Leadership

Step-by-step progress

smanetsch — Fri, 05 Apr 2024 08:07:45 +0000

Step-by-step progress smanetsch Fri, 05.04.2024 - 10:07

People+Culture

Step-by-step progress

Although Endress+Hauser is in great shape, the company must continually change to stay successful. In an interview, Supervisory Board president Matthias Altendorf and CEO Peter Selders discuss the dynamic between continuity and transformation.

Questions: Martin Raab

Photography: Andreas Mader

Mr Altendorf, 2023 was your last year as CEO. How did Endress+Hauser perform?

Altendorf: Overall we had a good year, even though we still had challenges with the supply and logistics chains and had to contend with the upheavals caused by the energy crisis. Foreign exchange rates worked against us as well. We nevertheless experienced strong organic growth, improved our result, created jobs around the world and invested like never before.

What impacted the growth of the business?

Altendorf: Some customers reduced their inventories after the situation in the procurement markets had eased somewhat. We felt this impact in various areas, such as the food industry and machine engineering. In the chemical industry we’re seeing a shift in investments from Europe to the Americas, Asia and the Middle East, as well as a relocation of production from China to Southeast Asia and India. Electromobility, renewable energy, resource efficiency and energy savings were once again the drivers of our business.

Mr Selders, you took over as CEO at the turn of the year. Will you be able to present similarly good numbers for 2024?

Selders: Incoming orders have weakened since mid-2023 to varying degrees, depending on the industry and region. We have not yet gotten past that. A lot therefore depends on a potential economic recovery in the second half of the year. But we started the year with a solid order backlog and our salespeople are doing everything they can to bring the numbers up. After years of double-digit growth, we will probably have to be satisfied with single-digit growth again.

What do you see as the challenges for the current year?

Selders: The first major issue for the Group will be to ensure growth and profitability. We are facing different challenges in different regions. In Germany we need to acquire new customers because some segments of industry are leaving the country. In the US the focus is on protecting the strong growth of recent years. And in China we need to position ourselves so that we remain successful in what is now a lower-growth environment. The second major issue is the planned strategic partnership with SICK. Assuming the negotiations are successful, this project will keep us extremely busy – integration of the sales organizations, collaborative innovation and production in a joint venture; something on this scale is new for us.

“The best solution can always be found by addressing an issue from various perspectives.”

Peter Selders

CEO of the Endress+Hauser Group

WELL PREPARED

Dr Peter Selders (54), who has a PhD in physics, took over as CEO of the Endress+Hauser Group in January 2024. Prior to that he worked at the product center for level and pressure measurement in Maulburg in southern Germany where he was appointed managing director in 2019. Inspired by mountain climber Rainer Petek, he says: “We overestimate our ability to plan things and underestimate our ability to deal with uncertainty.” A passionate hiker, he considers good preparation a must, not least when hiking in the mountains with his wife and five children.

How does the planned cooperation with SICK fit into the Endress+Hauser strategy?

Selders: I see it as a perfect fit, not only on paper but also from everything we learned during our discussions and visits. SICK and Endress+Hauser share a similar culture and many values. Both companies are people-oriented and act with a long-term mindset. In addition, we both see climate and environmental protection as an opportunity. And we have no overlap in our process industry portfolio. SICK’s products supplement our own, which allows us to support our customers even better.

Altendorf: Our customers must design their production for greater sustainability and a reduced CO₂ footprint. The planned partnership would allow us to offer them a comprehensive portfolio to address these challenges. Gas flowmeters and analyzers from SICK should help our customers to operate their plants more efficiently, make better use of resources and precisely monitor the environmental impact.

What remains to be done to make this cooperation possible?

Selders: There are still a lot of details to clarify, such as legal and business issues and how to integrate the IT platforms. Our goal is to have a seamless transition. The start of the cooperation must be completely unnoticeable to our customers. What’s crucial for us is that people are on board with the plan. We operate in a technology environment. Whether it’s innovation and production or sales and service, our success rests on our employees’ knowledge and skills. We have to inspire them and convince them to go down this path with us in order to complete the agreement. Openness and transparency is how we want to get there.

Altendorf: We must make it clear that this is not simply some acquisition. It’s about a long-term partnership between two successful family companies that can be even more successful together.

Looking ahead, Mr Selders, in what direction do you want to develop Endress+Hauser?

Selders: First things first, Endress+Hauser is in excellent shape. We have no reason to abandon the path we are on. But of course as a company we can’t afford to stand still. To stay successful in the future, we must continually develop. As a family company we are ideally situated to do this because we act with a long-term mindset and foster a culture of cooperation and solidarity. This culture will develop too, in order to preserve what defines and distinguishes us today.

What issues will keep you busy in the coming years?

Selders: Our two major issues are sustainability and digitalization: sustainability because unless we protect the climate and the environment, our planet will no longer be livable. But that can’t be solved through idealism and sacrifice alone. We must succeed in combining sustainability with economic advancement and achieving this at competitive cost. That applies to our customers just as it does to us as a company. Digitalization, the second big issue, is the key to a number of things. Those include sustainability as a means to consuming fewer resources and making smarter and more efficient use of them, and for dealing with the challenges of an aging society and the shortage of skilled labor. Digitalization is an extremely important enabler for us. It comes down to making the best possible use of all available technologies in our products, in our interaction with customers and in our internal processes, just the way we formulated it in our strategy.

How will you approach your responsibilities as CEO?

Selders: First off, I don’t consider myself a one-man show. I’m a team player and I always work together with people. I’m convinced that the best solution can always be found by addressing an issue from various perspectives. This is why I listen first to understand and work out what has to be done – and then resolutely follow through. That sometimes requires more time and energy, but it produces a more enduring result. This is why it’s important to get people on board. Every new development requires effort. Things seldom happen by themselves. It requires perseverance so that you don’t give up. And success is much easier when you trust each other.

“It’s also about supporting the generational change within the Endress family. This continuity is important for us.”

Matthias Altendorf

President of the Supervisory Board of the Endress+Hauser Group

FIRMLY ROOTED

Matthias Altendorf (56) began his Endress+Hauser career with a mechanics apprenticeship, followed by studies, stays abroad and further education. He was appointed CEO of the Group in 2014 and president of Supervisory Board in 2024. He balances his professional life by sailing, playing chess, riding his motorcycle and spending time doing forestry work. Travel, the arts and reading round out his hobbies. Matthias Altendorf is married and the father of a grown son.

Mr Altendorf, you are stepping down after 10 years as CEO. What will you remember as your biggest success and your biggest defeat?

Altendorf: Shutting down the business in Russia was very painful for me personally. I took the job with the goal of never having to let employees go for operational reasons. We had to do exactly that in Russia and part ways with many good colleagues. Although it was obviously a consequence of Russia’s invasion of Ukraine and Western sanctions, it was still my biggest defeat, if you will. We also went through two difficult crises during my time as CEO: the oil price crisis right at the beginning of my tenure and then later the coronavirus pandemic. We did an outstanding job of managing both situations together with our customers, employees and shareholders. And we were able to use them as an opportunity. Endress+Hauser emerged from both crises stronger and with momentum. I see that as our biggest success.

You will continue to have an active presence in the company as president of the Supervisory Board. How do you view your new role?

Altendorf: I will of course do everything I can to make sure Mr Selders gets off to a good start. And I will lead the Supervisory Board and maintain close contact with our shareholders. It’s also about supporting the generational change within the Endress family. This continuity is important for us as a family company. I will continue to travel, visit our entities and customers and represent Endress+Hauser. I want to remain close to the company, the people and the technology, not least so that I can understand decisions made by the Executive Board.

Endress+Hauser will no longer be taking up all your energies, though. What plans do you have for this next phase of your life?

Altendorf: Not to worry, I will continue to have a full working life just like before! Apart from my responsibilities at Endress+Hauser I teach, I’m active in associations and I also sit on other supervisory boards. Where my private life is concerned, I will have more time for my wife and hobbies.

Mr Selders, Mr Altendorf, what will be your personal challenges for 2024? What would you like to have achieved by the end of the year?

Selders: Together with my colleagues on the Executive Board and the entire Endress+Hauser team, I want to do a good job of managing a rather difficult year for business. If by the end of 2024 we can say that we have done our best under the circumstances and developed a bit further, then I will have had a good first year as CEO!

Altendorf: If we’re successful in doing that, and if we find a good common path together as CEO and president of the Supervisory Board, then we will have done everything right!

BUNDLING STRENGTHS

Endress+Hauser and German sensor specialist SICK are seeking a strategic partnership. The companies signed a joint memorandum of understanding related to SICK’s process automation business in October 2023. The goal of the partnership is to supplement the Endress+Hauser product portfolio with process analysis and gas flow measurement engineering from SICK. The sales and service teams working for SICK’s process automation business will become part of Endress+Hauser’s global sales network. A joint venture will be established for the production and further development of SICK process technology. This segment of the SICK business currently employs around 1,600 people and generates more than 350 million euros in annual sales.

Champions of change Leadership

Generational change

smanetsch — Wed, 29 Mar 2023 06:43:59 +0000

Generational change smanetsch Wed, 29.03.2023 - 08:43

People+Culture

Generational change

Changes are taking place at the top of Endress+Hauser at the beginning of 2024. Klaus Endress will relinquish his duties as President of the Supervisory Board. He will be succeeded by CEO Matthias Altendorf. Taking over the reins of the Group will be Peter Selders, currently Managing Director of Endress+Hauser Level+Pressure.

Text: Martin Raab

Photography: Andreas Mader, Christoph Fein

Dr Klaus Endress (born 1948) has repeatedly stated his intention to give up his responsibilities as President of the Supervisory Board when he reaches the age limit of 75. While he will continue to head up the Family Council, he will no longer take an active role in the company.

Endress, the second-eldest son of the company founder, has made his mark on Endress+Hauser for nearly 45 years. Much of the company continues to bear his signature. At the same time he has spent many years preparing a generational change in the shareholder family. Considerable thought and extensive discussions went into the decisions, which were made with the mutual agreement of the shareholders, the family and the Supervisory Board. The departing President of the Supervisory Board emphasized that “we have filled all of the positions with competent people we know and trust, and who embody our culture”.

INTERNAL SUCCESSION

Effective 1 January 2024, Matthias Altendorf will move to the Supervisory Board as President. The shareholders view him as the person best suited for the job, says Klaus Endress. “He has known our company for 35 years and has led the Group with prudence and success for nearly a decade. Mr Altendorf further-more embodies our culture in an exemplary manner and stands for the values that define our company.”

IN FAMILY HANDS

Endress+Hauser was founded in 1953 by 29-year-old Swiss engineer Georg H Endress and 58-year-old Ludwig Hauser, a German banker. After his death in 1975, Hauser’s heirs expressed the desire to be bought out. Endress became the sole shareholder. While still alive, he transferred equal shares (12 percent) of the company to his eight children. The remaining four percent is held by the Georg H Endress Foundation, a non-profit organization that supports training, education and science projects.

Dr Peter Selders will take over the reins as CEO. The 53-year-old executive, who holds a PhD in physics, joined Endress+Hauser Level+Pressure in 2004 and has led the product center since 2019. “Mr Selders has demonstrated that he can lead and inspire people, that he lives and breathes our culture and is capable of successfully growing a large organization,” says Klaus Endress.

He will be supported in his new role as CEO of the Group by Matthias Altendorf, who will make his full experience and knowledge available. The new CEO will also have the backing of the Executive Board, whose composition remains unchanged. Succeeding Peter Selders will be 49-year-old Dr Dirk Mörmann, currently Director of Technology and a member of the management board at Endress+Hauser Level+Pressure.

SECOND REPRESENTATIVE OF THE FAMILY

As before, the shareholder family will be represented on the Supervisory Board by two members. As well as Sandra Genge, who became a member in 2022, Steven Endress will have a seat on the board effective 1January2024. The 44-year-old grandson of the company founder has worked at Endress+Hauser since 2012 and took over as Managing Director of Endress+Hauser UK in 2016. As of 1 May 2023, the fortunes of the United Kingdom sales center will be in the hands of 51-year-old Iain Cropper, currently Director of Operations and a member of the management board.

A family affair: departing President of the Supervisory Board Klaus Endress (left) with the two Supervisory Board members Sandra Genge (as of 2022) and Steven Endress (starting 2024).

Close relationships

Two non-members of the shareholder family will sit atop the Endress+Hauser Group in the future. The family will nevertheless remain linked to the company in diverse ways. One of the keys is the Family Charter, whose vision states: “Endress+Hauser shall remain a successful family company. The family will continue to have a formative influence on the company.” The charter creates the necessary framework. It strengthens solidarity within the family by means of clear principles and established institutions, regulates participation in the company and introduces young members of the family to the business.

The most important institution in this context is the Family Council, an advisory body that serves as the link between the family and company and makes the major decisions regarding the relationship between the shareholders and the Group. One special role is supporting young members of the family who wish to work in the company. While the company is open to having family members work at any level, including internships or apprenticeships, they must compete on equal footing with other candidates. Family members who wish to lead one of the Group companies or the Group itself must exhibit the corresponding qualifications and experience.

NUMEROUS G ATHERINGS

The more than 70 members of the family meet at larger gatherings several times a year. The Supervisory Board and the Executive Board report to the shareholders at the Annual General Meeting. The day before, the Family General Meeting deals with the development of the Group in a larger setting. Family Day, which is held at a different location each year, combines family get-togethers with insights into the business. At the Family Camp the younger generation gets to know one another and the company better. The family also celebrates Christmas together.

Champions of change Corporate culture Leadership

A never-ending story

smanetsch — Wed, 29 Mar 2023 05:38:46 +0000

A never-ending story smanetsch Wed, 29.03.2023 - 07:38

People+Culture

A never-ending story

Endress+Hauser could still be flourishing in a hundred years’ time. And the family could still bear responsibility without involvement in the day-to-day business. Klaus Endress, President of the Supervisory Board, and Matthias Altendorf, CEO of the Group, talk about the past and future of the family-owned company.

Questions: Martin Raab, Alexander Marzahn

Photography: Andreas Mader

Mr Endress, Endress+Hauser turned 70 this year. Does a company age like a human? Or is there an elixir for keeping it young and vital?

Endress: We humans will hopefully become old. But then we’re subject to biological restrictions. Companies are different. I like to describe them as a collection of nice things. Buildings, like the one we’re sitting in, machinery and equipment, products, processes, strategies – everything a company needs. But that’s all those are: just things. They don’t set themselves in motion, that is done by people: the customers, the employees and the shareholders. And when these groups work and interact well together, then the company will do well. Customers, employees and shareholders age too and other, younger people follow in their footsteps. This is an unfolding process, which is why a company has no inherent age limitations.

What does it take for this to happen?

Endress: Top of the list come the shareholders – the family. There has to be unity. And that means cultivating common ground and solidarity. That’s why we created a Family Charter in 2006 with jointly defined guidelines for interaction within the family and its relationship with the company. Various institutions exist to ensure that our creation retains its zest and vitality.

Mr Altendorf, Endress+Hauser posted solid business figures for 2022 despite strained supply and logistics chains, energy shortages and a war in Europe, and in the face of inflation and rising interest rates in many countries. What underpins this success?

Altendorf: It’s the same things that made us successful in the past. First, our employees who handled every challenge with dedication, skill and flexibility. Second, the efficient structures that we have built and improved over many years and decades. Combined, they enabled us to operate successfully and uphold our ability to deliver despite all the adversities.

What is necessary if the company is to continue developing well in the future?

Altendorf: Like any team aiming for success, we need to concentrate on the factors that we can influence: stay close to the customers, develop innovative products, maintain excellent production and logistics networks. Our corporate culture helps us do that. And today, with our experience from the pandemic, I would emphasize that we is more important than I. Cohesion makes us competitive.

Link to the family

Dr Klaus Endress, born in 1948, earned a degree in industrial engineering from the Technical University Berlin. He joined his father’s company in 1979, took over Group management in 1995 as CEO and moved to the Supervisory Board in 2014 as President. Klaus Endress is married and the father of two grown children. Whenever possible, the passionate horse rider and mountain biker heads outdoors and into nature, accompanied frequently by Maya, the family dog.

“The sense of responsibility, the spirit of Endress+Hauser, knowledge of the business and products, all of that has to stay alive in the minds of the Endress family.”

Klaus Endress

Supervisory Board President of the Endress+Hauser Group

If you look back 10 years, what has changed the most?

Endress: Back then our strategic focus on biotech was still new. It was the only industry that continued to boom during the financial crisis. But we were a nobody in this sector. That’s why we headed down this path. We strengthened the analysis business and reinforced our expertise in the field of advanced analyses. And we learned a lot about the industry and its processes. That took a lot of hard work. But it paid off, as became evident during the pandemic. Our products have a dominant presence in every plant manufacturing the Covid vaccine. Today we can claim to be someone in the biotech industry! We have also made considerable improvements in the way we collaborate within the company compared to before. This is where Mr Altendorf has accomplished things that I was no longer able to achieve…

Altendorf: …and with me, there will be other issues I’ve been working on but cannot finish.

Endress: We were also still a long way from the goal of acting as a single company. Hopefully we can bring that to completion now. Yes, a lot has happened in the past 10 years – and that’s a good thing!

Endress+Hauser experienced strong growth during that timeframe. What do you attribute this to?

Altendorf: We simply continued to improve the good things of the past. The essential structures have stayed the same. To some extent, much was already foreshadowed. I may have fine-tuned some things, rethought them or brought in other approaches. But the success factors remain the same.

And those are?

Altendorf: Being close to customers has always been a strength of ours. Digitalization broadened the perspective here, but the underlying principle remains unchanged. Our portfolio has always been characterized by high standards of quality and innovative products. We internationalized sales early on, then established sales support in important regions. We internationalized production beginning in the mid-90s – from the region, for the region. That’s certainly an important success factor. Moreover, despite the growth, we were good at integrating smaller business acquisitions into the Group. This comes down to putting our trust in people, and them putting their trust in us. You get that through excellence in leadership culture and the leaders themselves.

You just listed a lot of things… What sets Endress+Hauser apart from other companies?

Altendorf: You have to look at every company on its own merits, including the ecosystem in which it operates. But I’m convinced that an excellent corporate culture and practicing what you preach on customer closeness are always fundamental to a company’s success, regardless of industry or region. Here at Endress+Hauser, we have always put people first. A company is composed of people and it is they who make the difference. All of this has been rooted in the company for 70 years. And behind that are decades of work and extensive investments – in people, buildings, plants, networks… things that aren’t copied so easily. We can do so many good things at Endress+Hauser because we have shareholders who think long term. Shareholders who offer the company knowledge, warmth, values and protection. And who show respect for people’s achievements.

Roots in the company

Matthias Altendorf, born in 1967, began his career at Endress+Hauser with vocational training as a technician, followed by studies, stints abroad and further education. He was appointed to
the Executive Board in 2009 and became the Group’s CEO in 2014. He balances his work life by sailing, playing chess, riding his motorcycle and spending time working in the woods. Travel, the arts and reading round out his hobbies. Matthias Altendorf is married and the father of a grown son.

“An excellent corporate culture and practicing what you preach on customer closeness are always fundamental to the success of a company, regardless of industry or region.”

Matthias Altendorf

CEO of the Endress+Hauser Group

The people at the top are likewise important to a company’s success. Mr Endress, you once said that you will only have done your job well when you have an able successor. Will that also be the case when you step down from the Supervisory Board at the end of the year?

Endress: Things continue to work out wonderfully with my successor as CEO. But it always brings up the question of what comes next. I’ve known for 10 years that I need a good successor when I reach the age limit of 75. Having given it a lot of thought, I found my ideal candidate: Matthias Altendorf. He has known the company for 35 years and for almost a decade has led the Group as CEO with prudence and success. Moreover, he exemplifies the values that define Endress+Hauser. We have gotten along very well over the course of many years and trust one another, which is why I’m pleased that he agreed to take this step and join the Supervisory Board as President.

But it wasn’t your decision alone…

Endress: That’s correct – and it shouldn’t be. The decision was made in consultation with the Family Council and with the agreement of the shareholders, the Supervisory Board and the entire family. Considerable thought and discussion went into making this decision, which took shape over time.

That also means a new hole has to be filled…

Endress: Internal succession arrangements have the advantage that we know the people very well – often for many years. That lowers the risk. The downside is the need to fill the gaps that such changes open up. And Mr Altendorf’s move creates a big one. The CEO has operative responsibility. That’s a heavy load. Endress+Hauser is a technology company. For that reason, the CEO has to understand not only the business side but also our technologies and markets. After all, the CEO has to see where new opportunities are opening up and where we can find other customers. Growing into this role is demanding. But Mr Altendorf and I agreed that there was a person we could trust to do so: Dr Peter Selders, Managing Director of Endress+Hauser Level+Pressure. For years, he has done a great job overseeing one of our biggest worldwide operations. And he is up to the task.

Altendorf: I’m firmly convinced that the way we have arranged this succession is exemplary. We have examined these questions intensively time and again.
If this most recent succession works as well as it did with the transition from Mr Endress to me, then we will have done everything right…

Endress: …and done the company a lot of good.

What does this decision mean for you, Mr Altendorf?

Altendorf: One important aspect for me is that, provided I stay healthy, I can apply all of my knowledge, skills and commitment to help guide this company for another 12 years into the next generation. Then hopefully the young members of the family and a new generation of management will carry this mindset even further forward.

What does the change in the Supervisory Board mean for the family?

Altendorf: Even if the President is not a family member, two people from the family should always be on the Supervisory Board. This allows the family to continue to have a formative influence on the company. No one can better represent the family on the Supervisory Board than the family itself.

Endress: Steven Endress, my eldest brother’s eldest son, will hand over responsibility for Endress+Hauser UK and eventually join the Supervisory Board. It’s a pity that he is leaving the operational side of the business because he has done a fine job. On the other hand, we’re pleased that he is joining the board where he can contribute his operational experience.

What is the implication of no longer having a family member involved in the day-to-day business?

Endress: The shareholders must always bear responsibility for the company. They needn’t necessarily be involved in its day-to-day business, but they should be active! The sense of responsibility, the spirit of Endress+Hauser, knowledge of the business and products, all of that has to stay alive in the minds of the Endress family. Along with Sandra Genge and Steven Endress, my daughter Sarah is heading down this path. All three are at different stages, with Sandra and Steven on the Supervisory Board and Sarah as President of the Georg H Endress Foundation. They should grow more and more into the company, participate in events, be visible and approachable figures for our employees and continue to carry the torch as ambassadors. And there will be further members of the younger generation joining the company. Perhaps someone from this circle will emerge to take an operative role. There is a lot of history yet to be written!

Then let us look forward again… Mr Altendorf, the news seems filled with crises. How confident are you heading into the anniversary year?

Altendorf: Personally, I am always confident. And collectively we have reason to be confident. 2022 was a good year for us. We have lots of orders in hand for the current year. Inflation and interest rate increases will of course cause the economy to cool. Much will depend on how quickly the Chinese market recovers from the effects of the pandemic and how strongly interest rate increases affect the American economy. As soon as these two engines pick up steam again, the global economy will follow. As for Europe, the war in Ukraine is hanging over us like a dark cloud. We must simply wait and see how this develops. We can only influence what lies within our own capability: customer closeness, innovative products, good logistics… We have invested heavily and will continue to do so. We’re primed for growth!

Do you share this confidence, Mr Endress?

Endress: Absolutely! After so many consecutive years of success, of course we ask whether we can better it yet again. Other companies are not doing badly either… but few are doing as well as Endress+Hauser. That’s something special! Orders in hand will certainly help us this year. And then, as Mr Altendorf points out, we have to stay flexible and customer focused and continue to build on what we have done well in the past. But this will not be enough over the long term. We need new customers – again and again, we just have to find them! In this regard there are many ideas and opportunities – of that I’m confident. In my presentations I always say that a hundred years from now we will still have work to do – well-paid work – just as long as we stay focused on the markets and customers and continue to improve. For me, it’s a never-ending story!

Corporate culture Company Champions of change Leadership Shareholder family

Starke Beziehung

admin — Fri, 15 Apr 2022 14:47:57 +0000

Strong relationship klinse Fri, 15.04.2022 - 15:20

People+Culture

Strong relationship

How does a company gain customers’ trust? Klaus Endress and Matthias Altendorf know the answer: good business relationships have to grow, but what it really comes down to is people.

Questions: Martin Raab

Photography: Andreas Mader

“No one would have dared to hope at the beginning of 2021 that we would be in such a good position by the end of the year.”

Klaus Endress,

Supervisory Board President of the Endress+Hauser Group

Mr Altendorf, Mr Endress, the Group can look back on an excellent year.
Was that anticipated?

Altendorf: It’s not quite what we expected. Wave after wave of the pandemic made us cautious. Our goal for 2021 was to even out the dent made by Covid. At least in the first half of the year, we could not have anticipated significantly exceeding 2019 levels.

Endress: No one would have dared to hope at the beginning of 2021 that we would be in such a good position by the end of the year. By our definition, it was a ‘best ever’ 12 months. Incoming orders, sales, profit and headcount all reached record highs.

Are the family and the Supervisory Board also satisfied with the business year?

Endress: I’m never satisfied… you can always do better. But I’m pleased and happy with these results – and I’m proud of the company and our people!

What were the pivotal factors behind this solid development?

Altendorf: China, an economic powerhouse, performed well. The US was also quick to emerge from the crisis – and hence Europe, as a significant exporter to both regions. A good half of this growth is probably attributable to catch-up effects. But the global drivers also had an impact: health, energy, food. We saw considerable investment in pharmaceutical plants, as well as electromobility and the energy transition. Cyclical and non-cyclical alike, all our strategic industries performed well.

Endress+Hauser outperformed the market. Where does this success spring from?

Altendorf: Customer intimacy is one important factor. Innovation is another. Our customers must be able to recognize that we can help them become better. Then there is the fact that at Endress+Hauser we don’t focus on short-term results but rather the long-term goal. Temporary headwinds won’t blow us off course. Above all, though, we put people first. The main drivers of our success are our employees who make it all happen!

Endress: Everyone worked very hard. We stand by our employees and they stand by us. At the beginning of the pandemic we made clear our objective to keep everyone on board, avoid short-time working and continue investing. And of course that creates a special relationship. We are all working toward a common goal. Great things always come out of such joint efforts.

A German study found Endress+Hauser to be the most trusted brand in measurement instrumentation. Where do you think this trust stems from?

Altendorf: It doesn’t happen overnight. This is trust that has been cultivated over decades. And we have to keep earning it, time and again.

Did this trust grow during the pandemic?

Altendorf: Challenging times always reveal how resilient a relationship is. That also holds true in business – and Endress+Hauser proved reliable, even in an extreme situation.

Endress: We delivered during the pandemic. We met more than 90 percent of our delivery commitments in the past year. And this at a time of interrupted supply chains and parts shortages. What’s more, we didn’t take advantage of the situation. The foundation of trust is respect. Customers have a keen sense of how they are being treated. This is something they never forge

Altendorf: The market’s trust in us comes down to the people in the company. Endress+Hauser employees, management and shareholders share a set of values including responsibility, trust and commitment. We endeavor to practice these values in our daily activities. It reminds me of Alfred Herrhausen, a German banker, who once said: “We must say what we think. We must do what we say. And we must be what we do.”

The corporate culture is heavily influenced by the shareholder family. What are the main topics of discussion when you get together?

Endress: For one thing, the question of successors. We have on our boards an age limit of 75, so my elder brother Hans-Peter Endress retired from the Supervisory Board this year. The succession issue was settled years in advance and announced a while back: my niece, Sandra Genge, succeeded Hans-Peter. She has been a guest during the meetings and events of the Supervisory Board for the past two years and thoroughly prepared herself for this responsibility; she has now officially taken her place on the board. My succession is likewise settled, another process that spanned years. And it all works smoothly because we take a lot of time and put in a lot of effort. That’s something you can do in a family company.

Family ties

Klaus Endress (born in 1948) obtained a degree in industrial engineering from the Technical University Berlin. He joined his father’s company in 1979, took over the reins of the Group in 1995 as CEO and moved to the Supervisory Board in 2014 as president. Klaus Endress is married and the father of two grown children. A passionate horse rider and mountain biker, whenever possible he heads outdoors and into nature, accompanied frequently by Maya, the family dog.

“Challenging times always reveal how resilient a relationship is – and Endress+Hauser proved reliable.”

Matthias Altendorf,

CEO of the Endress+Hauser Group

“We are all working toward a common goal. Great things always come out of such joint efforts.”

Klaus Endress,

Supervisory Board President of the Endress+Hauser Group

Also important for the future is the Group’s new Strategy 2027+.
What are its focal points?

Altendorf: We are basically updating our previous strategy. The digitalization issue has grown more concrete; we’ve seen where we still have things to do. Developing our business in Asia and the Americas, where our market share is still smaller than in Europe, is a long-haul effort. Environmental protection, climate protection and the energy transition are a preoccupation of our customers and society as a whole. Here we can make a solid contribution to addressing these challenges. In terms of people, digitalization is changing the work environment. We need to find a way for our corporate culture to operate effectively in these digital and global work environments, so that we don’t lose our customer intimacy and cohesiveness.

What do you see as the hallmarks of Strategy 2027+, Mr Endress?

Endress: What I find special is the goal of acting and being perceived as one company. We have a tried-and-true structure with sales centers, product centers, holding and support entities. That structure drives a particular logic in these units. Nevertheless, we have to think about things from the customer perspective. And this we aim to accomplish with Group-wide business processes, stretching from the customer to ourselves and back.

One topic in the strategy is the energy transition. Does Endress+Hauser have to fear losing established business?

Altendorf: No, I don’t believe that business is in jeopardy. First, our share of the oil & gas market is very small; we’re not a major player here. Second, the oil will not disappear overnight but rather over decades. New energy sources such as green hydrogen and synthetic fuels are emerging to replace fossil sources such as coal and oil. That means different or adapted processes. But these applications too need measurement so that you can control the plant.

“We will grow and develop and do everything possible to make our customers happy.”

Matthias Altendorf,

CEO of the Endress+Hauser Group

Roots in the company

Matthias Altendorf (born in 1967) began his Endress+Hauser career with a mechanic apprenticeship, followed by studies, stays abroad and further education. He was appointed to the Executive Board in 2009 and became the Group’s CEO in 2014. He balances his work life by sailing, playing chess, riding his motorcycle and spending time working in the woods. Travel, the arts and reading round out his hobbies. Matthias Altendorf is married and the father of a grown son.

Let’s talk about the outlook. What are your expectations for the current year?

Altendorf: Politically speaking, the known troubles such as the Russia-Ukraine conflict are a cause for concern. In terms of the economy, inflation is creating uncertainty. The biggest economic risk I see is in countries pursuing a ‘zero Covid’ strategy. Of course we hope the pandemic will now downshift to endemic status. When things have opened up and people are on the move again, that will spur the global economy. That’s why we expect to see growth in 2022. Whether it’s single- or double-digit is unimportant. We will grow and develop and do everything possible to make our customers happy.

Your thoughts, Mr Endress?

Endress: Our world has seen fragility for over a decade. And in a fragile world, a company’s only chance is to focus on the customers. They are all we can rely on over time. We will support our customers wherever we can, and to the best of our ability. We have great products. Measurement technology always means efficiency, quality, protecting the environment – and they have all of that packed inside them. We can’t go wrong here. If we do it right, we’ll still have plenty of work a hundred years from now!

One last personal question: what would make 2022 a really good year or even a ‘record year’ for you?

Altendorf: If we overcome the pandemic, regain substantial freedom of movement and are able to reliably plan our lives again. That translates to a happy and satisfied life!

Endress: If the world stabilizes politically and the community of nations addresses climate change. That would be the best of all for me!

Long-term outlook: Endress+Hauser implemented all of its major investment projects in 2021 as planned.

Collaboration based on trust: Matthias Altendorf (right) and Klaus Endress in discussion.

How does a company gain customers’ trust? Klaus Endress and Matthias Altendorf know the answer: good business relationships have to grow, but what it really comes down to is people. 3 minutes Strong relationship

Corporate culture Leadership Corona

2021 - Das Geschäftsjahr im Überblick

kstabel — Fri, 01 Apr 2022 13:02:32 +0000

2021 - The financial year at a glance klinse Fri, 01.04.2022 - 16:07

News+Facts

The financial year at a glance

Endress+Hauser has exceeded its own expectations and achieved new records in incoming orders, sales, profit and headcount. See all facts and figures here.

Net sales

2.88 bil. €

(+ 11.7 %)

Sales growth was dynamic in Asia and the Americas and solid in Europe. In the Middle East, however, business shrank due to the disproportionate weighting of the oil & gas industry.

Return on sales

16.1 %

(2019: 13.1%)

Operating expenses grew slower than sales, while financial investments yielded a solid return. Both developments boosted profitability.

Investments

193 mil. €

(2020: 206 mil. €)

Net income

357 mil. €

(+40.0%)

Robust surge in growth

Endress+Hauser returned to the growth path in 2021. Business got off to an excellent start, continuously picking up speed as the year progressed. The result was an increase in net sales of nearly 12 percent, with orders on hand growing even more strongly. We thus not only improved over the prior year, but significantly exceeded the comparative figures for 2019. We did not anticipate such a dynamic development. All of our strategic industries, led by life sciences, chemical and food & beverage, contributed to the strong growth. Given that profit and headcount are also higher than ever before, we can proudly look back on a ‘best ever’ year for Endress+Hauser!

Employees

15117

(+ 663)

We retained our employees during the pandemic in 2020. We were thus in a position to immediately support our customers when business picked up in 2021. To meet demand, we created new jobs, particularly in production.

EcoVadis rating: Platinum status

76/100 points

(2020: 72 points)

We once again improved our score in the independent EcoVadis sustainability rating, placing in the top group for the fifth consecutive year. This puts Endress+Hauser in the top percentile of the companies in the comparison group.

R&D ratio

7.4 %

(2020: 7.6 %)

While we vigorously increased spending for research and development (+9.4%), sales grew at an even faster pace.

Patent filings

258

(2020: 276)

Learn more

Annual year 2021
endress.com

Endress+Hauser has exceeded its own expectations and achieved new records in incoming orders, sales, profit and headcount. See all facts and figures here. 6 minutes The financial year at a glance

Corporate Development Leadership Corona #005879 #b2e0f8

Skulptur mit Symbolkraft

kstabel — Tue, 01 Mar 2022 14:00:22 +0000

Sculpture with symbolic power kstabel Tue, 01.03.2022 - 17:06

People+Culture

Sculpture with symbolic power

At the core of the Endress+Hauser corporate culture is the strong relationship between customers, employees and shareholders. The sculpture Loyalty and Responsibility illustrates what holds the innermost parts of the company together.

Text: Alexander Marzahn

Photos: Christoph Fein, Klaus Reinelt

What does a technology company have to do with art? At first glance, not much. On one side you have the world of highly precise measurements, the laws of physics and indisputable metrics. And on the other, the sphere of aesthetes, where is there no right or wrong and where personal taste matters much more than expert analyses.

Still, Endress+Hauser is not just a high-tech company. It’s also a family company. And family companies, which are marked by a strong focus on values and a deeply rooted corporate culture, are different. There is good reason why the Endress+Hauser claim – People for Process Automation –puts the emphasis on people. “People are what make the difference and what lead to excellence in a company,” says Klaus Endress, President of the Supervisory Board, with conviction.

Customers, employees and shareholders all have different roles in this corporate fabric. But they all carry the company and they all depend on one another. “All three feel and do their best when they conduct themselves loyally and responsibly,” explains Klaus Endress. When shareholders put the bulk of the profits back into the company, better products can be developed, for instance. This leads to satisfied customers, generates more business and creates new jobs. At the end of the day, everyone benefits.

84cm

What evolved was a 84-centimeter bronze ring with three equally large, intertwined segments symbolizing customers, employees and shareholders.

The language of art

When Klaus Endress was serving as CEO of the Group, nurturing and cultivating this corporate culture was an important issue for him – and it still is. For many years now, he has also been relying on the communicative power of art. With the sculpture Loyalty and Responsibility, which he commissioned Swiss artist Bruno Guthauser to create, he has conceived a work of art that gives form to the idea of a “good company”.

As so often happens, the idea came to Klaus Endress during a nature excursion. While on one of his daily bicycle rides with his dog, he chanced upon the artist who frequented the same section of woods. It wasn’t long before the two were having discussions that often revolved around the subject of loyalty and responsibility. “As an iron sculptor, I knew he had the means to implement such an idea. So one day I asked if he could imagine transforming these thoughts into an artistic form,” explains Klaus Endress.

“For me, the discussions were wonderful,” recalls Bruno Guthauser. He approached the initial design with a great deal of respect, choosing a ring as the basic form. “The simpler the form, the more powerful the impact,” says the artist. What evolved was a 84-centimeter bronze ring with three equally large, intertwined segments symbolizing customers, employees and shareholders. “It comes down to the issue of holding and being held. That happens in every family and in every company. No one rises above the others. Together, they give the ring momentum,” explains Bruno Guthauser. Klaus Endress views the sculpture as a type of “wedding ring” that binds the customer-employee-shareholder alliance.

“It comes down to the issue of holding and being held. That happens in every family and in every company.”

Bruno Guthauser

Symbol of the corporate culture

Today, the original version of the sculpture – a 30-centimeter ironwork – has its home in the office of CEO Matthias Altendorf, a gift from Klaus Endress when he handed over the reins of the family company in 2014. Matthias Altendorf is well aware of the symbolism – and the fact that it represents his own responsibility, as well as what the corporate culture means for a company that becomes more global each day.

“Endress+Hauser has experienced strong growth over the past several years. Today we have more than 15,000 employees. Each one serves as an ambassador for our brand and makes sure that our customers are always served with the same high quality standards,” explains the CEO. In order to promote this self-image and the cohesion in the company, we have to cultivate and live up to our values. The sculpture carries this message around the world.”

Whenever Endress+Hauser opens a new building or location, a replica of the sculpture is unveiled, not as some decorative accessory, but as a strong plea for a corporate culture that has pertinence across the globe. From Shanghai, to Madrid, to Abu Dhabi, the head-height artwork greets customers and employees at 38 locations around the world, a number that grows every year.

Locally anchored

Minus the pedestal, the sculpture weighs a solid 120 kilograms. The pedestal, which is always carved from local stone, embodies how the sculpture is locally anchored and also embedded in the environment and society in which the company operates. “Just as customers, employees and shareholders assume responsibility, the company as a whole has an obligation to society and the environment,” explains Klaus Endress. “The sculpture is thus an expression of the company’s full and all-encompassing responsibility.”

Cast from the same mold

The sculpture Loyalty and Responsibility is produced in small series by Swiss company Fischer JRG AG using a hollow casting process. Even for a company that prides itself on manufacturing special parts, hollow casting in a dimension like this presents a major challenge.

The foundry utilizes a Styrofoam model created by the artist as a template. A hardwood replica is used to manufacture the molds.
The casting mold, which is destroyed after each use, is made from hardened quartz sand. The two halves of the mold are heated with a gas flame to prevent humidity from reacting with the metal.
Before the halves are bolted together, the core is set in place. It defines the inner cavity and wall thickness of the sculpture.
In the meantime, 230 kilograms of bronze is smelted at temperatures of up to 1,350 degrees Centigrade. Small amounts of tin and phosphorus are then added to fine-tune the mixture.
The hot bronze is transported to the mold and the sculpture is cast in less than 22 seconds.
As a final step, the object is ground, sandblasted and patinated and then anchored to a pedestal made from stone.

Corporate culture Leadership

Halt geben

admin — Wed, 01 Sep 2021 16:05:05 +0000

Bestowing confidence klinse Wed, 01.09.2021 - 10:43

People+Culture

Bestowing confidence

Solidarity is crucial in a crisis. Klaus Endress and Matthias Altendorf agree that its foundation has to be laid during good times.

Questions: Martin Raab

Photography: Andreas Mader

Mr Endress, how has the coronavirus pandemic changed your life?

Endress: Being outside, getting exercise, mindfully enjoying nature: these are things I have been doing my entire life. I’m simply doing more of this because of the pandemic.

How about you, Mr Altendorf?

Altendorf: My situation is similar. I get outdoors to do my exercise and let myself be stimulated by nature. What has helped me is discipline. I have the same rhythm regardless of whether I am working from home or at the office. What I sorely miss are the cultural activities: concerts, exhibitions, theater, all of the things that usually inspire us.

How does this impact your job?

Altendorf: As the chief executive of a company, I cannot afford to lose my confidence. I have to be optimistic, yet stay realistic and objective. This balancing act becomes more difficult in the absence of interaction with the outside world. That’s why I always seek the long view: a strategy, a long-term goal. This long-term perspective helps me to stay positive.

How does that long view shape up at Endress+Hauser?

Altendorf: We said from the start that we want to focus on protecting people and do the best job possible of serving our customers. And without being able to foresee the impact
of the pandemic, it was nonetheless important to us to sidestep short-time working if at all possible, and avoid layoffs. At the same time we decided not to cut back on any of
our large-scale investments. We stuck with all of this. But we thought through scenarios in terms of their economic impact on the company.

“One of the most important tasks for top management during a crisis is to provide a sense of security.”

Klaus Endress,

Supervisory Board President of the Endress+Hauser Group

Link to the family

Dr Klaus Endress, born in 1948, earned a degree in industrial engineering from the Technical University Berlin. He joined his father’s company in 1979, took over Group management in 1995 as CEO and moved to the Supervisory Board in 2014 as president. Klaus Endress is married and the father of two grown children. Whenever possible, the passionate horse rider and mountain biker heads outdoors and into nature, accompanied frequently by Maya, the family dog.

And where did you eventually land?

Altendorf: In hard numbers, we are running 2.8 percent behind last year, although currency exchange rate fluctuations are having the biggest impact. Return on sales remained on target. We created 126 new jobs and hired virtually all of our apprentices who finished their training. All told, we can be satisfied with the results.

Endress: In light of the circumstances, these are good, even enviable, figures. One key aspect was certainly the fact that we learned a few things from the financial crisis in 2008 /2009: that we need to think in all possible, and impossible, directions, including crazy ideas, and then implement them if they help us. People can do this only if they have a sense of security. And one of the most important tasks for top management during a crisis is to provide this security.

How do you make that work?

Endress: By sending out the message during a crisis that we will avoid short-time working, that we will make our way through this together. The employees see that the situation
is not easy, but they realize they are not being let go, that they have work and can give 100 percent. What distinguishes us and other good companies from the rest of the
world is solidarity. It sounds a bit exaggerated, but we’re one big family. Here there is a ‘we’ feeling. That mobilizes incredible forces!

Altendorf: People feel this solidarity. There is an inherent sense of trust in the company, which has to be earned and renewed time and time again. The former head of Deutsche Bank, Alfred Herrhausen, once said: “We have to say what we think. We have to do what we say. We also have to be what we do.”

What does the pandemic mean for solidarity within the shareholder family, Mr Endress?

Endress: We held a meeting between the inner circle of family members and top management right at the beginning of last year. After that, practically all in-person encounters were canceled. There is a large flow of information, but the physical presence is missing. That wears you down!

Mr Altendorf, how is the coronavirus changing the world of Endress+Hauser and that of the customers?

Altendorf: I see four major elements. One point is the future of sales, the interface to the market and customers. In the image of the tree that Mr Endress likes to use, this is the crown. We need a larger surface that can absorb the sunlight in order to close the gaps and achieve a greater presence. In this case we have to utilize every available opportunity in the interaction between the analog and digital worlds.

Endress: Digitalization and online platforms create additional access to the market
and customers. The further we branch out, the better it is for us. The digital world will not replace the physical sales environment, however. People always need people. The terms ‘knowledge’ and ‘warmth’ are incredibly important: knowledge can be digitally transported, but warmth requires closeness. When the media says home working is
the future, that’s wrong. Employees miss interacting with other people when they work from home.

Altendorf: The way in which we work together will nevertheless change – and that’s another element. When people are all physically present in a room, collaboration is different than if they are collaborating in a mixed or fully digital environment.

“As CEO, I cannot afford to lose my confidence. That’s why I always seek the long view. This helps me to stay positive.”

Matthias Altendorf,

CEO of the Endress+Hauser Group

“What distinguishes us and other good companies from the rest of the world is solidarity.”

Klaus Endress,

Supervisory Board President of the Endress+Hauser Group

“The pandemic will keep us and society occupied for a long time to come.”

Matthias Altendorf,

CEO of the Endress+Hauser Group

You talked about four elements…

Altendorf: A third element is the meaning of work. Particularly in Western societies, people are searching for meaning. For a long time we were concerned about the possibility of not finding enough qualified employees; today I’m convinced there will always be enough people who want to work for Endress+Hauser – as long as we provide what they are looking for. Added to that is the way we deal with people. But most of all, what we do is exciting because we deal with fundamental global challenges. Our activities have great value, not just for the company, but also for society.

And the fourth?

Altendorf: The fourth element is robustness of supply chains. With countries closing their borders, supply chains have been interrupted. Endress+Hauser was able to ensure the availability of materials, but many of our customers experienced difficulties. That will lead to new thoughts about how supply chains will be organized.

Endress: What it all boils down to is an incredibly high degree of flexibility that everyone must have!

Is there anything else that we can learn from the crisis?

Endress: After the crisis is before the crisis. During the financial crisis we discovered
that biotechnology and life sciences were continuing to boom – precisely the areas where we were not performing well. We changed that. We invested, made acquisitions and strengthened our expertise in the field of analysis technology. We also moved into the laboratory business. All of these things helped us tremendously over the past year.

Prior to Covid-19, protection of the climate and the environment dominated public discourse. What happens next?

Altendorf: People have developed a different awareness of issues such as health, nutrition and protecting the environment. And climate change is not going away. It’s something that must and will occupy all of us as humans. Government policies create the framework, such as the European Union and its climate objectives. And I see lots of efforts by industry to reduce the carbon footprint.

Endress: Coronavirus will help us to become more sustainable.

Looking to the future, do you think the most difficult times are still ahead of us when it comes to the pandemic?

Altendorf: The pandemic will certainly keep us and society occupied for a very long time to come. The first nine months of this year will likely be a struggle until larger segments of society gain a sense of security and confidence through vaccinations. Vaccinations are the only thing that can return us to a sense of normality similar to what we had before. The old normality will never return… but I do believe the economy will then experience a certain degree of momentum.

Endress: Confidence is the key. Without it, there are no investments – and no growth. But I’m confident we will reach our targets, because within the company there is much that has been created and further developed over a period of decades. We have tremendous people and first-rate offerings. And we’ve never had so many great product innovations as we do this year!

Roots in the company

Matthias Altendorf, born in 1967, began his career at Endress+Hauser with vocational training as a technician, followed by studies, stays abroad and further education. He was appointed to the Executive Board in 2009 and became the Group’s CEO in 2014. He balances his work life by sailing, playing chess, riding his motorcycle and spending time working in the woods. Travel, the arts and reading round out his hobbies. Matthias Altendorf is married and the father of a grown son.

In normal times, a place for personal encounters: the headquarters in Reinach, Switzerland.

Physical distance, ideal proximity: Matthias Altendorf (right) in discussion with Klaus Endress, here on the roof terrace of the company building.

Solidarity is crucial in a crisis. Klaus Endress and Matthias Altendorf agree that its foundation has to be laid during good times. 8 minutes Bestowing confidence

Corona Leadership Corporate culture

Daumen hoch

kstabel — Sun, 01 Aug 2021 13:43:01 +0000

Thumbs up klinse Sun, 01.08.2021 - 10:22

News+Facts

Thumbs up

A lifetime bond? It’s certainly possible. Many people work for years or even decades at Endress+Hauser. Here they find the space to develop their careers, happy to play a part in a company that combines economic success with ecological and social responsibility.

Text: Martin Raab

Photos and Illustration: Endress+Hauser, Christoph Fein, Getty Images, Shutterstock, 3st

101

nationalities work for the Group.

employees have more than 45 years of service to the company.

10.3

years is the average length of employment.

332

young people are pursuing vocational education at Endress+Hauser.

29.6%

percent of employees at Endress+Hauser are women.

Time for the kids

The lockdown was often a double burden for parents. Moms and dads suddenly had to work from home while simultaneously caring for the kids on their own or helping them with their schooling. Where necessary and possible, Endress+Hauser sought flexible solutions and gave parents a maximum of five days to arrange childcare on short notice.

A boost for female power

The higher you go in the company hierarchy, the more it’s a man’s world. Today, one out of every six management positions at Endress+Hauser is held by a woman – although nearly one-third of the workforce is female. At Endress+Hauser, the conference table will one day be more diverse and colorful. The goal is to increase the presence of female managers to around 30 percent by the year 2030.

Paving the way to this goal is the Women’s Integrated Network, a global initiative whose members develop local measures at locations around the world. One of the objectives is to attract more women to the company, seeking a target of 40 percent at all levels. Another goal is to encourage women to assume responsibility for personnel, projects and technical areas.

Job advertisements will be written so that they appeal to both genders. The company wants to make managers aware of unconscious bias when selecting personnel. Endress+Hauser wants to specifically target the professional development of female employees and further improve work-life balance. Finally, female role models in the company should enjoy increased visibility.

Behind all of this is the conviction that diversity makes companies more successful. As more people with different perspectives become involved in the company, the more robust, agile and innovative the organization becomes. For this reason, Endress+Hauser wants all of its employees to feel comfortable and free to flourish, regardless of gender, age, ethnic background, religious and ideological beliefs or sexual orientation.

Donating know-how

No visits, no events, no training programs. How can trustworthy relationships be built in such an environment? Companies are not the only ones facing this challenge during the pandemic. Humedica, a humanitarian assistance organization based in Kaufbeuren, Germany, was also struggling with the abrupt severance of personal contact with donors and volunteers. It’s a good thing that experts in digital learning and virtual knowledge transfer are nearby. The team at Endress+Hauser Temperature+System Products in Nesselwang readily shared its theoretical and practical know-how with the team at Humedica, which now wants to increasingly connect with supporters in an online environment, ensuring that the humanitarian assistance organization can continue with its activities in more than 30 countries around the world. humedica.org

1000000

300,000 protective masks for entities in countries heavily impacted by Covid-19 were distributed by Endress+Hauser China at no cost when the pandemic first hit. Another 700,000 were acquired centrally with the help of colleagues in China to supply employees across 25 Group companies with masks.

International hub

Endress+Hauser is strengthening its logistics network in Europe. In Wörrstadt, Germany, near Frankfurt Airport, a new logistics center will start up in mid-2021. The hub, operated by Hellmann Worldwide Logistics, can handle eight times the volume of the current system. The new logistics hub will bundle all products belonging to an order and ship them to domestic and international customers. It will bring supplies to overseas production locations as well. The logistics center will also receive and distribute materials destined for Endress+Hauser production facilities in Europe. Shuttle trucks that deliver products will return with supplier parts, thus improving the eco-balance of the entire supply chain.

The blue world

Four more countries on the Endress+Hauser sales organization map will be shaded blue in the future. Endress+Hauser is establishing sales offices in Bulgaria, Egypt, Peru and the Philippines, all built on many years of activity by local sales representatives. And in Panama, the Group will provide the established sales support for Latin America with its own legal entity.

1 Bulgaria – Sales Office
2 Egypt – Sales Office
3 Panama – Regional Support Center
4 Peru – Sales Office
5 Philippines – Sales Office

Leader in climate protection

In Reinach, Switzerland, Endress+Hauser produces world-class measurement technology – and combines this with outstanding climate protection. Within five years, the Reinach product center reduced its relative greenhouse emissions by 43 percent, from 1.68 to 0.95 equivalent tonnes of CO₂ per million euros in sales. In recognition of these efforts, a survey conducted by Bilanz magazine, daily newspaper Le Temps and the Statista statistics portal ranked the location as being among Switzerland’s top 20 companies. Behind this success lie continuous investments in energy efficiency, plus the fact that the plant is powered entirely from renewable sources. The ambitious goal is to reduce the site’s CO₂ emissions to zero by the year 2030.

Up and running again

Full of vim and vigor, the Endress+Hauser Water Challenge was launched in 2019. With this initiative, employees around the world collected donations through charity runs – with the company doubling the donated sums – to bring people access to clean water. Although the coronavirus crisis brought these activities to a halt, employees found a way to dodge the pandemic with the Winter Water Challenge: skiing, snowshoeing or jogging, each employee alone but all with the same goal. The proceeds from this and other campaigns are flowing into a new project in the Philippines. In the province of Cavite, a two-hour drive south of Manila, the plan is to connect 80 households to the water supply system, thus permanently improving the living conditions of 400 people.

“We help our customers achieve their sustainability targets, so we want to be a pioneer in sustainability ourselves.”

Pascal Meur

Energy Manager at Endress+Hauser Flow Reinach

Learn more

Water Challenge
endress.com

Dedication ceremony Wörrstadt
endress.com

Education Diversity Leadership Corporate Development Corona Water+Waste water Logistics Supply chain Sustainability

Nach vorn geführt

admin — Thu, 01 Apr 2021 13:55:44 +0000

Leading from the front kstabel Thu, 01.04.2021 - 11:59

Customers+Markets

Leading from the front

Although the coronavirus pandemic poses challenges for companies, it also spurs developments. And that calls for leadership. Stefan Scheiber and Matthias Altendorf talk about their experiences and insights.

Questions: Martin Raab

Photos: Jekaterina Gluzman

Inspiring environment: Stefan Scheiber (left) meets Matthias Altendorf in the CUBIC innovation center of the Bühler Group in Uzwil, Switzerland.

Mr Scheiber, Mr Altendorf, when did you first realize you had a genuine crisis on your hands with Covid-19?

Scheiber: We first recognized that we were dealing with a serious situation when our Chinese employees were no longer able to return to the plant after New Year festivities. We employ 3,500 people in China; more than 50 percent of our production capacity is located there. If everything is idle, we run the risk of our deliveries being delayed.

Altendorf: I was travelling in Asia at the same time. The passenger seated next to me on the plane thought it was time to shift to SARS mode again. He then showed me his pandemic kit: protective mask, hand disinfectant and a ballpoint pen.

What was the pen for?

Altendorf: You can use it to push elevator buttons without having to touch them with your fingers! When we arrived in Taiwan, the Taoyuan International Airport was practically deserted – something unheard of at the end of Chinese New Year. All flights to China had been canceled!

How did you respond?

Altendorf: We immediately raised it as an issue within the Executive Board and stopped all business travel to, from and within Asia. We then created a Group-wide task force.

Scheiber: For us it was crucial to get the operation in China up and running again. Luckily, we did that very quickly. And we too established a task force to manage the pandemic. This group supports the line managers who take care of operations. We did this all around the world to make sure that we protect the health of employees everywhere.

Altendorf: To be honest, though, we had no experience in dealing with an epidemic, but our colleagues in Asia did. They are usually the ones who are listening and learning in meetings. During the coronavirus pandemic, it was suddenly the other way around.

“We learned how dynamic the transformation is. That’s why the ability to forge partnerships is increasingly important.”

Stefan Scheiber,

CEO of the Bühler Group

Did you change your management approach during the pandemic?

Altendorf: I normally meet the Group’s managing directors once a year. During the pandemic we switched to quarterly video conferences. That brought the Executive Board extremely close to business operations. We had our finger on the pulse and could immediately sense what was going on in the entities.

Scheiber: Regular communication was highly important during the pandemic. We significantly intensified the way we communicate. I had a call with all regional managers once a month. On the discussion agenda was also how we manage this situation as leaders.

Altendorf: In this situation, you must make sure that employees sense the empathy at the heart of the company. You have to show them that you are interested in how they’re doing and in what is happening to them; that you are not abandoning them to their problems. For me it was especially important to convey that we would have to overcome this crisis through solidarity, not selfishness. Everyone has to pitch in; together is the only way.

“We experienced an incredible digitalization boost through Covid-19.”

Stefan Scheiber,

CEO of the Bühler Group

How did you manage to balance crisis management and strategy development?

Scheiber: We have a five-year strategy cycle that ended in 2020. It was important that we developed a new strategy during the pandemic and planned its implementation. People need a perspective, and that naturally also applies to our employees. They must have hope that the crisis will eventually pass and that the business has a future, which was why we went through with developing the strategy. That created a lot of positive energy because we proactively addressed the future and didn’t retreat into our shell.

Altendorf: When you point to an end to the crisis, you also gain confidence. People have to know that there will be a time when we will have overcome the crisis. It will eventually pass. We can’t say if that will be in six, 12 or 18 months, but one day it will pass.

What does the crisis mean for your business?

Scheiber: The pandemic had dramatic impacts for many of our customers. Some segments collapsed, while others boomed. The plant-based food industry has experienced enormous growth. Although we’re well positioned in this market, we first had to manage the growth. The food industry is otherwise very stable. We had never experienced such a dynamic environment before.

Altendorf: Consumers have undergone a genuine change of awareness. Health, nutrition, the environment – all of these issues have taken on enormous importance.

Scheiber: The pandemic has changed a lot of things, and that includes the realization that climate change is the major challenge for the coming years. If industry finds solid solutions so that customers can operate their plants in a more sustainable, efficient, eco-friendly and also profitable way, that’s good news. It means industry is not destroying the world; it’s delivering solutions to deal with our environmental problems.

Shaped by the company

Stefan Scheiber (born 1965) graduated with a degree in business administration from the University of Applied Sciences in St Gallen, Switzerland, and later continued his education at the IMD Institute Lausanne and Harvard Business School. He started his career at Bühler in 1986, working in various international management positions worldwide, including East and South Africa, Eastern Europe and Germany. Stefan Scheiber has been a member of the Executive Board since 2005 and was appointed CEO of the Bühler Group in 2016 and a member of the Board of Directors in 2020. He is the sixth CEO in the company’s 161-year history.

What lessons are you learning from the crisis?

Scheiber: We have learned how dynamic the transformation is – in communication, technology, digitalization. That’s why the ability to forge partnerships and seek collaboration is increasingly important. Bühler is a company of engineers. We always created everything on our own, but that’s not a model for the future. The world is moving so fast and change is so broad that we have to work with the best suppliers and partners and then jointly approach the customer with a novel solution. Networks are extremely important in the 21st century.

Altendorf: We have to concentrate on doing what we do best and on what creates value for the customers. That’s why today, we think in terms of ecosystems. Digitalization creates new opportunities for communication and collaboration. In one-on-one environments, it’s difficult to fill such an ecosystem with life. This is a lot easier to accomplish if I can interact with many partners at the same time.

Scheiber: The crisis also showed how important the physical infrastructure is with our 100-plus service stations around the world. These employees are present in the markets, in the countries, where they can move around even if the borders are closed. That’s not something you can digitalize.

Innovations for a better world

The Bühler Group, headquartered in Uzwil, Switzerland, is a globally active technology company with 12,500 employees. Founded in 1860, the family-owned company generated sales of 2.7 billion Swiss francs in 2020. Bühler maintains a global network of 100 service stations, 33 production plants and application centers at 24 locations. The company develops leading process solutions and sustainable value chains within three business units – Grains & Food (safe and healthy food and feed), Consumer Foods (culinary specialties) and Advanced Materials (energy-efficient mobility and buildings).

2 billion people consume food produced on Bühler systems every day.

50% of new vehicles contain die-cast components made with Bühler technologies.

65% of the wheat harvested worldwide is turned into flour by Bühler mills.

60% of the world’s cocoa crop is processed by Bühler equipment.

What do you think will stay in place after the pandemic?

Scheiber: We experienced an incredible digitalization boost thanks to Covid-19 – in everything that we do. In one year we made as much progress as we would otherwise make in five or ten years!

Altendorf: Executive Board meetings, Supervisory Board sessions, management conferences – we never imagined making all of this digital. But internally and externally, we live in a virtual world of relationships that we developed in the real world. Yet it won’t work over the long term without meeting face to face or traveling.

Scheiber: The pandemic nevertheless showed that you can accomplish much with a lot less travel. I used to be on the road 40 to 50 percent of the time. But today I know there is another way. We can discuss business via video conference. In the future, I will be traveling primarily if I want to meet and talk to our employees. And for certain things, I will never travel again!

Corona Leadership Digitalization

Sprung nach vorn

admin — Mon, 01 Mar 2021 16:50:26 +0000

Bounce forward klinse Mon, 01.03.2021 - 16:38

People+Culture

Bounce forward

Every company wants not only to endure a crisis but to rise out of it stronger than before; in other words, to be resilient. The question is, how do they get there? What does ‘ambidexterity’ mean in this context? And what is the impact of the so-called ‘bounce forward’ effect? As part of her research work, innovation expert Marion A Weissenberger-Eibl searches for the answers.

As told to André Boße

Viewpoint

Resilience in its most literal sense is the ability to ‘bounce back’ to a previous condition after a problem or an interruption, much like a Weeble toy that always rights itself when pushed over. For a company, it describes the ability to prosper over the long term and get itself back on course time and again, regardless of the direction in which it gets bent or pulled.

Resilience is an evolving concept. The goal is no longer to restore the status quo following a shock event; today it’s more about companies adapting themselves to change. Change has become constant in our volatile, uncertain, complex and equivocal world. That in turn puts environmental conditions and stakeholder demands in a constant state of flux. Today when we speak of resilience, we’re no longer talking about ‘bouncing back’ to the prior state of things, but ‘bouncing forward’.

So how does that work? Take a look at the character traits of resilient people: their capability to rigorously analyze problems and easily control emotions and impulses. Furthermore, they are convinced they can change things through their own actions. Add to that attributes such as realistic optimism, empathy and goal-orientation. While these are traits that cannot be transferred to an organization, they can nevertheless help us recognize what distinguishes a resilient company.

Grappling with resilience as an organization is also a question of attitude. The company is working on scenarios that it is not sure will ever occur, and that cost resources. At first glance, efficiency and resilience appear to be natural opponents. And yet, developing resilience into a core organizational trait is an important step in strategic planning. After all, resilience leads to better risk management, and that in turn supports the long-term success of the company.

Crises primarily impact the people who work in an organization. For this reason, cultivating resilience requires a corporate culture that takes the needs of employees seriously, but at the same time encourages exploring a common path out of the difficult situation. This type of corporate culture promotes solidarity and creates a positive narrative for the future. In this respect – and studies have proven it – small-to-medium enterprises can be more resilient than large companies, because they benefit from the experience of having made the right decisions during phases of uncertainty.

Prof Dr Marion A Weissenberger-Eibl is Director of the Fraunhofer Institute for Systems and Innovation Research ISI and holds the Chair for Innovation and Technology Management at the Karlsruhe Institute of Technology (KIT) in Germany.

“Crises primarily impact the people who work in an organization.”

Prof Dr Marion A Weissenberger-Eibl

For companies, it’s absolutely worth exploiting these advantages and further investing in resilience. A key word here is ambidexterity: we can see it on the one hand as the ability of companies to exploit known potential, for example by efficiently enhancing existing processes and products. On the other hand, ambidextrous companies are alsoin a position to develop disruptive innovations or explore new potential.

Ambidextrous companies are skilled at both methods. They not only respond appropriately to drastic changes, shocks and crises, but also possess the capability – with the help of resilience’s ‘bounce forward’ effect – to take a step ahead.

Position Corona Leadership #FFE596

Leadership

Step-by-step progress

Step-by-step progress

Generational change

Generational change

INTERNAL SUCCESSION

SECOND REPRESENTATIVE OF THE FAMILY

Close relationships

A never-ending story

A never-ending story

Starke ­Beziehung

Strong ­relationship

2021 - Das Geschäftsjahr im Überblick

The financial year at a glance

Skulptur mit Symbolkraft

Sculpture with symbolic power

The language of art

Symbol of the corporate culture

Locally anchored

Halt geben

Bestowing confidence

Daumen hoch

Thumbs up

Time for the kids

A boost for female power

Donating know-how

International hub

The blue world

Leader in climate protection

Up and running again

Nach vorn geführt

Leading from the front

Sprung nach vorn

Bounce forward

Viewpoint

Starke Beziehung

Strong relationship