Structural changes in 2010
In January 2010 Wärtsilä announced a plan for adjusting to the changes in the market, and for reducing its manufacturing capacity in the Netherlands, Finland, Italy and Norway, while transferring part of the manufacturing to China. The majority of the propeller production and auxiliary engine production will be located in China, close to the main marine markets. The propeller manufacturing site in Drunen, the Netherlands will be closed. The Wärtsilä 20 generating set production in Vaasa, Finland will be moved to China in order to stay competitive in this commodity market.
In addition to reductions in its global manufacturing staff, Wärtsilä continued to reduce jobs in the Ship Power business as a continuation of the restructuring programme already started in 2009.
The new Services organisational set up, the centralisation of all Supply Management into a single organisation, as well as the re-design of support functions globally, were planned and implemented during the course of 2010 in order to adjust to the changed global market situation.
The re-organisation process in the Services business, named ‘Managing for the Future', was announced already in November 2009 and carried out during spring 2010. The new organisational matrix has all customer operations on one axis, and the global product management and support functions on the other.
Wärtsilä merged all strategic sourcing resources into one organisation, Wärtsilä Supply Management, with the aim of targeting further efficiency improvements and securing future demand.
A global project concerning support functions was kicked off in March 2010. The evaluation of every support function globally was carried out in the spring, and implementation plans were drawn up during the autumn. The aim was to create a new organisational design for the support functions. The main principle was centralisation of the support organisations in order to improve the implementation of global initiatives, to harmonize processes across the Group's companies and businesses, and to reduce overlapping work. By these actions, consistent world class services can be provided globally by our support functions and Information Management. The functional country by country analysis, prepared during the autumn, indicated that there were overlapping activities and a need to adjust organisations to the new way of working, as well as to lower volumes.
The formal consultation processes were initiated in the respective Wärtsilä units involved, with the aim of reducing approximately 1,400 jobs during 2010.
In addition to direct employment, Wärtsilä also indirectly employed an external workforce totalling 2,254 man-years in sub-contracting at its factories and units. The units located in Finland had a total personnel of 3,326 employees.
|Number of employees per business|
|No. of employees||Change|
|Industrial Operations||4 210||-701|
People management in 2010
The main goal of Wärtsilä's human resources strategy is to support the corporate strategy, and to bring it alive by developing Wärtsilä's organisation and competencies to meet the business needs. This is done by translating business strategies to people management actions, strengthening leadership and management competencies, as well as performance management and development throughout the organisation, by promoting true employee engagement through a culture of open communication, integrity and innovation, and finally, by ensuring that the businesses have the requisite resources and skilled and motivated people at their disposal. This means supporting organisational design and changes, continuous competence development, and stronger performance management processes with target setting, proper feedback, evaluation of overall performance, and recognition of strong performance.
Wärtsilä Human Resources continued to develop its common people management processes and tools, and common ways of working across national and organisational boundaries. Wärtsilä continued to invest in technologies and tools that enable virtual collaboration and conferencing. These measures have brought clear cost savings, and more importantly, they have increased efficiency and enhanced the balance between work and home life by reducing the time needed for travelling.
The Performance Management process supports Wärtsilä in reaching its business targets by translating business strategies to individual and team objectives. Each Wärtsilä employee needs to know and understand Wärtsilä's business strategy and its goals. More importantly, they need to know the targets set for their own units, and the main target areas related to their own work. All these items are part of the annual development discussion agenda. Wärtsilä´s employee satisfaction survey, MyVoice 2010, demonstrated a promising and positive development in this area.
Learning and development
Wärtsilä continued its leadership development activities in many areas. An annual executive development programme was held in November, and six global leadership development programmes for senior managers were carried out during 2010. The number of managerial training days is also followed regularly as one of the HR KPIs.
Learning at work, self learning, mentoring, coaching, and job assignments designed to enable the transfer of competence and skills from experienced to younger employees, are integral parts of the development of learning and competence within the company. Employees are given formal training at all organisational levels: from induction training for new employees, to training courses for the company's top executives. Wärtsilä employees attend a total of 54,791 training days a year, averaging 3.1 days per employee. This indicates the broad scope of this function. Many of the training events are tailored to the specific needs of the businesses.
|Managers and superiors||3.2||3.9||2.7||5.3||3.3|
|Other white-collar employees||2.9||3.8||3.3||2.9||3.9|
Wärtsilä conducted its 5th global employee satisfaction survey, MyVoice, in October 2010. The response rate was an all time high, 74.2 %. Organising Work and Teamwork both received high ratings. The results concerning Competence and Development were also good. Wärtsilä employees feel that they can achieve personal development, while also using their skills and knowledge in their job. The biggest improvements since the MyVoice 2008 survey in individual items were in feedback from the immediate superior, discussions about Wärtsilä values, participation in training, and satisfaction with Compass, Wärtsilä's intranet service. The positive trend in development discussion compliance also continued. As an overall trend throughout Wärtsilä, the results concerning rewarding and job security have declined. The willingness to work hard in order to advance Wärtsilä's success has remained strong.