The Strategy For Growth In Volatile Times

One aim of Strategy 2030+ is to detect developments early on and to anticipate their effects. How can this be implemented in a BANI world? 

Strohbichler: Long-term linear plan­ability no longer exists. We need to be prepared for various possible developments when directing our company. We have to find ways that lead to success in a wide variety of scenarios. By expanding our flexibility, we are expanding our options. 

Susanek: That said, not everything is subject to rapid and unpredictable developments. We are also looking very carefully at the dominant megatrends in our industry to draw our conclusions from them. Smart­ification and autonomous machinery, for example. Launching new technologies for our products takes a certain amount of time. This gives us an appropriate timeframe. Then there are discussions with our customers during which we get to know their challenges and expectations. These are all longer-term projects. Another example is the planned construction of a new plant in India. This requires a clear framework and clear goals. And partnerships. With our customers, with industry and technology partners, with our suppliers, who know our quality and cost requirements, and in return have PALFINGER as a strong partner over the long term. 

But what happens if things turn out completely differently? 

Koller: In such cases, we rely on an eternal principle that ensures we have enough of a buffer in all of our planning so that we can always react to new scenarios. I need to manage my day-to-day business so that I have at least 30 percent of my time for strategic work or crisis management. It helps if we use systems that are digitalized and standardized. The more standardized my systems are, the more flexible I can be. That sounds like a paradox. But that’s exactly how it works. This is exactly what one of our key strategic programs deals with: Process, System, and Data Optimization. 

Klauser: That is the strength of our new strategy.  The three strategic directions provide the framework.  The five most ­important strategic programs define the goals in each area where it is essential that we are successful. This opens up the way for balanced profitable growth without giving up or neglecting proven product lines and business segments.

The strategy has now been formulated and taken on board. How do you ensure that it is lived within the PALFINGER organization?

Strohbichler: We invest a lot in communicating with our employees. Strategy is not a democratic grassroots project, but is strongly driven from the top down. That is why it is important to communicate well and ensure that there is strong alignment, understanding and commitment within the organization. 

Klauser: What Felix says is vital. As the Executive Board, we are committed to the principle of leading by example. This has an effect both on the inside and on the outside. In addition, we keep track of the way the strategy is implemented step by step, action by action, and result by result. To do this, we have put in place tools that visualize the implementation and progress of all strategic programs. This provides the basis for successful management.

You have evolved the strategy and, at the same time, the brand and corporate culture. Why?

Koller: Without the relevant ­ Corporate culture strategy remains simply a theory and is not lived within the company. And even culture is not static, but is subject to change and evolves. We have only developed what needs to be developed: We have left the things that work well. We made changes where we could see that we needed to work on ourselves a bit more intensively. We combine what makes us strong, our hands-on mentality, with our ambition to be better. We can do both: solve problems quickly and give ourselves strategic direction. We have defined three values for this purpose: Be passionate – because that’s how we stand out. Be straightforward – because that’s how we communicate. Be leading – because we shape the future and our partnerships by seeing change positively.

And how does the brand play into this?

Klauser: Lifetime Excellence is a promise that we have been living for decades. Not only do we meet our customers’ high expectations, we exceed them. We set the standards in our industry worldwide through innovation, service and quality. We offer our customers solutions that help them solve all their challenges, for the full life cycle of the product. At the same time, Lifetime Excellence describes our goal of being even better, every day. This is a marathon that we are running here.

Susanek: I share that perspective; Lifetime Excellence is the reason why our customers choose PALFINGER. When we reworked the strategy, we made a deliberate decision to take a look at the topics of culture and brand at the same time. We can only be successful when they go hand in hand. Lifetime Excellence is and will remain our promise. We are strengthening our promise with Strategy 2030+, focusing on it even more and, with our strategic programs, we are creating the conditions for us to continue to fulfill our promise for our customers in the future, regardless of what BANI brings.

In closing, how is success measured?

Klauser: To be number one in our industry is success. This is a clear objective.

Strohbichler: Success is also largely measured by us achieving our ambitious Goals 2030. And by improving on the defined financial and nonfinancial indicators. 

Klauser: That’s right. In other words, we are successful when our customers see that our solutions enable them to work faster and more efficiently. And that they are in a stronger position when they invest in PALFINGER.