1. The Volvo Way
Building a new vision
and cohesive culture
Charlie Nordblom
Senior Vice President Volvo Group
Strategic Internal Communications
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
1 2012-03-29
2. The challenges
• Re-design corporate culture
• Remove old vision and wanted
position
• Take “Volvo Way” approach when
designing new vision & mission
• Prepare transition for new CEO
Charting the course
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
2 2012-03-29
3. Recipe for success
“The Volvo Way shows what we stand for and
aspire to be in the future. It lays the foundation
for developing the Volvo Group into the world’s
leading provider of commercial transport
solutions. It is a recipe for success in which we
strongly believe. It expresses the culture,
behaviors and values shared across the Volvo
Group.”
What we stand for
The Volvo Way
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
3 2012-03-29
4. Shared values
“Our culture is how we work together with
energy, passion and respect for the individual.
It is about involvement, open dialogue and
feedback. It is about teamwork, diversity, and
leadership. It is how we build trust, focus on
customers and drive change.”
Open dialogue Way
The Volvo
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
4 2012-03-29
5. Cohesive culture
“We endeavor to create a cohesive culture
throughout all Volvo Group companies. This
is a culture of enablement, based on global
principles and shared values outlined in The
Volvo Way. Active development towards
realizing The Volvo Way spirit and culture is
the backbone of all operations.”
The Volvo Way
Cohesive culture
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
5 2012-03-29
6. Unique for Volvo Group
Setting the direction
“To be involved and empowered in set-
ting the direction means that we take
individual responsibility and ownership
for decisions. This employee engagement
results in a strong sense of commitment
to meet agreed objectives and goals. All
of us feel accountable for driving change
and building the future. Only engaged
employees can deliver excellence.”
The Volvo Way
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
6 2012-03-29
8. Companies get lost too
AB Volvo
950, VGHQ, ChN
The Volvo Way
8 2012-03-29
9. ”We are
responsible…”
Robert Wood Johnson
AB Volvo
950, VGHQ, ChN
The Volvo Way
9 2012-03-29
10. Clear and compelling
Vision should outline:
• Who are we? Why do we exist?
• What do we want to become?
• What is unique about our way of
doing things?
• Review mission statement
• Validate draft wanted position
Vision of the future
AB Volvo
AA 13200 VGHQ, ChN
The Volvo Way
10 2012-03-29
11. Next generation leaders
• Reach out to high-potentials and
future leaders
• Focus on new home markets and
old
Future leaders
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
11 2012-03-29
12. 156 young leaders in seven countries
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
12 2012-03-29
13. Next generation leaders
• Reach out to high-potentials and
future leaders
• Focus on new home markets and
old
• Discovery journey based on
three future scenarios
• Collective learning
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
13 2012-03-29
14. The green
(r)evolution
Asia rules A multi-polar
world
AB Volvo
AA 13200 VGHQ ChN
The Volvo Way
14
15. Process
Green (r)evolution I C B U F S J
n h r S r w a
d i a A a e p
Asian development i n z n d a
a a i c e n
Multi-polar world l e n
• Create and capture different keywords
• Select most important within your scenario
• Craft vision sentence with most important keywords
• Relay of previous vision sentence to next team
AB Volvo
AA 13200 VGHQ ChN
The Volvo Way
2010-12
16. Collective learning
What we are What we know What we must What we do What we achieve
and want to be and understand and can do
Principles Insights Rules
Behavior Results
Vision Values Tools
SINGLE LOOP
DOUBLE LOOP
THIRD LOOP
Inspired by: Swieringa & Wierdsma, 1992 and Looop AB
AB Volvo
16
The Volvo Way
2010-12
17. Speak to power
• Frank recommendations
• Challenging observation
• Compelling conclusions
• Unedited and uncensored
• On the CEO’s desk within 24 hrs
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
17 2012-03-29
18. Funnel for selection
Technology Position Offering Employees Society
Environment Value adds Culture
Priority – unique attributes
. . . . .
Secondary – important but not unique
. . . .
.
Price of entry – hygiene or standard
.
Key differentiators – most important
. . . .
AB Volvo
AA 13200 VGHQ ChN
The Volvo Way
2010-12
19. Volvo Group’s vision and mission
The Volvo Group's vision is to become the
world leader in sustainable transport
solutions by:
• creating value for customers in selected
segments
• pioneering products and services for
the transport and infrastructure industries
• driving quality, safety and environmental
care
• working with energy, passion and respect
for the individual.
New vision & mission
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
19 2012-03-29
20. Volvo Group’s vision and mission
The Volvo Group's vision is to become the
world leader in sustainable transport
solutions by:
• creating value for customers in selected
segments
• pioneering products and services for
the transport and infrastructure industries
• driving quality, safety and environmental
care
• working with energy, passion and respect
for the individual.
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
20 2012-03-29
21. Post mortem
• How we reasoned
• Introducing new and
deleting old words
• Elaborate on
meaning
• Most important
changes
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
21 2012-03-29
22. Business critical issues
Customers first – focused and distinctive
strategy for delivering value to targeted
customer segments
Organizational fit – egalitarian culture based
on mutual respect; designed to drive change,
innovation and execution
People alignment – developing engagement,
trust and commitment to goals, values and
strategy
Leadership - develop global leadership and
teamwork, and leverage diversity
High performing
Learning – enhance sharing of best practices,
Michael Beer: “High Commitment, High Performance.
learning and growth
How to Build a Resilient Organization for Sustained
Advantage.”
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
22 2012-03-29
24. Charlie Nordblom
Comments, feedback and questions are
welcome:
charlie.nordblom@volvo.com
Twitter: @Way_finder
LinkedIn group:
Communicative Leadership
AB Volvo
AA 13200, VGHQ, ChN
The Volvo Way
24 2012-03-29
