Scania annual report 2003

MANAGEMENT STRUCTURE
Continuous strategic work
Scania needs long-term profitable
growth in order to maintain and
strengthen its position. In a world of
constant change, with competition
becoming tougher every day, Scania’s
management structure must continuously
be improved and refined.
Scania today is a global, integrated
organisation of about 29,000 employees.
Leading a large, complex organisation
requires clear strategy and governance,
as well as understanding that transcends
all functional and regional boundaries.
In a number of respects, Scania is the
leading company in its industry. To maintain
this leadership, the company’s operating
objectives must be integrated with its
vision and mission. They should be transformed
into concrete guidelines and targets,
both for Scania as a whole and for
its various operating units.
The Executive Board
Below the Board of Directors, Scania’s top
decision-making body is the Executive
Board, which decides on issues of a longterm
strategic nature.
Decision meetings
Scania’s decision-making structure is
based on a fixed number of meetings in
the various branches of operations. Decisions
on such matters as marketing, product
development, brand issues and production
planning are made at cross-functional
meetings in which the
Executive Board participates.
Strategic Update
All managers at Scania are responsible for
communicating and working in accordance
with Scania’s strategies. The company’s
strategic direction is summarised in
the Scania Strategic Update once a year.
This document is an important tool when
establishing business and operating plans.
Global Management Summit
Once a year, the company’s top managers
meet for a strategic review, the Global
Management Summit. Similar summits are
also held with board members from the
various Scania companies as well as the
chief executives of these companies.
works and outside perspective further
contributes to Scania’s development.
In keeping with the established strategy,
the local company management directs
and develops day-to-day operations and is
responsible for achieving earnings targets.
The Scania Councils
To further improve sales and service companies,
a number of regional councils have
been established. Each such council is
headed by an independent chairman and
consists of managing directors in a region.
Their task is to improve the business by
benchmarking and exchanges of experience
to achieve the best solutions in the
form of Best Practice. This work is often
pursued in project form.
Group Management
Group Management consists of the
Executive Board and Corporate Units.
The Corporate Units have operating
responsibility for implementing and
carrying out the established strategies.
Corporate governance
Scania’s companies work in accordance
with the principles established in Scania’s
Corporate Governance Manual. The local
company board monitors operations and
establishes a strategy and objectives. The
President and CEO of Scania appoints the
representatives on the local boards,
among them a number of external members
whose expertise, local contact net-
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ANNUAL REPORT 2003