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Leading change– Kalev case Orkla Top Management Summit

Leading change– Kalev case Orkla Top Management Summit. Kalev in a nutshell. T he Estonian confectionery industry was established by p astry chef, Swiss L orenz Cavie t zel 1864 T he confectionery came into the possession G .J.Stude

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Leading change– Kalev case Orkla Top Management Summit

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  1. Leading change– Kalev case Orkla Top Management Summit

  2. Kalev in a nutshell • The Estonian confectionery industrywasestablishedby • pastry chef, Swiss Lorenz Cavietzel • 1864 The confectionery came into the possession G.J.Stude • Predecessors ofKalev: Kawe, Ginovker,Brandmann and Klausson were nationalized. • Company Kawe was named to Kalev • 1991 The State Enterprise of Kalev established • The privatizations of the State Enterprise Kalev and ffoundation of public limited company Kalev AS • 2003 Kalev new factory complex at Põrguvälja, near Tallinn • May 27th Kalev becomes a member of Orkla Group • Market leader in confectionary (MS42%) in Estonia • NSV €35m, EBITA €2,6m • 350 employees

  3. 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

  4. 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

  5. Step 2- Understand the product portfolio and brands Brands Emotional portfolio segments What did we do to achieve better results? • We divided all assortment intoemotional target group based segments • From each segment we took a sub-brand with good awareness and growth potential ... ... AND WE JUST MADE THEM BIGGER

  6. Leaders define the future business potential MESIKÄPP Old type wafer candy Modern and attractive family range DRAAKON Old type chewing candy Cute children range

  7. Step 3- Improve productivity & build systems Implement new systems OFSS, Work Safety, Contingency plans, 24h loop, reporting structures • 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

  8. Kalev delivered substantial growth in all KPIs * * NSV +40%, Volume + 38% CM+38%, EBITA + 8,6X EVA change +2,05m€ Productivity +25% Market share from 38 to 42%

  9. Step 4- Invest in the future Once the basis has been established invest in the future both: Physically Mentally

  10. Kalev vision and mission statements VISION Kalev is a quality and category leader, a recognized sweets expert in Baltics. MISSION We offer taste enjoyments that make yourday sweeter. Kalev is the proof of living traditions that last for centuries. CORE VALUES PERSISTANCEPASSIONPRECISIONCARE SLOGAN Sweet moments of life!

  11. Kalev 2012-2015 ambitious targets GREAT Delivered GOOD EBIT m.€ NSV m.€

  12. Other learnings • Fish goes rotten head Try to stay healthy shark • 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!

  13. Say what you do. Do what you say. M. Aru

  14. Thank you!

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