skilled that there is often no need to send for a technician when a machine needs to be repaired: Štefan will fix the problem himself. Always offering a helping hand However, curiosity and skill are not the only reasons that Štefan has been awarded the title of Values Ambassador. If someone needs a helping hand or just a piece of good advice, Štefan is first in line. Being helpful comes naturally to him. “I am sure I inherited this from my father. When I was boy, he always lent a helping hand to anyone in our road who needed help. He never said no.” According to Pavol Tonka, Štefan’s helpfulness goes above and beyond what you would expect from an employee. Recently, Pavol called Štefan while Štefan was on holiday and carefully presented him with a dilemma: a machine urgently needed reprogramming and Stefan was the best person for the job. “When I phoned him, he was in the middle of planting root crops in his garden. An hour later, he turned up at the factory. That is the kind of man he is,” says Pavol Tonka. Štefan Szegeny is 44 and has worked for Danfoss since 2003. He lives in Kostolany pod Tribečom with his partner Mária. Each quarter, the Executive Committee appoints a Danfoss Values Ambassador. This time, it is production employee Štefan Szegény. 92008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=10http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=10Photos: Eric Vibert and Niels Chr. Larsen “Thank God they all got out” Almost two years ago, a spark from André Pommé’s welding equipment started a blaze that burnt the Danfoss Deleage factory in France to the ground. Only two chairs escaped the fire. Now André and his colleagues are ready to move into a new factory – and his world is not quite the same.2008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=11http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=11André Pommé (left) and Eric Vibert suffered different injuries in the fire. Together with their colleagues, they had production up and running again within a few weeks. On June 27, Deleage’s Managing Director Kim Kjær will cut the ribbon to open 5,300 square metres of new factory facilities in Saint-Malo – and one member of the audience will be particularly relieved. André Pommé, head of maintenance, will never forget the day in August, two years ago, when he was busy welding a mechanical tool onto a piece of metal. He suddenly caught sight of a flash in his welder’s goggles … He took off the welding mask and saw that he was surrounded by flames. Half an hour later, the factory had burnt to the ground – only two chairs were still standing - and two of André’s colleagues had been badly injured. One had second-degree burns on his arms and shoulders; the other had suffered from smoke inhalation. “There were 35 of us at work that day and, thank God, everyone got out. But it was horrible. I felt it was my fault and I feared that everyone would lose their jobs,” says André. André, who is 43 and has worked at Deleage for 25 years, was clearly upset after the fire, recalls the Managing Director Kim Kjær. He noticed that André stood by himself, looking uncertain. Soon afterwards, he drove home. But Kim contacted him on his mobile and told him to return – once back at the scene of the fire, André collapsed in tears. Kim says: “It was important that he didn’t just go home that day. His feeling of guilt quickly disappeared when we decided not to make people technically ‘unemployed’ and, then, just two days later it was decided that the factory would be rebuilt.” Forgiven over time Kim Kjær put André in charge of reconstructing production, together with the head of production Eric Vibert, who had been burnt in the fire. The factory’s head of quality, Bruno Guérin, who suffered from smoke inhalation, worked with the rest of the technical team to arrange temporary facilities. Over the following months, André and many of his colleagues worked 18 hours a day - and practically collapsed in the evenings. “I felt that, over time, I was forgiven and now I have the same relationship with my colleagues as I did before all this happened. Before the fire, we perceived ourselves as a small company which had been absorbed by a large enterprise and, to begin with, everyone thought they would close us down. But today people have an entirely different view,” says André, who believes the incident also changed him as a person. He says: “Now I have a different approach to people. Previously, I considered my job to be something I did single-handedly. Now I give more consideration to others and I tend to regard myself more as part of a team. Everyone here worked extremely hard in order to get production going again. I have noticed that talking about the episode affects me, but I feel good today and I am happy that all of us got something useful out of it, in spite of everything … And, contrary to what the media says, a strong sense of solidarity still exists: we have witnessed it here.” By: Niels Chr. Larsen Facts The welding spark set fire to insulation material that had been saturated with oil. Fifty days after the fire, production was up and running in provisional premises made available by Saint-Malo’s mayor. Deleage produces electrical floor heating. The new factory is located in Saint-Malo, a few kilometres from the old premises. The buildings cost 6 million euros and the production equipment was 3 million euros. Se en film om branden på Danfoss’ intranet. 112008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=12http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=12What is EBIT 10 all about? Niels B. Christiansen, is there a simple way to explain what EBIT 10 is? “It means that we should earn 10 DKK every time we sell for 100 DKK.” A spot check showed that around half of the employees in a production area did not know what EBIT 10 was. Isn’t that a problem? “You could also ask whether it is important that everybody in every factory knows about it. But, basically, everyone should know that we have set targets for growth and for being more profitable, and for being as profitable as our competitors.” But, why the figure 10? “It is the level achieved by the competitors that we compare ourselves with.” Does it mean that shareholders will be paid more? “Clearly, shareholders’ investments should be profitable, but the target has not only been set to place more money in the Clausen family’s hands. Currently, we invest more than we generate in profits. You can get away with this in the short run, but not in the long run. Otherwise, you would have to stop investing. We must get up there, so that we can present ourselves as a strong competitor.” We didn’t come closer in the period from 2006 until 2007? “Actually, we did. We took a giant leap in 2006 because of extraordinary income that year and, last year, we maintained the level, but we have not reached 10.” Has it been abandoned this year? “We have announced that we will reach between 8 per cent and 9 per cent. This is our target although, preferably, it should be higher. 2008 is proving to be a tough year with the sub-prime crisis (the American mortgage crisis caused by unsecured home loans, ed.) and increasing raw material prices. Previously, we would have reached 3.5 per cent in similar years, so we have come a long way.” I concentrate on my own work every day. Why should I take an interest in the EBIT? “Because you should appreciate the targets we aim for. After all, it means a lot that we all understand what it is that we help to create and what is required to make Danfoss a strong and futureorientated company that can pay for its growth and acquisitions.” Being an average employee, what can I do to improve the EBIT? “You should work actively on the many change projects that have been launched in Danfoss, such as DPP. We need our employees’ good ideas about how to improve everyday work. In the long term, it will improve job security. And I would like to add that whatever job you have, it is more fun being committed than keeping yourself at a distance.” Cost-cutting programmes have been introduced in several functions. Are we supposed to economise to reach the EBIT 10? “We should not just economise to reach our targets. No one should be left with that kind of notion. We might save money in some areas, but this will be spent on areas which are more forwardlooking. We will push to improve productivity but the purpose is to spend more money on marketing and product development. I understand if some parts of our organisation get the idea that this is about saving money, but this is a matter of prioritising in order to secure workplaces and pay for the activities that secure our future.” Q&A Questions and answers. Beginning in this edition of Global Danfoss, we will use this page to feature a central issue affecting Danfoss. This time, the Vice CEO Niels B. Christiansen has answered questions about the EBIT. If you have any ideas for subjects you would like explained in the future, please send them to the editorial team. 122008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=13http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=13Notes Trees for the Olympic Games – and the future Global warming is a hot topic in China as well as other parts of the world and under the motto ‘Everyone will pay’, Danfoss China supported a campaign run by the environmental organisation Friend of Nature during April. The campaign involved planting trees which, as most people know, absorb CO2 and provide long-term environmental improvements. Where there’s a will, there’s a way If you really want to do something, you can. Rafael Díaz Rodríguez proved this at a small ceremony in Danfoss Mexico on April 1 when he was placed between two chairs – and kept himself “afloat”. Rafael, who works in raw materials and auxiliary, and his colleagues had gathered to celebrate the fact that two years had passed without any work accidents. This achievement came about after they had made up their minds to ensure they had a safe working environment. And it reflected the fact that employees in the warehouse consider each other family – and you look after your family. Segway track in Danfoss Universe On Saturday May 10, Danfoss Universe opened one of Europe’s first segway tracks. A segway is a two-wheeled vehicle that you stand on: it moves forward when you lean forward, stops or reverses when you lean backwards, and turns when you lean sideways. The principle behind it is gyroscope stabilisation and the electric vehicle can travel up to 20 kilometres per hour. On the Danfoss Universe facility, there are slalom tracks, labyrinths and hills. Initially, it will be a test track and, throughout 2008, park visitors can offer their ideas about what the final track should include. The campaign was also linked to the Olympic Games in Beijing this summer. On April 27, Danfoss staff planted 75 trees in the village Ling Jiao, close to Beijing; another 25 have been donated. Local residents will look after the trees in the future. 132008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=14http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=14Leadership Customer-focused (the ears/listening) The customer should always be at the centre – throughout the organisation. A manager must be capable of motivating employees to constantly fulfil the customers’ expectations and also take care to draw the attention of other parts of the organisation to the customers’ needs. This is what a Danfoss manager should look like By Niels Chr. Larsen Danfoss has 2,200 managers working all over the world … but how should they behave and what qualities should they have? The Executive Committee spelt this out in March, when it agreed a set of overall guidelines for the competencies every group manager should have – competencies they will be measured against, whether they are located in Moscow, Monterrey or Mumbai. And the first group of managers to be measured and assessed according to the new competencies will be the extended Executive Committee. The five overall leadership competencies will collectively ensure that a 'will to win' mentality becomes more distinct in the company, helping Danfoss reach the targets defined in the company strategies. To put it briefly, a manager must be an innovative and inspiring role model with a global mindset, who focuses on the customer. These are the features that will help employees and, consequently, Danfoss, get out in front. The process to define the competencies was initiated at the managerial summit GMM, in Bratislava last year, after which GHR carried out interviews about good leadership with 10 per cent of the participants. "We have tuned in to the fact that good leadership is a prerequisite if Danfoss is to reach its targets – both the financial targets and the targets applying to the company as a whole. Therefore, we have also decided to start by introducing the five competencies at the top management level," says ViceCEO Niels B. Christiansen. During the autumn, external consultants will coach the nine members of the extended Executive Committee in the competencies. At the same time, the new leadership competencies will be introduced to all managers. "If the managers are to be role models, I think it’s fair enough for toplevel managers to lead the way," points out Niels B. Christiansen. 142008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=15http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=15Innovative (the brain) Danfoss should foster a culture which welcomes new ideas and challenges conventional thinking. Managers should encourage employees to bring forward their ideas and there should be freedom to experiment and take risks, if it gives Danfoss an edge. A global mindset (the eyes/vision) The whole world is Danfoss’ market and workplace and manag-ers must appreciate cultural differences. They must know how to assist new companies understand the Danfoss culture, while at the same time respect-ing the local culture. A role model (the mouth) Managers must be unambiguous and phrase targets and expectations clearly. They should dare to tackle tricky questions and also prioritise what to do – and what not to do. And they should be good at giving employees feedback. An inspiration (the heart) Danfoss’ managers should be able to inspire employees and provide the framework for them to do their best. They should also be capable of having a realistic view of employees and, above all, they should have a good selfknowledge and be aware of their own strengths and weaknesses. ns Nex tion: Je Illustra In popular terms, the five new leadership competencies can be compared to the senses and organs which make up a well-functioning body – just like good leadership is needed to create a well-run company. 152008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=16http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=16The heart of Danfoss In May 1939, Bitten Clausen married Danfoss’ founder, Mads Clausen. Today, she is 95 years old. The following extract is from the book “Bitten Clausen”, written by Gertraudt Jepsen from Danfoss Corporate Communications & Reputation Management. It looks back on the couple’s wedding day and considers Bitten Clausen’s social commitment. By Gertraudt Jepsen “After the celebration, we drove home to Als. The local authorities had planted fruit trees along all the island’s roads. The cherry trees were in blossom and when we drove towards Nordborg on Sønderborgvej at 4 in the morning, the flower petals drifted down while the sun was rising. I could not have asked for a more romantic journey to Elsmark (the village where Danfoss was founded, editor). When we got to the house, Mads carried me inside. Even though it is customary to do so, it was also necessary because the front door was not quite finished.” So Bitten, aged 26, had become Mrs Clausen – married to a real entrepreneur who was on the verge of a major breakthrough with his company Danfoss. “When Mads was absorbed in something, he forgot everything around him. I often saw that. Sometimes I had to wait in the car for hours. During those times, he was not so considerate. Once, he even went as far as completely forgetting that his parents were in the car while he talked about a technical issue with a car mechanic. As the mechanic walked Mads to the car to say goodbye, they realised that his parents were in the car, freezing. His parents were so modest that they did not want to go inside the garage and remind them. My in-laws deserve a really big thank-you. It was also thanks to them that Mads became what he was. They supported him – not least financially, despite the fact that people in the 1930s did not have much money.” The family ties even managed to remain intact when Mads moved back home to concentrate on building up Danfoss. This took place in his room on the first floor of the farm where he was born. “Mads moved home to live and work and there was a constant flow of staff and people who came to talk business – and went up and down the steep stairs. Everyone used the toilet in the corridor. His parents’ everyday life had changed; they were pensioners and their own house was suddenly open to lots of people. They served coffee to staff in the afternoon, visitors’ footsteps could be heard all day and they always had to be prepared to meet somebody in the corridor. When you are 162008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=17http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=17172008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=18http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=18alone in your house, you can do whatever you want but, back then, they always had to be prepared to meet strangers. “I admire my mother-in-law for always being so sweet and accommodating. On the whole, Mads’ family had a unique patience and kindness.” When Bitten arrived in Elsmark for the first time, Mads had 17 employees. At the time, she thought that was quite a few, but it bears no comparison to the increases seen over the years. In 1941, there were 100 employees; in 1945, 200; in 1947, 300; in 1950, 600; in 1953, 1,000; and in 1956, 2,300. Currently, Danfoss is an international group with more than 20,000 employees. So, Mads was no longer just an entrepreneur: he owned a business, and acted both as head of the company and as an entrepreneur. “Mads’ personality made people feel they had something to live up to. The way I see it, he did not manage people with an authoritarian style. He was not the kind of manager you would be afraid of, but you would respect him. He did not scold and he did not praise, but his body language would show whether he was dissatisfied or pleased. The story about the walking stick is not just a company anecdote: it actually happened. When Mads walked through the factory in the evening and he noticed something he did not like or if he had ideas that he wanted to discuss, he placed his walking stick on the employee’s table. The next morning, when work began, the employee had to walk through the entire factory to get to Mads’ office to return the walking stick. Sometimes, the walking stick was just a way of initiating a professional conversation. Mads was enormously hardworking and he expected us to follow suit. You really had to make an effort to live up to his expectations.” Foundation for social responsibility In the post-war years, Bitten took the initiative to help people in the local community who were in need. She began to help people in entirely her own way and, later on, made sure that this help became an integral part of Danfoss’ company policy. “I asked Mads if he would let me buy things for people. I asked because it was Mads’ money. That’s how it was. Mads liked the idea very much. He shared my view and thought it was good I wanted to do something. He was very generous himself whenever he got the chance to offer help. “An unemployed person once asked him whether he could have a job at Danfoss. Mads did not have any vacancies at the time, but he said ‘I suppose we can find you a broom and you can use it to sweep until there’s a job for you’. “Mads secretly helped many people, also fellow students. When they experienced situations they could not handle themselves, they received assistance to help themselves. He was so good at that. He offered financial support and advised them. Even though Mads liked large cars, a large house and new things, I also believe that no one envied him or me. And perhaps the reason was that Mads offered so much help to others. For example, he gave 670 euros to each of our employees who were planning to build a house in Nordborg. He did not have much money at the time, but he knew how to spend it properly and 670 euros was a lot of money.” Bitten began by helping families with children: giving them clothes to wear to confirmations, among other things. “Being in a position to do something like that was like a gift to me. I felt sympathy for people who were preparing to celebrate a confirmation or something similar but could not afford to dress their children appropriately.” She made a deal with the Danish department store Daells Varehus, in Copenhagen, travelled to the capital, had a look at the goods and entered into an agreement with the store’s mail order department about the delivery of clothes, so that she could build up a small collection in Nordborg. “Meanwhile, Peter Petersen, who was the head of our Welfare and Interests Office, was confident that quite a few women would like to knit or do needlework, so we advertised for them in Danfoss’ internal employee2008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=19http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=19tried on the clothes. Wherever I went, people were happy to see me and no one resented it. It gave me real satisfaction to be able to help.” And through this personal approach, the foundation for social responsibility in Danfoss was laid. Later, she extended the help to include widows of Danfoss employees. “When a Danfoss employee died, his widow was often in a predicament. When I learnt about them, I talked with Mads. He was very sweet and committed and I was given a rather large amount to donate. Funerals are difficult to handle when the father does not provide the weekly wage anymore. We also offered the families the service of one of our accountants. However, I didn’t always find out about each and every case, so someone could easily be forgotten and it was difficult to be fair.” Once in a while, she still meets people who recall her help in the post-war years. “As recently as the summer of 2003 at an employee event on the harbour in Sønderborg, which included the sailing ship As news spread that Mads was charitable, he received many letters from people in need. In 1960, his charity was transferred to a foundation, the Fabrikant Mads Clausen Foundation, where accountants helped phrase the charter. In addition to the Fabrikant Mads Clausen Foundation, the Employee Foundation was also created. It was founded by managing director Andreas Jepsen on his 40th anniversary in 1977. The company granted an initial sum of 1.3 million euros to the foundation to set up a social fund to benefit every employee in Danfoss A/S – a way of formalising Bitten’s long-standing social activities in the company. Salaried employees set up a travelling foundation and hourly-paid workers invested money in land, which later became Solskrænten a holiday sesort, near Mommark on Als. Andreas Jepsen was disappointed that salaried employees had spent money on trips - because then the money would be gone - instead of investing it, like the hourly-paid workers had “Mads did not have any vacancies at the time, but he said ‘I suppose we can find you a broom and you can use it to sweep until there’s a job for you’.” UCA, I stood next to someone who sat in an electric wheelchair. The thing is, my son Peter is also in a wheelchair and we chatted and I asked about the vehicle. When he realised who I was, he exclaimed and thanked me so much for what I had given his children. He repeatedly said that they had had no clothes for their children to wear to their confirmation, and that I had gone to their home to give clothes to all the children and that the clothes had fitted them. There he sat, after all those years, with tears in his eyes and it really made me happy.” Without doubt, the initiative that Bitten took during the postwar years was the main reason that the company set up the different social foundations over the years. done. Other employees needed support when they were sick, for example, or if they divorced. These are still some of the issues that the Employee Foundation deals with. Today, experts such as lawyers and psychologists take care of the cases. The Foundation’s capital has grown steadily and now, after starting with 1.3 million euros, the Employee Foundation has four times as much money at its disposal. Bitten says: “It is reassuring to know that, over the years, more than 10,000 people have received donations in one form or another when they needed them. Danfoss would not be in its present position without its good and competent employees.” 192008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=20http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=20Laying the framework for the next generation Mads and Bitten Clausen’s nine grandchildren and three great-grandchildren will all be able to apply for a job at Danfoss, if they wish. But the jobs they are offered will be determined by what skills and education each has. By Niels Chr. Larsen Many family-owned companies have experienced difficulties integrating new generations of the family into the company. Uncertainty about roles and competencies has resulted in insecurity – and has sometimes brought companies to their knees. But this won’t happen at Danfoss. This is because extensive efforts are currently underway to prepare the framework for the Clausen family’s future influence and overall control of the company, so-called family governance. This will also define what should happen if Bitten and Mads Clausen’s grandchildren – and then great-grandchildren – wish to pursue a career at Danfoss. Bitten and Mads Clausen’s five children and nine grandchildren have met several times as part of the work to draw up the framework. And these meetings have taken place with help from one of the world’s leading business schools. In addition, the Clausen grandchildren are being given professional advice about jobs and their career development. “All of our children can get a job at Danfoss, if they want. However, the same principle applies to them as it does to us, which is that the nature of their jobs will be determined by their skills,” says Peter Clausen, son of the founder of Danfoss and chairman of the Bitten and Mads Clausen Foundation, which holds the majority of shares in Danfoss. He points out that even if conflicts arise between heirs, no one should be anxious about the future of the company. The Foundation’s charter prescribes that all activities should benefit Danfoss. Ole Daugbjerg, Chief Reputation Officer, is leading the work to outline the family governance structure in cooperation with Per Have, the managing director of the Bitten and Mads Clausen Foundation. Ole Daugbjerg says: “It shows that the Clausen family takes ownership seriously and, therefore, wants to consider what structures are necessary to secure Danfoss’ future – and how the family can be a part of it.” So far, one of the Clausen grandchildren has secured a job at president-level in Danfoss: Mads-Peter Clausen is a Vice President in the thermostat business. The others are either still studying or have set up their own businesses. Facts The family governance structure determines what is required of a Clausen heir if he or she wants to build a career in Danfoss – at different levels – and, also, what is required if one of them wants to be a member of a board. 202008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=21http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=21Wanted: photos from all over the world Volunteers are piecing together the story of Danfoss. Now the company archive needs material from companies outside Denmark. Knud Roelsgaard has been up to his neck in several cardboard boxes containing ring binders from the factory in Flensburg, Germany. Seven pallets loaded with everything from product descriptions to technical reports about the refrigeration compressor have been examined and sorted. He is one of 15 former employees who register material at the Danfoss Historic Archive every week. “Almost every sheet needs to be looked at to find out whether it should be kept or not,” says Knud Roelsgaard, who used to be the departmental manager for product development in Flensburg. The papers will be used for a new book about Danfoss’ Compressor Business which is currently being written. Helle Larsen, head of the secretariat, says that the archive needs more material so it has as much information as possible about Danfoss’ history. “We need old photos, personal letters or business letters, and product material from subsidiaries around the world. We have a lot from Denmark, which has already been sorted, and now we are ready to receive new material,” she says. It does not necessarily have to be old, just as long as the documents are relevant and help tell the story of the subsidiary. The Danfoss Historic Archive has, for example, helped organise an exhibition of Danfoss products in the adventure park Danfoss Universe and stores 800 films about Danfoss, which have been digitalised. Moreover, the archive has old organisational plans, product drawings, price lists and brochures. Any queries relating to material can be e-mailed to: dha@ danfoss.com By Lene Ilsøe Hansen Facts Facts The Danfoss Historic Society has 40 members who sort and catalogue material in the archive, among other things. The oldest active member is 83 years old. The archive has existed for five years. 212008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=22http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=22Notes Meetings on the move When the management team in the Danfoss Drives’ test laboratory want to hold a meeting, they do it on the run. Twice a week the seven managers meet at 7:30 am and run five kilometres around the royal castle in Gråsten, Denmark. Per Østergaard Nielsen, laboratory director, introduced the unusual method of holding a meeting. He says it has proved a good way of combining exercise and work. The managers have long working hours, so would find it hard to exercise every day. Various practical details are discussed while the managers jog, but more serious issues requiring other people’s agreement are still decided around a table, in the conventional way. “Some things we cannot manage to do with our running shoes on,” concedes Per Østergaard Nielsen. Expanding into the British Isles Danfoss’ heat pump business is continuing its expansion across the European continent – and has crossed the English Channel. The takeover of Eco Heat Pumps, which is now called Danfoss Heat Pumps UK, is the sixth acquisition in three years. It is a sales company which supplies around 15 per cent of the English market. The market is expected to develop significantly – not least in Scotland where 30 per cent of installation costs are subsidised. Also, in England, users are offered an incentivein the form of a money-back scheme which reimburses customers in proportion to the reduction in CO emissions achieved by the heat pump. Making valves wiser Danfoss Water Valves has captured a large share of the water market with its butterfly valves used in water distribution and treatment solutions. Such installations increasingly require more “intelligent” automated valves. Now, thanks to the acquisition of the French company Valpes, Water Valves can make its valves wiser by combining them with Valpes’ electrical actuators that can open, close and control the valves automatically. For Valpes, new ownership means that the company can maintain its high annual growth rates of around 25 per cent: a trend it has enjoyed for several years. Valpes employs 38 people and exports 70 per cent of its sales to more than 20 countries. 222008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=23http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=23The new village will have 16 houses when it is complete. Four have been finished and children have already moved in. Helping save India’s lost girls The Fabrikant Mads Clausen Foundation is supporting the creation of a children’s village in India. In very poor parts of India, baby girls are not always appreciated. And it sometimes happens that very poor parents abandon newborn baby girls in quiet backyards in cities or in desolate places in the countryside. As a result, the Danish relief organisation Verdens Børn (The Children of the World) is financing the building and running of a new children’s village in the state of Tamil Nadu, in southern India, where Danfoss India’s headquarters are located. In the village, the girls will get food and clothes; they will be cared for and receive medical treatment – and go to school when they are old enough. The construction project relies on funds from private sponsors, including the Fabrikant Mads Clausen Foundation, which donated 6,700 euros in December. “Without donations from individuals and companies such as Danfoss, we would not be able to help the children. The harsh truth is that some of them would die,” says Carl Johan Rasmussen, Verdens Børn’s project coordinator. Girls are too expensive Verdens Børn works with the Indian organisation St. Joseph’s Development Trust, which carries out the day-to-day running of the village. The organisation is headed by the Christian monk, Brother I. Sebastian. He says that many poor families cannot afford the dowry paid when a daughter is married and which is still customary in many parts of India. This is one of the main reasons some parents abandon their baby girls shortly after birth, he says. He says that the organisation recently admitted two girls, who were both around two weeks old. “In one case, the man would not allow his wife to be in the house unless she got rid of her newborn child. As for the other, the father threatened to kill the girl,” says Brother I. Sebastian. But now they have a roof over their heads, play with other children, and get daily care and nutritious food. And preparations are made for them to go to school when they are old enough. Respected organisation Together with St. Josephs Development Trust, Verdens Børn runs two other children’s villages in India: one for orphaned girls and one for disabled children. In India, the St. Joseph’s Development Trust is a recognised relief organisation, so Danfoss India’s employees were consulted before the donation. “We checked the media and found the organisation was only ever mentioned in a positive light. So we made a clear recommendation that Danfoss should donate some money,” says Hariharan Krishna, GBS Director in India. By Ole Kanstrup Facts St. Joseph’s Development Trust does not only help orphans. It is also known for its social programmes, which offer general help to poor families – such as counselling, homework assistance and help with school fees. 232008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=24http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=24Welcome to 9,800 new colleagues Danfoss is in the driving seat in the merged company Sauer-Danfoss. The two companies remain independent units but the biggest difference now is that the Sauer-Danfoss figures will be incorporated into those of Danfoss. This means that, overnight, net sales increased by 10 bn DKK. By Niels Chr. Larsen The next time you read the Danfoss quarterly report, have a look at the net sales and employee numbers. Suddenly, you will notice there are 9,800 more of us in the Danfoss Group and net sales will have increased by around 10 bn DKK. There is a simple explanation for this: recently, Danfoss acquired another 17.5 per cent of the shares in Sauer-Danfoss. This means that Danfoss has more than half of the shares and the accounting figures will be consolidated into Danfoss’ figures, as an accountant would say. So, there are no longer about 22,000 employees in the group: there are almost 32,000 of us. But who are our new colleagues? Hydraulics heavyweight Sauer-Danfoss’ history began in 2000, when the merger between Danfoss’ mobile hydraulics division and its competitor Sauer-Sundstrand was finalised. At the time, Danfoss was in fifth place on the market; Sauer-Sundstrand was in fourth. The companies each lacked the other’s products but, together, they have become a huge success. Following the merger, net sales have almost tripled. And now Sauer-Danfoss is a heavyweight within mobile hydraulics. In short, Sauer-Danfoss manufactures the equipment needed to make large agricultural and contractors’ machines move. It provides the mobile hydraulics and also the software that controls the hydraulics. Customers include companies such as JCB, Hydrema, John Deere and Caterpillar – firms which provide products as diverse as pallet trucks, backhoes and loading shovels for large tractors and combine harvesters, which take several years to develop. And for this reason, even bigger gains lie just around the corner, according to President and CEO Jørgen M. Clausen. “Today, eight years after the merger, we have not finished reaping the benefits. When big manufacturers make changes, the development typically takes three years and then there is another two years before production is running at full power,” he says. No plans to list Danfoss Jørgen M. Clausen emphasises that Danfoss and SauerDanfoss will continue to be two independent companies. So, the intention is not to merge functions. For the same reason, most employees will not see any changes as a result of the acquisition of shares. “However, if benefits can be obtained through the introduction of service agreements, this could take place. Or, for example, Sauer-Danfoss could implement the Danfoss Business System,” he says. He adds that the acquisition of shares is not a step towards Danfoss becoming a listed company – and nor will Sauer-Danfoss be delisted from the New York stock exchange. With the sale, Klaus Murmann – 76-year-old chairman emeritus of Sauer-Danfoss - is about to say goodbye to his life’s work, but he describes Danfoss as “a good home” for the company. “My father and Mads Clausen both started with hydraulics and Sauer-Danfoss is now a world leader in that area.” Facts The Sauer-Danfoss headquarters are in Lincolnshire near Chicago, USA; the European headquarters are in Neumünster, Germany. Production takes place at 25 sites around the world. According to the agreement, Danfoss can buy 10 per cent of the shares in 2010 and an additional 10 per cent in 2012. The acquisition price will depend on SauerDanfoss’ results. 242008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=25http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=25Good neighbours: Danfoss and Sauer-Danfoss live next door to each other in Nordborg. Here, Michael Bengtsen from Danfoss is carrying Martin Skriver from Sauer-Danfoss. 252008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=26http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=26Strategies & Trends Chinese customs officers join the fight against fakes The customs authorities in China have begun to seize counterfeit products before they are exported. But it can be hard to distinguish the forgeries from genuine products. The labelling on real Danfoss products is, generally, not good enough. By Niels Chr. Larsen Chinese customs officers working at the country’s ports have become quite familiar with the Danfoss logotype. Intensive training has begun to pay off. Over the past year, customs officers in a number of cases have withheld goods with the Danfoss logo - and they all turned out to be counterfeit products. The biggest catch consisted of 6,900 filter dryers used in refrigeration and air-conditioning systems, according to Eskil Berg Kappel, legal counsel in Danfoss China. Together with the Patent and Trademark Department in Nordborg, Denmark, he has been fighting piracy for several years. The problem is taken seriously Danfoss has exerted its influence through the Quality Brands Protection Committee, which is a trade organisation for foreign manufacturers. The organisation is working with the Chinese Ministry of Foreign Commerce and therefore gets the attention of high-level politicians in China. “It is my impression that the Chinese authorities are taking this very seriously and are aware of the negative impact of counterfeit products. One effect of piracy is the occurrence of low-quality products throughout the society. Another is the fact that China will continue to be perceived as a country with widespread piracy. If all you do is copy products, you will never get out in front. The Chinese know this,” says Eskil Berg Kappel. The procedure for a confiscation case is that the party claiming its goods have been copied must provide a financial guarantee and then prove that the products are forgeries. And this is very problematic, according to the Danfoss legal counsel, because Danfoss’ products are simply not labelled well enough. Very often, they only have a plain sticker. Sometimes, the stickers do not comply with the corporate standard relating to labels. Microprint and holograms So, the Patent and Trademark Department has prepared a range of proposals for how Danfoss can label its products using state-of-the-art labelling technology. “Our products and labelling are generally easy to copy and it is often difficult to see the difference with the naked eye. Also, the pirates have become more skilled and we are reaching the point where it is necessary for Danfoss to improve its labelling so it is easy to identify the genuine products,« says anti-counterfeit manager Ivan Kudsk, who is in charge of combating piracy. The labelling proposal includes, for example, nano technology, advanced holograms and microprint. “It is vital that the distinctive features are 100 per cent visible so that your customers and partners, such as customs officers, can see them. We don’t have that at the moment. Today, we use a rather simplified labelling that everyone can copy. We want to make this more advanced,” says Ivan Kudsk. Facts in addition to lobbying and training customs officers, Danfoss still makes use of detectives to trace counterfeit manufacturers. Most recently, a full-time detective worked for four months on an assignment in central China. If you come across fake products, you can report your observations at: piracy@danfoss.com 262008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=27http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=27Notes Remembering the earthquake victims Danfoss China employees observed three minutes’ silence to commemorate the victims of the earthquake disaster in Sichuan province on May 12. People across the country joined the silence on May 19 - exactly one week after the disaster. Immediately after the earthquake, Danfoss China began a collection that reached 293,000 RMB (26,700 euros) in just one week. Danfoss China and the Fabrikant Mads Clausen Foundation rounded up the amount to 1 million RMB (approx. 91,200 euros), which was sent to the Chinese Red Cross. The epicentre of the earthquake was close to the city of Chengdu. All of Danfoss’ employees in the Chengdu office escaped uninjured. Older sales staff locate customers Experienced sales staff are worth their weight in gold yet, in Germany, many older salespeople are unemployed. Karl-Peter Simon, Sales Vice President, in Danfoss Drives, Germany, thought it must be possible to make use of their experience. So, in connection with a project under the Danfoss Sales Program, he hired Andelko Zdravkovic, aged 57. After 24 years in the business, Andelko was unemployed as a result of the mergers and restructuring on the German market for climate controls (HVAC) in recent years. Last year, Andelko visited around 450 HVAC consultants and helped them choose Danfoss’ products for their construction projects. The result of his work was so good that he was permanently employed in January. Now Karl-Peter Simon is considering spreading the model to other parts of Danfoss Drives’ markets outside Germany. Karl-Peter Simon says: “It is a complex business which requires extensive technical knowledge and an understanding of our customers. The older sales staff have this. And with Andelko, we had the chance to cultivate HVAC consultants which we would otherwise not have had the time to visit. The result is that we are providing more quotations than we used to.” By Jens E. Degn 272008-07-11T11:39:06+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=28http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossN022008/?Page=28Danfoss around the world Slovenia Prizes keep pouring into Trata Over the past three years, prizes have poured into the Slovenian company Danfoss Trata, which develops and produces electromechanical regulators for district heating and HVAC and balancing valves. It has won more than seven prizes, including the best foreign investor, the best employer and one of the most socially responsible companies in Slovenia. In addition, Danfoss Trata was rated third among Slovenian companies for its excellent business results. In March, General Manager Aleksander Zalaznik collected a prize from the Slovene Chamber of Commerce for the exceptional economic and business achievements in 2007. Aleksander Zalaznik has led Danfoss Trata since Danfoss took over the company 13 years ago. Denmark A rocket to the Moon 3….2…1.and lift off! In May, Danfoss’ Man on the Moon competition ambassadors Leo Bram (right) and Kristian Honoré drove around with a rocket strapped to the back of a car to highlight the fact that the latest round of the product ideas competition had been launched. This year, 25 teams from eight countries have entered. This year’s winners will be selected in December. It is the fifth time Danfoss Ventures has organised the competition. Denmark Prize for productivity In April, Danfoss was awarded the Confederation of Danish Industry’s Productivity Prize 2008. In his speech, the organisation’s productivity manager Jens Kristian Jørgensen pointed out: “Since introducing Lean, Danfoss has realised more than 120 transformation projects in production - with impressive results. These have included an average productivity improvement of almost 30 per cent, a stock reduction of 35 per cent and a general improvement in employee competence at the factories involved. It is simply remarkable.” Poland Water valves keep Polish mall cool The Focus Park shopping mall in the Polish provincial capital Bydgoszcz is built on land where the meat company Byd Meat used to be located and is an interesting mix of old and new features. The shop and amusement mall has been added to four historical buildings. Danfoss has contributed to the renovation in a number of ways but mostly through Danfoss Water Valves, which supplied valves for the water supply and whose products are installed the mall’s air-conditioning system. The mall covers 93,000 square metres and includes a cinema with 13 screens. 282008-07-11T11:39:06+02:00