Revolution - smartpage.fi

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Revolution - smartpage.fi

Ensto's stakeholder maGazine 2013Design'sdifficultQuestion: 'Why?'ABB and Ensto:Anatomy ofa PartnershipLeena Mörttinen'sBottom-UpRevolution1


Contents561013141820242628303233343638404244464851From the CEOWhy electricity is the solution, not the problemLeena Mörttinen's Bottom-up RevolutionAn economist on energy, the EU, and the role of both in the worldDesign and the Bottom LineFor EDF’s Gilles Rougon design goes far beyond pretty formsThe Franco-Ensto PartnershipThe growing relationship between Ensto and FranceA Memorable SpaceHow Anne Stenros is building a design culture at KONEDesign for AllScope’s Jarmo Lehtonen takes the mystery out of designCarbon’s Worthy AdversaryArchitect Matti Kuittinen on passive homes and carbon footprintsDesign's Difficult Question: 'Why'Artek’s expansion hinges around one simple questionA Cathedral's Immaculate RooflineOptiHeat keeps Helsinki Cathedral’s roof ice-freeBusiness Intelligence and Ensto RussiaHow customer service can both boost sales and gather informationEnsto's EV 'Freak'How’s your driving, Timo Luukkainen?More Light, More SavingsLEDs make US Embassy kitchen life betterShort NewsEnsto news from around the globeRevenge of the Electric VehicleWhy the EV is no longer the ugly stepchild of petrol carsAnatomy of a PartnershipThe secrets of Ensto’s relationship with ABBAll Aboard EnstoHow Ensto LEDs light the world’s cruise shipsWorking Toward 'Wow'Ensto Pro brings Ensto closer to its customersSoldiers in the War Against LossesMeet Ensto’s soldiers in the war against lossesUnlocking Human PotentialBrian Tracy at the 2013 Ensto Sales ChampionshipsTrust Capital in the Modern AgeTimo Miettinen on modern organizations and human beingsIn Others We TrustProfessor Toshio Yamagishi: those who trust are not naïveEnstoMan Faces Energy IgnoranceThe superhero the world’s been waiting for1014Anne Stenros: A Memorable Space2022 224244Brian Tracy Unlocks Human PotentialGilles Rougon: Design and the Bottom LineMatti Kuittinen: Passive House Architecture4In the War Room: Soldiers in the War Against Losses2


CLIMATE NEUTRAL PRINTED MATTERClimateCalc CC-000025/FIEnsto Today is the voice of Ensto Group.Cover: Leena Mörttinen, Director,Competitiveness and Growth,at the Confederation of Finnish Industries.Editor-in-ChiefPia HänninenManaging EditorMari HäyryContributing EditorsRiina Silvennoinen and Scott DielArt Direction and ProductionHeikki Ylönen, Capitol ConsultingLayoutAri Anttonen, MicroMediaFeature photographyKaupo KikkasPrinted byHämeen Kirjapaino OyEnsto Today is published by Ensto Group.All rights reserved. Reproduction in partor in whole by permission only.Contact informationENSTO GROUPEnsio Miettisen katu 2, P.O. Box 7706101 POR VOO, FINLANDTel. +358 204 7621ensto@ensto.com441 209Printed matterHÄMEEN KIRJAPAINO OYFrom the EditorFirst to the FutureThe Nordic countries "have reached the future first,"wrote Adrian Wooldridge in The Economist on February2, 2013. We could not be more flattered.But despite heaping praise, the magazine alsohighlighted what it called "one of the region's biggestweaknesses,” a failure to bring together our two corestrengths of design and engineering.Ensto is working hard to continue to be an exceptionto Wooldridge’s statement. In Finland, as well as the 19other markets we call home, we’re committed to thesuccessful marriage of engineering and design with theultimate goal of saving your energy.This issue of Ensto Today is, in part, a celebration ofthe union of engineering and design – not only at Ensto,but at other great companies like EDF, KONE, and Artek.We hope you’ll take inspiration from some of the manyexamples in this issue!www.ensto.comfacebook.com/enstogroupPia HänninenDirectorBrand and Communications3


Timo and his Gordon Setter Pinot Noir4


Letter from the CEOElectricity is Not the Problem– It's the SolutionWhen you take a thorough look atelectricity as a form of energy,you quite clearly see that it isan enabler of sustainability,and a source of many positivethings in our lives. Without electricity there is nomodern civilization.Electricity is also the only form of energy thatdoes not produce local emissions in its transport oruse. However, electricity is such a part of our livesthat we take it for granted: few people think aboutit at all, except when paying their electricity bills, orwhen taking an emotional or non-rational positionagainst it. Let us consider some facts about electricity.Think about a house without electricity someone hundred years ago. Lighting with candles or oillamps was inefficient, costly, and polluted the air.Heating in fireplaces or stoves with wood or coalcaused severe health problems and airborne pollution,especially in urban areas. Wood and coal hadto be transported, loaded and unloaded, and stored,which led to the inefficient use of space, and wouldhardly anymore be possible in modern cities.For an average worker the cost of a readinglight was rather high, as candles and lamp oil wereexpensive. The storage of food and the heating ofwater for laundry were challenging and time consuming.In farmhouses, cows had to be milkedmanually with, at best, limited lighting and underpoor hygienic conditions. It is easy to see that thosewho have benefited most from electricity are thoseresponsible for food, laundry, heating, and tendingto animals. Hence, electricity has been a source ofequality since it made a revolutionary change in thelives of normal housewives.If you consider modern society and imaginewhat can be done with electricity in order toenhance energy efficiency, reduce local emissions,and facilitate more comfortable lives, you wind upwith a very long list. Beginning with IT solutionsthat reduce the need for mobility, and ending withelectrical vehicles – several times more efficientthan internal combustion engines in urban traffic –electricity can be used to reduce particle- and CO 2emissions. Both inside and outside, LED luminairesdeliver not only high efficiency, but also longevity,comfort, quick reactivity and reduced maintenance.Modern buildings built to passive norms orhigh LEED certification need so little energy thatelectricity is the most economical solution. Theseelectric systems can easily be combined with distributedproduction of electricity with solar panels,nano coating in windows, or paint-generating electricity.The houses and their inhabitants will playa role as both consumers and producers of electricity.In fact, electricity will be the future buildingtechnology solution for houses with a low energyneed and will replace many of today’s technologies,such as geothermal or district heating, which are attheir best in houses with high energy consumption.Houses of the future will also learn, react and adjustautomatically to the lives of their inhabitants, andwill even monitor their well-being and, if needed,call for help.Electricity is nothing negative. It is rather the onlysolution possible to conserve our planet’s resourcesand maintain a better standard of living.TIMO LUUKKAINENCEO and President, Ensto Group5


ensto todayThe world economy is undergoing a structural change, says economistLeena Mörttinen, Director, Competitiveness and Growth, at the Confederationof Finnish Industries. The challenge: to create strong, sustainable growth -growth that does not destroy the environment at the same time.‘A World ofZeros and On6You’ve said growth is critical for Finland.Are you referring to the generalcapitalist growth imperative, or somethingmore specific?If I’m speaking as a Finn then the welfaresystem that we’ve established necessitatesgrowth. It’s the welfare imperative.Finland is in a tough situation at themoment with an aging population andshrinking labor force, so the question isin the sustainability of the model we have.The crisis is global, so over-indebtednessand sustainability is not a Finnish issueonly. If there is no growth, I see no futurefor the euro.The euro is anchored in the idea thatwe have a common convergence towarda stable growth path in Europe. If that istaken away, the justification for a commoncurrency evaporates, and indebtednessstarts to be what’s driving us, resulting incontinued austerity, political instability,and beggar-thy-neighbor policies. Andthe case for the EU and a single currencyloses ground.The challenge is how to generate positivegrowth that does not destroy the environmentand climate at the same time.That’s a big challenge since it requires fundamentalstructural change in productionand consumption.By structural change are you talkingabout a shift away from carbonbasedtechnologies toward cleantech?And more generally being able to producemore efficiently from scarceresources. We need increased productivityto reduce the destructive effects ofwasting resources.But binding regulations apply toroughly 15 percent of the world’scarbon emissions; the overall carbonfootprint grows each year; andEurope deindustrializes, exportingthe carbon footprint to Asia. So is aconscience-easing exercise or is theretrue improvement?The problem is that so far the environmentalpolicy in Europe has not generatedgrowth. Some may feel better aboutthemselves owing to an aggressive firstmoverapproach, but the environmentand climate are not cleaned by it. Continueto consume and someone will continueto produce. If the products are notproduced by us with cleantech technologiesthen they will be produced elsewherewith less-clean technologies. Climaterules cannot be European-specific.Europe’s first-mover approach, wherewe implement unilaterally and even fragmentally,is not going to result in a betterworld.Environmental policy must be doneon a global scale. Europe must be strongerin negotiating for global rules, and contributingto how the rules are structured.The problem is that in Europe authoritiesare not satisfied by having a roof set foremissions, they are also setting multipletargets and creating conflicting incentiveswhich fragment industry’s ability to findthe best technologies themselves. Environmentalpolicy is actually resulting indeindustrialization but not cleaning theenvironment.You say Europe must put itself in abetter negotiating position, but does theUS or China, say, share similar goals orpriorities when it comes to climate?Europe has a different sort of agenda thanthe US has. Consider the US and its newtechnologies concerning shale gas and oil.They have abundant resources and they’realso worried about growth. Now energyprices are falling there and industry is consideringmoving back. With all these benefits,they’re not going to give up their newfound,albeit old-fashioned, energy resources.Perhaps the technology they developwill be carbon-based, but they may usecarbon capture to counteract the negativeeffects, for example. If the US continuestowards exporting energy, they may actuallycorrect their current account deficit quickerthan we think.continued


es’We talk about Swedes being too consensus-oriented.Finland is more of a country where you 'just do it.'– In my view we could discuss a bit more, a bottom-uprevolution where the whole team contributes.”7


ensto today‘A World ofZeros and Ones’If the US gets its political act together,while Europe is killing its future throughunilateral implementation, Europeanindustry will also move to the US or Asia.This bigger picture has to be betteranchored in the European discussion. Atthe moment, the benefits of integratedEurope are not there. Environmentalpolicy requires cooperation. We in Europehave to take the political externalitiesbetter into account.What is the result for Finland?If Europe is tying our hands, then Finlandloses. We are like an island. The logisticalcosts are much higher in Finland than inother parts of Europe, and they’re a muchbigger share of a company’s cost structurethan in, say, Central Europe. In Finlandwe’ve been compensated by lower energycosts and reasonably-priced financing,the banking sector providing loans withlow margins.Now the regulations are hitting ourfinancing very heavily because we’rebank-dependent. The margins will creepupwards because of the regulatory shockand high bank dependence in Europe.Also, energy prices are increasing becauseof environmental regulations put in place.Companies will have to make up theirminds where they want to produce. Deindustrializationmay very well be the path ofFinland unless European policies change.What about the doomsayers who saythat soon Europe will be the world’sfifth economy?Well, it may be if the policy does notchange. This really is up to us. Europeeither will go down or it will be somethingmuch better than it’s been before. We nolonger have continuously nicely behaving8


If the products are not produced by us with cleantech technologiesthen they will be produced elsewhere with less-cleantechnologies. Climate rules cannot be European-specific.”paths to choose from. We have zeros andones. Crisis has always been the way tochange the world. In Finland when wehad the crisis in the beginning of the ‘90swe changed some fundamental things,like we got out of this inflation-devaluationcycle we had and actually anchoredmonetary policy very firmly. We couldn’thave done it without the crisis.The question is whether Europe usesthis crisis to make a better Europe andcreate a growth agenda that is sustainable.I think disintegration will be at the end ofthe path if Europe is not able to choosemore wisely than it has so far.So are you an optimist?I’m an optimist. I’m an economist, afterall. The macro economist always saysthat politicians eventually always makethe right decisions, and people in the endfind the light at the end of the tunnelmore attractive than this self-defeating,staring-at-your-own-belly-button waywe’re now doing things.That is some of the debate amongFinnish companies. Support for the viewis growing that the EU is not beneficial,and we should play with those outsideEurope, as if these are mutually exclusive.This distracts people from theirown opportunities and causes them totalk about savings or pay cuts rather thanthinking about productivity and workingto improve cooperation and creatingsomething new.But we can create something newif we believe we can do it together withEurope and the rest of the world. Thisshould be about the single global marketagain. This is not about federalism, thisis about economic integration that hasn’tbeen fully established or implemented inEurope yet.What about Finnish manufacturersof Ensto’s size? What should they bedoing?They need to stay alert about what ishappening elsewhere and be extremelydynamic. They should not rely on oneeconomist’s forecasts, since forecastingis impossible in a world of zeros and ones.Create scenarios, test those scenarios,and see whether you can survive evencrisis scenarios. Remain strategicallyagile. Being a pessimist or not daring todo anything is not the right approach.Through the stress tests, you know yourability to survive shocks and negativeoutcomes that may surprise you. If youhave a good handle on your risk-takingability, you can consider growth strategies.Has the view of the world changedcompared to the pre-crisis time?Yes. We used to be in an easy, Goldilocksworld. We thought that pretty muchall the countries were market economies,we had the WTO approach of multilateraltrade agreements, and “globalization”was the word of the day. When the BRICcountries started emerging we treatedthem as if they were from that world.But of course they are much more difficultto read. They are still planned economiesto a certain extent, they do nothave open financial markets, they do nothave strong domestic consumption, theyhave capital controls, etcetera. These bigplayers came to the scene and we pretendedthese were market economies.The question is if the consumptiongrowth is not coming from Europe,you have to be able to access the marketswhere the catch-up phase is stillon, developing countries as well as theBRICS countries. But these do not behavelike market economies because they’restill developing. Companies have to beextremely well informed on the specificitiesof these countries, the political role,how to avoid corruption. Information isnot cheap in these countries.But if we believe what we read inthe newspapers, Finland has a greatproblem-solving ability, a commitmentto cleantech, and possibly thebest educational system in the world.So where’s the problem?We are engineers. We’ve really gone veryfar with the division-of-labor thinkingand concentrating on engineering skillswe have. What we have not been so goodat so far is figuring out how to integratehorizontally, across industries and professions.We, just like everybody else inthe world, need engineers that are humanistsand economists at the same time.We talk about “regional policies” with5.5 million people, and we have fragmentation– the forest cluster, ICT cluster,etcetera. The next phase is not going furtherin these silos, but it’s horizontal, openarchitecture, opening the borderlinesbetween industries. It is products meetingservices, the lines getting blurred.It has not been necessarily our strengthto cooperate much. We talk about Swedesbeing too consensus-oriented. Finland ismore of a country where you “just do it.”In my view we could discuss a bit more,a bottom-up revolution where the wholeteam contributes. This is the way forward.9


ensto todayDesign andtheBottomLineEDF’s Gilles Rougon emphasizes that design is much more than trendy shapes.When properly understood, design can increase the value of a company.10


The best design we may deliver is theone you don’t think is designed.”Design is often thoughtof as trendy shapes, orpackaging designed togive seductive form toa function behind it.But Gilles Rougonand Electricité de France demand morefrom design. To Rougon, design meansadding value for the end user at everystage of a business. At EDF, there is no“design department” where ideas are produced,rather design bridges innovationand stands at the crossroads of the needsof end-users, EDF itself, and every potentialstakeholder.EDF is the world’s largest producer ofelectricity and employs 160,000 workersin 27 countries. Unusual for large powercompanies, however, 2,000 of theseemployees are researchers who workhand in hand with the design team on avariety of topics.Rougon names four ways whichdesign is used in companies.First is industrial design. “This disciplineenables an organization to boostuser-centered innovation in deliveringnew products,” says Rougon. “The goalis to design seductive but fair and costeffectivesolutions to differentiate youroffer.”The second is image and brandbuilding through design. “This is whatcompanies mainly see at the beginningwhen they think about design,”he says, “simply because you can moreeasily measure the return on investmentthrough the press coverage generated.”The third, however, deals with facilitatingnew processes for collectiveinnovation within a company. “It’s not aquestion of which product or image youbring,” says Rougon, “it refers to how youwork.” He says designers generally like towork in short periods of time on a singlesubject. How quickly? “Ideally two tofive days to make a team project deliveran innovation which you can patent,” hesays, emphasizing that the work processbrings innovation quickly in terms ofproduct, image, organization and potentialpartnerships.The fourth way Rougon terms “strategicdesign,” and he says it is not seenyet in most companies but will be in thefuture. “Strategic design focuses on imaginingnew valuable roadmaps. It meansidentifying potentially valuable businessmodels for the future, even if it’s not yourcore busines yet.”As an example, Rougon takes apage from his own business. “Even ifyou combine all the companies in theworld that supply energy for transportation,industry and buildings, internationalenergy experts underline that wewon’t be able to build enough capacity tosupply the world’s needs in year 2050. Soour next business models have to be morethan about only delivering more energy.”Design comes into play as a way to“sketch out various scenarios” – scenariosillustrated and shared with a lot of peoplein and outside the company. “How canyou deliver new services to the end user?”asks Rougon. “Because in the future nosingle player will have the whole answer.”Design as HistoryDesign is part of the history of EDF,beginning in the 1970s when it workedwith architects like Claude Parent inorder to integrate its centralized plantswithin the remote landscape.continuedGilles Rougon’sBest-designedProducts“The best designs for me are thoseI like to use everyday all year long.Something sustainable, somethingI appreciate and am proud to use,”says Gilles Rougon. Here are his threefavorite well-designed products:The OPINEL KnifeDesigned in 1890Opinel is a simple, beechwood-handledpocket knife with a carbon blade. It's beenmanufactured since 1890 in Saint-Jean-de-Maurienne, France. “It’s not overdesignedand helps you in a wide range of situations(eating, cutting material like wood ortextiles, picking mushrooms…),” says Rougon.“The more you use it, the moreit becomes personalized, withthe wood changing shapeover time.”MOLESKINENoteBooksDesigned in 1997“As a designer I use drawing books.Moleskine may be the first notebook wherethe design really considers the details.Notice the corners.”The BIC four-color penDesigned in 1962“I carry this pen everywhere.”Photos: Pasi Viitanen11


Design is not an adjective, it’s a discipline.”GILLES ROUGON, ELECTRICITÉ DE FRANCEEDF, despite its vast economic resourcesand a head start due to architecture, triedtwice to integrate designers into its R&Dand failed. It was simply too soon to mixquite different cultures.Today, Rougon’s team is active inhelping the company’s solutions keep theend user in mind. Take EDF’s “Watt time”clock, for example, a most elegant solutionfor energy monitoring in buildings.“The first idea came up six yearsago,” says Rougon. The challenge beforebringing the concept to life, he says, isto design “a fair balance between a backoffice becoming more and more sophisticatedand the will to understand what’shappening at a glance. You’ve got lots ofdata to monitor in every direction, butyou are looking for simple interactions. Ittakes time to deliver simple solutions.”Design andtheBottomLine‘Weniger, aber besser’(Less, but better)What may come as a surprise to most,however, is that Rougon’s design team isonly five individuals. Yes, five. And it maycome as more of a surprise that despite itssuccesses Rougon stays reluctant to createany large centralized design team.“When you create a design- or innovation-department or division or direction,you unconsciously send the messageto employees that ‘this is where innovationstarts.‘ Based upon our experience, youhave to put the designers as near as possibleto the operational teams, researchers,and engineers to develop networks andnot only centralized in-house designteams.”Rougon says the trick is to multiply theeffect of the design resources you have.“When you create an in-house designteam and introduce designers in someparts of your company, you immediatelyfoster and develop external contracts withdesign agencies. Even if ours is a tinyteam, we’re working a lot with externaldesigners in order to multiply the impactof our way of working. But definitely we’renot working separately and just bringingback ideas after a brief.”Rougon is quick to invoke the nameof Dieter Rams who famously declareddesign should be “weniger, aber besser,”less but better. Rams, the lead designerfor Braun, brought hundreds of innovativedesigns into our homes – ideas so evidentthat they quickly became the newstandard.“The best design we may deliver isthe one you don’t think is designed,” saysRougon. “If it looks very trendy, then becareful. It won’t last long. If somethingis so well designed you forget it and justexperience it, then that’s good design.”How to Briefa DesignerWant to get the most fromyour designers? Gilles Rougonshares what’s worked for him:• Define your practical need orneeds to the designer, focusing onthe final result you desire.• Give as much data as possible forthe designer, which forces him to payattention to details. Technical data, financial,market information – you maybe surprised what a designer will finduseful.• Make sure the designer understandsyour company values. Makeit clear what the end-users and stakeholdersneed to feel as a result of thework.• Keep the brief open! Let people befree to question the brief and proposealternatives. If you don’t do that youmay miss a wonderful path to innovation.Of course, the freedom to deliveran unexpected vision must be balancedby the practical, and so makesure to share clear criteria for a go/nogodecision about ideas.• And don’t forget to brief the clientwho is buying the design! If he is notprepared, if he does not understandhow the process works, then you maybe defeated before you begin. Prepareyour client to receive the added value!12


Photo: Jori GustafssonThe Franco-EnstoPartnershipFrance is Ensto’s biggest market outside its home market ofFinland. Ambassador of France to Finland, Éric Lebédel, spokewith Ensto Today about the France-Ensto partnership.France-Finnish TradeFrance and Finland have long had a closerelationship. The Republic of France wasone of the first to recognize Finland’s independenceon January 4, 1918.Economically speaking, France continuesto play an important role in Finland’seconomy, receiving 2.9 billion euros– five percent of total – worth of Finnishexports in 2011.“It’s never enough,” says AmbassadorÉric Lebédel of the amount of tradebetween Finland and France. “France isbetween the fifth and sixth trading of Finland,but it should increase.”Of higher profile business the twocountries do, Ambassador Lebédel notesthat Finnair is among the first who willfly with the new Airbus A350 XWB whichemploys composite carbon fiber technology.Finnair has ordered 18 of the newaircraft, the first to be delivered in 2015.Lebédel adds that in “for the year tocome we [France] will work more on theenergetic mix, which means we are goingto diminish significantly our fossil andcarbon consuming energies, that we’llhave more sober and efficient energy.We’ll develop solar, biomass, wind in additionto nuclear which will remain significantin France.”The ambassador says that Francehas pledged to lower its dependence onnuclear energy to 50 percent of total by theyear 2025, and will continue to assist othernations who have made the decision tostay with some nuclear power. The ambassadornotes the French company Arevais bidding to construct two new nuclearreactors in Finland.“France also has projects in wind andwave energy. Look for more cooperationbetween Finland and France in wind andwave energy,” says the ambassador. “Inwind it has been solidified in Lappeenrantawith Alstom.”Ensto in FranceFrance represents the second largestmarket for Ensto. “Of our top five customers,four are French owned,” saysEnsto’s Timo Luukkainen. “Not only dowe have three production sites in France,but it’s a big home market for us. Revenuewise, it accounts for a bit over20 percent of our total turnover.”Luukkainen says thatEnsto has “invested onboth sides” in order togain products the companydid not havebefore, providing know-how to the Frenchoperations and building businesses inFrance and Finland which complementeach other. “One of the reasons we boughtNOVEXIA is to gain unique knowledge wedidn’t have before.”While Ensto gains smart grid knowledgefrom NOVEXIA in France, its madein-Finlandheat recovery is exported toFrance, which now has progressive heatrecovery requirements for new buildings.“France will be a big market and going totake a huge step in the direction of energyefficiency,” says Luukkainen.Ambassador Lebédel, in Porvoo onOctober 9th to tour the Ensto plant, waspleased to recognize that France wouldconstitute Ensto’s largest market in 2012for electric vehicle charging stations.“We are happy to see companies likeEnsto investing in France, developingmanufacturing operations in France,” saidthe ambassador. “I was glad to see todaywhat is done from Finland in Ensto forother countries. To understand better howwork is shared between Finland and othercountries including France.”Personal VictoriesOne of Ensto’s most publicized investmentsin France has been the plant inNéphiac, which produces a multiservicekiosk combining a parking meter, electricvehicle charging and internet-based cityservices. The product has been employedin Nice, and was most recently featured atthe Cannes Film Festival.Luukkainen says that since he’s had thepleasure of living 15 years in France and healso considered it “a personal victory thatEnsto is so prominently present in France.”As Luukkainen made himself at homein France by learning the language, Lebédelhas done likewise in Finland: the ambassadorhas learned to speak Finnish thanksto six months training at the Finnish Institutein Paris.And there are other parts of the Finnishculture the ambassador has embraced: histwo “secret passions” of cross-countryskiing and forests. But as a career diplomat,Ambassador Lebédel knows theodds of being stationed in a place wherethe environment matches your personalinterests.“When the foreign service first hintedto me that I could be sent to Finland, I didnot reply how lucky I was,” says the ambassador.“Because in a diplomatic career itcould mean you would be sent to Africa!”13


ensto todayA MemorableSpaceHow do you instill a design culture in a 100-year-old, NASDAQ-traded engineeringcompany with five billion euros in revenue and over 35,000 employees throughoutthe globe? KONE’s Design Director Anne Stenros is doing just that.14


Prior to 2005, KONE, the world’sleader in escalator productionand second largest maker ofelevators, used external consultantsfor its elevator design.“That’s how things used to be,” saysAnne Stenros, a PhD-toting architect andformer Hong Kong Design Centre chief,who was hired shortly after Matti Alahuhtatook over as KONE’s CEO in 2005.Stenros’ task: Take charge of the entiredesign process and bring it in house – at aworld-class level.Traditionally, KONE offered elevatorsin two ways. The standard offeringenabled a client to combine a few materialsand components. Custom projects –where even 50 elevators could be presentin a single project – entailed architectsgiving specs for the elevator which wouldbe fulfilled by KONE product engineersand factory technicians.A Consumer Now KingSeven years after Stenros’ arrival, the traditionalmix-and-match option is stillavailable. But KONE has evolved to offerover 300 standard elevator interiors whicha client can choose from a catalog or piecetogether with an online tool.“When an old building is modernized,”says Stenros, “the apartment boardgenerally will not have a design background.For them it’s easiest to just choosea model from the catalog.” Each of KONE’s300 designs are overseen by professionaldesigners with particular attention paid tothe combinations of materials and lightingand how they interact.For huge “branding” projects, such asOlympic buildings constructed as internationalshowcases, Stenros says the formallanguage of architecture is similar. “Butwhen you’re talking about residentialbuildings, the preferences differ vastlyfrom country to country, so we change theskin.”But changing the skin is only part ofStenros’ task. Her team is required to wearmultiple hats. They serve the end-user, thearchitect, and the engineer.“My background is as an architect,and I see the elevator as part of sequenceof spaces in building, rather than a gadgetor engine. It should be a memorable spacethat makes sense in terms of the overallarchitecture. It’s part of the journey toyour destination.”And given that an elevator’s modernizationtime is 13 years – its lifespan, soto speak – before major renovation willbe required, the designers’ challenge is towork closely with engineers to minimizerequired repairs. “We look out for the lifecycle of the elevator,” says Stenros. “Wewant to repair and not replace.”Since technology will develop significantlyover the 13 years, creating modulesmean that some parts can be changedwithout changing the whole elevator.An example of that thinking may beseen in KONE’s separation of the appearanceof the signalization system from thetechnology behind it. “We started fromthe idea of a touch screen,” says Stenros,removing and switching on her smartphone.“Today’s consumer is used to thiskind of detailing,” she says, displayingher phone’s home screen. “Years ago theywould not have been, hence you had theold stainless steel plate in elevators.”To create a new control operatingpanel (COP), KONE commissioned afreelance cellphone designer. Slightlyironic, perhaps, given the company’s moveto bring design in house, but also likelythe most natural solution. “He created ahuge cellphone for us,” Stenros says. “Andthat was a very transforming idea in thisold traditional engineering business.”But selling transforming ideas is notalways easy. “It isn’t just convincing yourown people,” Stenros says. “We had oldsystems, old subcontractors, and for a projectmanager it’s always easier to use oldsystems. But when it was all done we wonseveral design awards.”We started from theidea of a touch screen”ANNE STENROS‘I am the snowplow’Stenros is adamant that designers – especiallydesign directors – have to be farmore than just aesthetically- and technologicallysavvy. They must be hardheadedand persistent.“A major launch takes two-and-a-halfyears. Someone has to have a vision, andthis is not something tangible. Gradually,and in an interactive way, the visionis manifested, your idea becoming moreconcrete over time. Finally, you show amockup. Then everybody has an opinion!Everyone is an expert! If you can’t supportyour idea with research and study thenthere’ll be endless discussion of whether itshould be green or white or black.”So KONE’s 300 current offerings areheavily backed by trend maps and othermarket research in which Stenros’ teampersonally takes part in KONE’s key markets.If her team says “black,” then there’sgood reason for it.“You have compiled an idea andbacked it up. If you leave it to voting thenthe big picture will be destroyed. So I havea very good design manager who handlesresources, processes and timelines, and Iam the snowplow that makes room for myteam to work properly. Design directorspush the idea through, and the job of diplomatsfollows. If you don’t do it this way,your product will not have a soul.”15


The Ultimatedesign Brief(How to talk to a Designer)“The most beautiful design brief I haveever seen is for the Citroën 2CV,” saysAnne Stenros. The "deux chevaux," asthe French call it, is an economy carproduced between 1948 and 1990.“It was made just after the war, and itwas meant for farmers to get their goodsto the market on bad roads. The brief wasto ‘design a car where a basket of fresheggs on back seat would be unbrokenwhen you get to market.’” In addition toan iconic design, the brief also resulted inan extremely soft long travel suspensionsystem.“In general, engineers don’t evenconsider Citroën a car,” says Stenros whodrives a Citroën C5. “But we architects loveit. It is like sitting in an armchair instead in acar, and it all started from the eggs.”The enduring 2CV illustrates Stenros’point that one should not define what todesign. “Don’t tell me what you want. Tellme your problem. Whenever someonetells me what he wants I question his brief.I want to know what the essence of theproblem is. Then you hit on somethingnew and novel, otherwise you’re wrappingthe old problem in a new way.”“The Chinese always say, ‘We have agood problem here!’ In the west we toooften say ‘We have a disaster here.’ Weshould learn to have good problems.”Chago Basks inCannes limelight,Wins RedDotAward!Photo: Jean-Michel ToralEnsto Chago electric vehicle charging pointsare enjoying Hollywood-style fame, as electricvehicles gain popularity throughout theworld.At the Cannes Film Festival, Renault promotedits range of electric vehicles withEnsto providing the charging units for the 25showcased vehicles. Stars and guests wereable to test drive the automobiles and tryout charging points during the event.Chago was also recognized by the designcommunity, winning the 2012 prestigiousred dot award for product design in thehousehold category. Chago was selectedby the jury from over 4,500 design entriesin its category.Each year, the red dot awards are presentedat a gala held at the Aalto Theatrein Essen, Germany. The theatre was designedby the Finnish architect Alvar Aalto,the unanimous winner in a competitionin 1959, but the building was begun onlyin 1983, seven years after his death. It wasEnsto’s great pleasure to receive the awardin the theatre named for and designed byMr. Aalto.16


ENSTO SPIRIT20 countries.1,600 employees.One Ensto spirit.Photos: Ensto17


ensto todayDesignfor AllDesign is mysterious to many, which means it is often misunderstood.Scope’s Jarmo Lehtonen makes some sense of it.Photo: Dreamstime18


Photo: ScopeDesign strikes a good balancewith the environment and user.”JARMO LEHTONEN, MA, SCOPE CVOAdesign so bad that thedesigner killed himself?Jarmo Lehtonen, ChiefVisionary Officer of the businessdesign consultancyScope Associates, is fond of recountinga story of a man who designed a packageto hold two cubes of sugar. Consumers,however, refused to open the packagein the way the designer anticipated, andsugar wound up on the floor, instead of inthe coffee. Frustrated, the designer committedsuicide.Apocryphal? Perhaps. But it’s a greatexample of how seriously design is takenby people like Lehtonen, whose life workis not only design, but dispelling the mythsaround it.Meaningful Design“Often people don’t understand design,”says Lehtonen. “They think a gooddesign makes the price higher. That’snot true – it can be the opposite! Materialscan be adjusted to make a productcheaper or more expensive, either one.”And design is more than just aproduct, Lehtonen is careful to pointout. His company, Scope, markets itselfas a business development companywith design at its core. Scope advocates aholistic approach to design, seeing it as akey contributor to the bigger picture.“Design means recognizable visualquality,” he says. “Design strikes a goodbalance with the environment and user.Design is functionality, creates ease ofuse, is sustainable, affordable, reliable,durable and safe. When design is doneright, people may not even notice it!”Scope and EnstoScope offers design management andbusiness development services to Ensto'sBuilding Technology division. Lehtonen,along with Scope partners Pia Jäminki-Hovi and Matti Mikkola, and their copartnernetwork, help Ensto to achievedesign targets.“My role is as an external design directorat Ensto,” says Lehtonen. “Together with theclient, we form guidelines concerning thetotal concept - form, functions, color andmaterial to get the best result from themanufacturing process. Our ultimate goalis to support Ensto strategy and makeboth their product solutions and businessvalues recognizable on the market.”In-house or out?Ensto has used external design partnersin several product development projectsthroughout its history. The more technicala product, the more critical that amanufacturer-designer partnership besolid.“It’s very trendy in the business touse an external name designer,” saysLehtonen, referring to star-designers wholend their names to a multitude of products.“But if that designer isn’t committedto learning the company’s technical side,then he’s just making trendy cover for aproduct. The rest of the product - materials,technology, sustainability - may notbe in the best condition. That’s why mostname designers make lower-tech productslike chairs, glass, or textiles.”“At Nokia, for example, they can’t takea name designer and have him designa phone, because they don’t know therequirements, risk, the manufacturingdetails and timelines.” Lehtonen shouldknow. He designed e.g. the best-sellingNokia 5120, the phone with the colorful,rubbe-rized exterior that created theactive sports phone category, and then heworked closely with engineers to manufactureand bring it to market in recordtime.‘Design for all’How to grow as a designer? For Lehtonen,he finds it in diversity design. “I alsodesign for disabled people. I do bathroomfurniture designs and also high-techproduct development for senior citizens.It strengthens my skills and understanding,because it requires taking steps todeepen customer understanding. Diversitydesign strengthens my scent, skillsand understanding, which I apply to therest of the design field.”Great Design,Tragic DesignAsk Jarmo Lehtonen about tragicdesign, he’ll cite the example ofHonda. In Finland, at least, the“Honda Man” is not taken seriously.Lehtonen is also continually baffledby food packaging that opens thewrong way, or packaging for dishwashersoap tablets which seemto cause a powder explosion whenyou attempt to open the package. “Iam struggling every day with packages,”he says. “Exert force in thewrong place, and you get the stuffall over you.”But Lehtonen is quick to praise Appleproducts, German cars (he lovesand drives a BMW), STX cruise ships,Bang & Olufsen audio components,Fiskars tools, and generally welldesigneditems such as wine glassesand sushi.And sometimes great design solutionsappear in the most unexpectedplaces. “Like this modern fiberglassorthopedic cast which runsfrom my toes to my waist to heal mybroken leg!” Or the Clas Ohlson laptopholder which enables air circulationbeneath it and allows Lehtonento work in a reclined position forlong periods at a time. Great designis everywhere. And when it’s doneright, we hardly notice it.19


ensto todayWhat's aPassivehouse?For a home to meet the original definitionof “passive,” established by theGerman Passive House Institute, thehome’s annual heating and coolingrequirements must not exceed15 kWh/m2 per year each, or it mustbe designed with a peak heat loadof 10W/m2. The structure's total primaryenergy consumption (energyfor heating, hot water and electricity)may not exceed 120 kWh/m2 peryear, and the building must not leakmore air than 0.6 times the housevolume per hour.Carbon’sWorthyAdversaryPassive homes themselves aren’t news, but the way they’re built should be.Choices during design and construction significantly influence a home’scarbon footprint.20


"I’m still on a controlled level ofobsession with lowering CO 2,”laughs Matti Kuittinen, a Finnisharchitect who has devoted hiscareer to the study and constructionof low energy buildings.There are 29 normative indicators forthe ecological sustainability of buildings,says Kuittinen. “As an architect you have tochoose in which ones you want to excel. It’ssimilar to sports. You’re good at the marathonperhaps, or fencing, but you’re notgood at ‘sports.’”So Kuittinen has specialized: he isone of the world’s foremost experts onwood construction and its impact on theenvironment. “I got into architecture andfound that my ideological and naïve wisheshave a scientific basis. Hence, my belief inwood as a sustainable construction material.”At last summer’s Tampere housing fair,with a project devoted to the reduction ofthe CO 2footprint, Kuittinen set out todemonstrate the superiority of wood constructionfor passive houses.TervakukkaMatti Kuittinen photographed at the Kamppi Chapel. With its facade constructed ofsawn-to-order spruce planks, it's a tribute to the power of wood. It's also one of thequietest spaces in a busy Helsinki city center. Design by K2S Architects.The result was a house named Tervakukka.Tervakukka is Finnish for tar flower, andalthough the tar in Tervakukka was madefrom pine and not the flower itself, a triplecoating of tar was used to protect Tervakukka’scladdings. In the Nordic region,tar has been used to protect wooden buildingsfrom at least the Viking era, a tarcoatedwooden church in Borgsgund,Norway, having resisted harsh weather for850 years.To create a home that is “passive,”requirements are generally met by usingtightly sealed concrete covered with insulation.Kuittinen, however, opted for woodinstead of concrete.“You can use any material to build apassive house – wood, steel, concrete – butthe emissions in the production and constructionphases are different,” he says.Steel-framed homes leave a carbonfootprint due to the heavy requirements ofprimary energy needed to extract and meltthe material. Recycled steel, however, iseco-friendly, since it must be only melteddown again, with no energy expenditurefor mining the ore.Concrete construction suffers theproblem of the energy intensity requiredto produce it, with concrete responsible for5 to 7 percent of total carbon emissions onthe planet.continued21


When concreteis BetterBut wood, as Kuittinen explains, isthe best among the options. “The carbonfrom the atmosphere is already present inthe wood.”More BenefitsAnd wood is preferable not only for exteriorand frame construction. Accordingto research carried out by Kuittinen (alecturer, researcher, and PhD candidateat Aalto University), gypsum, or dry wall,is a major CO 2contributor in typical wallstructures. Even though dry wall is madeusing recycled materials, the pressurerequired to compress it is a heavy carbonproducer.But foregoing drywall – since thereis not yet a cost-effective alternative fora wallpaper base – is anathema to manyhomeowners. Few are willing to go thatfar in the name of eco. “I consider it myjob to explain to my clients the tradeoffsthey’re making,” says Kuittinen, who sayssome walls in Tervakukka have drywall,the homeowner unable to resist beautifulretro wallpaper.Wood also benefits from what Kuittinenterms “ecofunctionality,” a conceptdeveloped together with Dr. HeliMäntylä from the TTS Work EfficiencyInstitute. Ecofunctionality answers thequestion of how much ecological value isgained by improving the functional qualitiesof a building. For example, the useof eco materials are of limited benefit ifthe structure is continually remodeled,each time adding to the carbon footprint.Functionality can remedy that.Kuittinen designed Tervakukka withhandicapped access, even though no onein a wheelchair may ever live in the house.“Someone could have a skiing accidentat age 42,” says Kuittinen, laying out justone of many scenarios. “And as we age wewant to live in our homes for longer. Also,what’s good for the handicapped is alsogood for pregnant women and for smallchildren.”Tervakukka’s second floor wasdesigned with an adaptable floor plan.“When the kids leave,” says Kuittinen,“you can move things around and have ahome gym.”Idealism?After the 2010 hurricane, Matti Kuittinentraveled to Haiti as part of a humanitarianproject team. What he found: “Wood wasnot a sustainable material in Haiti. Theyhave a huge problem with deforestation,nearly all trees have been cleared away.”Wood could not be imported dueto the expense and problems withcorruption, so Kuittinen designedschools to be built from recycled concreterubble. To date, approximately50 schools have been constructed.Kuittinen also did what may be a firstin humanitarian construction: he calculatedthe carbon footprint for his schools.“Usually,” he explains, “you’re in such ahurry on humanitarian projects that thefootprint isn’t calculated. But we need toturn every stone in order to mitigate climatechange. The construction projectsbuilt in the public sector are thelargest impact we will leave in this life.”Kuittinen is the first to recognize thatthe binding regulations we have on CO 2apply to only 15 percent of the world’scarbon emissions. And he is quick topoint out that the consequences are notevenly distributed.“We expect the sea to rise one meterin equatorial regions, and average temperatureto increase 4 to 6 degrees Celsiuswithin this century. The developingworld bears more than its fair burden. Sosouthern Europe’s debt crisis is a smallPhotos: Zara Järvinen, Finn Church Aidand Matti Kuittinenissue compared to climate.”Kuittinen’s message is that the morewe mitigate climate change, the less weneed to adapt, and the less we need tosuffer. “Right now, we’re more focused onadapting.”To carry forward his message, Kuittinenserves as a coordinator with the€CO2 research consortium – 20 organizationsin five countries with an agenda tobuild wood houses as carbon efficiently aspossible. “We build houses, compare, givedata to industry leaders, something forthem to digest when tightening the regulationsin the next stages. My challenge isto prove what I believe and then to explainit to decision makers.”Kuittinen sees CO 2as the great equalizerin the context of the constructionindustry. “There is the western contextand the developing country context – andCO 2will bring them together.”22


Tervakukka• 198 m 2 , 6-room single family home• Construction price: 434,800 EUR.• Approximately 10,000 kg of wood and woodderivatives used in construction.• Constructor: GreenBuild, a company dedicated inbuilding wooden passive houses• Wall insulation, which functions like a breathablesawdust, is cellulose made from recycled papermanufactured by Termex.• Tervakukka is a Ensto Hybrid House with energyefficient and accurately adjusted electric heating,ventilation with heat recovery, as well as energymonitor Ensto eGuard, which measures theenergy consumption - in real time.Energy efficiency is completed with Ensto eLEDlighting and Ensto Chago Point for electricvehicle charging.• Architectural design by KombiArchitects, Matti KuittinenPhotos: Jussi Koivunen23


ensto todayPhoto: ArtekDesign’s Difficult Question:‘WHY?’24


How the international expansion ofone of Finland’s premier design companieshinges around one simplequestion."There are overwhelmingly toomany products in the world,"says Artek's CEO Mirkku Kullberg."We don’t need any more."More than 70 years after the company’sfounding by Alvar and Aino Aalto, MaireGullichsen and Nils-Gustav Hahl, a largepart of Artek’s furniture and lighting productsare still the enduring designs of AlvarAalto.Kullberg’s challenge: to create broaderconcepts for Artek’s collections and becomean international sales company for Nordicdesign by expanding via new channels ofdistribution. Alvar Aalto left big shoes tofill, and Kullberg recognizes it can only beaccomplished when new products answerthe rather difficult question: “Why?”‘Newness is nothing…’The “why?” Kullberg is concerned with is aproduct’s raison d'être. She has been withArtek seven years now, and four years agoshe set up the Artek Studio. Her brief tothe designers: “Newness is nothing to us;the product must have something morebehind it.”Historically, Alvar Aalto discovered hisanswer to “why?” in the context of his projects.“Aalto’s basic design process was anarchitectural process,” explains Kullberg.“He always designed products in parallelto the architectural projects. It was never achair or table for its own sake, rather it wasin relation to the bigger picture. It was veryholistic.”Kullberg is a CEO with a backgroundof turnarounds of small- and mediumsizedcompanies in the fashion industry– and she embraces Aalto’s philosophyof working. “We are following that samerecipe. We don’t think the product shouldexist without answering ‘why?’ Is thisproduct relevant? Will it live to the nextgeneration?”Kullberg says forty percent of Artek’sbusiness is contract work – design jobs forprivate clients – which functions as “theleading part for the design process.” FromArtek’s contract solutions, those which elegantlyanswer “why?” are chosen for thecompany’s consumer catalog.Case in Point: LibrariesOne issue at the heart of the “why?” questionis that of public libraries. “With somuch stuff digitized, why go to a library?”asks Kullberg. And she believes Artek hasat least part of the answer.“Libraries are sacred places in Nordiccountries. They are a retreat. A bookgives security. It’s a tactile instrument thatengages several senses. The architectureof a library also gives you confidence andsecurity concerning the future. Books haveweight. People will need to touch the bookagain in the future. I believe it’s comingback.”And since beyond books, librariesare mostly filled with tables, chairs, andlighting, they are a natural venue to employthe strengths of Artek. “Chairs are important,”says Kullberg. “In what position doyou want to sit when you read? And what’sproper lighting for a given space within thelibrary?”Artek furniture will be found at theBrooklyn Public Library. Architect ToshikoMori has been working with Artek furniturefor the library’s Leon Levy InformationCommons, a high-tech researchcenter. “It’s one interesting initiative,” saysKullberg.In Berlin, Artek is collaborating withthe library and bookstore called “do youread me?”, a venue for lectures, exhibitions,and discussions, which serves as a testingground for Artek products. “Chairs are notthe main role,” says Kullberg, “but they playa key role in getting people to stay. Do youread me? is much like what the originalArtek shops were as conceived by AlvarAalto."Aalto’s LegacyKullberg’s task at Artek has been to revivethe Aalto legacy. “Once the four differentlytalented people in the originalcompany died, it became more of an institution.It had an amazing collection thatdidn’t communicate with anybody anymore.”“Aalto had bridges to internationaldesigners, artists, businesspeople — anamazing cosmopolitan community. Thosebridges disappeared with the owners.“I believe that if a company has beenaround 75 years then there is a very goodreason for it. You have to dig for the lostrelevance. I am the bridge builder; I bridgethe company to the next generation.”Design:CatalyzingManufacturingAlvar Aalto’s way of working was marked by akeen understanding of the materials he usedand close cooperation with carpenters.For the manufacture of furniture, Artekhas long held minority interest in a furniturefactory. “We need to own production capabilitiesso that we can see and understandthe production process,” says Artek CEOMirkku Kullberg. “Furniture manufacturing isold and stagnated, and so if we’re not partof the development process, the capabilitieswill disappear and we’ll be in a sunset business.”And so Artek looks to catalyze the manufacturingbusiness, to challenge it and push itforward. “Design is not an enemy. It must bepart of the manufacturing process,” says Kullberg.“Design is a partner.”While Artek may own a furniture factory,it does not own a lighting factory. “Forlighting companies we need partners,” saysKullberg. “Engineers are involved immediately– different knowledge and competenceis needed! For us it’s learning by doing.For them it’s an understanding of our perspectives.”Artek and Ensto are investigatingtogether different possibilities for future cooperationin energy efficient lighting.This Ensto-Artek project has so farthrived. “You can’t have it all in one company,”says Kullberg of technical knowledge. “Engineeringis a dialogue with the designer thathas to work.”In rebuilding those bridges, Kullberghas recruited architects like Shigeru Banand Peter Zumthor. “They want to be partof this amazing company,” she says. “Andwe want a connection to industry likeUPM or Ensto. We find them interesting,because in highly-engineered productionwe can find a twist, we can find how tobring it to the consumer level or the contractinterior business.”Kullberg does not hide her idealism,her belief that design can change theworld. “We are not a super-rational companyat all. We want burning ideas. We areon that path.”25


ensto todayA Cathedral’sImmaculateRooflineKeeping a cathedral’s roof ice-freePhoto: Kuvaario - PictoriumThe weather at 60.1708° N,24.9375° E is often described as“extreme,” even though Helsinkiresidents are used to it. Each year,the city enjoys 688 mm of precipitation anda full 137 days of measurable frost.Just a few centimeters of snow add literallytons to the load a roof must carry.Ice dams can form when heat escapes abuilding and water re-freezes in guttering,resulting in moisture leaking back into astructure. Or worse: falling icicles. For theHelsinki Cathedral a clean roofline is ofalmighty importance.To ensure its roofline is ice free, theHelsinki Cathedral, symbol of Finland’scapital and the most well known buildingin Finland, recently installed over 840meters of Ensto OptiHeat cable on its roofand in its gutters are free of ice buildupyear round.Although the cathedral had undergonea complete restoration in 1996,which included a frost protection system,that system unfortunately failed to functionproperly. In 2012, the cathedral hiredFinnish contractor Ten-Watt to overhaul itsrooftop.“Our main reason for selecting Ensto’sOptiHeat products was the ease of installation,which was critical concerning thespecial circumstances involved”, says TeroAaltonen, CEO of Ten-Watt.The special circumstances include thecomplexities of installation on such a largethree-story structure, one beholden to rigorousrequirements set by the NationalHeritage Board.“In addition,” says Aaltonen, “Ensto26


To ensure its roofline is ice free, the HelsinkiCathedral recently installed over 840 meters ofEnsto OptiHeat cable.”Photo: Jori GustafssonTero Aaltonen, Ten-Watt CEO, and HannuKukkonen, Ensto Area Sales Manager, discussthe project.was able to offer all the installation accessoriesneeded, which made the process significantlyeasier.”Self-regulating OptiHeat cables areinstalled overlapping and in contact withone another, their temperature kept constantby automatically regulated voltageaccording to the changes in the surroundingtemperature. “This solutioneffectively eliminates the dangers of miscalculationsin measuring the cables andvoltages, and it minimizes the risk ofunwanted power surges,” says Aaltonen.“Absent or inadequate frost protectioncan cause severe damage to roof structures:roofing sheets may bend, rainwaterpipes may crack open, and gutters mayfreeze and crack causing sizeable financiallosses”, cautions Ensto Area Sales ManagerHannu Kukkonen.Aaltonen agrees: “In listed buildingssuch as Helsinki Cathedral reliability isespecially important, because water- androof damage causes irreversible harm fora priceless building. Ensto’s high-qualitysolution was the only choice for us.”The HelsinkiCathedralDesigned by Carl Ludwig Engel andErnst Lohrmann, was constructedover the 1830–1852 period as thecenter of Helsinki’s Senate Square. Itis visited annually by approximately500,000 people, including manytourists.The Neoclassical stone church isthe Finnish Evangelical Lutherancathedral of the Diocese of Helsinki.The annual ecumenical openingand closing ceremonies of the FinnishParliament are held here, as wellas the Independence Day service.The cathedral seats 1,300 and is oneof the largest churches in Finland inregular use for services of worshipand special events such as weddings.Also a popular concert venue,it is in use every day of the year.27


ensto todayRiddle Wrappedin a MysteryMarket intelligence in Russia: How Ensto uses customer serviceto both boost sales and gather market information.Photo: Slava KorolevAriddle wrapped in a mysteryinside an enigma,” was Churchill’sfamous outsider’s descriptionof Russia. But even toinsiders, what takes place in its businesslandscape isn’t always easy to understand.The Riddle“During the peak of financial crisis in2009, the under-35kV distribution networkssuffered a year of stagnation ininvestments, but this was followed by suchheavy growth in 2010 that we worried wecouldn’t meet market demand for Enstoproducts,” says Ensto Russia’s ManagingDirector, Erkki Anttila.In 2012, Anttila noticed that some userswere using Chinese copies of the productsof some of Ensto’s French competitors.Had customers turned to cheap knockoffsbecause Ensto quality had not been availableto them a couple of years earlier? Orwas the reason something else entirely?A problem defined is a problem halfsolved, but in developing markets likeRussia, market intelligence is not easy toget, even for someone like Anttila who haslived and worked in the market for almost25 years.The MysteryWhat Anttila needed was to test theoriesand get an objective understanding ofwhat was happening in the market.Ensto’s database generated KPIs likedelivery accuracy, but they had no way ofobjectively measuring whether enquiries –requests from distributors regarding availabilityand price – were being effectivelyconverted to sales. So Anttila, togetherwith Customer Service Manager SvetlanaMaystrishena, decided to find out.“The first step was that we startedto systematically register requests of our28


Ensto in Russia. Meet key members of Ensto Russia's team. From left toright: Anastasiia Dolgopolova, CS Team Leader; Ekaterina Petrova, CSSenior Specialist; Svetlana Maystrishena, CS Manager; Ivanova Luybov,CS Specialist; Susol Polina, CS Specialist.small. Everybody knows everyone. Yougive something, you get something. Butthis has to be organized. Today we haveplenty of ‘quiet information’ in our ownpeople – people know a lot, but sincenobody’s systematically asking, informationis not shared or analyzed. Data mustbe gathered, organized and connectionsmust be drawn.”The Certaintydistributors in our ERP system,” saysMaystrishena. “It was effectively a surveyof what was happening in the marketand accessible right away for us.” Customerservice specialists began enteringenquiries into the system so that this newdata could be compared alongside actualsales data.“It was new to input enquiry data intothe ERP,” says Anttila, “and it’s probablynot done in other markets. But for us itwas a great way to gather business intelligence.”After entering data for Novemberand December 2012, the team had dataworth reviewing.The EnigmaBut the result was not at all what the teamexpected. “It turned out that we had aninstant availability rate of 70 percent,”says Anttila. “In other words, the productwas available. Delivery would have beenthe next day had the orders been placed,but somehow a significant amount ofenquiries had not turned into orders.”Although their minds may havebeen put at ease about their ability tomeet orders in a burgeoning marketplace,the analysis more illustrated theamount of information they still didn’thave. “Our conclusion,” says a core user ofthis information, Ensto Utility NetworksSales Director, Vitaly Golubtsov, “wasthat given Ensto’s huge size on the Russianmarket, we still needed better marketinformation!”Anttila, Maystrishena and Golubtsovhad planted the seeds for a business intelligenceunit of sorts. “We don’t look foranswers immediately,” says Anttila, “butrather we look for the right questions.”Anttila envisions a future where asmall team – a business intelligence unit– inside Ensto actively and regularlygathers market information. “We need tohave indices to see what’s happening inthe market. For example, the amount ofcables produced and sold in regions in themarket per annum.” But where to get theinformation?“There’s an association of cable producers,and you can buy informationfrom them, or you can get it through asocial network. The business is big, butthe number of people in the business isAlthough the team’s main conclusion wasthat more information was needed, thesimple act of gathering information wasbased on good trust, cooperation, andcommunication between sales and customerservice.“Given the peculiarities of the Russianmarket, Russian customer serviceis much closer to sales than in anyother Ensto country,” says Svetlana Maystrishena.The peculiarities Maystrishenarefers to is the fact that not all Russian clientshave sophisticated cash managementsystems. There is also the strict practice inRussia, that a new order is not shipped if apast invoice is overdue. The result can be aclient who is a victim of his own success –sales which have gotten a bit ahead of hiscash management system.So over recent years Ensto has structuredits customer service department tohelp them out, making a phone call orsending an email to help clients plan theircash flow so delivery of orders is not disrupted.During this phone call, customerservice also asks the client about any newrequests. What products will be needed?Could Ensto fill that order? This informationis then shared with sales.Under this structure, customer servicespecialists, with their daily client contact,become great Ensto ambassadors andde facto sales personnel. “It truly drivessales,” says Vitaly Golubtsov.More QuestionsNo one from Ensto’s team will yet claimthey have all the answers. The fact is,however, that they’re getting closer to theright questions. And discovering the rightquestions has already delivered results forthe business.Russia may indeed be a riddle wrappedin a mystery inside an enigma. But themere attempt to understand it certainlyhas its benefits.29


ensto today'A bit ofa Car Freak’Electric vehicles and CEOs"It’s not your traditional auto for aCEO,” Ensto’s chief executive TimoLuukkainen admits, noting that ata recent gathering of Finnish CEOshe counted over ten MercedesS-class and Audi A8 sedans in the parkinglot. Luukkainen was the only oneto arrive in an electric vehicle, the OpelAmpera that is his company car.Luukkainen also admits he has a bitof a lead foot. “In good conscience I canaccelerate as fast as I want from Marchthrough October,” he says, naming themonths when he is able to power the carsolely by solar panels and, not coincidentally,the times of the year when Finnishroads are ice free. “I can overtake, enjoythe feeling of acceleration without a heavyconscience. It does not add one gram tomy carbon footprint.”Luukkainen typically charges hisAmpera at Ensto’s Porvoo office using a20-square-meter solar panel. A full chargeon a sunny day takes slightly over threehours, and so he is able to cover 10,000of his yearly 18,000 kilometers of drivingusing solar energy. He plans to better thatratio by installing a solar charging unit athis home.“It’s an ethical choice,” he says, emphasizingthat the choice has not forced himto sacrifice much, even given the obligationsof running a modern company.“I live 20 kilometers from the office, 60kilometers from the airport, and 60 kilometersfrom southern Helsinki where manyof my meetings take place.” The Ampera’srange is 90 kilometers in summer and amaximum of 50 kilometers in winter.30


IncentingGreenDrivingEnsto’s Innovative CompanyCar Policy in Finland.• Ensto’s auto policy offers incentivefor employees to commute with theleast carbon footprint.• The lower emissions the less theemployee must contribute to thecost of the company car. An electricvehicle means an employee pays20% of the leasing price. The employeecontributes 50% if emissionsare under 110 g/km. Autos emittingover 150 g/km are strictly forbidden.• A bit of context: In the UK, the averageCO 2emissions rating is 158 g/km, the lowest being 0 g/km and thehighest 368 g/km – the Aston MartinDB9 V12 Volante Touchtronic.I can overtake, enjoy the feeling of accelerationwithout a heavy conscience. It doesnot add one gram to my carbon footprint.”• While this particular plan is custom-builtfor Finland, Ensto attemptsto create similar policies in othermarkets which correspond to locallegislation.Forced to name compromises, heconcedes “you have to drive a smaller car,unless you get the Fisker Karma, whichdoes not fit into the company car policy!”The Ampera is a true four-seater, and theboot is not especially large.Something else that takes getting usedto is the silence. “The car is so quiet youhave to be extra careful around pedestrians,”he says. The Ampera is equippedwith an additional, pedestrian-friendlyhorn to warn of the car’s approach. Butthat is a minor drawback. The silence alsomeans that the car’s Bose stereo system(which comes standard) can be enjoyedto its fullest.More advance planning is anothercompromise the car requires, since Finland’selectric vehicle charging possibilitiesare still rather limited – there is nocharging station at Vantaa Airport, forexample. Luukkainen gets around this bybooking several meetings in a row so thathe can charge the car at one of the city’scharging points.But the Ampera will not die withoutcharging – it simply isn’t as green asit would be otherwise. After 40 to 80kilometers, the range extender kicks in tocharge the battery, enabling over 600 kilometerswithout stopping.“Accept that you must find a chargingpoint, walk a bit further, and plug in thecar for charging. A kilometer of extrawalking is not a bad thing,” says Luukkainen.These minor inconveniences areoffset by never having to visit a petrolstation again, and, well, a hell of a lot oftorque.“The Ampera does zero to 100 in nineseconds,” Luukkainen smiles. “I admit I’ma bit of a car freak.”31


Bruce Oreck, US Ambassador to Finland,has long been an advocate of LEDs.Ensto CEO Timo Luukkainen, Joachim Gauck, the President of Germanyand Finland's President Sauli Niinistö.More Light,More$avingsLEDs and the US EmbassyWhen the US Embassy in Helsinkireplaced its fluorescent kitchen lightingwith twenty Ensto AVR320 LED luminaires,it not only saved significantly onits electric bill, but it created a brighterwork space, as well. LED light is directionaland the source is placed where itshould be – on the surface.While a kitchen staff may be indifferentto the fact that LEDs consume 58percent less power than fluorescents,they will surely take notice of the 33 percentmore light they have to work by.Beyond the savings, the annoyingflicker is gone, and no longer will onetrip in the dark after entering the kitchenfaster than fluorescents can light it.LEDs’ light dispersion means superiorlight output, and thanks to a remarkablybetter color rendering index, thereare no more yellow lighting situationswhere one must guess whether food isfresh – colors appear as they should!The AVR320 LEDs save over 2,000kWh annually, reducing the embassy’selectric bill by 300 euros. And it’s alsoworth noting that LEDs are maintenancefree: fluorescent bulbs may be cheap,but calling in a technician with a ladderto replace them certainly is not.Photo: LehtikuvaWhat theGermansKnowA Finnish delegation led by Finland’s PresidentSauli Niinistö visited Germany to witness the criticalimportance of industrial manufacturing, concludingthe service economy is not a silver bullet.What’s the secret of German success? Germany’seconomy thrives while the rest of Europe either wallowsin recession or teeters on its precipice. Employmentrate forecasts are higher than ever. Industrialmanufacturing represents 26 percent of total production.The nation exports more than it imports."At some point it was thought that industrial productionis old-fashioned,” Finland’s President SauliNiinistö noted during his delegations visit to Germanyin November 2012 “It is worth to back up from that ideaand think about whether we can boost Finland’s industrialproduction. Life seems to be such that people consumeconcrete things, so industrial production seemsto directly correlate with the success of the overalleconomy."During the last decade Germany has enacted majorlabor market policy reforms. It shortened the length ofearnings-related unemployment benefits to one year.It raised the retirement age to 67. It maintained its traditionof apprenticeship training, one strongly connectedto education and employment systems.Ensto’s CEO Timo Luukkainen praised the systemto Finnish media, noting that “Germans understandbetter the importance of industrial manufacturing.The service industry can’t fix Finland alone. They haveinvested in the manufacturing industry in Germanyand kept the whole value chain domestic.”“Germany assured us that its [post-reform] labormarket organization is still able to agree on all impor-tant things,” added President Niinistö.32


Finally,Plentiful EVChargingPoints?Photo: DreamstimeThanks to the EU's quest to tackle social challenges like climate change, energy andresource scarcity, the electric vehicle charging business may find wind under its wings.The long-awaited EU draft directive for cleantransport infrastructure was released inJanuary 2013. It proposes the constructionof more than eight million electric vehicle(EV) charging points, including 800,000public charging points.For large markets like Germany, thedirective would mean over 1.5 millioncharging points constructed, 150,000 ofthem public. Estonia, with its relatively smallpopulation, would boast 12,000 chargingpoints, 1,000 of those public. Finland isslated to get 71,000 points, 7,000 of thempublic.Should the directive come to fruition,not only would there finally be a choice ofplaces to charge your EV, but it could potentiallytranslate to significant economic be-nefit for both Ensto, as well as other Finnishcompanies which manufacture EV-relatedproducts.“As much as an optimist as I am, I mustadmit that not all of those eight millioncharging points will be manufactured byEnsto,” says Ensto CEO Timo Luukkainen.“But in situations where quality and designmatter, Ensto has proven its EV chargingproducts offer a clear advantage.”The directive’s eight million chargingpoints are part of an effort to break the oildependence of transport and reach thetarget of a 60 percent reduction greenhousegas emissions from transport by 2050.One ThousandTrips MoreCARAVERAGE AAV320 trips(with the same amount of energy)In the Greater Helsinki area, electric vehiclesare estimated* to have consumed some10.6MWh of charged electric energy duringthe last 14 months. This equates roughlyto 52,000 kilometers of driving, or approximately1,320 commutes of a 40-kilometerround trip distance.However, data from Finland’s VTT TechnicalResearch Centre’s annual LIPASTOsurvey makes things far more interesting.VTT’s system for calculating trafficexhaust emissions and energy consumptionin Finland shows that average fuelconsumption in urban traffic is 9.5 liters per100 kilometers. This supports what we seeand smell in cities: emissions could be lower.With the same energy consumed by the EVs,average petrol cars may only make 320 commutes.Replace an average car with an EV, andthe same number of people are moved anextra 1,000 trips over the same distance.What’s more, crude oil dependency isreduced by 1.8 liters for every charged kWh,letting us all breathe easier.1320 tripsELECTRIC VEHICLE* Estimate based on Helsinki Energy’s statisticson six publicly accessible charging stations andextrapolated to include home charging and otherpublic charging points during that period.33


ensto todayRevenge of theElectric VehicleThe EV is no longer the ugly stepchild of automobiles poweredby internal combustion engines. Fisker Karma proves an EVcan indeed be sexy.34


I’m not saving the world,but I’m making an effort.”AARNO TÖRMÄLÄ, CEO, HUB LogisticsPhoto: Jori Gustafsson"Starting from the cars themselves,they cannot be ugly,little, and gray,” Michael Speh,Infiniti Europe’s RegionalDirector for Central Europe,told Ensto Today in March 2011. “Electricvehicles in the future must somehowbe sexy.”The future has arrived. And theFisker Karma extended range electricvehicle may indeed be the answer to theproblem posed by Speh.The Karma is an EV sportscardesigned by Denmark’s Henrik Fisker –previous credits: the BMW Z8 and AstonMartin DB9 – and it has what Car andDriver called "an interior trim that bowsto Mother Nature." In a word: sexy.It’s driven by a pair of 120 kW (161 hp)electric motors that take power from a 20kWh lithium ion battery. Karma’s torqueenables it to hit a limited top speed of 200kilometers per hour virtually effortlesslyand silently, with a special noise reroutingsystem mounted on each corner of the car.Add a front-mounted 260 horsepower,2.0-liter Ecotec four-cylinderdirect-injected and turbocharged gasolineengine which powers a generator torecharge a low battery, and what you getis a major cure for range anxiety – 480 kilometers.The total package delivers a totalof 403 horsepower, the car powered solelyby electricity before switching to gasolineafter 80 kilometers.It’s a package that is turning the headsof car enthusiasts like Aarno Törmälä. He’sa car guy who is also into sustainability.While on weekends he may race a Porsche944 in six-hour endurance races, for hiseveryday life he prefers green: “I drove aLexus hybrid the last three years, but I waslooking for an EV with larger range thatencompassed real function as well as sustainability.”Törmälä also found the car offeredadvantages for his business. He is theowner of HUB Logistics, an internationalservice provider which offers customizedlogistics and warehousing solutions toFinland’s top companies.“The vision in my company is oneof eco-friendliness, environmental efficiency,and innovation,” says Törmälä.“HUB reduces its electricity consumptionby five percent each year, amongother sustainable initiatives. The car promotesthat ethos to people who don’tknow us. That’s why you see the logo andHUB license plate.”Törmälä is used to getting a thumbsupfrom people he doesn’t know when hedrives the Karma. This is no small thingin Finland, a nation so egalitarian that aschoolchild would be embarrassed if hiswealthy father dropped him off at schoolin a Ferrari. But the Karma gets a positivereaction.But do people know it’s an EV? Or arethey just reacting to the fact that it’s cool.“Both,” says Törmälä. “People are positivelycurious. One elderly lady stoppedme at the supermarket and told me, ‘Idon’t like cars at all, but this is the mostbeautiful one I’ve ever seen.’”Finns may also be reacting positivelybecause the car is unique. Despite the factthat the Fisker Karma factory is 200 kilometersfrom Helsinki in Uusikaupunki,there are only two of the cars on the roadin Finland.Törmälä knows the other Karmaowner, though their meeting was purecoincidence. “We drove past each otherin the vacation town of Hanko, one hundredkilometers southwest of Helsinki.We pulled over on the side of the road,introduced ourselves, and talked aboutcars.”In the past, car enthusiasts have notmade ideal poster children for sustainablelifestyles. But Aarno Törmälä, HUBLogistics, and Fisker Karma may havetaken a positive step toward that direction.“I’m not saving the world,” saysTörmälä, “but I’m making an effort.”35


ensto todayAnatomy of aPartnershipFor ABB and Ensto, a metal box is far more than just a metal box.There’s a partnership inside it.36


Expert partners like Ensto areessential to remaining competitive.”REIJO MYLLYMÄKI, ABBPhoto: Scott DielThere are three things importantto become a supplierto ABB Oy Breakers andSwitches,” says ABB’s ReijoMyllymäki. “First, potentialsuppliers must understand that cost iscritical. Second, they must be able to fillorders that vary from a few pieces to a fewthousand pieces. Third, they must havetechnical knowledge about what’s behindthe product.”That’s what it takes to be a supplier.It takes even more to be considered apartner.Each year, ABB’s final assembly andtesting plant in Vaasa, some 400 kilometersnorth of Helsinki on Finland’s westernborder, generates 100 million euros inturnover assembling switches for panelmanufacturers and enclosed switches forbuilding and process industry contractorsand end users all over the world.The Vaasa plant is part of the Switzerland-headquarteredmultinational ABBGroup, whose operations in robotics andpower and automation technologies produceannual turnovers exceeding 40 billionUS dollars.Though ABB sells boxes with switchesinside, “We’re really selling safety,” saysMyllymäki, Product Manager for enclosedswitches.Myllymäki’s enclosed switches ensurethe safety of service workers all over theworld. In countries where safety is a priority,almost anywhere you find a rotatingmachine that might do a human harm,nearby is a safety switch, one possibly manufacturedby ABB.Myllymäki, an electrical engineer, hasbeen with ABB for 35 years, serving invarious capacities, including stints in theUK and South America.For the past seven years, Ensto has suppliedthe ABB Vaasa plant with enclosingsolutions, mainly customized metal boxes(painted steel, stainless and acid-resistant).In that period of time, Ensto hasbecome a true partner. When does a supplierbecome a partner? “When we dosomething new together,” says Myllymäki.“A partner understands our requirements,but they also create something suitablefor their manufacturing processes, whichallows us both to be competitive.”Myllymäki says Ensto understandsthe nature of a good partnership. “WhenABB is competing for a big contract, Enstoadapts to the circumstances and helps usbe competitive. Ensto makes sure its productsare available and delivers on the datethey promise.”“Ensto knows what we’re looking for,”he says. “It understands ‘protection class,’and it understands the technical requirementsbehind the product well enoughthat they are very often telling us how todo it. Ensto is in the business.”The final, and often critical test of apartner, is speed in tackling problems.Complaints must be handled quickly.“The Ensto representative in Vaasa can bein our factory in ten minutes,” says Myllymäki.“If needed, an engineer will comefrom their Mikkeli plant.”Myllymäki says the situation no manufacturerlikes is an angry customer combinedwith a long supply chain, whichmakes it extremely difficult to determinewho’s responsible. In those situations,true partners work together to resolve theproblem as soon as possible.In the modern manufacturing environment,as inventories shrink and lean practicesare adopted, relationships betweenthose in the supply chain become evermore important.“We have an efficient and slim organizationhere,” says Myllymäki of his ABBplant. “Expert partners like Ensto are essentialto remaining competitive.”37


ensto todayShip owners need to save more and more energyon lighting, and we solve this problem.”Guglielmo RutiglianoAll AboardEnstoEnsto LEDs light the world’s cruise ships38


Photo: Carnival Cruise LInes“Since the 1990s, Ensto has providedlights for cabins, corridorsand public areas, but nowwe offer a full line of technicalluminaires for marine lighting,”says Guglielmo Rutigliano, SalesDirector of Ensto Italia. “Ship owners needto save more and more energy on lighting,and we solve this problem."Twenty-thousand Ensto luminaires maybe found aboard the Costa neoRomantica,known for her public rooms decorated withrare woods, Carrara marble, and millions ofeuros of original art.Carnival Cruise Lines is another ofEnsto’s marine customers. Carnival installed6,000 Ensto LED luminaires on their newestluxury liner, the Carnival Breeze.Most recently, Fincantieri, the largestshipbuilder in the Mediterranean, signedEnsto to provide public area house lightingfor all its new vessels through 2016. Eachnew vessel will be complete with 19,000Ensto luminaires and over 20 kilometers ofstrip LED lighting."Quality was the main reason for theEnsto partnership,” says Fincantieri. “Wewanted to add direct control to the supplyof the luminaires to ensure we only use highquality products in our ships, so we made theselection ourselves, not through our partnerslike in the past.”39


ensto todayWe truly want to save energy -and the time and money of the customer”MARIA VICKHOLMMaria Vickholm pictured with Harri Otila, Ensto UtilityNetworks Regional Sales Director, who is involved incoordinating Ensto Pro trainings for project customers.40


Working toward‘WOW’How Ensto Pro brings Ensto closer to its customers"We want to spread the wordof wow,” says Maria Vickholm,Ensto Pro Specialist.“We want each trainingsession to be unique for our customers.”Ensto’s tool for spreading the word ofwow is Ensto Pro, a training academy witha mission to ensure two-way communicationbetween Ensto and its customers. Conductedin over a dozen languages, EnstoPro is a local, customized training effort toget to know the customer and ensure productsare installed in the right way.“Each manufacturer's products areinstalled differently,” says Vickholm, “Wewant to train our customers to minimizeor erase human mistakes and at the sametime, we want to get real-time feedback."Training is not something new forEnsto, of course. “We’ve trained for decades,”says Vickholm. “However, our trainingshave been gradually systemized toensure quality and a uniform approach inall markets for all our clients.”Ensto Pro Training Academy containstraining sessions from practical installationsto lectures on line design and standardrequirements. “We see to it that our ownpeople are professionals in their area. Still, inorder to serve our clients properly, we need tolisten to them – to hear what they need, whatchallenges they face, and what commentsthey have for us. This way we both learn.”Case Study: PolandA program for network designers done inFebruary 2013, in Baranowo, Poland, isan example of how Ensto reaches out toget to know its customer.Energobud’s Paweł Linkowski,Product Manager responsible for connectingnew facilities to low-voltage lines,was one participant. His employer, Energobud,is wholly owned by ENEA, a leadingenergy supplier in Poland. Linkowski saysEnergobud delivers a variety of services toENEA: “If something’s broken, they call us.If they need something built or designed,they call us. We operate their systems.”What Linkowski most valued in theEnsto Pro training was Ensto DesignerSuite software, a product he uses to createspecifications for overhead lines. “Weuse mainly overhead lines in Poland, thePAS, EXCEL, and AXCES systems. Enstoupdated and improved the program lastyear. Now slack calculations are mucheasier, and we can represent it in graphicform.”Customer IdeasBut in addition to the technical exchange,Linkowski says of equal value was theopportunity to talk with other designers,as well as suggest product impro-vements to Ensto. “In Poland right nowit’s popular to install multiple lines. IfEnsto would develop a program for thisit would be nice.”Ensto’s Maria Vickholm says all productsuggestions are taken seriously. “We get lotsof ideas for product development. A recentexample is a client and product managerdiscussing rural area distribution cabinetand how it should be done. It took a monthand we had a new prototype for them. Andthen at the International Exhibition ofElectricity, Telecommunications, Light andAudio Visual in Jyväskylä, Finland, we hada client order 200 of them. The idea was acustomer idea!”Saving Your EnergyIn Ensto Pro trainings, common aimsare shared and challenges solved throughopen discussion and cooperation. Thisresults in mutual success and is the basisof a true partnership. “We truly want tosave energy - and the time and moneyof the customer,” says Vickholm. “Nodouble work, no double time.”41


ensto todayIn theWARROOMSoldiers in the war against lossesSome say it all started withWinston Churchill, in whosewar rooms beneath Whitehallthe routes of British convoyswere plotted and monitored tokeep supply lines open with America andRussia. During the war, the rooms wereused 24 hours a day, and lights in the MapRoom burned for six years straight.Although the safety of the free worldno longer hangs in the balance, the use ofwar rooms continues today in industry’swar against losses. You’ll find them at everyEnsto plant throughout the world.In Keila, Estonia, Ensto assemblesproducts including utility network accessories,terminals, switches, light fittings,and heating cables. And in the middle ofthe factory floor is the war room, whereEnsto’s front line officers meet to wage thewar on losses, a war that intensifies as Leanpractices – creating value by eliminatingwaste – are implemented.“As Ensto works to reduce inventoryto release capital from stocks, this forcesclose cooperation with suppliers,” explainsSami Soiramo, Keila Plant Manager. If youshrink inventory, then there is less tolerancefor defects in the inventory you have.“An assembly plant is dependent onavailability and quality of components.A majority of cases are related to one orboth of those,” says Keila quality engineerHardi Rajur. “We used to send defectiveparts back, but now we work together withthe supplier to see that it doesn’t happenagain.”And the war room is the key tool tohelp in identifying problem areas.One case in point is a troublesomealuminum lug, produced by one of Ensto’ssuppliers in southern Europe. The lug is acore product which is placed on the end ofunderground cables.The lugs are shipped to Keila wherethey meet shear-head screws arriving fromFinland’s Porvoo factory. The lug plus twoscrews are assembled in Keila and shippedon to the end user as finished product.The lug had caused trouble for theKeila plant, as too often workers discoveredthat the screws didn’t properly fit the lugs.Workers were then required to expendadditional time to manually widen the gapbetween the threads. Thanks to Keila’s warroom, that waste was able to be quantified:2,760 minutes – or 47 hours – in one singlemonth.Under the war room system, any lossof greater than five minutes is “carded,” or42


Lean LingoHow to talk qualityLean is a philosophy for manufacturingderived largely from theToyota Production System whosegoal is creation of “value” – definedanything a customer is willing topay for – through the eliminationof waste.While often attributed to W. EdwardsDeming’s pioneering workand expressed through the threeJapanese types of waste (Mura,Muda, Muri - unevenness, non-value-addingwork, and overburden),champions of Lean often go evenfurther back in history to referenceBen Franklin, who was fond of sayingthat avoiding unnecessary costscould be more profitable than increasingsales. "Save and have," saidFranklin.written up and posted in the war room.Every two weeks team leaders gather toanalyze the data.Pareto charts are prepared, whichhighlight the most important elementamong a large set of common sources ofdefects – parts, labor, machinery, to namea few. (The Pareto principle states that, formany events, roughly 80% of the effectscome from 20% of the causes.)“What’s the problem? How do we giveweight to it? These are the questions whichthe war room and Pareto charts answer,”says Soiramo. “It’s a way to eliminate subjectivity– it takes the guy who shouts theloudest out of the equation and examineshard facts.”In the case of the lug, the loss was prioritizedand objectively quantified in thewar room, and engineer Hardi Rajur wascharged with solving the problem.Rajur discovered that the supplier waschecking the specs before – not after –the tinning of the threads on the lug, andthe additional bulk added by the tinningmeant the product did not meet specs. Aminor miscommunication, it might seem,causing quality control to be done at thewrong point in the production process.Rajur sent a new drawing which specifiedexactly when the threads needed tobe checked, and required the supplier confirmin writing that the procedure wasbeing followed. “With written confirmationit made clear how important this wasto us,” says Rajur.In the year since Keila’s war room hasbeen in operation, the team has takenon nine different improvement projects.Cards written in association with theseprojects have decreased 90%, and in termsof minutes of loss, there has been a 96%improvement.Sami Soiramo says improvements inefficiency which come from the war roomwill allow him to dispatch Hardi Rajur tothe front lines of the battle for efficiency.Rajur’s mission: to travel, meet, and buildrelationships with some of the nearly 200suppliers connected to the Keila plant."Every man to his post," said WinstonChurchill in his speech in Septemberof 1940. And in 2013 it still holds true inEnsto’s war on losses.For Ensto, Lean is the first phase ofits EOX program, Ensto OperationalExcellence. Lean means the implementationof practices such as 5S(all things in their proper place),SMED (making setup operations asefficient as a Formula 1 pit stop), 8D(root cause analysis and eliminationof defects), ASSY (reorganization ofassembly cells), and War Room (afactory floor process to track andfollow up on deviations, the “waragainst losses”).Hardi Rajur and Sami Soiramo.43


ensto todayBrian Tracy is an internationallyrenowned speaker andconsultant in the field of humanpotential. He addressedattendees at Ensto’s SalesChampionships on February14 in Finland. Tracy spokeabout techniques to improveboth sales and productivity.Excerpts from his talk are onthese pages.UnlockingHumanPotentialPhoto: Opa Latvala44


“Do the thing you fear until the feargoes away.”“‘Overprepared.’ The word does notexist. It is not in the dictionary andnot in the mind of the professional.”“Social networking is socialnotworking. If youwant to buildrelationships,phone someoneand go see them.”“Everyone in thetop 20% startedin the bottom 80%.You simply decide tobe in the top 20%.Then the only questionis how.”“Thoughts are things.Change your thinking.Change your life.”“When confronted with the choice ofearning a lot or earning a little, Irecommend you choose a lot. Thetime is going to pass anyway.”“Success is on the far side of failure.”“Each ‘no’ means you’re one stepcloser to a ‘yes.’”“Don’t check email first thing in themorning. If you start with productivework, you’ll be more productiveall day long.”“If you want to achieve somethingyou’ve never achieved before, youmust do something you’venever done before.”“Ensto products are free.They pay for themselves.We just take a deposit upfront.”“For 6,000 years, sinceancient Sumeria, customers haveonly bought one thing:improvement.”“Trust is the lubricantof business.”Brian Tracy’s tie clip, with the acronym YCDBSOYA.(This is Ensto CEO Timo Luukkainen’s gift to the sales force, and it stands for “You Can’t DoBusiness Sitting On Your Ass.”)45


ensto todayEnsio MiettinenandTRUSTThe Ensio Miettinen memorial seminar, heldlast August at the Porvoo Art Factory, was agathering of friends and business partners ofEnsto's late founder to discuss the meaning oftrust, a value highly esteemed by Ensio. Distinguishedspeakers included noted politicians,professors, and a philosopher.Photos: Jori Gustafsson46


Timo Miettinen, Chairman of the Board of Directorsof Ensto opening the seminar.Trust: the UltimateCapitalOn the occasion of the Ensio Miettinen MemorialSeminar, Timo Miettinen, Chairmanof the Board of Directors of Ensto,reflected on the nature of the modern organizationsand their relationship with humanbeings.Shareholder value vs. stakeholder value”It is dangerous to emphasize shareholdervalue alone. It is challenging for an entrepreneurand employer if the employees, andespecially the management, are interestedsolely in issues related to money.”On the dangers of public companies”In family companies, it is more rare for themanagement to be paid exorbitant fees thatcould be seen as unjust by society. Indeed,that has been more of a problem lately instate-owned companies or public enterprises.On the other hand, if profits are made, it isjust to reward the personnel, especially thoseresponsible for the good result.”Corporate acquisitions and trust”These days, corporate acquisitions are trulyan occult science with their many and variousclauses. This has resulted in consultants receivingfancy compensation, while the buyerand seller can still end up suffering. Moneygoes up in smoke, and the focus of the company'smanagement is shifted to completelyinappropriate areas for a long time. In thesecases, the meaning of trust seems to havecrumbled away: there isn't any. We try to fixthings by filling the void with a complicatedset of articles and clauses.”The European Union”In my opinion, the European Union can beseen as an enormous enterprise that hasdrifted into great trust-related crisis. The basicproblem in this enterprise is the differingsets of values, and the lack of trust betweenthe North and the South. Transfer of moneyand collateral from the North to the Southdoes not provide any help now. They aremere pick-me-up drinks the next morning.We would need to build a European societyof trust, which, given the current compositionof the European Union, is next to impossible.”Kaj Bärlund, Mikaela Nylander and Klaus Hellberg,Finnish politicians.Timo Miettinen and Marjo Miettinen, CEO of EM Groupand Ensto Board member, greeting NCC's Vesa Peltola.Ensio's close friend Paavo Lipponen, former PrimeMinister of FinlandKlaus Hellberg, Markku Välimäki and Risto Anttonen,Porvoo influencers.Päivi Lipponen (MP) with Ensio's friend and businesspartner Risto Forssell.Risto Harisalo, Professor of Public Administration,Tampere UniversityJyri Häkämies, CEO, Confederation of Finnish IndustriesEsa Saarinen, Professor of Philosophy, Aalto University47


ensto todayWhat I can dois give you the basicprinciples oflooking at the world!TOSHIO YAMAGISHIIn OthersWe TrustPhotos: Jori GustafssonProfessor Toshio Yamagishi’s work demonstrates that those who have astrong tendency to trust others are not gullible or naïve – they are moresensitive to information that reveals the trustworthiness of others.Professor of Social Psychologyin the Brain Science Instituteat Tamagawa University, Japan,Toshio Yamagishi is a specialistin trust as a form of social intelligence. Hespoke to Ensto Today about trust in societyand in corporate environments.You’ve very carefully defined what generaltrust is not. Trust does not equal anassurance of safety. Trust does not meangullibility or assurance. So what might bethe best way to characterize “trust”?By that I mean trust in other people ingeneral, without much information about aparticular person. The difference betweentrust and distrust is in the default assumptionabout human beings. Generally distrustfulpeople assume that people are badin a sense until it’s proven that a personis nice. Trustful people start with theassumption that people are generally nicebut look for signs of untrustworthiness.You assume others are trustworthyunless you get information otherwise.So more successful people are those whoextend the benefit of the doubt? Can somethingbe said about the general level ofpeople willing to extend the benefit of doubtin the world? Or is it cultural specific?The general trust in China, ranked by ananswer to one question is extremely high,right next to Sweden. But Chinese trust is atthe bottom according to another question.If you ask the Chinese do you trust othersin general, they say yes. But if you askChinese if you trust the person you meetfor the first time, they say no. It’s a collectivistculture; they deal with an exclusive48


set of people, meaning people they know.It’s important to establish strong relationsbecause you distrust others.You point out in your book that lack oftrust means enormous social waste, andyou have a great example: “Inefficiencyis forced upon government by countlessrules and regulations.” It’s a lack of trust.Perhaps I’ve been unfair to governmentall these years?It’s kind of a Catch 22; in Japan we saychicken and egg, which comes first? Anotherway of describing that kind of situationis equilibrium in game theory. Onceyou reach that stage, there is no way toget out. If you change your behavior youlose unless your partner also changesstrategy at the same time. With peopleand government, government can givefreedom to its employees which mightimprove efficiency, but there is alwayssomeone who cheats, and the media findsout, then there will be strong criticismasking “Why didn’t you control?” Forbureaucrats it’s best to enforce rules sothat they have an excuse when somethinggoes wrong.Do we see it in corporate world? Shareholdersstrangling management withrules?Some major corporations become bureaucratizedand lose their efficiency.Leadership is very important in thosesituations. The leader is to provide a guarantee,protection for employees who takeinitiative. Sometimes people need to gobeyond the rules to create efficiency ordo something really important. Sometimesyou need to take a risk. If you lose,if that means the end, then you cannottake a risk. Strong leadership, protectingrisk taking, provides the basis for generaltrust.Japan is the least risk-taking societyaccording to one survey, and the reason isthat Japan – this is my take – there is toomuch risk in Japan. It’s counterintuitive,right? It’s a safe society with permanentemployment, but that increases the risk.Permanent employment means once youget fired that’s the end. There is no secondchance. Every major company maintainsa permanent employment system.Once you are out, you cannot comeback. The best strategy is to avoid risk.Will this change?Shifting from one equilibrium to anotheris difficult. Change occurs very slowlywhen it reaches a point where many otherpeople are changing. When it reaches acritical mass it will change. It’s approachingthat. Many understand it mustchange, but they believe that others don’tbelieve it.But those outside of Japan virtually worshipthe systems and efficiencies thatJapan has created in manufacturing.Aren’t the Japanese the world leaders inthis?There are always two sides to things.Japan’s employment system and qualitycontrol comes from an environmentwhere people care about reputationwithin their own group. They understandthat their behavior is always being watchedinformally. They need to fit in, to beaccepted by group members. That is thementality: you need to fit in so you won’tget expelled.So how can one be innovativein a collectivist society?Japan up to a certain point has been successfulby reducing transaction costswithin organizations. Many of techniquesto improve transaction costs havebeen introduced, like the rotating systemof jobs within an organization. Competitionis group-based or section-based.If you invent something, you don’t geta huge benefit. But individuals get respectby being praised by people aroundthem. It gives them strong motivationto cooperate and work hard. Collectivistsendeavor to improve efficiency likequality control, but that system is not asefficient as before. Basically the opportunitycost is getting more important. MostJapanese institutions and companiesadopted the so-called Japanese managementsystem that reduced opportunitycosts for employees. Once you are out ofthe system there aren’t too many opportunities.Employees knew they had tostay. And a seniority-based promotionsystem makes you hostage.If you could have full power to changethings in Japan, what would you do?This is a tough question. The system andmentality have to change simultaneously.If the system remains, the mentalityassumes the presence of the system andpeople do not change. If people’s mentalitystays it’s hard to change system. As presidentor prime minister I might be able tochange the system, but I could not changepeople’s mentality immediately. Theremust be a time lag between system andmentality. If you give me ten years, freeingme of any criticism, then I might succeed.So can we as individuals within societylearn to trust? Or is the change moregenerational and beyond our individualcontrol?The question is very critical in Japan. Mygeneration has invested in developingrelation-specific knowledge – you knowhow the relationships are within yourown company. It improves efficiencies oforganizations. But because people spendso much energy and time to develop theseskills they have not invested enough inthe development of universal skills andknowledge. They are stuck. My generation,baby boomers, cannot change. Theycannot speak English as it was not importantfor them. All of a sudden internationalizationof the global economy forcesthem to speak English, but they cannot.It’s a skill. You need to invest years. Generaltrust is a skill like that. The shift willcome between generations.And in the corporate environment?Is change also so slow?Some corporate leaders are trying now.Rakuten, a Japanese based retail website,wants to expand beyond national boundaries.The leader, Hiroshi Mikitani,decided the language of his companywould be English. People cannot chooseJapanese. That kind of strong leadershipcan make a difference.Mandating English sounds ratherdraconian?If his company succeeds it is an incentivefor other leaders to adapt a similar strategy.But many others don’t believe in theapproach. It’s too much for them.When you speak in these non-academicsettings you must often be asked forpractical advice by businessmen abouthow to implement the ideas you discuss.What do you usually tell them?My answer is I’m the wrong person toask. I’m basically a scholar. It’s up to you.What I can do is give you the basic principlesof looking at the world!For more information, Ensto Today recommendsProfessor Yamagishi’s book, Trust: The EvolutionaryGame of Mind and Society.Springer press, 2011.49


Photo: EnstoEnsto in Poland:Happy 20 th !Happy birthday to Ensto in Poland, formedas Ensto Pol Sp. z o.o. in 1993!For 20 years now the company hasstrived to be Poland’s leader in the development,manufacturing and marketing ofelectrical systems and solutions for powerdistribution as well as electrical applications.Headquartered in Straszyn, nearGdansk, Ensto also has two technical officesin Łódź and Kraków, plus a network of technicalsales representatives throughout thecountry.Ensto’s growth in Poland has beenrecognized by winning several Gazelles,Poland’s prize for the fastest-growing smalland medium-sized enterprises. Ensto hasalso won four Forbes Diamond awards (ina row!) beginning in 2009 – the Diamondis recognition for companies which haveincreased their value and retained highrevenues throughout a prior three-yearperiod. The company is also proud ofhaving been certified ISO 9001 in 2008.“We’d like to take this opportunity tothank all our customers and business partnersfor their trust and cooperation,” saysJacek Wagner, the CEO for Ensto in Poland.“We also look forward to the next 20 yearsof fruitful cooperation.”sustainabledevelopmentreferenceSLO Names Ensto‘BlueWaySupplier 2012’SLO Oy, Finland's leading wholesaler of electrical, telecomand automation products, named Ensto its “BlueWay Supplier2012” for Ensto’s victory in SLO’s Energy Saving Weekcompetition in June.SLO is part of the international, Paris-based SoneparGroup, whose BlueWay program and Energy Saving Weekpromote sustainable development. BlueWay is a mark ofenergy efficiency.“Ensto was the best at rising to our challenge,” said SamiKokkomäki, SLO's product marketing manager. Kokkomäkipraised Ensto’s themed approach to the competition builtaround its AVR320 LED lighting, ideal to replace old luminairesduring renovation of large apartment complexes.Ensto is SLO's seventh largest BlueWay supplier rankedby product sales.Twenty Yearsin EstoniaThis year, Ensto and its 420 employees in Estonia celebrate20 years in the market.Ensto began in 1993 with a sales office in Estonia’s capitalof Tallinn, and the first factory was opened in 1993 in Keilafor product surface finishing.In 2004, a new factory was opened to assemble electricalproducts, and in 2006 metal enclosure productionwas added. In 2010, Ensto greatly expanded capacity in Tallinn,doubling the company's production volume of thermoplasticenclosures.All said and done, Ensto's factories in Estonia makeapproximately 6,000 different Ensto products. That’s a lot offlexibility, though perhaps not surprising for a 20-year-old!Happy birthday, Ensto Estonia.50


First to theFutureThe Nordic countries 'have reached thefuture first,' wrote The Economist in February,2013. Ensto could not be more excited.For Ensto, the future means sustainableproducts, services, and practices. Though ourregion may lead the world in the developmentof renewable energy resources, we will neverbe content. In Finland, as well as the 19 othermarkets we call home, we’re committed to theultimate goal of saving your energy.www.ensto.com52

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