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BASF Presentation - 28 June 2012
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BASF – The Chemical Company
Francis Kirema
Peter van den Hoek
BASF – The Chemical Company We create chemistry for a sustainable future
Our chemicals are used in almost all industries
We combine economic success, social responsibility and environmental protection
Sales 2011: € 73,497 million
EBIT 2011: € 8,586 million
Employees (as of December 31, 2011): 111,141
In 2011, BASF filed for around 1,050 new patents worldwide
6 Verbund sites and around 370 production sites
Platzhalter für Bild
Structure of BASF’s segments
Chemicals Plastics Performance
Products
Functional
Solutions
Agricultural
Solutions Oil & Gas
Inorganics
Petrochemicals
Intermediates
Performance
Polymers
Polyurethanes
Dispersions &
Pigments
Care
Chemicals
Nutrition &
Health
Paper
Chemicals
Performance
Chemicals
Catalysts
Construction
Chemicals
Coatings
Crop
Protection
Exploration &
Production
Natural Gas
Trading
Business Units see growth opportunities in several industries
Opportunities in several industries in West and East Africa
Accelerate growth (capture immediately):
Agro/Food/Feed, Construction, Home & Personal
Care
Prepare growth (define and implement pre-
sales activities): Mining, Oil/Gas/Refinery,
Automotive
Discover (evaluate potential): Furniture/Wood,
Packaging, Water, Chemicals
Focus industries
Focus countries
Accelerate growth (strengthen, expand):
Algeria, Morocco, Tunisia, Egypt, South Africa
Increase focus, presence (discover, develop):
Kenya, Ethiopia, Tanzania, Ghana, Nigeria, …
Close watch on the market (observe, capture
later): Libya, Ivory Coast, Angola, D.R. Congo,
Sudan
Tunisia Morocco
Algeria
South Africa
Egypt
Sudan
Ethiopia
Libya
Ghana
Nigeria
Angola
Tanzania D.R. of Congo Kenya
Ivory
Coast
Zambia
Mali
Zimbabwe Namibia
Mauritius
Uganda
BU-specific view may differ.
Accelerate growth Agro/Feed/Food
Construction
Home/Personal Care
Prepare growth
Mining
Oil/Gas/Refinery
Automotive
Packaging
Furniture and Wood
Water
Discover
Opportunities 2010-2020, by country, by industry
Source: Sub-regional Strategy Africa 2020
Diversity + Inclusion
6
Truly rich are those,
who willingly accept
the variety of differences.
Chuang Tzu
7
Why diversity and inclusion?
New challenges call for new solutions
Changing consumption patterns
Regulation
Demographics
The world is changing:
Globalization
8
0,0
0,5
1,0
1,5
2,0
2,5
2003 2005 2007 2009 2011 2013
Classical cost containment will not be sufficient to boost company performance
Classical efficiency programs
+ Restructuring
Innovation
+ Culture
Earnings improvement [billion €]
Value maximization
Costs minimization
9
DIVERSITY
INCLUSION
We believe that
the uniqueness
of all our people
in all aspects is
our asset.
And we have
to make sure
that everyone
can contribute.
10
Religion
Gender
Race
Physical ability
Age
What is Diversity ?
Nationality Language
Value systems
Life experience
Heritage
Thought process
Function
Education
Talents Sexual orientation
Beliefs Skills
Perspectives
Family status
11
Source:
BASF Diversity + Inclusion Team,
Sept. 2009
Diversity is the mix!
– Inclusion is making
the mix work! Andrés Tapia,
Chief Diversity Officer/ Emerging Workforce Solutions Leader
12
Business relevance of diversity and inclusion
Leaders ignore and suppress
cultural differences
Cultural differences become an
obstacle to performance
Leaders acknowledge and
support cultural differences
Cultural differences become an
asset to performance
Performance
Nu
mb
er
of
Te
am
s
Local (national)
Teams
Multinational
Teams
Multinational
Teams
Study by Distefano, J. J. & Maznevsky, M. L.
(2000). Creating Value with Diverse Teams in
Global Management, Organizational
Dynamics, 29 (1), pp. 45-63.
13
Business case example: Localizing development of products
Source: BASF
■ Increase BASF’s market share in footwear application in China
■ Understand differences in anatomy and customize solution for local needs
■ Generated high interest from Chinese sports shoes companies with first sales in 2009
■ Footwear market potential in China: €1.1 billion with growth by 15 %
14
Business case example: Plant health business model
■ Creation of “Blue Ocean” market for BASF
■ Introduced a system for improving plant health beyond crop protection against pests
■ Success resulted from a inter-regional and inter-functional team of employees and customers
■ 3 digit million Euro additional sales for BASF
Source: BASF
15 Source: BASF Diversity + Inclusion Team
D+I basics Ambassador network
Benchmark panel
Joint strategic review
Change management D+I events
D+I trainings
Cultural navigator
Management dialogues
Communication strategy Awareness campaign
Global movies
Comics
D+I online trainer
Global measures to enhance diversity and inclusion
Global Career Development Intercultural awareness training
D&I in recruiting
D&I as leadership competency
4/15/2009 INTERNAL 16
I value change
===========
=============
============
I value tradition
I prefer analytical, l inear problem
solving
===========
=============
============
I prefer intuitive, lateral problem
solving
I feel more productive when working on my
own
===========
=============
============
I feel more productive working with a team
I easi ly accept risk
===========
=============
============
I try to avoid risk
I prefer to discuss
different opinions
===========
=============
============
I prefer being in line with others
Instructions have to be specific and clear
===========
=============
============
Instructions always should have scope
I like competition amongst people
===========
=============
============
I like collaboration with people
I like being in time
===========
=============
============
I am flexible with time
To get my work done and achieve
my objective is
important for me
===========
=============
============
The goal of the team is important and has
first priority
1. Mark your preference individually
3. Discuss amongst your team:
a. Where are similarities and
differences?
b. What are your teams strengths?
c. What could be potential conflicts?
d. How are you going to deal with the
conflicts?
e. What kind of tasks would be ideal for
your team?
2. Transfer your results to the team
profile sheet
Individual and team profile
17
Introduction of “Inclusion of Diversity” in 2010 into global competency framework
18
18
Kickoff Measures / Targets Analysis: as-is vs. to-be:
Understand concept and deliverables
Align on measures and implementation plan,
agree on target ranges
Capabilities Talent Pools
Inclusion
D&I concept, implementation plans and targets
are well understood and established
3 sessions in 3 months
Business unit engagements
1 2 3
19
Top priority: management commitment
20
Implementing
diversity and inclusion
22
42
49
EU-27
2000 2015
31
40
Migration, aging and feminization lead to a more heterogeneous composition of work force
Aging population [65+ per working age person %]
7
1917
35
Diversity is “the new normal”
Migration [non-whites %]
Feminization of labor force [female graduates %, MINT & business]
China
1980
USA
2000 2020 2020
Germany
1980 2020