Scania annual report 2004

Leadership
for profitable growth
In order to meet the challenges of the coming years, it is necessary to safeguard the supply
of talent in all units and at all levels. This demands a high standard of leadership. Scania’s
leadership principles are the foundation for all work throughout the global organisation.
Leading 30,000 employees worldwide requires
a clear strategy. At Scania, leadership
must transform a common way of
thinking into a common way of working.
In a number of respects, Scania has a
leading position in its industry. To strengthen
this position, the company’s operating
objectives must be integrated with its
vision and mission. The same guidelines
and targets should apply to Scania as a
whole and to its various operating units.
Management structure
Below the Board of Directors, Scania’s
top decision-making body is the Executive
Board. It decides on issues of a long-term,
strategic nature.
Group Management consists of the
Executive Board and the heads of each
Corporate Unit (see page 89). The Corporate
Units have operating responsibility
for carrying out the established strategies.
Decision meetings
Scania’s decision-making structure includes
a number of fixed meetings in the
company’s 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 ensuring that Scania’s strategy is communicated
and that work takes place in
compliance with it. The company’s strategic
direction is summarised once a year in
the Scania Strategic Update. This document
is an important tool when establishing
operating plans.
Global Management Summit
Scania’s top managers gather once a
year for a strategic review, the Global
Management Summit. Yearly meetings
are also held with board members from
Scania’s subsidiaries around the world.
Corporate governance
All companies in the Scania Group work in
accordance with the principles established
in Scania’s Corporate Governance Manual.
The President and CEO of Scania appoints
the representatives on the boards of local
subsidiaries, among them a number of
external members whose expertise and
local contact networks contribute to
Scania’s development. These company
boards monitor operations and establish
strategy and objectives.
In keeping with the established strategy,
the local company management directs
and develops day-to-day operations and
is responsible for achieving growth and
earnings targets.
The Scania Councils
To further improve sales and service companies,
a number of regional councils have
been established. A council is headed by
an independent chairman and consists of
company managing directors in a region.
Their task is to improve the business by
benchmarking, exchanges of experience
and common projects.
MANAGEMENT STRUCTURE • SCANIA ANNUAL REPORT 2004 10