Arla Foods Global Leadership Challenge Ola Arvidsson, Executive Director HR, Arla Foods ARLA - the global company GEOGRAPHY Arla Foods Turnover per market ARLA - the global company Asia 2,3% Americas 5,0% ME 3,5% Europe Other 1,0% RoW 1,5% CATEGORIES EU Other 16,6% Sweden 21,4% Denmark 18,3% UK 30,4% Total turnover 2006; 45,5 mia. DKK Source: Arla Foods 2006 Milk Powder – price development Price DKK/kg dkr/kg Q1 08 27,57 dkk/kg 27 ARLA - the global company 25 23 +59% FINANCIALS 21 End of EU Export support 19 17 16,73 realised 15 Jan Mar Maj J ul S ep Nov budget Leadership vs Management Management and Leadership When Noah heard the weather forecast he ordered the building of the ark. That was Leadership ! Then he looked around and said, "Make sure the elephants don't see what the rabbits are up to." That was Management ! Managers make sure people do as they are told Leaders make people succeed with things they did not consider possible Management & Leadership Time Spend AT Kearny study claims up to 600% performance difference depending on CEO 20% Leadership Envision Engage Inspire Coach 80% Management Set Targets Follow up Systemize Control The good leader Valuebased Leadership Tell them what to do but not how to do it and they will surprise you with their ingenuity Mærsk, Kamprad, Walton Ethics, Moral, Integrity Transparency Lead by targets George S Patton Balanced Scorecard, Empowerment Taylorism Henry Ford Effectiveness & Efficiency Logic Bureaucracy Napoleon Rules, Structure, Objectivity Born to rule Aristocracy Stage of Development Arla Foods Challenges & Dilemmas Some current Leadership challenges in Arla Foods “New Market Place” -Demand & Supply -Political Deregulation Company history -M&A consolidation -Mindset shift Future Growth Opportunities The Daily Leadership challenge of Perform – Change - Develop FMCG Slim Contest Goodwill & CSR the Talent Game Global Growth - a Leadership Challenge Nordic Eastern Europe & Russia UK USA & Canada Europe Middle East Argentina China One global Challenge… …One Global Ambition! Some Leadership Dilemmas Acceleration Deceleration Global Local Democracy Monocracy Logical Emotional Logical versus Emotional Emotions in Control Head in Control (1,10) Analysis, Paralysis Heart in Passion Logical versus Emotional Emotions in Control Head in Control (10,1) Loving Neurotic Heart in Passion Logical versus Emotional Emotions in Control Head in Control Continually checking what your heart communicates (10,10) Heart in Passion Situation Adapted Leadership Energy Perspective - Give positive energy - Absorb negative energy - Equaliser Readyness perspective Blanchard will/can Organisational perspective Kill Create / Start up Run & optimise