Lumene conducted an "Excellent Future - Improvement Project" to transition from a product-focused to customer-focused strategy. The project had 3 phases: 1) Changing ways of operating, 2) Improving skills through training, 3) Applying lessons learned. Feedback was positive, with improved cooperation, clarity of roles/responsibilities, and atmosphere. Metrics like cost reductions, bonus payouts, and survey results demonstrated success. The project strengthened teamwork and commitment to shared goals. HR saw it as a valuable learning experience and plans to continue skills development and wellbeing initiatives.
1. Excellent Future – Improvement Project
Customer-Oriented Ways of Working: Lumene – a Holistic Beauty and
Well-Being Operator
TEKES - Workshop on Innovative Workplaces 25.1.2011
VP HR Terhi Ahvonen, LUMENE Oy
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2. Topics
• LUMENE Oy
• Excellent Future –improvement
project
• Feedback from the employees about
the project and other indicators
• Q&A
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3. 40 Years of Natural Beauty
2010
LUMENE
1970 Brand
40 years!
LUMENE skincare 2001
and colour
cosmetic products
LUMENE the first 2003
to launch Arctic
launced in Finland. LUMENE Oy –
berry oils in
Since 1973 Lumene independent
cosmetics – wild
has been market company.
ingredients beyond
leader in Finland.
organic.
1948 2002 2007 2008
Noiro was Lumene Vitamin+ C- Focus on beauty and One company, two
founded as a Energy wins an hair care. brands: LUMENE and
CUTRIN
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subsidiary of independent
pharmaceutical European anti-age
company Orion. cream test.
4. Mission
To enhance your beauty and vitality in every day life with the power of plants and
minerals from the Arctic Nature.
Vision
LUMENE will be a holistic beauty & wellbeing operator.
We will be the market leader in Finland and a bold challenger in the Key Markets
offering Arctic nature based skin care, color & hair cosmetics solutions.
Values
Satisfied customer
Mutual trust and respect
Delivering results
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Innovation and Adding Value
Responsibility
5. Water - Our Inspiration
Lake Lummenne
Lumene was named after the sparkling
blue Lake Lummenne in Kuhmoinen in the
Finnish Lake District 40 years ago.
Our inspiration is pure, crystal clear and
thrives under the white summer nights of
the North.
Lumen, which in Latin means “light”, also 5
serves to complement our meaning and
story.
6. One Company LUMENE Oy
Lumene Skin Care and Professional Hair Cosmetics
Color Cosmetics
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8. Key figures
• Net sales in 2009: 78 M€ (of which approx. 50% from
export)
• LUMENE Oy has 320 employees in Finland
• When subsidiaries (Russia and USA) are included the
number of employees is about 500
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10. Excellent Future Improvement Project:
- ”Starting level” in the end of 2008 and project goals
- Phases
- Results
- Examples of metrics
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- Feedback from the employees, union representatives, CEO and HR
- Continuing the project…?
11. Challenges in the end of 2008…
• New more consumer driven way to operate was introduced
• Two co-operation negotiations in 2008
• One company, two brands, three product categories, SKUs (stock
keeping units) reduced by one third
• New, flat organisation: Group structure dissolved, Farmos separated,
Lumene ja Cutrin operations integrated
• All costs to the minimum and under surveillance
• New managers / superiors and new team members
• People concerned, unsure and sad
• Biggest concern: Who will do the work of those who were given notice?
How to move forward?
Concern of one’s own future, concern of the future of the company,
concern of the Lumene brand…
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12. Targets of the improvement project
Prime purpose of the improvement project was to change Lumene’s
operations model from product driven to consumer driven.
Targets of the project:
• To promote the implementation of the new consumer and service
oriented strategy
• To develop organising of work
• To streamline work processes and job descriptions
• To remove ”silos” and to improve cooperation between departments
and teams and to improve atmosphere, i.e. well being at work
• To improve competences and skills for better communication as well
as leadership and teamworking skills
• To act in a cost efficient way in this project
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13. Phase 3
Phase 1 Phase 2
To utilize everything
To change the ways To improve skills
that has been
to operate
learned
CHANGE – COMMUNICATION – IMPROVING SKILLS
Participants: Participants: Participants:
- The whole personnel of -Among others LUMENE Oy’s - The whole personnel of
LUMENE Oy sales persons, superiors, LUMENE Oy as well as
Management team handpicked groups
Occasions: Occasions: Occasions/Themes:
- Workshops/meetings - Introductions of the new key - Excellent Leader training for new
- By departments process managers
- By teams - Training programme for new - “Superior coffees”
- By cross-functional teams managers - Monthly infos
- Townhall occasions - Training of communication and - Rehabilitation groups
- Monthly infos presentation skills - Sales training for beauty
- Process simulations - Monthly infos consultants
- “Superior coffees” - Pilot for Occupational wellbeing
- Rehabilitation groups card
January-June 2009 August-September 2009 January 2010 ->
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14. Workshops
The following topics, among others, were dealt with in the
workshops/meetings – depending on the needs of each group
• Definition of the department/team targets and ways to reach them
• Definition of expectations and promises to the members of one’s own
department/team as well as members of other departments/teams
• Personal development promises
• Identifying of motivation factors
• Improvement of efficiency of ways to operate, priorisation of activities
• Where to concentrate – not-to-do lists
• The importance of doing together was stressed
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15. Process simulation
• Need to examine and develop activities cross-functionally, over
department and team borderlines.
• We decided to evaluate Lumene’s key processes from customer’s
perspective with the help of a process simulation. The latest big
launch Excellent Future cream was simulated starting from product
idea and ending up to consumers.
• The simulation was first carried out in Finland and then in Russia.
• The simulation of Lumene’s commercial process increased
partipants’ understanding of how the process really works. Besides,
many bigger and smaller development targets were discovered.
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16. Results and metrics
• During 2009 the result of the company improved annual bonus as
well as bonuses for the first and third quarters we paid out to the
personnel
• Strategic targets have been implemented in all levels in the
organisation and operative targets have become more concrete
• Result and cost consciousness has increased in the whole
organisation
• Cooperation between groups has become more effective
• Roles and responsibilities have become clearer
• Company’s atmosphere in general has improved dramatically
• Atmosphere and wellbeing survey was conducted in October
2009, participation level was over 80 and the results very good
(the previous survey was in autumn 2007)
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21. ” Before the Excellent Future project
many colleagues were concerned of
their own wellbeing and how they
would manage their duties in the
future. As we went through together
all the duties at our own department
as well as the needs of the internal
customers, we got a clear picture of
who does, what and when. We also
decided together what can be left
undone and if it would be wiser to
do some things somewhere else.”
”As we did this together, people have
committed themselves to decisions
well.”
Industrial safety delegate
Raija Vesterinen
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22. ”The Excellent Future improvement project
was really important for us because for
the time being the team spirit is the
best one during my time, that is in eight
years. After the cooperation
discussions the spirit was at its
worse.”
” It feels that we blue-collar workers have
come “closer to the upper floor”, i.e.
Tapsa is now Tapsa and not only the
CEO.”
” Monthly infos are important and we feel
that everyone now understands that it
pays to work because that is the only
way to guarantee that we have work
also in the future.”
” Nowadays your can often hear laugh at Union representative
the packaging line!”
Hanna Helistenkangas
” Rehabilitation groups have inspired the
participants to take care of themselves
and this activity needs to be
continued.”
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23. ”The most important thing was that we
all got a common and shared
picture of the future and that we all
are building it together.”
”The Excellent Future improvement
project was a good channel to
deliver thoughts, ideas and visions
– to both directions.”
”The work continues in the same way
but we try to do things in an even
more cross-functional mode.”
President and CEO
Tapio Pajuharju
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24. ”A successful project – surprisingly good
acceptance throughout the whole personnel.”
”Absolutely perfect timing.”
”Good price/quality ratio. Half of the costs of this
project was covered by TEKES support.”
”Challenging for HR, because in every occasion at
least the other representant of our team was
present – but it was worth that.”
”Reliable partners are worth money because own
resources are limited.”
”Extremely useful learning experience also for the
HR team.” Reflections of the HR team
”Rewarding because the results were so
concrete: ”More laugh than complaints so the
result can be regarded as good!”
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25. How to continue?
• Improvement of skills (superior skills, communication and
presentation skills, international knowhow, sale skills etc.)
• Continuing of activities that support wellbeing at work: rehabilitation
groups, lectures etc. Close cooperation with employee pension
insurance company as well as occupational health care.
• Pilot for Occupational wellbeing card: participants are members of
industrial safety commission, union representatives, production
management and HR
• Now focus in doing and fulfilling the agreed activities.
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Perfecto Oy 25