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KraussMaffei – HR Development ConceptHenning Scheele

World Bank - Knowledge Economy Forum VIIAchieving & Maintaining Competitiveness: Human Capital Development in Firms

Ancona, Italy, June 18, 2008

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KraussMaffei

The Partner in Plastics Machinery

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KraussMaffei Offers Three Major Plastics Machinery TechnologiesMachines, Technologies, Products and Applications

IMMInjection Moulding Technology

EXTExtrusion Technology

RPMReaction Process Machinery

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KraussMaffei – Technology to the Power of Three Unique market position

World's only solutions supplier with core competence in injection moulding, reaction processes and extrusion

Application-specificprocess solutions

Turnkeymanufacturing cells

Application competence for all key industries

Example:Skinform Door Panel

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KraussMaffei Serving its Customers WorldwideFacts and Figures

KraussMaffei FY 07 KraussMaffei Worldwide

Orders

Sales

1.065 m€

950 m€

~ 4.000

Employees

12 production plants, 38 sales offices, 100+ partner agencies

Production Plants

Sales and ServiceOrganizations

Representatives

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HR Development

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KraussMaffei‘s Need for Development of StaffEnvironment

Plastics machinery industry is mature

industry

• Strong competition in a global market• Fast technological and innovative changes• Smaller machines more and more price-driven commodities

Entrepreneurship and Management skills

• Industry normally family-owned but run by paid managers• Upper management levels still partially consist of self-made men• Conflicting priorities when placing top management (General

Manager type or industry insider?)

Tough Labour Market for Qualified Employees

• Demographic development in Europe• Shortage of young skilled workers / engineers • Fluctuation within an industry with a restricted number of players

in Mid-Europe

Different technologies• Still divisional boundaries between three KraussMaffei divisions• Customers prefer one face from supplier or from consortium

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Training and further qualification on a wide range of topics such as commercial, technical, IT issues, foreign languages or personal and management skills

Apprenticeship in 8 professions: office assistant, technical designer, mechanic, welder, sheet metal worker, machine operator, electrician, painter

Apprenticeship in dual education system (state-run schools and companies) over a period of up to 3 1/2 years

Cooperation with Universities on practical section for Bachelor of Engineering (production, mechanics, electrics, automation, plastics technology)

Ratio of 160 apprentices to total German staff is above industry average

KraussMaffei‘s Training and Apprenticeship ProgramInvestment in the firm’s human capital

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KraussMaffei‘s Apprenticeship Program of up to 3 1/2 YearsInvestment in the firm’s human capital

Sheet Metal Worker / Welder

Milling Machine / Lathe OperatorIndustrial Painter

Mechanic

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KraussMaffei‘s Apprenticeship Program of up to 3 1/2 YearsInvestment in the firm’s human capital

Electrician

Bachelor of Engineering(Practical Section)

Technical Designer(Draughtsman/Draughtswomen)

Office Assistant

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KraussMaffei‘s Training Program with Internal & External TrainersInvestment in the firm’s human capitalParticipation upon Approval of respective Manager

GeneralLegal Affairs Management, Communication Skills Personal DevelopmentProject Management ITBusiness Basics for techn. Employees Cost ManagementTechn. Basics for commercial Empl.HydraulicsCNC-MachinesForeign LanguagesDoing Business in China, India, Russia

Group oriented International Sales

Negotiations with International Partners

International Presentation Skills

Telephone Training

Winning New Customers

Supply Management

Strategy and Methods in Purchasing

Moderation

Coaching

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MDs

Division Heads

Senior Managers

Department Heads

Team LeadersFirst Line Managers

EmployeesWorkshops / Moderation

Appraisal Interview

Performance Review

Analysis of Potential

Qualification / Coaching

Apprentices / Trainees

Succession Planning

KraussMaffei‘s HR Training Concept is Applied to all Hierarchy LevelsElements

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KraussMaffei‘s New HR InitiativesSpecific Characteristics

Appraisal Interviews

• to be applied on all levels of hierarchy (on basis of matching results of structured self-assessment and assessment by superior

Mgmt / Sales Force Potential Analysis

Executed Internally

• 6 steps procedure:- questionnaire sent to

employee- structured interview by

assessors- self-assessment- assessment by superior- matching the 3

assessments- feedback to employee

Internal Workshops

• Internal Workshops on strategy, organization, know-how transfer i.e. sales/purchasing

Individual Coaching

• Good mix of internal and external coaches

• Topics: general coaching of line managers (“new boss on the chair”)

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Small Reserve of managerial trainees

Top-down rule: Some managers failed to be a role-model

New employees (all learning by doing) had problems to start effectivelyNo time to familiarize with assignment and organization =>Mentoring systemDon‘t like to work in shifts and to travel worldwide => more flexibility & mobility

New managers often successful and experienced specialists but less entrepreneurial general manager types

Fluctuation in ownership & management / “private equity driven” last 5 years No continuity in structure and organizationEmployees sceptical related to strategic and organizational changes

Customer orientation of sales engineers

KraussMaffei‘s HR Development ShortcomingsWhat needs to be improved?

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HR Development should not be delegated:It has to be made a priority by top management

KraussMaffei‘s Lessons Learned Examples

Improve top-down communication within organization

Listen to your own people and have a look at things from their perspective

Appraisal interviews are a chance to give orientation to both of employees and organization

Improve customer orientation of staff

Benchmark on all hierarchy levels (plant visits, common projects like quality, service, cost awareness, etc.) with other companies of the same size and with a similar structure; it is not mandatory to be in the same business