Atlas Copco - Annual Report 1999

PROFESSIONAL DEVELOPMENT
People Management
Ensures Growth and Profit
To help the Group achieve profitable growth in a competi-
tive and changing world, Atlas Copco has defined and
implemented a leadership model. Each manager for a
business unit receives a mission, serving as a starting
point and a framework for steering the business and
making things happen.
Based on the mission received,
the manager develops a vision
and specifies a strategy. The
only way to implement the
strategy in an efficient way is
by professionally managing
people. To this end, the crucial
task for the success of any
company in the Group is to
bring in, develop, and keep the
right people. It is also the
manager’s responsibility to
grow people into new positions
within the Group.
To support managers in
people management, processes
are available to everyone
throughout the Group, through
an internal knowledge management
system. Tools – for
example, for skills development
or performance assessment – are available, and an organization
is in place to support managers in their implementation.
In 1999, key indicators for people management were specified,
and a reporting structure is now established. For year 2000, relevant
goals will be set, enabling focused action plans to be put into
place. In other words, the Group now has improved management
tools to support each manager in the steering of the business. The
goal is to have competent and committed people, to bring the
Group forward in line with our strategy and to achieve results.
Key Indicators for Business Unit Managers Actual 1999
Manager with university degree or higher, % 83
Internal applications per management vacancy 5.1
Average years a manager remains in a position 4.1
Managers who are expatriates, % 32
70 ATLAS COPCO 1999
Percentage of
Expatriates from Certain
“Home” Countries
%
60
50
40
30
20
10
0
95
96
Sweden
Belgium
U.K.
97
98
99
U.S.
Other countries
Group Seminars Develop Managers
As part of managers’ ongoing development within Atlas Copco,
the Group runs regular seminars in Europe, America and Asia.
Here, the primary purpose is to develop each manager’s understanding
of his / her role in a changing business environment.
To increase the competence base in this context, experts from
inside and – where needed – outside the Group are invited to
contribute to each seminar.
Another equally important purpose for seminars is to grow
the Group. This is done by selecting participants with diverse
backgrounds, in terms of their positions and the years of experience,
and having them identify and then form projects around
issues where they feel that the Group can be developed.