Excellent Future – Improvement ProjectCustomer-Oriented Ways of Working: Lumene – a Holistic Beauty and                   ...
Topics• LUMENE Oy• Excellent Future –improvement  project• Feedback from the employees about  the project and other indica...
40 Years of Natural Beauty                                                                           2010                 ...
MissionTo enhance your beauty and vitality in every day life with the power of plants and                       minerals f...
Water - Our InspirationLake LummenneLumene was named after the sparklingblue Lake Lummenne in Kuhmoinen in theFinnish Lake...
One Company LUMENE OyLumene Skin Care and   Professional Hair CosmeticsColor Cosmetics                                    ...
Our Key Markets•   The World of Lumene today                                7
Key figures•   Net sales in 2009: 78 M€ (of which approx. 50% from    export)•   LUMENE Oy has 320 employees in Finland•  ...
HR – key figures•   Average age: 41.4 years (blue collar workers 44.6 years)•   Female / Male ratio: 76 % / 24 %•   Turnov...
Excellent Future Improvement Project: - ”Starting level” in the end of 2008 and project goals - Phases - Results - Example...
Challenges in the end of 2008…• New more consumer driven way to operate was introduced• Two co-operation negotiations in 2...
Targets of the improvement projectPrime purpose of the improvement project was to change Lumene’soperations model from pro...
Phase 3       Phase 1                             Phase 2                                                                 ...
WorkshopsThe following topics, among others, were dealt with in theworkshops/meetings – depending on the needs of each gro...
Process simulation• Need to examine and develop activities cross-functionally, over  department and team borderlines.• We ...
Results and metrics• During 2009 the result of the company improved       annual bonus as  well as bonuses for the first a...
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” Before the Excellent Future project   many colleagues were concerned of   their own wellbeing and how they   would manag...
”The Excellent Future improvement project     was really important for us because for     the time being the team spirit i...
”The most important thing was that we   all got a common and shared   picture of the future and that we all   are building...
”A successful project – surprisingly good   acceptance throughout the whole personnel.””Absolutely perfect timing.””Good p...
How to continue?• Improvement of skills (superior skills, communication and  presentation skills, international knowhow, s...
THANK YOU !
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Customer-Oriented Ways of Working: Lumene - a Holistic Beauty and Well-Being Operator

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Presentation by Ms Terhi Ahvonen (VP Human Resources, Lumene Oy) on "Customer-Oriented Ways of Working: Lumene - a Holistic Beauty and Well-Being Operator" during the study visit of the sub-committee on Innovative workplaces to Helsinki on 25 January 2011

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Customer-Oriented Ways of Working: Lumene - a Holistic Beauty and Well-Being Operator

  1. 1. Excellent Future – Improvement ProjectCustomer-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 1
  2. 2. Topics• LUMENE Oy• Excellent Future –improvement project• Feedback from the employees about the project and other indicators• Q&A 2
  3. 3. 40 Years of Natural Beauty 2010 LUMENE1970 Brand 40 years!LUMENE skincare 2001and colourcosmetic products LUMENE the first 2003 to launch Arcticlaunced in Finland. LUMENE Oy – berry oils inSince 1973 Lumene independent cosmetics – wildhas been market company. ingredients beyondleader 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 3 subsidiary of independent pharmaceutical European anti-age company Orion. cream test.
  4. 4. MissionTo 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 4 Innovation and Adding Value Responsibility
  5. 5. Water - Our InspirationLake LummenneLumene was named after the sparklingblue Lake Lummenne in Kuhmoinen in theFinnish Lake District 40 years ago.Our inspiration is pure, crystal clear andthrives under the white summer nights ofthe North.Lumen, which in Latin means “light”, also 5serves to complement our meaning andstory.
  6. 6. One Company LUMENE OyLumene Skin Care and Professional Hair CosmeticsColor Cosmetics 6
  7. 7. Our Key Markets• The World of Lumene today 7
  8. 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 8
  9. 9. HR – key figures• Average age: 41.4 years (blue collar workers 44.6 years)• Female / Male ratio: 76 % / 24 %• Turnover rate: 7 %• Sick leave rate: 9% (white collar workers 3 %)• HR: 2 FTE (Finland) and 3 FTE (Russia) 9
  10. 10. Excellent Future Improvement Project: - ”Starting level” in the end of 2008 and project goals - Phases - Results - Examples of metrics 10 - Feedback from the employees, union representatives, CEO and HR - Continuing the project…?
  11. 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 (stockkeeping 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… 11 11
  12. 12. Targets of the improvement projectPrime purpose of the improvement project was to change Lumene’soperations model from product driven to consumer driven.Targets of the project:• To promote the implementation of the new consumer and serviceoriented strategy• To develop organising of work• To streamline work processes and job descriptions• To remove ”silos” and to improve cooperation between departmentsand teams and to improve atmosphere, i.e. well being at work• To improve competences and skills for better communication as wellas leadership and teamworking skills• To act in a cost efficient way in this project 12 12
  13. 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 SKILLSParticipants: Participants: Participants:- The whole personnel of -Among others LUMENE Oy’s - The whole personnel ofLUMENE Oy sales persons, superiors, LUMENE Oy as well as Management team handpicked groupsOccasions: 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 cardJanuary-June 2009 August-September 2009 January 2010 -> 13 13
  14. 14. WorkshopsThe following topics, among others, were dealt with in theworkshops/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 owndepartment/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 14 14
  15. 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. 15 15
  16. 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) 16 16
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  21. 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 21
  22. 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.” 22
  23. 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 23
  24. 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!” 24
  25. 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. 25 Perfecto Oy 25
  26. 26. THANK YOU !

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