CORPORATE CULTURE AS DRIVER FOR SUSTAINABLE … Download/180531_Business Ethics...The Hilti Way 2007 2003 2005 20072009 2012 2015 2018 Foundation Purpose & Values Rubicon Alignment

CORPORATE CULTURE AS DRIVER FOR SUSTAINABLE SUCCESS

Pius Baschera

May 2018

Zürich

2

THIS IS HILTI

• Founded in 1941 in Schaan, Liechtenstein

• World market leader in fastening and

demolition technology for construction

professionals

• Sales of CHF 5.1 billion

• 28,000 employees in more than

120 countries

• Direct sales approach:

~ 230,000 customer contacts per day

• 100% family owned: all shares held by

the Martin Hilti Family Trust

Corporate culture as driver for sustainable success | P. Baschera | May 2018

HILTI BUSINESS MODEL

3Corporate culture as driver for sustainable success | P. Baschera | May 2018

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CHAMPION 2020 – HIGH PERFORMING GLOBAL TEAM

• We employ a highly competent, motivated, international

team, as foundation of our success

• We are recognized as one of the most attractive employers

worldwide

• Outstanding, long-term career opportunities worldwide

• Continuous investments in personal and professional

growth

• Secure base, rewarding performance

• A diverse workforce with equal opportunities is essential

for our success


CORPORATE CULTURE – A DEFINITION

Corporate culture as driver for sustainable success | P. Baschera | May 2018 5

Organizational culture encompasses values and behaviors that "contribute to

the unique social and psychological environment of an organization“

Wikipedia

“A caring & performance-

oriented culture.”

“Culture is the organization’s immune system.”

Michael Watkins, Professor at IMD

“Culture is what people do when no one is looking.”

Herb Kelleher, former CEO of Southwest Airlines

2009

WE INVEST TO MAKE OUR CULTURE TANGIBLE AND RELEVANT - OUR CULTURE JOURNEY

• Lived every day in the company

• Fully supported by top management

• Sustained by regular Team Camps for

continuous learning on all hierarchical levels

• Having a positive impact on the engagement of

our team members and is high value for us:

– 18’000 - 32’000 days/year

– ~70 Sherpas (facilitators) worldwide

– 7-10 Mio CHF expense/year

The Hilti Way

2007

20092003 2005 2007 2015 20182012

Foundation

Purpose & Values

Rubicon

Alignment

Pit Stop

Managing Energy

Moment of Truth

Customer

The Hilti Way

Entrepreneurship

in Hilti

Pit Stop

Champion 2020

Pit Stop

Care & Perform

Our Culture is…


THE WAY WE DO THINGS AT HILTI IS BASED ON LIVING STRONG VALUES

• We act with integrity in all we do

• We demonstrate courage to go beyond the circle of habits

• We outperform through teamwork

• We have commitment to personal and company growth


TEAM CAMPS – FOR ALL TEAM MEMBERS WORLD-WIDE

We discuss selected and relevant topics on a global and vertical plane in a biannual rhythm

• Effective leadership

• Customer orientation

• Entrepreneurship

• Strategy implementation

All team members participate, starting with Board of Directors & Executive Board

The Team Camps are facilitated by internal people, called “Sherpas”, in the local language

All team leaders participate twice in a team camp

• As member of a management team

• With their own team

8Corporate culture as driver for sustainable business results | SHD | Sep 2017

OUR TEAM CAMPS WORLD-WIDE HAVE THREE CORE ELEMENTS

Contribution to Company

“Face the brutal facts” & align on critical issues


Could you send us the

original images?

Team building

Address relevant team issues, e.g.

inclusion

Individual Reflection

Personal reflection & feedback

DEVELOPING CULTURE TAKES TIME AND REQUIRES LEADERSHIP COMMITMENT & REINFORCEMENT

Top management …

• Is fully committed

• Act as role models

• Is close to organization

Leadership is key Long-term Act on Values

• It takes time

• Needs rituals / catalysts, e.g. team

camps

• Celebrate success

Values & culture…

• As frame for all HR processes

• Most important criteria for promotion

• Visible sanctions in case of non

compliance

Caring and performance-oriented culture

Core Purpose & Values

Understanding the business

Functional expertise

Understanding

and defining

what needs to

be done

Developing

yourself

and others

Getting things

done

Working inclusively

with others

Source & Select

Develop & Coach (PMP, SMD)

Reward


LEADERS PLAY A DECISIVE ROLE IN SHAPING THE CULTURE AND WE HAVE HIGH EXPECTATIONS TO OUR LEADERS


WE ARE CONVINCED THAT …

Business Performance:

Sustainable Value

Creation

Customer engagement

& loyalty

Employee engagement

& morale

Managerial behavior & leadership


“ONLY WHAT GETS MEASURED GETS DONE"

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* As per October 2016

Employee Engagement

Annual

Customer Engagement

Bi-monthly

Value Creation

Value Cockpit

Monthly


14

HILTI TODAY AMONG THE BEST EMPLOYERS WORLDWIDE

Great-Place-to-Work

• Global: # 22 in 2017

• Europe: # 7 in 2017

Low Fluctuation:

• With ~14% much better than industry average

Outstanding Employee Engagement*

• Employee Engagement: 70%

• "I recommend Hilti as a great place to work": 72%

• "It would take a lot to get me to leave this

organization": 67%

• "Hilti inspires me to do my best work every day": 70%

Successful people development:

• 77 % of all leadership positions and

• 100% of top management filled from within

LEARNINGS FROM A 30 YEARS LONG JOURNEY

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• Top-Management must agree on Mission, Strategy and Corporate Culture/Values

• Engage all team members through

• Top Management as role models

• Making values tangible and relevant

• Offering regular platforms for discussions / cultural trainings

• Embed corporate culture/values in the strategy and business processes

• E.g. people development processes to nurture personal growth

• Zero compromise on leadership promotions

• Measure development regularly (Geos / Brutal Facts) and implement corrective

actions as needed


It’s all about people!


Documents

CORPORATE CULTURE AS DRIVER FOR SUSTAINABLE … Download/180531_Business Ethics...The Hilti Way 2007 2003 2005 20072009 2012 2015 2018 Foundation Purpose & Values Rubicon Alignment