leading change– kalev case orkla top management summit
TRANSCRIPT
Leading change– Kalev caseOrkla Top Management Summit
Kalev in a nutshell1806 The Estonian confectionery industry was established by
pastry chef, Swiss Lorenz Cavietzel
1864 The confectionery came into the possession G.J.Stude1940 Predecessors of Kalev: Kawe, Ginovker, Brandmann and
Klausson were nationalized.
1948 Company Kawe was named to Kalev
1991 The State Enterprise of Kalev established
1995 The privatizations of the State Enterprise Kalev and f foundation of public limited company Kalev AS
2003 Kalev new factory complex at Põrguvälja, near Tallinn
2010 May 27th Kalev becomes a member of Orkla Group
2012 Market leader in confectionary (MS42%) in Estonia NSV €35m, EBITA €2,6m 350 employees
Where did we start from?
• Starting point– Lossmaking company without clear strategy and structure– Several unpolished diamonds in the portfolio– Employees anxious for the new beginning– Very high expectations from stakeholders
• Main drivers– Capture the market growth & lost positions– Realize the hidden potential of a great company– Personal ambitions
• Kalev was and is the most recognized brand in Estonia
Step 1- Build Organisation and clarify strategy
• Right people on right seats – example sales director
• Company target setting - 3 years
• Function priorities setting for 1 year• Years have titles
• 2012 Quality • 2013 Innovation
Kalev management team
Step 2- Understand the product portfolio and brands
Emotional portfolio segments Brands
1. We divided all assortment into emotional target group based segments
2. From each segment we took a sub-brand with good awareness and growth potential ...
... AND WE JUST MADE THEM BIGGER
What did we do to achieve better results?
Kalev
Kalev Nostalgic
Kalev Classic
Kalev Desiree
Kalev Finest
Kalev Vilma
Kalev Season
Kalev Tourist
Leaders define the future business potential
Old type wafer candy Modern and attractive family range
MESIKÄPP
DRAAKON
Old type chewing candy Cute children range
Step 3- Improve productivity & build systems
Lead the way in changing company’s culture “Leadership by example”
• Demonstrate the “burning platform“
• Set the ambitious targets
• Communicate
• Fast implementation
• Measurements “Deliver day after day“
• Celebrate short-term wins
Implement new systemsOFSS, Work Safety, Contingency plans, 24h loop, reporting structures
Kalev delivered substantial growth in all KPIs
*
25000
28089
34877
38090
5867
6265
8106
8940
5000
6000
7000
8000
9000
10000
0
5000
10000
15000
20000
25000
30000
35000
40000
2010 2011 2012 2013
NSV k€Volume th.t
*NSV +40%, Volume + 38% CM+38%, EBITA + 8,6X
EVA change +2,05m€Productivity +25%Market share from 38 to 42%
Step 4- Invest in the future
Once the basis has been established invest in the future both:
Physically Mentally
Kalev vision and mission statements
VISION Kalev is a quality and category leader, a recognized sweets expert in Baltics.
MISSIONWe offer taste enjoyments that make your day sweeter. Kalev is the proof of living traditions that last for centuries.
CORE VALUESPERSISTANCE PASSION PRECISION CARE
SLOGANSweet moments of life!
Kalev 2012-2015 ambitious targets
GOOD
GREAT
NS
V m
.€E
BIT
m
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Delivered
Other learnings
• Do not underestimate the importance of MOMENTUM („Tipping Point“ M.Gladwell).
• Strong combination of a good ideas (direction/strategy) and good execution, then You are likely to be a winner!
• Fish goes rotten head Try to stay healthy shark
Say what you do.
Do what you say.M. Aru
Thank you!