Volvo 2013 Annual Report Download - page 16

Strategic framework
S
trategies can be viewed as maps that guide everyday work and decision-making in order to
achieve the Volvo
G
roup Wanted Position
2020
and the Vision. The strategies are part of the
overall Volvo
G
roup strategic framework.
C
orporate core values,
G
roup policies, directives and
guidelines lay the foundation for how the Volvo
G
roup operates and conducts business.
A GLOBAL GROUP 2013 STRATEGY
All work within the Volvo Group is based
on a sustainability perspective, which
will contribute to long-term success.
Assuming responsibility for a sus-
tainable development is deeply rooted in our
culture and has its base in our corporate core
values and policies in the Group’s Code of Con-
duct. We strive to assume economic, environ-
mental and social responsibility for the opera-
tion, products and services in the areas where
the Group has the potential to infl uence. This will
enable us to strengthen our brands and rela-
tions with business partners and thus create
new business opportunities that offer long-
term growth and improved profi tability.
Long-term plans and strategic objectives
Long-term plans defi ne the direction in a 5–15
year time perspective. They serve as a tool for
management to drive change, protect strong
positions and prioritize with regard to fi nancial
consequences. Examples include product plan,
industrial plan, sales and marketing plans and
service offering plan. The plans are aligned and
reviewed regularly. Some long term-plans are
Group common and some are specifi c to Group
Strategic objectives
2019–2021
Strategic objectives
2016–2018
Strategic objectives
2013–2015
Long-term plans 5–15 years
Trucks or an individual business area. The plans
may impact activity plans for strategic objectives.
Strategic objectives are made on Group
Trucks and business area-level, for one fi xed
three year period at a time. Each strategy con-
sists of a number of key focus areas, which in
turn contain strategic objectives. The strategic
objectives are broken down into a large number
of road maps and activity plans – ultimately
affecting employee’s Personal Business Plans.
Both the long-term plans and the strategic
objectives aim to reach the Wanted Position,
which consists of fi ve statements that describe
where the Group wants to be by the year 2020.
They represent important milestones towards
achieving the Vision.
Changed prerequisites
The Volvo Group has undergone a dramatic change
in the past decade. The Group has grown consid-
erably in emerging markets and has welcomed
new employees and companies. As a conse-
quence of this, the Group currently has opera-
tions in approximately 190 markets and employs
about 110,000 individuals, who strive to create
effi cient and sustainable transport solutions.
Adaptation of governance
We have made extensive efforts to adapt the
Volvo Group to the conditions and expectations
of the business world and the future – and to
achieve our wanted position by 2020. The efforts
resulted in us taking a step toward governance
as one Group with clarifi ed roles and responsi-
bilities. We have established a distinct brand
portfolio and have moved from a regional focus
with individual brands to a globally coordinated
approach. In addition, we have created a more
distinct distribution of responsibility with meas-
urable targets. It is necessary to have all of this
in place prior to the commencement of work
based on the new strategies. Our structure for
governance encourages close monitoring, as well
as rapid and effi cient decisions and early adjust-
ments, when necessary. The system also aims to
involve all employees, by clarifying how each indi-
vidual is important to achieving the targets.
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