Equality Exchange Network Conference 8 June 2011 Meet the Challenge, Lead the Change. View from the private sector Wayne Gwilym, Rockwool.

Equality Exchange Network Conference 8 June 2011

Meet the Challenge, Lead the Change.

View from the private sectorWayne Gwilym, Rockwool

Equality Exchange Network Conference 8 June 2011

Contents:Rockwool – Who & What?A look at two “Challenges” – Employment & SecurityWho doesn’t like change?Why Values matter and how we use themEngagement of Employees v. Authenticity of LeadersFrom Last to FirstOur passion for society

ROCKWOOL

Who are we?

What do we do?

ROCKWOOL

Who are we?

What do we do?

Rockwool Group•World’s leader in stone wool•Quoted in Copenhagen•Origins from 1909•Main shareholders:

Rockwool Foundation - 23%The Kahler Family

The Rockwool Foundation

Planned factory

Factory

Sales office, administration, etc.

Rockwool Locations

8,800 employees55 Sales offices in 37 countries27 factories in 17 countries

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Create and protect

Protect people and buildings from the environmentWe protect against cold, heat, fire, noiseWe help create beautiful buildings from durable materialsWe improve safety, comfort and property value

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Create products and systemsto protect the environment from buildingsOur products reduce CO2 emissions by minimizing energy consumption of buildings;We enable customers to create more beautiful, healthier environmentsWe borrow our material – stone – from nature, and return it when we’re finished

An Employment Challenge:Addressing Workforce Gender Imbalance

Workforce Gender Imbalance

Prior to 2008 – “Middle aged, white, working class, male”

With a new recruitment process and a few “Ladies Nights” we “tipped the balance”

THEN

Construction market crashed - so did sales..

BUT

The “Ladies” are still with us….

When times are really tough….dare to think long term

Between June 2007 & November 2008 we invested€100m in new production& logistics facilities in ourPencoed plant

Q:“Who doesn’t like change”?A:“Depends what’s changing, who’s affected and how”

Sustainable improvement in an organisation’s performance needs engagement of the critical stakeholders – its employees.You have to talk with your people in their world. If they “resist”, its probably because they have a reason.It takes patience, time, humanity and vision…but when its done, its done. For good.

At Rockwool UK & I we have a partnership model where all employment policies are jointly developedby managers and workforce

The “Security” ChallengeOne of our first joint policies was “Dignity & Work”This significantly opened the culture to new perspectivesBut we had to ignore the advice about nicknames……

Our Group Values

Why Values Matter @ Rockwool.Every organisation has values…So what’s different?

The Group Values have continuous focus at Group and local OPCO level.Each employee has an element of values in their performance review.We believe in dialogue and invest in feedback.Employees participate 360 feedback to their colleagues.*Also through one to one dialogue between members of each work team.This opens with “What I most appreciate about you..”

The business was founded by the Kahler family so their values are deeply embedded, but we inherit the duty to continue in their footsteps.

Feedback is the “Breakfast of Champions”A production manager recently attributed significant productivity gains to the fact that his shift managers had participated in a Values feedback dialogue..

Engagement of Employees v.“Authenticity” of Leaders

When organisational values are brought to life on a daily basis employees are inspired to give of their best..

There is an increasing obsession with “Employee Engagement”ButScandals from the banking Crisis to MP’s Expenses tell us that people longfor leaders who are honest and – authentic.Would these problems have occurred if leaders had participatedin receiving honest feedback from their people? Trust is critical to gaining high commitment in turbulent times….

From Last to First

Despite high inflation, £m’s of operational cost savings delivered in 1 year.The team that delivered this are on average 56 years of age with 29 years service.We benefit from the remarkable passion and dedication of our people.

At the start of the recession, after completion of our investment programme,Rockwool UK was the least productive and efficient factory in the Group.Now, with a more diverse workforce and through the dedication of all,It’s the most efficient and amongst the most cost effective – even compared to E Europe.

When visitors from around the Group investigated……..they realisedthat employees had totally bought into what needed to be done. Amassive financial target for 2010 was broken down into tangible actionsfor employees to implement. It was followed up rigorously by a cross functional team.

Finally – Our Commitment to CSRFuel Poverty – A Social Challenge

•Most of the buildings we will inhabit in 2050 have already been built

•Refurbishment of this stock runs at less than 1% per year

•Fuel poverty affects around 4.5m people in the UK

•3.75m people are in the “most vulnerable” category

•Average fuel prices rose 80% between 2004 and 2008

•Indoor comfort is critical to eradicating health inequality

•We work actively with partners such as BTCV and through the WAG Arbed programme on these urgent issues

•Community factory visits prior to community retrofit programmes

Thank You