The courage to change, the patience to consider
Text: Tiina Parikka Images: Susanna Kekkonen
The attitude towards work has changed. In my opinion, people consider in a more healthy fashion what choices they want to make in their lives and how much of themselves they are prepared to give to their work, states Karsten Slotte, President of Fazer Group.
This also affects leadership. To begin with, even the highly competent professionals consider more carefully whether it is the right moment to accept a new post, for example. If you do get into – or end up in – a management position, the ability of your employees and yourself to cope becomes essential.
– It is not just a question of what can be accomplished but also by what means. Not at all costs, emphasises Slotte.
– Finding the balance is the path to happiness.
Managers are not offered retirement posts
Leadership is not IN at the moment. According to studies, young people see leadership as too demanding and go for the expert positions instead. According to Slotte, it is unreasonable to expect one person to embody all the desired characteristics.
– At times you need a people manager, sometimes a process manager who gets things rolling and, in certain situations, a strong manager of change. One person cannot master all these, Slotte points out.
Hence change is needed. Karsten Slotte describes this as the most difficult role in his work.
– I am forced to say to great people with whom I have worked closely that he or she is no longer the right person for the job. This is a very difficult process.
Managers are prepared for possible changes well in advance. Slotte mentions performance appraisal discussions as the most important tool, since they deal with individual career development.
– Performance appraisal discussions should be held at least twice a year.
In general, open discussion is key in changes, according to Slotte. He says that no position, not even his own, is what you call a retirement post.
Fazer has undergone a management renewal process. New challenges resulting from the company's internationalisation are behind it, but Slotte sees a more common danger in management being too static.
– Of course replacing people is not an end in itself. On the other hand, if the company is led for a long time by a team that gets along really well, development is at risk of stopping. New ideas and edge are needed. The ability to come up with different ideas is a real advantage, says Slotte.
However, the pressure to change was brought on by changes in the environment. Fazer, which celebrates its 120th anniversary this year, is a traditional Finnish family business that has been managed using Finnish resources. In this millennium however, Fazer has experienced strong growth and gained a more international presence, especially through acquisitions.
– A more international touch is needed. We have 16,000 employees, approximately half of whom are engaged in international tasks.
Mapping resources with outside help
When new resources are needed, in-house expertise is always mapped out first. Recruiting is a long process in which an external partner is used.
– Better a long process than a hasty wrong move. When we find a suitable person, we have an outside evaluation made of how the person will adapt to the company's culture. We evaluate more than one person for every position. Usually, however, you just know when the right person comes along, Slotte says.
As an example, he mentions Pekka Rantala who was nominated Managing Director of the Fazer Bakeries & Confectionery business area and a member of the Group Management Team. He came to Fazer from Nokia. Fazer has been using Psycon as its external partner for some time now.
– We have been working together for a long time. They know us and we know them.
Besides mapping internal resources, support is also needed in the supervision of so-called 'homework'.
– Such supervision should be improved. Without a doubt, we are not fully utilising the discovered potential. It is also important to receive honest feedback. We all like to be nice and friendly, but in order to improve ourselves, we need an objective outlook on our operations, says Slotte explaining the importance of the co-operation.
The courage to let go
The so-called 'mapping of potential' is also an open process. How an employee assessed as a potential leader advances in his or her career ultimately depends on situations.
– Situations change constantly. However, we should be able to move employees more boldly from one position to another, even if somebody is really good at their current job. It is all too easy for somebody to get stuck in the bread or chocolate career path for example, with development possibilities only seen as opportunities for advancement in that specific career path.
In addition to the business areas, Slotte would like to see employees move between countries as well.
– Working in different countries broadens the mind and also strengthens the company's value base.
On the other hand, an open process also raises the expectation values of potential key persons. Advancement, however, does not always come at the desired pace.
– Of course we have lost good people. Then again, if they are good, they are also open to challenges and actively look for them. This is only positive. It is better to let them go in good spirits. Somebody that is good might come back in a few years with added experience, instead of being frustrated here while waiting for new challenges and maybe even getting stuck in a rut, says Slotte.
– It is not a given that your career is easy and advances as planned. If you wish to advance in your career, it is a good idea to search for a broader experience and competence base.
Depending on people in the light of brands
The majority of employees are of course hard-working people, who do not even expect to advance into the management. Slotte calls them the backbone of a football team. He admits that these hard-working people should be acknowledged and brought more into the limelight.
– They are the most important part of the company, its foundation and its pillar. It is the task of management to ensure the availability of sufficient resources for these foot soldiers to feel secure. Management also needs to set them clear goals so that they know what is expected of them and why. The target result is not the mission; it is the result of a successful mission.
In order to guarantee employee satisfaction, Slotte travels a lot and visits factories and shops personally to talk with the employees.
– It is the body language that reveals the most about the true feelings of employees. If they are happy, look me in the eyes, smile and are pleased to have a chat, all is good.
– Leadership culminates more and more in people. At Fazer, every shop has its own way of working and we want to give them that chance. Our success is entirely up to these people, unlike in some processing industry companies, says Slotte.
Even if it boils down to people, the company does not piggyback on individuals.
– In listed companies, managers emerge as personalities. Product brands are more important for us. Managers come and go but the products remain. Fazer Blue entered the market in 1922, Karsten Slotte recalls.Learning from challenges
Karsten Slotte, B.Sc. (Econ), reflects many of his leadership views against his own experiences. For example, the selective way of thinking of today's potential leaders is a step forward, in his opinion.
– I myself never pondered it more extensively, if I was offered the possibility to advance in my career. It was obvious that I would accept the post.
But it has not always been easy. The first post as a managing director fell on early 1990s, i.e. depression.
– Thinking back, I do not know how I survived that time. If I would have been able to recognise a burn out then, it would have been just what I was experiencing, Slotte admits openly.
He will not name any idols. Instead, Slotte wishes to emphasise acting honest and true to yourself and the balance within yourself that experience brings along.
– Periods abroad have broadened my thoughts a lot. All kind of difference is richness, states Slotte who has worked in Germany and Sweden.
– I believe in what I do but I have my feet on the ground. I want to work with people. That is what leadership is fundamentally about, Slotte analyses himself.
He is also prepared to put himself out there. However, his career development has not always been straightforward and easy.
– I applied internally for a post that I did not get. I left a familiar and safe environment for a new company. It was truly a time for personal growth. I had to search the balance within myself. A few years later, I was offered the same post that I was refused earlier, Slotte shares about the twists in his career.