Dr Niefer - BMF CEO Breakfast - 27 November 2009
BMRDR HANSGEORG NIEFER
PRESIDENT AND CEO OF MERCEDES-BENZ
SOUTH AFRICA
"CHAMPIONING A HIGH-PERFORMANCE
CULTURE"
BLACK MANAGEMENT FORUM CEO POWER
BREAKFAST
27 NOVEMBER 2009 - 07:00 for 07:30
THE MICHAELANGELO, SANDTON
Good morning ladies and gentlemen,
I am delighted to be able to join you this morning
I would like to take some minutes to share my thoughts
on what it takes to run a large corporation founded on a
high-performance culture.
Perhaps it is appropriate first to ask – “What is a highperformance culture?”
A high-performance culture is a work environment
where employees, teams and leaders are truly respected,
empowered and valued. In high-performance companies
you will find the highest level of integrity,
accountability, proficiency, professionalism, speed and
accuracy. All of this with one over-arching element –
customer focus, knowing what customers want and
meeting their realistic expectations.
Ladies and gentlemen, let’s look at how to get to
entrench a high-performance culture. What are the key
facets that make for such a culture?
Steve Ballmer, CEO of Microsoft since 2000, explained
it well when he said: “All companies of any size have to
continue to push to make sure they get the right leaders,
the right team, the right people to be fast acting, and fast
moving in the marketplace. Great companies in the way
they work, start with great leaders. They have to be
companies which enable their people. Great companies
have high cultures of accountability and a culture of
self-improvement. Companies that are in touch with
their customers. And finally, while there's no substitute
for innovation, innovation is no substitute for being in
touch with customers, either.”
Ladies and gentlemen,
According to Steve Ballmer we could say that for a high
performance culture you need:
The right people with the right skills and attitude at all
levels, who are enabled and accountable
and Exceptional customer focus.
Steve Ballmer is perfectly correct. But I would like to
add a few more attributes which I believe are vital for a
high- performance culture.
For Mercedes-Benz, Responsible Innovation is another
key facet of our high-performance culture.
In our own global company we too have been privileged
to have had a number of superb company leaders,
pioneers and innovators – all people who knew how to
develop and produce exceptional products, provide
customers with the service they expected and delivered
great results.
This is true from our beginnings in the 19th century with
Gottlieb Daimler’s and Carl Benz’s original patents,
which are the foundation of modern-day transport, to the
latest inventions in alternate drive technologies and
many effective innovations to reduce our impact on the
environment.
In South Africa we also have a proud track record. Ours
was the first automobile ever in South Africa. A Benz
Velo was imported and put on display in Pretoria in
1897. Today Mercedes-Benz is recognised as one of the
founders of the SA automotive industry. We have been
active in this market for over 60 years now.
But we're not only a leader in the past, we’re also a
leader in the present. One is in the area of quality –
specifically quality manufacturing.
Just this year we witnessed the ultimate accolade for our
proficiency and our employees’ dedication. We were
awarded the J.D. Power & Associates Gold Award for
the Europe and Africa region in the initial quality survey
among 88 000 American new car owners. The award
also placed our East London plant ahead of all vehicle
manufacturing plants in America, Africa and Europe.
This award follows two consecutive years in which the
same survey organisation acknowledged MBSA as the
best manufacturing plant in South Africa in 2007 and
2008.
For Mercedes-Benz then, another key facet of our highperformance culture is Uncompromising and consistent
standards.
We have proven - to ourselves and the world - that we
are capable of consistently producing world-class
products at the most exacting global standards. Our
employees have relentlessly pursued the highest
manufacturing standards, displaying great passion and
an unwavering attitude for achieving the best quality.
Not only do we have great employees delivering great
quality products and services, but if sales figures are
anything to go by, we also have the most appealing
vehicle products on offer. In the premium and luxury car
segments we have consistently led the market at an
average of 30%. We have consistently maintained our
leadership in the over 3,5 ton commercial vehicle SA
market segments – heavy and extra-heavy vehicles,
averaging around 27%, ahead of the closest rival by at
least 10%.
Generally speaking, the automotive industry has been
one of the hardest hit under the global economic
slowdown. At MBSA we have stuck by our
uncompromising quality standards, a ‘can-do’ attitude
and dedicated customer focus. Even our dealers
continue to report a positive business climate, with
customers visiting showrooms more frequently lately
and in optimistic spirits. While we are realistic and
know that the road to recovery will be a long, slow one,
we remain positive that sales will keep improving.
So ladies and gentlemen, I would say that another key
facet of the high-performance culture at Mercedes-Benz
is A positive ‘can do’ attitude.
“How do we do this at Mercedes-Benz SA?” you may
ask. We do it by not allowing the negative environment
to cloud our judgement. We maintain our confidence
and knowledge about what the market and the customer
wants on the one hand. And on the other hand, we
consistently bolster our employees and their
performance. We acknowledge the small successes as
well as the big ones. That’s our secret. We look after our
customers, provide the best products and services; and
ensure that our employees deliver on their potential at
their best performance levels. We have created an
environment around us that only accepts the best from
everyone.
We have been able at Mercedes-Benz to attract great
human capital, to train, empower and nurture our
employees. We ensure that our teams and our people are
given the best possible foundation from which they can
unleash their talent and their passion, but to accept that
they are always accountable. Every employee is
important and everything each one does adds value to
the business.
Ladies and gentlemen, another key facet of our highperformance culture then is Leadership.
Leadership is found at different levels in the structure of
an organisation. I believe it is important to acknowledge
this and harness it. Leaders at all levels are people that
lead by example, inspire others and are able to see the
‘bigger picture. It is this type of leadership that
distinguishes the great from the just good. Leadership
with conviction and confidence is essential to a thriving
organisation.
You, as leaders in your own organisation, will accept
that leading means that in some instances, you have to
take those tough decisions, deal with issues and tackle
problems unflinchingly. You also have to consistently
deliver on shareholder promise.
If you are the leader of any business the golden rule is to
know your customer and keep surprising them. “Underpromise and over-deliver”, is a good motto.
At Mercedes-Benz we know that our customers are our
lifeblood; they are the reason for our existence. Like
Steve Ballmer, we too believe that if you are ‘in touch’
with your customer, you know what you have to do to
constantly improve or grow your business, in good times
as well as bad.
With a highly performance-driven culture, it can be
done, even in economic downturns and recessionary
climates.
In summary then,
High-performance organisations have the following in
common:
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The right people and the right management – all
appropriately skilled, empowered, enabled and
accountable.
These organisations are innovative, but always in
a progressive responsible manner
They follow uncompromising and consistently
high standards
Have leaders at all levels who inspire and
motivate
They focus on their customers and on customer
expectations;
And finally, they all have a strong ‘can do’,
confident attitude.
If you have employees who display a ‘can and will do’
attitude, make sure you empower, appreciate and deploy
them in the best manner possible.
If you are an employee with this type of attitude –
spread it to your team and your colleagues.
Great companies are made up of great people.
I thank you.