Ingressi:	The management audit process adopted by Fazer Group offers new opportunities for the work of the Board of Directors as well as for developing each individual's own potential.
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Fazer - Dynamic leadership

Text: Ari Rytsy Pictures: Jakke Nikkarinen

 

The management audit process adopted by Fazer Group offers new opportunities for the work of the Board of Directors as well as for developing each individual's own potential.

The international Fazer Group, which has its roots in a French-Russian family business, has earned its success through high-quality branded products, customer orientation and strong team spirit. The values of the company, which respects its long traditions, are still based on these three factors. In addition, Fazer is known for its highly competent managers and actively invests in strategic resourcing and developing management processes.

The Group consists of Fazer Bakeries, Fazer Amica and Candyking, which is known for its Pick & Mix confectionery, and currently has operations in nine countries, employing a total of 15,000 people. The major shareholder in the Group is Cloetta-Fazer AB.

The company has grown at a good pace for the entire 2000s, and has become a notable operator especially in the Baltic and Russian markets.

"Business has expanded both organically and through acquisitions," says Markku Numminen, the Managing Director of Fazer Bakeries.

The eastern market has great potential especially for bakery operations. Entering these markets requires not only good products but also knowledge of local practices and management procedures.

"At the moment, the biggest challenges lie in the Baltic and Russian markets. This applies particularly to the availability of workforce and to permanence," Numminen says. Unlike in the Nordic countries, the Russian method of leadership is substantially more authoritarian. Other challenges include the differences between generations, language competence and occupational competencies. HR Manager Katja Patojoki from Fazer Bakeries also sees cultural issues behind the scenes. "For example, in Russia, a baker may ask the manager of a large company for financial aid for the funeral arrangements of a family member. In Finland, the social system takes care of such things."

 

Audits as a tool for resource management

Management audits have been carried out for Fazer Bakeries in Finland, Sweden, the Baltic countries as well as in Russia. In Fazer Amica, the process has been implemented so far in Finland, Sweden and Denmark.

"In the first stage, the intention is to perform the audit in all Group, division and country-level management teams," says Pekka Heinänen, Senior Vice President for Human Resources in Fazer Group.

For the Fazer management auditing, 360 feedback and assessment in small groups is applied. The one-day assessment consists of simulations, psychological inventories, tests and interviews. The personal feedback created during the process is handed over directly to the subject of the auditing. Group feedback is delivered to the team leader. The Group's HR management also receives a summary of all information. At Fazer, strategic resourcing of the skills potential has been found to be an essential part of the process of locating key employees in various divisions, developing current management and planning future resources.

From the Group's point of view, the process offers the management an opportunity to learn and know the teams better and to internalise the potential Group and division-level vulnerability factors related to the teams.

The company believes that with the holistic view offered by the auditing process, they will have a more accurate understanding of their resources.

"A large part of Fazer's growth is attained through acquisitions. Since organic growth is fast as well, you could say that our need for resources is above average," Heinänen says. In addition to benefits at the Group and division level, the audits are meant to offer the participants a chance for personal growth.

"All participants know the purpose of the audits. The purpose is to produce information for the participants on their own strengths and targets for development," Patajoki says.

At the Group level, many superiors may already know their people quite well; still, assessments have an important function for understanding group dynamics and thus improving leadership. At the same time, it can be established whether the Group is heterogeneous enough. "The team may consist of top professionals as far as their skills and abilities are concerned. And still, the Group dynamics may prevent the full potential of the team being realised," Numminen ponders.

According to Heinänen, the audits have been received well, and the senior management has been able to establish a clear understanding of the company's potential and the career wishes of the supervisors.

In future, this information will be used, for example, to develop job rotation in an optimal way. Earlier, the career wishes of the personnel have been brought out mostly through development discussions. Compared to these, the auditing procedure will bring the information to the attention of a larger circuit. Due to this, the HR network is able to offer potential candidates new challenges in other companies within Fazer Group.

Even though the criteria used in the auditing process strongly reflects Fazer’s values, Patojoki lists additional elements of good leadership: goal-setting ability, social skills and the ability to communicate values that cannot be measured.

"A manager must be able to really be there. For example, when giving out summer gifts, he can just hand them over, or he can use the opportunity to motivate the employees to even better performances."

 

The process has strengthened the perception of Psycon as a reliable partner. The consultants are genuinely interested in our people.

 

A consultant is a good sparring partner

According to the three interviewees, cooperation with Psycon has run smoothly. Thanks to the long cooperation process, the team, led by Senior Advisor Claus Söderholm, has acquired good knowledge of the history and background of Fazer.

This has enabled everyone to focus on the essential goals right from the start. The basic processes prepared together have been proven efficient, and the tools have been found appropriate. In Russia, Psycon has conducted the audits together with its Russian partner, Ancor Consulting. The process has been carried out in the native language of the participants, while at the same time it has been ensured that the cultural background of the participants has been appropriately considered.

"The process has strengthened the perception of Psycon as a reliable partner," says Numminen.

"The consultants have been genuinely interested in our people. Psycon has been a good sparring partner all around," adds Patojoki. When evaluating the future, all interviewees have a strong view on the significance of leadership.

"Paying attention to individuals is essential. Globalisation of the job market and our area of operation will make companies more faceless than ever. The natural development takes business in a direction where human concerns are often considered the least important. This must be compensated for by good leadership," Numminen says.

Heinänen see similar development trends. "Our business is very labour-intensive. In future, we must give even more attention to how we’ll be able to find skilled personnel and how we’ll be able to keep them with us. I believe that good leadership has a key role."

Patojoki, who is familiar with the Baltic and Russian market, believes that the challenges of leadership will vary in different locations also in the future.

"In the Nordic countries, a good atmosphere and free time is valued very highly. In the east, values concentrate on economic issues."