Volvo 2005 Annual Report Download - page 44

40 Volvo Group 2005
lished for each unit, department, work team
and individual.
By working towards an open decision-mak-
ing process, we strive to attain personal com-
mitment to common objectives. We believe
that individuals who feel that their compe-
tence, experience and perspectives contribute
to developing the Group will also assume
responsibility for achieving the goals.
Competence development
To become successful, the Volvo Group
encourages a corporate culture that develops
employees in their work. This results in
increased personal satisfaction and a com-
petitive edge for the company. Competence
development is a continuous process that is
supported by an internal training organization.
This organization offers employees a large
range of courses and training programs within
such areas as diversity and culture, leader
development, project work and business
understanding, as well as economics, technol-
ogy, personal development, communication,
IT and languages. All courses are designed to
contribute to attaining the Group’s commercial
targets.
Feedback and recognition are keys to pro-
moting team and individual development. Each
manager is expected to conduct regular per-
formance appraisals and to involve employees
in planning their competence development.
Leaders and employees also review these
plans.
It is the shared responsibility of leaders and
employees to ensure that each team has the
necessary skills, expertise and resources to
become successful.
Increased diversity – a key objective
Among other requirements, the Volvo Group’s
Code of Conduct prescribes that the Group
must support internationally recognized
human rights and that all employees are to be
treated in such a way that no one is discrimin-
ated against on the grounds of gender, race,
belief, age, disability, sexual preference,
The Volvo Group’s vision involves being
regarded as the world’s leading sup-
plier of commercial transport solu-
tions. Our employees knowledge and expert-
ise play a decisive role in fulfilling this vision.
The Group had 81,856 employees at the
end of 2005. Each employee is part of a team
and is expected to participate actively in the
Group’s development, process of change and
future. To support such development, a work
environment characterized by energy, passion
and respect for individuals is required. To make
the vision a reality, we need to continuously
develop our expertise within key areas
and succeed in attracting new, talented
employees.
Volvo’s corporate culture
– The Volvo Way
The ability to develop a competitive culture is
of critical, long-term importance to the Group’s
profitability. Unlike technologies, strategies
and business models, competitors find it dif-
ficult to copy a corporate culture.
Volvo Group’s values and culture are out-
lined in The Volvo Way, which forms a central
guide for the Group and whose principles set
the direction for leaders and employees in their
daily work .
The Volvo Way is based on the conviction
that all employees have the capability and
desire to improve operations and, by so doing,
to develop their own competencies. By moving
from word to action, focusing on implementa-
tion and realizing necessary changes faster
than competitors, we strive to secure sustain-
able success.
Individual responsibility
Leaders throughout the Volvo Group’s organi-
zation are expected to involve their teams in
the decision-making process and to then
focus on execution. Customer focus, open dia-
logue , feedback and personal commitment are
key principles in The Volvo Way, aimed at align-
ing Group strategies and objectives with daily
teamwork. Objectives and goals are estab-
Continuous competence development
nationality, political conviction, trade union
membership or social/ethnic origins.
Capitalizing on the diversity that exists
throughout the organization is a key strategic
objective. For a group with global operations,
it is essential that the organization reflects its
customers and understands the conditions
prevailing in local markets and in various cul-
tures. By taking advantage of different types
of knowledge, experiences and perspectives,
the Volvo Group continues to create the condi-
tions necessary for success.
Leaders are responsible for leveraging the
strengths represented by diversity. Several
units have appointed diversity managers to
facilitate continuous improvements in this
area. Diversity is something that is considered
early in the recruitment process. Other import-
ant performance indicators, such as the per-
centage of women in leading positions within
Volvo Group companies, are also measured
and monitored.
In North America, a project is under way
aimed at stimulating diversity among the
Group’s suppliers. In Sweden CEO Leif
Johansson is participating in a project intend-
ed to ensure that more women are assigned
to senior executive positions within the Volvo
Group and in the business community.
Safe work environment
The Volvo Group engages in active environ-
mental efforts designed to facilitate a creative,
healthy and energizing work environment with-
out undue health hazards. Various projects are
in progress in different parts of the world
aimed at, for example, exchanging experi-
ences about how to best create a healthy
workplace and conducting preventive activ-
ities. This knowledge will be spread at an indi-
vidual, department and company level. In add-
ition, a project is under way aimed at
coordinating rules and procedures for the
work-environment area.
As part of the work performed in the work-
environment area, a number of operations
have been certified in accordance with OHSAS