http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/RSS.ashxDanfoss Group Global PagesFri, 12 Oct 2007 11:42:59 +0200http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1MAKING MODERN LIVING POSSIBLE Global Danfoss Now its called Danfossi 107 A Stakeholder Publication English edition2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2Published by Danfoss AS Total number printed 27, 400 Address Danfoss AS, L24212 DK6430 Nordborg globaldanfossdanfoss. com Responsible Ole Daugbjerg Editor Niels Chr. Larsen Prepress Christa Hartmann Photographer Glenn Simonsen Print Laursen Grask AS Published in Danish, English, French, Spanish, Polish, Slovenian, German, Chinese and Slovakian. Printed with vegetable colours on environmentally approved paper. Reproduction only by permission of the Editor and always with acknowledgement to Global Danfoss Global Danfoss 4 8 20 16 1 Global Danfoss April 2007 Table of contents Page 1 Now its called Danfossi Danfoss has lent its name to a lemur in Madagascar. Read why on page 6. Page 4 When size matters A venture project is set to develop Nessies pump and nd new uses for it. Page 8 When it just feels right . . . Frederik Lotz, the 37yearold new Finance President and CFO, talks about how to knot a tie, get a Nike shoe to the shop as fast as possible and why he got red up about Danfoss. Page 16 20, 000, 000 thermostats for Poland In the 1990s, thousands of buildings owned by housing cooperatives were modernised in Poland. Danfoss made a large contribution to this process, supplying up to 50 per cent of the thermostats that were installed. Page 20 Danfoss leaps into leadership in United States Its been half a century since Danfoss rst got its feet wet in North America, but only in the past decade has it burst onto the refrigeration and airconditioning scene with success. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=3http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=33 Leader Danfoss had a good year in 2006. Our net sales increased nicely, prot was reasonable and our employee numbers topped 20, 000. I think we all have reason to be both proud and content with our eorts in 2006. It is, of course, a major personal pleasure for me that the accounts, which will be the last I present as a CFO at Danfoss, are so positive. However, I also have to point out, with the help of an old Danish saying, that the trees do not grow into the sky. This is a truth we should contemplate while celebrating 2006. Conditions indicate that clouds may be approaching and they could augur some poorer weather. So, we have to face the fact that increasing raw material prices and globalisation mean that competition will continue to increase and that our prots will continue to be squeezed. In other words even though we produce and sell more, we will not Danfoss performed well in 2006 but clouds are gathering on the horizon make such a big prot. This is the kind of development which we had begun to notice during the last three to four months of 2006, and there are no indications that the trend is about to change. Most employees at Danfoss would probably agree that the good results achieved in 2006 certainly did not come about by them selves. On the contrary we worked hard and long, and were very focused. There cannot be much doubt that Danfoss will also have to ght and work hard in the years to come in order to retain the good position we reached in 2006. There is still work to do before we can earn 10 DDK every time we sell goods worth 100 DKK which is our target for 2008. In 2006, we earned 8 DKK for every 100 DKK sold so there is still room for improvement. Therefore, we should cultivate the will to win even more and there is every reason to support the Danfoss Business System initia tives in every way we can. It is through these initiatives and projects that we can make sure we do things smarter, faster and more eciently. Along with acquisitions of companies which strengthen our core businesses, this is the recipe for securing Danfoss future. I believe that Danfoss is on the right track and that it is possible for us to steer clear of the worst storms which will inevitably gather on the horizon. This will require both willingness and hard work, but the foundation has been built and 2006 showed that we are on the right track. I wish you all the best of luck in your eorts to reach our goals. Therefore, we should cultivate the will to win even more and there is every rea son to support the Danfoss Business System initiatives in every way we can. By Executive Vice President and CFO Ole Steen Andersen2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=4http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=44 Facts Customer Business When size matters One square metre at a production platform costs several hun dred thousand Danish Kroner. So, it is not entirely immaterial if you can replace a pump the size of a room with a little thing that is no bigger than a European pallet. And the fact that the small pump can be transported by heli copter and that it only takes 15 minutes to install adds to its appeal. Further development of Nessies pump has made many things easier at the gas production platform Tyra West in the North Sea. A couple of years ago, Henrik Hansen who works for Mechanical Maintenance at Maersk Oil and Gas Esbjerg, Denmark, came up with the idea of using a modied version of the pump to inject methanol into the gas, once it has been pumped up from under the seabed. Methanol is used as an antifreeze solution preventing water par ticles and gas from becoming frozen, socalled hydrates. If freez ing occurs, the gas cannot be sent ashore and large amounts of money can be lost every second. However, the trouble with methanol is that it quickly causes wear on the check valves in a conventional axial piston pump. Close cooperation Henrik Hansen approached the people at Nessie and, today, he has proof that the idea was a good one whereas traditional pumps need many costly spare parts, the Nessie pumps oper ate around the clock and can be quickly and easily maintained on land. No one had ever used the pump for anything other than pumping water, but it has shown that it can work in the way By Niels Chr. Larsen The project is nanced by Danfoss Ventures. This means that costs relating to its further development are paid by Danfoss Ventures funds. The investment committee consists of the EC the four members of the Executive Committee and the three divisional presidents. Currently, Danfoss Ventures is running 18 projects. A venture project is set to develop Nessies pump and nd new uses for it. Until then, the pump is saving precious time and space at a gas production platform in the North Sea, where it pumps methanol. Later, other uids may follow we intended, says Henrik Hansen, who has cooperated closely with the development team at Nessie to develop the pump to inject methanol. The work has been followed up by engineer Chr. B. Nielsen, of Nessie. He has examined the market and anticipates there will be plenty of potential to develop the pump for other situations not only in the oshore business, but also in other areas. So far, the pump has only been approved for pumping methanol and water. The next step will be to expand its European approv als to include chemicals, which are dicult to pump and adapt the pump to American standards. A whole range of opportunities exist in industries such as the chemical industry, he says. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=5http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=55 Tightly packed the photos show the three Danfoss pumps installed on Tyra West. Photo Maersk Oil and Gas2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=6http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=6Facts 6 Customer Business An energyfriendly little chap Animals have been a longstanding inspiration for Reiner Pie gensdrfer, Comfort Controls marketing manager in Germany. Now, thanks to his interest, Danfoss has lent its name to a lemur in Madagascar. Microcebus danfossi is the name of the little chap and it lives high up in the trees in the islands virgin forests. Its most remark able feature is its ability to lower its metabolic rate during the day in the cold season, because its an animal that is active at night. In a sleeplike state, its body temperature is reduced by almost 50 per cent and the energy it needs is cut by 25 to 40 per cent. And it is exactly this kind of feature that has fascinated Reiner Pie gensdrfer. For many years, visitors to the ISH fair in Germany have been met by the sight of large posters of animals, illustrating how they compare with energyfriendly products from Danfoss. Animals, children and owers always have an eective marketing impact, and we have great success combining the characteristics of animals with the features of Danfoss products, says Reiner. Researchers from the veterinary college Tierrztliche Hochs chule in Hannover TIHO, Germany, discovered three unknown lemur species in Madagascar. The researchers By Niels Chr. Larsen Microcebus danfossi is a lemur, a prosimian. This species of the lemur is the size of a hamster, weighs between 30 and 60 grams, and lives exclusively in Mada gascar. During the day, they sleep in holes in the trees and in nests made of leaves. At night, they walk through their preserves and feed on fruits, resin and insects. subsequently contacted Danfoss, because they had seen a Dan foss advert showing a nicelooking species of lemur representing the fact that Danfoss radiator thermostats reduce energy con sumption in heating systems. As a result, one of the recently discovered species has been named after Danfoss, and Danfoss is contributing to research in this eld and to the maintenance of the natural forest environment where these extremely endangered animals live. And according to the research team, it is a race against time. The researchers estimate that only half of the species on the island have been registered and named and, at the same time, pressure on the rain forest is increasing, because it is being burned down and turned into elds. The newly discovered species was the theme covering Danfoss stands at this years ISH fair in March. The marketing man with the animals, Reiner Piegensdrfer. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=7http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=7Investment ceiling raised by 200 million DKK Throughout Danfoss, new production lines are being set up. And L3 in Nordborg is no exception here capacity is being expanded at production lines which produce, among other things, the suc cessful TR6 valve. As a result of this expansion, 25 per cent more valves are expected to roll o the lines this year. The situation at L3 is not unique Danfoss businesses received an unexpectedly high number of orders last year. Investments will now remedy the very dicult situation that occurred in connection with last years peak season. Firstly, last years peak time lasted longer than expected. The result was poor delivery performance, increased production costs and expensive airfreight costs incurred in an attempt to meet customers demands in the best possible way. We experienced serious delivery problems, especially in connection with certain RA product lines. It was clearly unsatis factory and did not live up to the image we strive for, says Vice Chief Executive Ocer Niels B. Christiansen. Price rises should follow Where possible, more shifts were introduced to increase capac ity. However, the immediate improvements only took eect in a few areas and the Executive Committee had to raise the invest ment ceiling. The 2007 budget covered investments equalling 5 per cent of net sales. This has now been increased to 6 per cent which means a further 200 million DKK has been added, making a total of about 1. 2 billion DKK. This is twice the amount of money that our competitors are investing and, by trying to add extra capacity, we are now looking to the future, says Niels B. Christiansen. He added that he is relieved the Danfoss Productivity Program has improved productivity over the past few years without DPP, things would have been far worse. That said, it bothers him that the necessary and reasonable price increases introduced partly as a result of increasing raw material prices were not introduced throughout the organisa tion. Preferably, we should not end up having big uctuations. Now, we have selected a method that fulls our customers By Niels Chr. Larsen Major delivery problems at RA and Heating have meant that the Divisions are being allowed to invest an extra 20 per cent this year compared with initial plans. needs. But it does bother me that we have experienced capacity problems, when at the same time the very necessary introduc tion of price increases took too long. Who faces the music when things go wrong Increasing investment is not enough on its own the people responsible for sales and production must be better and faster at adapting to changes. And this must take place in a structured process involving detailed discussions. This is being dealt with in RA in connection with the new logistics processes in Sales and Operation planning which will ensure that the right products are available at the right time. Now, sales and production managers meet each month to draw up plans together. At the meetings, the framework for sales and capacity is agreed and production is staed accordingly. This is a clear improvement on past arrangements, points out Michael Simmelsgaard, Vice President of RA Global Logistics. He says that on the one hand, sales sta used to come up with optimistic market evaluations in order to make sure that their customers received the goods whereas produc tion sta tended to pull in the opposite direction, so they were not left with too many products in stock. Put colloquially, the problem used to be who is quali ed to decide how much to produce and who will face the music if things go wrong Now, senior sales and production sta are involved and it has become their joint responsibil ity, he says. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=8http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=8My job is to guarantee that the plans submitted have a credible foundation when it comes to proceeds and risks but they should also reect what will hap pen if we just continue as we are. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=9http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=99 Facts Executive Committee When it just feels right. . . All of the pros and cons had been listed. And there were more cons than pros. They both had good jobs, a lovely house and the island of Als is such a long way from Copenhagen. Yet, Frederik Lotz and his wife, Rikke, screwed up the piece of paper all the drawbacks simply could not outweigh the positive gut feeling they both had. It was odd to recognise that. You cannot always balance eve rything up like an accountant, says Frederik Lotz. So, they chose Danfoss. First and foremost because of the Groups good reputation, but also because of the relaxed jovial atmosphere and a remark that President and CEO Jørgen M. Clausen made during their rst meeting at the headquarters on Als. One of the rst things he said was down here, we look after each other. That is useful to know when you have a family, says Frederik Lotz. Frederik Lotz says he is looking forward to spending many years with Danfoss following a decade in which he learned how to knot a tie, was red and, nally, landed up where you not only see the elephants ear, but where it is going, as he puts it. The path of the Nike shoe But rst, the one about the tie. The new CFO comes from an unpretentious, intellectual home and he surprised everyone when, after having graduated with an MSc in economics, he applied to Maersk, where the style is rather formal and conserva tive. He says It taught me some good lessons. At A. P. Møller, nobody carries your bag for you you carry it yourself. As country manager in China, I went to Shanghai and then, nine months later, I had the opportunity of applying for the job of head of nances at A. P. Møllers logistics businesses in China. It was all about com ing up with solutions such as getting a Nike shoe out of the fac tory in China and into the shop in New York at the right price. In Denmark in 2001, Frederik Lotz was appointed Finance Director Asia for ISS but the following year he, and the rest of the sta, were dismissed when the group reduced activities in the region. He says It was quite an experience to be sacked but, looking back, perhaps it was a good lesson. Values did the trick Frederik Lotz went on to a job as the CFO at Ferrosan, which sells food supplements worth one billion DKK every year. Then, a con By Niels Chr. Larsen Rikke and Frederik Lotz have two daughters, aged four and seven. Rikke graduated as a clothes designer, but currently works as an industrial laboratory technician. Frederik Lotz, the 37yearold new Finance President and CFO, talks about how to knot a tie, get a Nike shoe to the shop as cheaply as possible and why he got red up about Danfoss. sultancy contacted him and he says he shifted his position on Danfoss, from dismissive to enthusiastic. He singles out one of the companys major strengths as being the strong Danfoss culture which manifests itself in the Danfoss Core Values. He explains When a shared set of values exists, it reduces the distance between the dierent layers of an organisation. There is a unifying principle, one common way to act and even though clarity exists regarding the channels of reference, I have also noticed a willingness here to begin open, honest and direct dialogue throughout the organisation. Frederik Lotz speaks highly of the development which Danfoss has been through over the past few years, and he estimates that the company has the potential to go from being something rather special to something quite extraordinary. At the same time, he attaches importance to another special Danfoss feature. When you read the charter of the Bitten and Mads Clausen Foundation which owns half of the shares, ed. , it is obvious that it is not only a matter of making a prot for the sake of money. It is also about entrepreneurship and taking care of the local com munities where Danfoss operates, among other things. This is a very appealing characteristic and I look forward to contributing to it. On his predecessor When I asked my own network about my2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=10http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=10Facts Customer Business Photo imageclub So far, the valves have been produced in Korntal Mnchingen, Germany. However, production will be relocated to Wuqing in China and Kolding in Denmark. Danfoss three major customers in this area are Tatsuno, Gilbarco and Tokheim Fill it up with Danfoss, please Danfoss products are often invisible to the human eye. And this is the case at petrol stations, where Danfoss valves mix petrol to the right octane number and also ensure that the car owner gets exactly what he or she pays for. In Europe, valves from Industrial Automation are number one on the market number two on a global scale. Now the target is to be on the winners podium by 2010, says IAs Senior Director Andreas Dobratz. We produce 100, 000120, 000 valves each year and the goal is to double that number by 2010, he says. Currently, Danfoss supplies valves to three of the four largest manufacturers of petrol pumps next year it will be producing valves specically designed for the American market. New fuels Danfoss valves are already used for lling up with gas and before the turn of this year, a valve will be launched which mixes ethanol and petrol. There is a signicant demand for this fuel in By Niels Chr. Larsen Industrial Automation is aiming to be the leading global supplier of valves used at petrol stations. countries such as Brazil, Sweden and California, and an increasing demand in Europe. Furthermore, Danfoss is the only worldwide supplier of valves which are treated with a patented special coating that provide trucks with a special additive to reduce the harmful NOXs con tained in exhaust gas. Currently, the petrol pump market is growing by 78 per cent in Asia whereas in Europe and North America, the markets are experiencing stable growth. However, Andreas Dobratz expects these markets to develop. He expects this to take place at the same time as demand increases for petrol with a larger proportion of bio fuel in line with EU policy in this area. In the future, Dobratz predicts that cars will use hydrogen and compressed natural gas. For this we are talking at least 2010 but, generally, more fuels will require more valves, he says. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=11http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1111 Notes Old computers benet school Children at the Nikom Sang Ton Aeng 5 school in the Burirum province which is in Thailand, near the border with Cambodia will be learning how to use a computer, thanks to Danfoss. A Danish girl, who is a volunteer at the school, emailed Danfoss, appealing for old IT equipment which she said would benet the school. The oce collected some suitable equipment and a team of school teachers trav elled 400 kilometres to Danfoss oce to collect it three computers, six print ers, a slide projector and an overhead projector. Two Asian salesmen have demon strated the importance of being persistent. V. P. Lee, ASEAN Sales Direc tor, and Irin Kang, Malaysia HVACR Sales Manager, have secured an order for 110 frequency converters for two oce blocks in The Garden Mid Valley project in Kuala Lumpur. Even though the contractor had already chosen a competitors product at a very low price, they managed to get their foot in the door and secured one more meeting where they were able to show the advantages of the Danfoss products, one of which was the fact they are easier to install and do not require maintenance. The oce tow ers are an expansion of the Mid Valley project, which also consists of 420, 000 square metres of shopping centres, oces and hotels. Never give up Keeping sick snakes warm How do you keep ailing snakes warm Stateoftheart underoor heating, of course Weak snakes need to stay warm so a oor with heating cables from Danfoss DEVI was just the thing for Ryan Jenkins snake hospital in the Kwatulu Natal province in South Africa. Ryan, who nances the hospital himself, has set it up at his home, with glass cages and an outdoor play pen for the largest snakes. After seeing his enthusiasm and a South African rock python measuring more than ve metres market manager Claus Jakobsen and the local distributor decided to donate a heating system to the hospital. New heat pump factory in Poland In just a few years, heat pumps have become a key product for Danfoss. As a result, a new heat pump factory is set to be built in Poland. The factory, which will be built at Danfoss existing factory site near Warsaw, will be com pleted next year. It will employ 100 people and is expected to produce 20, 000 heat pumps every year. Heat pumps are already being pro duced at a line in the existing factory. At rst the aim was to produce 1, 000 heat pumps a year, but that number has rapidly increased to 5, 000. By Niels Chr. Larsen2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=12http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=12 We have discovered that, generally, our midlevel managers focus largely on management. Many of them are engineers and know exactly what is needed to make something function optimally. However, there is not enough leader ship. They are not skilled enough to inspire employees and ll them with enthusiasm. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=13http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1313 Man of opportunities For me, it is a question of inspiring employees Right from the beginning, Jørgen Mads Clausen knew that he could use his family history to restore the employees trust and faith in the company and make them feel once again that working for Danfoss was special. From my point of view, it was really a minor change. But I can see that from the organisations perspective, it was and still is important that it was a Clausen who once again was appointed President, says Jørgen Mads Clausen. The employees conrmed there was a change. Henning Wen delboe, who was an employee representative on the Board at the time, witnessed the shift to what he calls the cooperation policy. Right from the beginning, Jørgen Mads Clausen involved his employees much more in the decisionmaking process and announced any organisational changes or dismissals well in advance. By Niels Chr. Larsen A new book has been published portraying Danfoss President and CEO Jørgen M. Clausen. Called Man of Opportunities, it deals thoroughly with subjects such as innovation, leadership and glo balisation. e ninth chapter is about leadership and how to create an innovative organisation which knows how to think along new lines all the way from the corridors of the Executive Committee to the oors of the production hall. e chapter is based on the fact that, according to a range of people, the special Danfoss spirit had become rather subdued in the period before Jørgen M. Clausen was appointed President and CEO. At the same time, the Internet was becoming more important at the company and Jørgen Mads Clausen immediately adopted the new technology and got himself an email address for employees to write to. Today, he still checks his emails himself and he gladly answers the phone if anyone tries to get in con tact with him at the top of the administrative building. I embrace the opendoor policy. If people get the impression that the President is always engaged and never has the time to talk, you wont hear anything from them either. Then you lose touch with the company and what is going on further down in the organisation. It has actually become too easy to isolate oneself. I could easily stop visiting production, let my secretary answer all of my phone calls and invent more email addresses so that people thought they were emailing me, when in fact they were emailing my secretary. I do not want those kinds of barriers. I prefer to answer my phone myself I only have one email address, which I respond to, and when I am in the oce and not in a meeting, my door is always open. An important part of my leadership philosophy is to make it easy for people to approach me, explains Jørgen Mads Clausen. A great deal of the openness, however, is about sending out the right signals. The President of Danfoss is often out travelling and attending to other duties so others must take over and practise openness towards employees. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=14http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1414 For me, it is a ques tion of inspiring employ ees so they feel enthusi astic about change and want to take part in mak ing things change. Because of this openness, honesty followed and I sense this is very much appreciated by employees. Today, we communicate both the good and bad news to people. This has created a much better atmosphere for negotiation, because employees can see for themselves that what we say is true. For instance, in the 1990s, when were about to carry out a major relocation of 1, 000 jobs from the southern part of Jutland to Poland and China, we told people about it well in advance. Of course, managers of the individual departments were very worried about announcing the move. But we, the members of the Executive Committee, had decided to tell everyone about it two years before it was due to happen, so that we had the time to respond to queries and provide jobs for the people involved. Naturally, there was an outcry which was inevitable but we managed to put a damper on most of the unrest, because we were wellinformed and held ongoing discussions with employees. This meant that we were able to carry through the relocations without any strike action not even an hour and, to me, that was the best pos sible proof that we had achieved the openness and trust we needed, says the President of Danfoss. So, it was also natural for him to actively involve employees in the process when, at the turn of the millennium, Danfoss under took an extensive project concerning the companys values. During the process, Danfoss communications department inter viewed 1, 000 customers and suppliers, as well as 1, 000 employ ees around the world, to nd the values they associated with Danfoss. The answers were divided into dierent groups until, nally, the Executive Committee arrived at the ve Core Values including trust, reliability and a global culture, among others. We wanted to capture the Danfoss spirit and make it the basis of our values. So it was an obvious move to ask employees to create the foundation of the values. From the very beginning, we had an advantage because we already lived our values in our daily lives. They were not dened behind closed doors in a board room with the help of expensive consultants they were already embedded in the company. In this way, it became a lot easier to realise valuebased leadership, because the employees believed in the values right from the start, says Jørgen Mads Clausen. Leadership and not just management Openness has, therefore, become the foundation of the leader ship style which currently characterises Danfoss in general and Jørgen Mads Clausen in particular. Based on this, the President of Danfoss describes his leadership philosophy as having two pillars. One is about management, which focuses on the optimisation of operations, productivity and eciency. These are objectives for which Danfoss has always been praised. However, they are also introverted and traditional, because it is precisely tradition and repetition which optimise the operations and make them more ecient. Therefore, Jørgen Mads Clausens second pillar is about what he calls leadership. This is the aspect of management that should drive Danfoss towards new products and new markets in a global economy. In Danish, the word for management has a slightly dierent meaning to management in English. In English, the term covers two concepts management and leadership. I consider this to be a very important distinction. For example, we have found that, generally, our midlevel managers focus largely on management. Many of them are engineers and they know exactly what needs to be done to make something function optimally. But there is not enough leadership. They lack the ability to inspire and ll employees with enthusiasm. That is why we have created an internal training programme to strengthen their leadership abili ties, says Jørgen Mads Clausen. Our company has extensive production in costintensive countries with high salaries2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=15http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1515 Facts of leadership into the organisation, we will end up focusing on management and then the employees willingness to take risks will disappear. If the manager rejects every new idea from the outset, we will never have the courage to be innovative through out the organisation. For this reason, Danfoss has begun to focus on training midlevel managers in leadership skills and Jørgen Mads Clausen points out that he is aware that top management should lead the way and exemplify the willingness to take risks that Danfoss would like to see replicated throughout the organisation. For me, it is a question of inspiring employees so they feel enthusiastic about change and want to take part in making things change. It is, for example, my job to set realistic targets for them so that they know what they should aim for and, once they know this, it becomes easier to ll them with enthusiasm. You could argue that we need to leave behind transaction manage ment, which focused on how we did things, and move towards transformation management, which focuses on the change itself. We should continually consider how to turn something Man of Opportunities is written by journalist Ole Sønnichsen. It was published in 2006 by the publish ing rm Jyllands Posten and is only printed in Danish. wellestablished into something new something which is not so dierent from what we know but which addresses entirely new markets, so that competition becomes irrelevant. This is not about us altering the large, stable businesses but, somehow, there must be more willingness to take risks within the organisa tion. And we can only succeed if we, the members of the Execu tive Committee, show that we accept this. We have not always been good at this and there are denitely examples of employ ees who have been ready to take a risk, but who have given up because we did not support them. Now I know I must personify the willingness to take a risk so that employees have no doubt in their minds that we are serious about it. This is being shown through the Man on the Moon competition, among other things, and everyone can see that we are quickly moving forward. Ideas have been generated which are worth billions of Danish Kroner. We would never have achieved that in the past, recognises Jørgen Mads Clausen. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=16http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1616 Customer Business 20, 000, 000 thermostats for Poland In the 1990s, thousands of buildings owned by housing cooperatives were modernised in Poland. Danfoss made a large contribution to this process, supplying up to 50 per cent of the thermostats that were installed. Wsplny Dom, in Szczecin in north western Poland, is a good example of one of the housing cooperatives 12, 000 ats, dis tributed over ve and 12storey buildings, with 31, 000 occupants. A substantial part of its property consists of buildings made from large slabs and, until a few years ago, they were leaking like a sieve. Heat escaped through the walls, roofs, doors and windows. The heating supply and the district heating systems frequently broke down. Now the situation has changed completely, thanks to thousands of Danfoss components and solutions, among other things. For example, 37, 000 radiator thermostats, 10, 000 valves for district heating systems and 3, 000 valves for regulating domestic hot water have meant that the occupants of the cooperative now consume half as much district heating and hot water as they did in 1995. We began to limit the heat loss by insulating walls and oors between storeys, among other things. Then we improved the heating system, says Adam Humienik, president of the co operative. Several years of targeted eorts have meant that the occupants heating bills are actually not as high today as they were in 1995, even though energy prices have increased by 55 per cent during the same period. By Andrzej Rutkowski Adam Humienik says that the cost of external insulation will be recovered after 1317 years while the investments in Danfoss valves will have been recovered in 18 months to three years. Danfoss products are very energyecient and they have made a substantial contribution to our success, he says, adding that he received constructive support from the local Danfoss repre sentatives. Twice as expensive The cooperative in Szczecin is only one example of the huge need for renovation in Poland. Danfoss has already supplied about 20 million radiator thermostats to the country 10 million were installed in housing cooperatives, but the inhabitants are yet to enjoy major energysavings. The cost of heating one square metre in Poland is twice as high as in comparable countries. According to estimates, ve million buildings need to be modernised within the country. Considerable nancial support is available for projects focusing on energy eciency and environmental improvements, like the one in Szczecin. The EU Structural Funds programme, Infra structure and Environment, has earmarked 21 billion euros for 20072013 there is 18 billion from the Cohesion Fund and also 2. 5 billion euros from the European Regional Development Fund. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=17http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=17172007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=18http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1818 Facts Divisions The rst stepping stone on Kim Fausings path to Danfoss was laid at his familys breakfast table when he was a child. His parents owned a textile factory with 50 employees and this meant that the business, sta and customers were daily topics of conversation at home. And young Kim absorbed everything that was discussed around the table. As selfemployed people, my parents had great respect for a familyowned company like Danfoss. My mother focused par ticularly on Bitten Clausens commitment to the company and the fact that every Danfoss employee is important to her, says Kim Fausing. From May 1, Kim Fausing will become divisional President, head ing the Refrigeration Air Conditioning Division and showing the way for the Divisions 11, 000 employees around the world. And he is looking forward to working in a group which keeps an eye on results and appreciates the individual employee, as he puts it. Strong culture Kim Fausing, who qualied as an engineer and later took an Executive MBA, will join Danfoss after spending 17 years with the Hilti Group, which produces tools, among other things, for the building trade and many other industries. Here, he headed several of the Groups subsidiaries, most recently in Japan. In 2003, he was oered a seat on the Groups Executive Com mittee and the job of Executive Vice President at the companys headquarters in Liechtenstein. Here, he headed one of the Groups business areas, which is nearly as big as the Refrigeration Air Conditioning Division. I believe I have something to contribute. Hilti has a very strong performance culture and that is exactly what Danfoss promotes. Im looking forward to contributing to this, he says. His decision to join Danfoss was also inuenced by the fact that his 12yearold daughter lives in Denmark, so he will be closer to her. However, no matter where Kim Fausing has worked in the world, he has regularly spent time with her at weekends. When he lived in Japan, he saw her every third weekend, and while he lived in Europe, it was every second weekend. By Lisa V. Pilgaard New man at the top of the cold chain In 2007, Kim Fausing will marry Angelika Fuchs, from Austria. He has a daughter, Emilie Fausing, aged 12. Kim Fausing is preparing to sit at the head of the table in Danfoss largest division. Likes I love to win together with my team It is no secret that I am very resultorientated and thrive in a professional per formance culture. Of course, it means you have to put a lot of eort into it, but you should also have fun. Dislikes Mediocrity and politics. I like robust, open and committed discussions which advance the three core processes of every company people, strategy and operations. As a company, we should obtain results, but we should also understand the importance of a good balance between work and family life, he says. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=19http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=1919 Facts Customer Business By Niels Chr. Larsen Cosmic millimetre waves from the objects will be reflected up from the surface of each dish to the subreflector above the dishs centre. From there they will be guided down into highly sensitive receivers operating at just a few degrees above Absolute Zero 273 C. There the signals will be am plified many millions of times, digiti zed, and then sent along underground fibreoptic cables to a large signal processor in the control building. Tracing the rst galaxies So far, a large proportion of the universe has been le in the dark. However, a largescale project in a high desert area of Chile is set to shed light on what it contains. e ALMA project is a partnership between the National Science Foundation and the European Southern Observatory, and Danfoss is contributing by providing the fre quency converters needed to control the heating and ventilation system, which is vital in a part of the world with large uctuations in temperature. Expectations are that, by 2012, the 64 radio telescopes which together are ten times as powerful as the famous Hubble telescope will be capable of catching sight of the rst galaxies that were created aer e Big Bang. Astronomers gather information about objects in the universe by observing their energy emissions. e Sun and other stars emit light invisible to the eye, but other objects are observed on completely dierent frequencies. For example, the wavelength of old galax ies and galaxy multitudes which were created billions of years ago at the far end of the universe is less than one millimetre. is is the kind of long wavelengths compared with visible light which the ALMA telescope the biggest of its kind in the world is designed to register. e 64 radio telescopes will be posi tioned so that they will be able to take pictures together. It is supposed to be possible to move them over a distance of 18 kilometres and the observation antenna system will cover an area of approx. 23, 000 square metres. The ALMA telescopes are positioned at an altitude of 5, 000 metres in a Marslike landscape. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=20http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2020 Customer Business Photo imageclub Danfoss leaps into leadership in United States IIn 1990, when sales director Stephen Gugliotta started at Dan foss in the U. S. , most people there couldnt even pronounce the company name. It was a big challenge that our products were not made for American markets, he says. Today thats all changed. A sales explosion in the past ten years has turned Danfoss from a relative unknown in North America to a major force. It is now the fastest growing supplier to refrigeration and airconditioning original equipment manufacturers OEMs in the U. S. Every Division and Business Area is aggressively taking market shares, says John Galyen, Senior Sales Director of Danfoss RA in North America. Within Danfoss AS, weve gone from being on the fringe, to having the second highest sales in the world. The hardwon success in America comes through customizing products for the market, strategic acquisitions, raising brand awareness, and building a highly skilled and knowledgeable workforce. Its been half a century since Danfoss rst got its feet wet in North America, but only in the past decade has it burst onto the refrigeration and airconditioning scene with success. We not only have the right products, but people like doing busi ness with Danfoss here because our approach is one of coopera tion and collaboration, Galyen says. Made for America In January, Danfoss clinched a quintuple victory at AHR Exposition, the largest trade event in the heating, cooling, ventilation and air conditioning HVAC industry in North America. For the fth time in a row, Danfoss received the events prestigious Innovation Award for Refrigeration. This years winner is the ICF valve station. Our products are now fully competitive in terms of features, per formance and price. Thats a big change from how it used to be, says Robert Wilkins, General Manager for Danfoss Inc. and recently named chairman of the Air Conditioning and Refrigeration Institute. It is also a coup for Danfoss that Wilkins is the rst executive from a non American company to be elected ARIs chairman. By Jennifer Allison2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=21http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2121 250 200 150 100 50 0 1960s1970s1980s1990s2000s Danfoss leaps into leadership in United States Its been half a century since Danfoss rst got its feet wet in North America, but only in the past decade has it burst onto the refrigeration and airconditioning scene with success. Important products Danfoss is selling successfully to the refrig eration and airconditioning industry in the U. S. include pres suretemperature controls and thermostatic expansion valves for equipment manufacturers to meet strict performance demands, compressors built for the markets voltage and refrigerant stan dards, and others. Danfoss is also growing strongly in the highly competitive whole sale market, and won contracts with the two biggest wholesale chains. Green prots The recent success is also helped by U. S. government and con sumer pressures for environmental responsibility. En Visioneering, launched last year, is a campaign focused on this topic. It gives us a broad platform to take on a real leadership role in the industry and help our customers to better understand the complex challenges that we will be facing in the future, says mar keting communications manager Lisa Tryson. In 2006, Danfoss acquired Scroll Technologies, a U. S. compressor manufacturer. This move allows Danfoss to go head to head with its largest competitor and gain a strong foothold in the large central residential airconditioning market. Danfoss has been in North America since the 1950s, but has seen a sales explosion in recent years. Danfoss RA Sales in USA in millions2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=22http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2222 Notes Wedding in the car industry In modern car production, the cars top and bottom sections are pro duced on two dierent production lines. Once nished, they are united in a socalled wedding, where a hoist mechanism with counterweights couples the two halves. This requires a high degree of accuracy. Daimler Chryslers assembly line in Bremen, Germany, has selected Danfoss VLT Automation Drive after com paring it with a competitors product. One of the decisive reasons was the fact that Danfoss product can be installed in less than 15 minutes, whereas it takes several hours to install the alternative. By Niels Chr. Larsen Zhang Yonghao, a forklift truck driver from Danfoss factory in Wuqing, China, has won the Chinese Forklift Champion Competition 2007. After a number of selection rounds, eight truck drivers from industrial compa nies from all over China met in the nals, which lasted ve days. As well as Zhang Yonghao, Qi Ming from Danfoss also participated. The competition was set to be broadcast to 50 million view ers on the Chinese TV channel CCTV10 in March. Danfoss driver is forkli champion Danfoss won an important victory in January over a Chinese company which had abused the Danfoss brand in China by marketing itself under the name Danfosi. The lengthy case was conducted at a local law court in Beijing. The sentence means that the Chinese company Zibo Danfosi Control Instruments must stop using its present name and logo, which the court ruled were too similar to Danfoss. In addition, the company was told to close down its existing web site immediately and make a public apology. Finally, it was ordered to pay damages, corresponding to approx. 180, 000 DKK, and pay the costs of the case. Danfoss won the case because it had registered Danfosi as a Chinese brand before the company which car ried out the counterfeit. Crucial victory in counterfeit case2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=23http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2323 Customer Business Facts Machines at half price in China In just a few years, China has become the worlds factory. The competition is erce, prices are low and large savings can also be made when purchasing machines. Commercial Compressors recently opened a new production line in Wuqing, and the project teams calculations showed that costs had been reduced by 39 per cent by sourcing 67 per cent of the machines in China. At the painting line alone, 54 per cent was saved through local purchasing at the washing line it was 46 per cent and at the nal line, 34 per cent. In addition, advanced equipment to search for helium leakage and automatic welding equipment, among other things, was purchased in China. When it comes to investing in machines which will be used in China, there are a range of advantages to be gained by purchas ing in the country itself, instead of Europe, says MRO Group Investment Manager Frank Erik Johansen, who has monitored the project as a representative of the Groups purchasing organi sation. He estimates that savings of up to 4050 per cent can be achieved from most projects more, if you include the indirect costs relating to settingup, service and the like. Another benet is that service support is immediately on hand which is not the case if the machine has been shipped to China from Europe, several days away. By Niels Chr. Larsen The project has been headed by Commercial Compressors in close cooperation with Mike Bai, who is the China invest ment purchaser from the Chinese purchasing organisation, IPO. Commercial Compressors has cut a large lump o the machine purchasing budget by sourcing two thirds of its machines in China instead of Europe. Risk of piracy Some of the machines at the new scroll line are from major global Japanese companies and even these were less expensive in China, because the suppliers have dierent prices in dier ent countries, even for the same machine. In other cases, the machines were produced in China and adapted to Danfoss needs. In this case, you should of course safeguard your business secrets. Parts of the machine or processes could be unique to Danfoss, therefore you must protect them against piracy, says Frank Erik Johansen. The scroll line is the second phase for CC in China. The rst line came into operation in 2004, using only machines from Europe. Project leader Gilles Pradel and plant manager Christophe Gillon describe the project as successful however, they point out that thorough preparation is vital when sourcing takes place in China. The Chinese are very cost conscious and challenged us on the performance of the machines. On the other hand, our team had to ask them to keep an eye on the quality and eciency, and closely monitor each and every step of the machines construc tion, says Gilles Pradel. The new scroll line can produce 160, 000 units the old one pro duces 100, 000. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=24http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2424 Facts Vladivo St. Petersburg Novosibirsk Irkutsk Customer Business Photo imageclub The internet never sleeps. So, in a country as big as Russia, it is a huge advantage that customers have adopted ebusiness. If they hadnt, sales sta would have to be sitting by their phones from early morning to late in the evening in order to cover the countrys seven time zones. Between 80 and 85 per cent of all the orders that ZAO Danfoss in Moscow receives take place via ebusiness. The customers visit Danfoss website, enter their orders, get a price and decide when they want the product to be delivered. We had to introduce the system four years ago, because we could not keep up with demand. Because we supply goods to customers in seven dierent time zones, it can put great pressure on the sta who operate our telephones. But by using the inter net, our customers can place their orders 24 hours a day, says Mikhail Shapiro, General Director, ZAO Danfoss. The online order system was introduced to customers in 2002 and it has proved very advantageous for Danfoss in Russia none of our competitors have such an extensive system. According to Mikhail Shapiro, the next step will be to modify the system so it also includes direct delivery to the installers. This By Lene Ilsøe Hansen Russians are crazy about ebusiness means that they will receive their goods faster and they will not have to depend on goods stocked by distributors. It will require some changes but we aim to implement them this year, he says. Each week, seven large lorries arrive at ZAO Danfoss in Moscow with components which are then distributed from the capital to Siberia in the east or St. Petersburg in the west. On average, Russian customers enter 7, 000 order lines each day. One order line equals one order for one type of product. Experience shows that Danfoss electronic commerce system and the central warehouse in Moscow distribute goods at a faster rate than local distributors situated in the regions. Thanks to the ebusiness system, one person can now carry out work that used to require three people. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=25http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=25Fact Vladivo Photo imageclub First it was on land now its at sea. In 2006, Danfoss High Pres sure Systems, Nessie, introduced the Water Cube a system which transforms salt water into clean drinking water in small households on land. Now Nessie has acquired one more share of the desalination system market, thanks to the purchase of a Californianbased company. And this time, it is all about luxury at sea. Danfoss has acquired a company called Sea Recovery, which produces drinking water systems for luxury yachts and cruise boats. In addition, the company supplies drilling rigs and large shing boats. California, where Sea Recoverys production is based, will be the compe tence centre for Nessies activities within the drinking water market. We could either have set up production ourselves and headed sales and distribution for the Water Cube, or we could have bought our way into it. Sea Recovery proved to be the perfect platform for further development of our current activities and the company was for sale, says Anders Valbjørn, Senior Director, RO Solutions. Sea Recovery produces more than 4, 000 systems annually and the systems in its range are capable of supplying between 10, 000 and 166, 000 litres of water every day. With a water Nessie goes to sea Sea Recovery became part of Danfoss in November last year. The company, which was founded in 1981, employs 60 people and will have net sales in 2007 of 100 million US dollars. The acquisition of Sea Recovery includes a distributor network with 268 sales and maintenance sta who oper ate globally. The plan is to train the distributors so that they can sell and service the Water Cube. By Lene Ilsøe Hansenmachine on board, yachts can carry greater volumes of fuel and there is no need to nd room for large water tanks. Furthermore, the sailors always have clean water for doing the dishes and bathing. And when they set out on long voyages, they wont have to worry about polluted or contaminated water in the water tank. Sea Recoverys extensive knowledge of reversed osmosis trans forming salt water into drinking water will benet Nessie because the company is about to develop the next generation of the Water Cube. Sea Recovery has a good technical understanding and we can utilise this knowledge when we are ready to integrate new ele ments in the Water Cube, says Anders Valbjørn. The new version of the Danfoss Water Cube will be launched in 2007. Danfoss has begun supplying drinking water to luxury boats, large and small. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=26http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2626 Working Life Evaluating the performance of our leaders By Ole Kanstrup Danfoss leaders are professionally skilled but not as good as they could be at involving, motivating and developing their employees. These were the ndings of the 2004 Employee Per ception Survey EPS. As a result, leadership will be the focus of the new EPS, set to start at the end of May. Every Danfoss employee will be asked 6070 questions, includ ing how they assess Danfoss generally, their own development opportunities and, not least, what they think of the companys management. They will be asked their opinion of top manage ment, their immediate leader and the Business Top Manage ment, which is new. Leaders belonging to the Business Top Management category will be strategically important to the employees work area and, organisationally, be positioned between their immediate leader and the Executive Committee. Leadership will be a central subject of the new EPS survey. The reason is simple employees thrive when they have a good leader and the more they thrive, the better they perform, says Palle Kruse, head of Global HR at Danfoss. Dening good leadership Following the 2004 survey, a committee was set up to dene good leadership. This resulted in the Danfoss Leadership Competencies a set of guidelines including six points which describe what is expected of the companys leaders. And it is exactly these competencies that the questions in the new EPS will deal with. A good leader should, for example, seek to have open and con structive dialogue with employees and ensure there are profes sional and personal development opportunities. The 2004 survey also resulted in a number of other initiatives to promote good leadership at Danfoss. Action plans were Good leaders create good employees. Now a new employee perception survey aims to nd out what sta think of Danfoss leaders. prepared for the leaders with the poorest scores and now some have moved to specialist jobs where they have no sta responsi bilities. In addition, the size of a leaders bonus is directly related to how their sta rate their leadership skills. Evaluating a winning culture This time, the questions asked in the EPS survey will also be inu enced by Danfoss longterm goal to develop a winning culture in the organisation. This is called the Danfoss Performance Cul ture and its aim is to create a company culture which constantly focuses on goals and results. We still have a long way to go before we can say we have cre ated a winning culture throughout Danfoss. The survey will give us our rst indication of how employees judge the company on this important issue, says Palle Kruse. Danfoss Leadership Competencies Danfoss has dened a set of guidelines including six points that describe what is expected of a good leader. In short, leaders should Have the Danfoss Vision as a target. Create results through employees. Comply with the Danfoss Core Values. Communicate with employees. Develop employees. Develop the organisation. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=27http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2727 Employees in India receive more education today than they did a few years ago. They also have better advancement options and are stationed abroad more often. According to a survey conducted in the summer last year, this has had a considerable impact on their job satisfaction. The survey showed that the majority of employees believed that they were oered good opportunities to develop professionally and personally. They also said that, generally, their leaders were good at recognising their work performance. But it has not always been like this. The ndings of the global employee perception survey, which Danfoss carried out in 2004, painted an entirely dierent picture. At that time, many employees felt that their development had reached a dead end they lacked the opportunity for professional and personal development and did not believe their daily work eorts were appreciated. At the time, this low level of job satisfaction came as a surprise to Hariharan Krishna, head of Global Business Services GBS in India. Therefore, together with local management at Motion Controls MC and Refrigeration Air Conditioning RA, he decided to invite the employees to a meet ing to better under stand the reasons for the poor results. It was not good to listen to employees who had been with us for up to ve years saying that they had never had the opportunity to join a course in personal or professional develop ment or even to take part in product training, explains Hariharan. Fast improvements Together with the local HR organisation, Hariharan and the other leaders prepared a plan to improve the situation. For example, product training is now compulsory for new employees and all employees are given the chance to participate in personal development and product training courses. HR rolls out a yearly training calendar enabling employees to participate in courses for up to seven days a year. At the same time, leaders must make sure that suitable employees are oered the chance to progress, be stationed abroad or change job within India. It should be possible for employees to develop, improve them selves and advance. They should get the chance to progress, says Hariharan. Sta in India stretch their wings It was hard to learn about the ndings of the 2004 employee perception survey, so I am pleased that the situation has changed Hariharan Krishna Danfoss, India, was set up in 1998 and currently employs 87 people. The headquarters are located in Chennai in the south eastern part of India. Sales oces are located in Mumbai and Gurgaon. 2007-10-12T11:42:59+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=28http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo12007/?Page=2828 Danfoss around the world Helping airport reduce emissions The airport in Belfast, Northern Ireland, expects to save 1 million kilowatt hours every year when the renovation of the airconditioning system is complete. It is on course to reduce annual CO2 emissions by more than 500 tonnes. So far, Danfoss has supplied 28 frequency converters to control the system and the airports technical manager estimates this investment alone will be realised in only eight months. Northern Ireland Gearmotors for Iranian steelworks The Mobarakeh Steel Company is the biggest industrial group in Iran, and its steel and rolling mill covers 35 square kilometres near Isfahan. The steel works is in the process of renovating the rolling mill and has bought 100 gearmotors from Danfoss Gearmotors to control the conveyor belt. The plant produces 4 million tonnes of warm or coldrolled steel, delivered in plates or coils. Iran Danfoss scoops Chinese safety award In January, C. C. Chang, General Manager of the factories in Wuqing, China, received the Excellence in Production Safety award. The prize was given by the Wuqing Bureau of Production Safety Inspection Oce. In order to receive this prestigious award, a company must live up to a range of safety criteria top management should support the issue resources must be available a fulltime organisation should deal with the issue and the company should be able to provide proof that no accidents have occurred over a certain period of time. Only one other company in the Wuqing Development Zone has been awarded a similar prize. China Sweden Pioneering research centre for Swedish town The small Swedish town of Arvika is set to become home to one of Europes big gest research and development centres for heat pumps. The Danfoss company Thermia is building the 3, 500 square metre centre, which will be inaugurated in the summer. Once open, it will be the workplace for 40 engineers who will develop the heat pumps of the future. The facility will include climate rooms, among other things, for the development of heat pumps suitable for all kinds of climatic conditions, from arctic to tropical. This will enable Thermia to meet a range of dierent demands from all over the world. 2007-10-12T11:42:59+02:00