UNITED through the crisis - The Official Magazin of the DMK Group
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JULY 2020 The Official Magazin of the DMK Group UNITED through the crisis How we as a dairy are sticking together
EDITORIAL POLL ABOUT THE CORONAVIRUS It’s Good That We Are What has “Us” Oliver Bartelt Head of Communication DMK Group changed for you? The pandemic has affected many aspects of our lives Dear Readers, but not only in negative ways. We might keep some of these changes in the future, after the crisis. We have experienced some demanding weeks recently and the crisis is far from over. But now, at the end of June, we are seeing signs of hope. Now that Germany’s economy is Tell us what you think – what applies to you? opening up again, restrictions are being lifted and infection rates are falling, we can take a breath, look back and reflect on that turbulent time. 1. I cook more often and have been The last Milchwelt issue was all about the people at DMK, our employees and farmers – trying out new recipes. and we are dedicating this issue to them too. Without their commitment, DMK would not be doing half as well as it is today. We asked them how they are dealing with the crisis and what they think and feel right now (p. 12). And we also reached out to man- 2. I am discovering some interesting new places in agers who are having to hold their teams together from a distance, and who adapted to the country where I live. remote working and videoconferencing right away. Chief Human Resources Officer Ines Krummacker describes how managers can provide stability in these difficult times and promote a sense of togetherness (p. 26). This is particularly important with international 3. I have come to really teams. Now DVN is part of wheyco, employees in Germany and the Netherlands are ben- appreciate everything I have. efiting from their new colleagues and their knowledge and experience (p. 40). We also talked to farmer Detlef Stark about how he responded early and adjusted work Join in and share due to the coronavirus. This is just one more of many challenges facing the agricultural sector (p. 18). your thoughts This is a time of crisis, but we can also see it as an opportunity. It is more important than ever that we are growing closer together, becoming “us.” It’s a huge competitive advan- www.dmk.de/poll tage – particularly in these stormy times. Enjoy reading – and stay well! Best regards, Oliver Bartelt 2 MILCHWELT July 2020 July 2020 MILCHWELT 3
INSIDE INSIDE 12 COVER TOGETHER THROUGH THE CRISIS Our employees How they are over- 20 How our employees are doing, what TOGETHER coming everyday Portrait people at DMK are excited about and challenges to keep the Farmer Detlef how experts see the situation 12 – 31 company afloat amid Stark shares through the crisis the pandemic. his views on the pandemic. NEWS Uniekaas – the brand expands 34 – 35 How global thinking is powering our company 36 – 37 Wheyco and DVN become one 40 – 41 28 Continuous Improvement – a commitment About Our Brand 42 – 43 46 – 49 A source of strength Chief Human From The Regions 52 46 Resources Officer Ines Krummacker on COMPANY what makes a good Ever popular manager. MILRAM is providing The coronavirus and its effects: even more variety. How employees are handling the pandemic 12 – 19 Verbraucher und ihr Verhalten: 48 Über den Konsum in Consumption Founded on trust amid the coronavirus 24 – 25 Humana, Alete The big picture: and Milasan – Ingo Müller and Frank Claassen 26 – 27 ssa powerful trio. What makes a good manager? Interview with Ines Krummacker 28 – 29 The Coronavirus Task Force: Our measures to deal with the pandemic 30 – 31 Column Marco Bode on team spirit 33 Combining family and career at DMK 38 – 39 One Finance: Making our figures transparent 30 The Bremerland brand 34 is winning fans 50 – 51 FARMING AND AGRICULTURE 42 Uniekaas online How a brand is reaching new target 50 A Farmer’s Views 20 – 23 Continuous groups online. DMK’s Biodiversity Project 54 – 55 Improvement DMK’s powerful strategy. Bremerland IN EVERY ISSUE The traditional brand has made a comeback and is winning fans. Contacts to the Editorial Department 56 DMK in the Media 56 – 57 Masthead 57 Contact to Regional Leaders 57 DMK Sweepstakes 58 Recipe 59 4 MILCHWELT Juli 2020 Juli 2020 MILCHWELT 5
FACTS & FIGURES FACTS & FIGURES 100,000 100,000 flowers. Martin Kastenbein from the Edewecht creamery took this picture of Johanna, his five-year-old daughter. She ran off into the rapeseed field to play and stood still for a moment among all the blossoms. Gazing across the endless sea of yellow flowers, she forgot for a moment that they were on their way to a paddock 6 MILCHWELT July 2020 July 2020 MILCHWELT 7
FACTS & FIGURES FACTS & FIGURES 214 People work at the Strückhausen plant, including (left to right) Gaby Veith, Gaylord de Freese and Jan-Christoph Müller from the weighing department. They are among many of our employees following even tougher safety standards than usual these days, in order to protect themselves and their colleagues Jenny Hensel und ihr Mann Norman, beide bei der wheyco in Altentreptow beschäftigt, genießen gemeinsam mit ihrer Tochter Mathilda das neue MILRAM Buttermilch-Eis Zitrone und Erdbeere 8 MILCHWELT July 2020 July 2020 MILCHWELT 9
FACTS & FIGURES FACTS & FIGURES 1 Cutting grass for the first time in 2020, as farmers struggle with drought, night frost and plagues of mice. Yields are down, as growth was limited by the lack of rain. All we can hope for is better weather in the coming months 10 MILCHWELT July 2020 July 2020 MILCHWELT 11
COVER STORY COVER STORY Keeping a distance but staying optimistic: Alexander Holzhaus, Marco Rödiger (forwarder), Sven Angermann and Fabian Lange (from left to right) – in the Zeven plant warehouse. “W e are now steering the company under totally different conditions. It’s still a major challenge to support people at work, to keep asking questions, motivate everyone and go the extra mile. Right now, no one knows what’s going to happen next and how the world might look in Heinz Korte, Chairman of the DMK Group, Bremervörde. a couple of weeks. But as a company, we’re totally confident that we are going to come through this difficult time in good shape. We have a couple of major advantages – not only all the restructuring of the last few years, but also that each and every one of us works with a genuine sense of connectedness and team spirit. Even if this is a real stress test and we’re relying far more on phones, email and video conferencing right now, our employees are mastering these challenges in their professional and personal lives. This crisis is far from over, but it’s really showing how DMK Coming and “WE” are pulling together. It’s the hour of the cooperative ideal, namely that “what one man cannot manage alone can be achieved by the many.” We seem to have internalized that, and I’m very proud of that.” through the crisis together “F rom our farmers in the fields to employees in the dairies and administrative workers, all are affected by the coronavirus, professionally and on a personal level too. So far, we have been spared any major outbreaks of illness at DMK, thanks to The pandemic has changed everything. How is it affecting a great deal of effort. As a food producer, we know all about hygiene and a company like DMK – and how are we handling the crisis? we are adding on extra measures as well. And as we process the top-quality milk that our farmers produce, we are happy to have them by our side. Our Employees and farmers share their experiences, describing what farmers are experts at what they do and we owe them a special thanks. has changed for them. We also report on the Coronavirus Task After all, without all their careful work, supermarket shelves would be empty. Germany’s Agriculture Minister Klöckner says time and again that Force and the measures it’s taking, how consumer behavior is “the food sector is of systemic importance.” We see this both as a challenge changing – and the strategies that are keeping DMK on track and as an opportunity.” Ingo Müller, CEO, DMK Group, Bremen. 12 MILCHWELT July 2020 July 2020 MILCHWELT 13
COVER STORY COVER STORY “F “W eed suppliers, milk collec- ho would have thought that a virus would turn our tors, service technicians, lives upside down like this? I was really upset at vets and hoof trimmers, first. But then I started to think more pragmatically, they all come to our farm and looked around my house for an inspiring place and work as hard as they did before the to work over the next few weeks. I took a few things from my desk at coronavirus, they just keep a distance for Humana to try and recreate the working atmosphere from there. Now, safety’s sake. But things have changed I sit down, work out my goals and list my tasks for the day. And I feel since the pandemic broke out. Right now good when I tick off all I’ve achieved with a colored pen! I’m finishing training as an agricultural Over the past few weeks, I’ve become more aware of lots of things, business manager and the teaching is starting with the fact that emails can’t really convey the depth of mean- “I feel hopeful mainly online. After my exams I’m going ing or context of communication that you have in meetings in real life. Alberta Bruno, National Account Manager, Humana, Italy when I think to join my parents’ farm. It’s a small oper- Luckily we also have video conferences where we can ask if we don’t ation, we have 150 cows, but I enjoy farm- understand something, for example. It’s also really calming and nice to about the ing and I feel hopeful when I think about the future. This crisis has helped improve meet colleagues this way at least, even if digital communication can never replace interacting with people face to face. I do feel very lucky to be able to work from home, as there are so many people out there right now risking their future” how people think about agriculture, after health for us. I’d like to say a special thanks to all the wonderful people working in the health sector and to all the Luisa Wagner all, with import and export restrictions, other key workers out there.” people appreciate and value regional food Luisa Wagner, Farmer, and domestic production more. I think in Ringgau-Datterode. the long term, it’s important not to blame consumers for everything and to try and Lena Heptner, Quality Management give them a sense of the positive side of agriculture. As farmers, we have to Customer Service, Bremen, shown here talk more about what we do and why, and why that matters. That’s the only with her husband Kai Heptner, Head of way we can hope society will understand us better. I’d like farming to have Department at QM Knowledge and a better image and reputation, maybe politicians can help with that. And Analysis, and their children Till and Fero. I hope people aren’t afraid to ask questions, and that they’ll talk with us personally about their worries.” take the kids to day care in the mornings, drive to work in Bremen and then be back for supper. I usually work three days a week at DMK, and do another day from home. Now that day care is closed, I share child-care duties with my hus- band. I get up at dawn and work from 5 until 10, then my husband gets down to work. That works fine for me, I can take care of everything in that time, while Kai has to be available through the day. As head of the QM department, it’s harder “I to coordinate all the employees, allocate tasks work with 140 colleagues producing milk, butter and pass on information. Even though people “O and cottage cheese. I take milk powder samples and worked working remotely before, we still miss examine them using an infrared machine. I check ur children have gotten used to the more spontaneous office chats to share infor- their pH values and analyze their purity, among the fact that their parents are mation and get a sense of what’s going on. That’s other things. It’s a strange time, with the coronavirus, but the here, even if they aren’t available a lot harder online. But there are advantages, measures we take are necessary and we follow social distanc- all the time. They do like com- too – having a lot more time with my sons means ing guidelines. We’re all a bit sad that we can’t have a summer ing into the office to see what we’re up to. And I’m much more involved in their development. party this year, but we’ll make up for it another time.” that’s fine with us, especially when they come The little one is learning a lot from the older one with chocolate. We’re trying hard to keep to our right now, like how to cut with a pair of scissors normal daily rhythms in these strange times, we or how to hold cutlery properly... Making lunch Kristina Sturm, Laboratory don’t want every day to feel like the weekend. is pretty tough though! I know the kids have a Technician, Hohenwestedt. Our daily routines have changed a lot though. more balanced diet at day care than we’re man- Before the coronavirus, my husband used to aging at home right now.” 14 MILCHWELT July 2020 July 2020 MILCHWELT 15
COVER STORY COVER STORY “I “I t’s an extraordinary situation we’re ’ve got an individual workstation in “A Dennis Schierenbeck, in. Even after four months, it still feels systems operations, so the coronavirus fter finishing IT Systems Specialist, Seckenhausen. strange for my colleagues in Recruit- hasn’t changed very much for me. I don’t work – I’m a ma- ing to bring an applicant into a really have as much contact with my colleagues chine operator – large room, to greet them at a distance and sit as before, though. And my whole working area is I often sit with my two meters away from them. At DMK, we’re disinfected after each shift. Otherwise, though, I’m sister at home and sew masks for much closer than that usually, we’re not usually working as usual to keep our systems running, and my colleagues. I only wanted to so distanced, so social distancing regulations doing occasional repairs.” make protective face coverings make work feel a lot less personal. But I notice for my own team at first, but that each and every one of us, and all the ap- everyone liked them so much plicants, are very understanding about these and more and more colleagues requirements. Right now, we’re mainly work- Sascha Meier, Quality Assurance, Zeven. kept asking me if I could make ing from home, using work laptops. It takes them one too. It’s great, I can some getting used to, but there are advantages, “O help people be safe and have fun too: a lot of meetings are held on the phone or at work as well. At a creamery, ver the last few weeks, we’ve made sure up to through video conferencing which is working social distancing is not always so 1,200 employees are up and running, working out well! And we’re using this time to improve easy. We have to be pragmatic. remotely from home using DMK’s IT systems. our digital communication and raise DMK’s It’s pretty loud there, because Setting each person up with their own work profile on career websites. We’re noticing that of the machines and that makes station from home was a major challenge for us at corporate we can work efficiently from home and that will talking much trickier. Right now, IT. Not only did it mean procuring the right hardware but also make us more flexible in the future. We miss we write out our handovers customizing and configuring the central systems. We’re still everyday work at the office though. Usually we between shifts so the different optimizing the process to make sure everyone can communi- all sit together in one office and we can talk teams don’t come into contact cate internally and externally from home as smoothly as possi- things over or make a joke. We do miss that but with each other – we leave notes ble. Right now, I’m setting up the technical prerequisites so we we are so grateful to be able to keep working.” next to each machine for the in- can use Microsoft Teams, a practical collaboration tool. Aside coming shift. That really helps us from configuring all the IT systems, that’s involving a lot all a lot! After a production shift, of coordination, too. And all this is working out thanks when I leave the plant, I feel like to my family, too, who helpfully give me plenty of coffee. we’re doing everything right.” I do miss the social side of work but I’m enjoying the chance to be supportive professionally and at home, too. I hope these new working structures mean many employ- ees can enjoy a better work-life balance in the future.” Joana Franke, Team Coordinator, HR Service Recruiting, Zeven. “M y wife and I are sharing “H taking care of our two and washing Andreas Trull, children and it’s working out is becoming a Container Manager, Zeven. “I Jessica Gardewin, pretty well. Once we had to full-time job! Machine Operator, Edewecht. adjust the shift plan but we Seriously, we’re ’m in charge of container worked it out together at the all social distancing and we shipments and I troubleshoot department, it wasn’t a prob- follow the hygiene regulations. for the automated facilities. Nico Pemsel (l), Dairy “I Specialist, Erfurt. lem. We’ve had plenty to do We do that anyway though – Right now, we’re loading ’m really glad to have the same daily rou- though, what with the corona- after all, we are working with some things ourselves, because of the tine and to be able to keep going to work Tobias Büchner (r), virus and Easter, we were pro- food. I’m in the goods receiving coronavirus. As colleagues, usually, we as usual. My personal life means I have an Control Room, Erfurt. ducing 40 % more UHT milk department, troubleshooting shake hands but we’ve stopped doing easier time of it than some people – I’m in March. We all managed it in the high-bay warehouse and that for now! It’s only when I’m home single and I don’t have any kids to take care of. For me, the big difference is well though. Particularly as inspecting outbound goods. It’s that I realize all the things we can’t do dealing with truck drivers – before they enter the premises, they each have a parent, I’m really glad my all a bit more complicated than right now. We all have to take precau- to report to the guard and say whether or not they’ve been in an area that’s colleagues and my employer usual but we’re managing it all tions, that’s for sure!” designated high risk. Inside the plant, we all keep a distance from each are being so understanding very well!” Malte Huff, Receiving Department, Zeven. other, of course. My biggest wish right now is to be able to visit my parents and flexible in this situation.” again soon, in Brandenburg.” 16 MILCHWELT July 2020 July 2020 MILCHWELT 17
COVER STORY COVER STORY “A “J ust before the pandemic broke out, I sold my house and was ndrà tutto looking for a new place. But then the coronavirus came along, so I tem- bene – porarily moved in with my parents on their farm. It’s quite a big place everything’s and my sister, my brother-in-law and my two nephews all live here going to be too. Unfortunately, my nephew has a heart defect, so he’s vulnerable, as are alright. In Italian, those my parents. So I set up a completely separate working area to reduce the risk three words stand for hope of infection, and that’s working out. It’s easier, of course, to communicate with and you can see them up colleagues directly and I miss our spontaneous exchanges. On the other hand, and down the country, on I was less distracted and could concentrate on work better. I have to get used colorful banners in peo- to how video conferences work – at meetings, we often all talk over each other, ple’s windows or as giant whereas now we have to be a lot more structured, so I take notes on everything. “Andrà newspaper headlines. This Right now I’m back in the office two days a week and that’s so good! I’ve also tutto bene – sentence is on my screen, managed to buy a house but I’m glad I was able to live with my parents while too. Right now, though, the restrictions were in place. It was anything but boring. Once everything is Everything’s I’m not in the office but sitting at the kitchen table back to normal, ideally I’d work from home one day a week. Maybe that’s what we learned during this period of remote working, that we can do things like that Hanneke Ensink, System Controller, DOC Kaas, the Netherlands. going to be with my work laptop and Marianna Betta, Senior more easily. I should add that all the information from DOC Kaas and all the alright.” my two-year-old daughter is sitting next to me, gazing up at me with her big round blue eyes. I also have a son Manager of Quality Assurance & Regulatory Affairs measures taken were really good and just right. We even received a bunch of flowers, sent to our homes, as a thank you for all our efforts. That was really heart-warming, and Marianna Betta who’s school age, and we do his homework together. at Humana, Italy. great for the flower industry too!” I’ve had to adapt pretty fast to this new situation, like most parents. The coronavirus turned my daily routine completely upside down. I’ve become a real multi-tasker “I in record time to handle work and family life at the same time. Luckily, I can work well from home. What I miss, organize and document con- though, is interacting with my colleagues. I do hope that tainer loading, and I prepare after the pandemic, we can find ways to live better. We the tours in the UHT ware- really need to take social responsibility seriously and work house. That’s all going just as together with other people. Let’s learn from this crisis and smoothly as ever. When we’re loading, appreciate the relationships we have even more.” we make sure we keep a distance to the drivers and other colleagues.” “I ’m responsible for Facility Management, including cleaning and managing our stocks of disinfectants, disposable jack- Tobias von Holten, Transportation, ets and soap. Working from home took some getting used Zeven Central Warehouse. to. I have a laptop, my work phone transfers calls to my own “I phone and everything is working out perfectly. But we have two kids, age three and five, who couldn’t go to school or day care. At that age, coordinate the you can’t just say, “go off and play,” so my husband and I take turns commissioning and taking care of them. Of course, the phone rings when I’m downstairs shipment of fresh with the children, and sometimes one of the kids cries while I’m talk- products. Hygiene is ing. Everyone has been very understanding, though, because that’s obviously always really impor- just how it is sometimes. Luckily I can work tant to us. These days, we’re dis- remotely and manage everything within my infecting our working areas even working hours, and get all my tasks done.” Nienke Beverdam, Facility more often than usual and we’re Horst Böckmann, Commissioning, Management, DOC Kaas, The Netherlands. Zeven Central Warehouse. keeping a distance from each other. Otherwise, everything’s working as usual.” 18 MILCHWELT July 2020 July 2020 MILCHWELT 19
TOP TOPIC TOP TOPIC Agriculture amid the crisis Detlef Stark, manager of I need a cool head Anklamer Agrar in Mecklenburg Western Pomerania Farmer Detlef Stark started preparing early for the coronavirus crisis – one of many other challenges. But he is confident, as he has steered his farm through many other difficult periods T here’s a lot going on right now: we’re in the mid- meal, soy meal and minerals, we produce all our feed by our- dle of a pandemic, the fertilizer regulation has selves. We process manure in our biogas facilities to make come into force and we’re looking at a summer organic fertilizer for the fields. Our revenues are higher drought. Only a third of the grass has grown back thanks to this mass production – not all farmers are so lucky. and feed stores are all used up. If all that wasn’t bad enough, It breaks my heart to see how lovingly-managed family farms we optimistically invested in a new calf barn, a slurry tank are having to sell up after generations. and a farm drainage system, for around €2.5 million, as it I don’t have a perfect solution for our situation. Farm- looked like the milk price would rise. No wonder I’m having ers have very different operations and systems, and I don’t sleepless nights. have an answer that would be right for everyone. I do think The pandemic is a challenge for us farmers, but it’s only about it a lot though. To me, it seems clear that the condi- part of the problem. Here in Mecklenburg Western Pomera- tions and relationship between dairies, farmers and retail- nia, we’ve avoided infections thanks to better hygiene meas- ers is going to have to be much fairer and more cooperative ures and a complicated shift rotation system. The lockdown in the future. has played into our hands so far, as has the fact that we work Sometimes, I need time out to think clearly, in order to together so well as a team. keep motivating my team. I force myself to get on my racing We’re a pretty big operation, with 1,350 dairy cows and bike and ride through the Peene lowlands across to Usedom. 1,100 young cattle, and I need a cool head just to be able to These bike rides help me to find ways to cope and solve manage that. Dwelling on my fears doesn’t help, thinking problems that I couldn’t have worked out if I was sitting in an about the global economy in crisis and sales falling in China office. Maybe it’s because I feel so at home here, this is where and Southern Europe, and what that means for the dairy my roots are. market. It also doesn’t help to feel angry with food retailers I grew up in this area. My father was chairman of the who keep reducing the price of butter, cheese and meat. And agricultural production cooperative and my mother was an I don’t feel much better knowing politicians aren’t likely to accountant. Farming is the only way of life I know – at home, help with food prices, given they’re trying to handle rising we had chickens, pigs and cattle. My father loved his job and unemployment. I grew up seeing him managing a large business even when Even though things look rough, I know I’m pretty lucky. times were tough. It wasn’t easy – that was in former East My farm is so big because it used to be an agricultural Germany and he didn’t feel he could decide things freely for production cooperative. We supplied 34,355 kilos of milk to himself, as the regime and the party dominated all areas of Deutsche Milchkontor each day in 2019. Aside from rapeseed life. He was frustrated by having to manage amid scarcity 20 MILCHWELT July 2020 July 2020 MILCHWELT 21
TOP TOPIC TOP TOPIC Last year’s corn harvest. Safety measures have protected the farm and its people so far. Farmer Stark is more worried about the likelihood of another dry summer So times are pretty tough but I have Even with the crisis right now, to say it’s not as bad as the restruc- I still think that being a farmer is turing in the past, or building up the one of the best and most interesting company, and all the sleepless nights professions around. Harvest time is I had back then. I don’t need to fire stressful but in a positive way and I masses of people, or pay off old debts feel great when the harvest is good – we did that over the last 30 years. – there are lean years but there are We’ve been through several crises – better ones, too. I’m developing my also the financial crisis in 2007 / 2008. business, expanding the stables, and All that has made us tougher and more shaping the landscape through how resistant. I don’t get as rattled as I did the farmland is laid out. But what in the past. I do know, though, that I’m matters even more than that, what’s “We’re grappling very lucky because I benefit from my farm’s structure, it can’t be compared most important to me, is that what- ever I do or don’t do, I can decide for with falling milk directly with other farms. myself.” prices and we need liquidity and we need to be able to plan ahead.” Some of the 36 employees on Detlef Stark’s farm. They are the heart of the business and they carry it, particularly in times of crisis. and was very happy when the Wall cooperative who were leaving. We had came down. to let people go, too – of the original One of the positive things about life 500 employees, there were only 60 in the GDR, though, was there was a left at the end. Those were the hardest real sense of team spirit and family co- conversations in my whole life. It’s ter- hesion, I feel. That really helped me af- rible to fire someone who has helped ter the fall of the Wall. In the East, we to build a company. Some people in experienced total economic collapse, the village didn’t speak to me again and without that community support, for years. The thing is, without these it would have been even worse. measures, I know the operation After that, agricultural production wouldn’t have survived. cooperatives were turned into farm- With the coronavirus right now, this ing cooperatives and I managed the is a difficult time. We’re grappling with merger of Anklam plant production falling milk prices, we need liquidity and Anklam milk production, which and we need to be able to plan ahead had 300 and 170 workers respectively. – and it’s a real tightrope act trying to We had to take on loans to han- make sure no one comes down with dle property disputes with mem- the virus. That would be disastrous for bers of the agricultural production production on a farm like this. 22 MILCHWELT July 2020 July 2020 MILCHWELT 23
TOP TOPIC “Many TOP TOPIC people are T realizing he crisis unleashed by the coronavirus hit consum- – consumers also bought different products. brands rose more than private label revenues How the ers in two distinct phases. Firstly, people rushed to The measures adopted by the government from March 22 onwards. As people weren’t take action, while in the second phase, they adopted purchasing patterns familiar from the past. restricted people’s contacts and also meant restaurants and schools were closed for that things eating at restaurants and were generally saving money that they might have otherwise spent As the novel coronavirus spread throughout Europe in Febru- months, including canteens and dining halls. cannot con- during their free time, they spent more on virus is tinue as ary, GfK, a market research institute, noticed a significant Many companies, meanwhile, asked their food, despite the crisis unleashed by the virus change in shoppers’ behavior. “People panicked in the three employees to work from home. “All that and its economic consequences for households. weeks before the lockdown was introduced in mid-March,” meant people were almost only cooking in they were “The demand for quality and sustainably-pro- reshaping says retail expert Robert Kecskes. “That was when people their kitchens at home. Grocery shopping duced products that rose due to the pandemic started stockpiling, buying products like pasta, flour and toilet increased significantly, we noticed. Some before.” isn’t going to fall again,” says Kecskes. paper in much larger quantities than usual.” People started to categories typically consumed outside the worry much more that they would become infected with the home gradually were bought more often too,” says Kecskes. Sense of solidarity our shop- virus soared, and suddenly saw supermarkets as places where Dairy producers were among the food producers to profit This presents food retailers with a major opportunity, they might catch it. At the same time, however, shoppers wor- from this trend. he says. While the pandemic led to fear, it has also created ried that some products might run out, Kecskes says. a strong sense of solidarity. That applies across the board, ping habits Spoiling ourselves from the friends people were unable to see for long peri- Return of the weekly shop In some areas, revenues shot up by a double-digit per- ods of time, to their personal environment. “In the crisis, However, these fears did not lead people to shop less fre- centage compared to last year, as consumers chose to treat people really noticed that consumer behavior had come to quently at the beginning of the crisis at least. “Many people themselves during the pandemic. GfK’s research be defined only in terms of amounts. That created signifi- stocked up so they suddenly went shopping more often. Panic shows revenues for more expensive cant uncertainty,” says Kecskes. He says people have buying meant some products simply were no longer available. woken up. “Many people are now more So shoppers headed to other supermarkets to try and get them, aware that things cannot go on as The pandemic is changing the meaning in quantitative terms, they were shopping more they had before. frequently,” Kecskes says. This phase ended on March 22, GfK’s More and more and more, way we consume, with people data shows, when the German government imposed contact and ever cheaper – this responding to the crisis in two restrictions as part of measures to prevent the virus from logic of increase is spreading. being replaced by a distinct ways. Interestingly, some That radically changed people’s daily routines, logic of discovery, shopping habits are back that many and their shopping behavior changed too, in two as people asked ways. “People were then shopping less frequently how can I sup- thought were gone for good than before the outbreak, but they were bulk port the com- buying, in a move that resembled the classic weekly munities that shop,” says Kecskes. The pandemic unleashed help me be a trip back in time, as this way of shopping is stronger and really anachronistic. We’ve noticed the oppo- more resist- Dr. Robert Kecskes site trend over the past few years, namely that ant to such is a retail expert people shop more often but buy fewer items crises? That at GfK, a market each time. clearly in- research organiza- cludes buy- tion in Nuremberg. Rediscovering home cooking ing more He has also written In April, people were called on to wear pro- regional many studies on shopping habits and tective face masks while shopping in Germany, products consumer behavior. leading to another psychological turning point. even if these Wearing face masks made it much clearer that are slightly going to supermarkets was risky, even though the Less frequently, but larger quantities: more expen- number of new infections had fallen significantly Contact restrictions led to the return sive than what by then. For shoppers, what mattered was to buy the of the weekly shop for many people people usually basics. Amid the outbreak, stores dramatically scaled buy.” In the fu- LINK back marketing measures such as special offers and ture, when they go displays. “The overall shopping experience has suffered shopping, consumers You can find the whole interview as a result,” says Kecskes. are going to pay more “Many here: www.dmk.de/en/what-excites- us/news-about-corona/ The frequency that people shopped attention to regionalism was not the only thing to change and quality.” people stockpiled.” 24 MILCHWELT Juli 2020 Juli 2020 MILCHWELT 25
TOP TOPIC TOP TOPIC You can find more information about the 2019 financial year and the current situation in the annual report at www.dmk.de/ en/who-we-are/integrated-annual-report-2019 “I was impressed by how everyone is pulling together” “A stress CFO DR. FRANK CLAASSEN “We are all learning test for us all” a great deal in a short time right now” CEO INGO MÜLLER Ingo Müller and Dr. Frank Claassen on DMK and the coronavirus, the international outlook amid border closures and empty supermarket shelves Mr. Müller, Dr. Claassen, how have them after only a brief interruption. Dr. Claassen: The German Chancel- within a short period of time. That was a What does that mean for inter- only made it more so. That means we the last few weeks been for you? lor and the Agriculture Ministry invited huge production and logistical challenge. nationalizing our business? have to be agile too, and recognize and Müller: When we decided on new struc- Many consumers only realized retailers and farmers to Berlin and called Our customers saw how valuable that is Müller: We are continuing to press manage changes. And that’s an addi- tures for the DMK Group, we were aware how serious things were when on retailers not to offer food for the lowest and realized what an extremely reliable ahead with our activities abroad. That tional task for our managers who have that we were putting huge changes into they saw the empty shelves in prices possible. Food is valuable! supplier we are. We owe thanks to each applies to core markets in the Neth- to motivate our employees and keep motion, so we decided to talk with lots the supermarkets — is this a Müller: There are some contradictions and every employee for this achievement. erlands, Russia and China (see pages them up to date while remaining open of farmers, employees, customers and good time for food retailers? in terms of what’s happened since then. I would like to express my special thanks 36 – 37). What counts here is that we see for feedback and criticism. We are see- politicians. We knew that we were mak- Müller: If only! But we have to take a Consider the advertising campaigns that to every single one of our workers! these countries as their own separate ing that the coronavirus pandemic ing major demands of everyone involved. closer look at the market. Restaurants, retailers ran at the height of the crisis. markets that we want to serve individu- is by no means over – quite the oppo- In the last few weeks, what we’ve experi- canteens, all the areas that our Food They mainly directed their thanks towards That was not the only ally from those locations. We’re work- site. We have all learned a great deal enced amid the coronavirus is a whole Service unit handles saw business shut their own employees. That’s definitely challenge though ... ing to create closer and better con- in the past few months. In the future, new level I couldn’t have imagined. It’s a down completely for several weeks. We well-earned, but it would have also been Dr. Claassen: No. DMK’s Service nections between the different sites so we will go on, armed with this knowl- stress test for us all. But let me say right can partly balance that out because we appropriate to mention farmers and the area also had to react quickly. We everyone can learn from each other and edge and taking appropriate care. away that I am really positively sur- supply food retailers where demand has industry that’s making sure shelves stay had to introduce Microsoft Teams to unify and simplify processes. That’s prised how well our company and our increased enormously. But many rivals well-stocked. We did see some of that but more quickly in order to be able to what our MAXIMA project is about in Looking back at the last community is managing this situation. who only supply the catering trade are relatively little in comparison. Because organize video conferences faster. the Netherlands, that’s what we’re doing few weeks, what made the Dr. Claassen: What impressed me now trying to break into the retail mar- without them and without us, cashiers For employees working from home, as we expand our business in Russia, biggest impression on you? the most is how everyone is pulling ket with products at cut-throat prices. wouldn’t have had any products to scan. that was a relief, meaning we could and also in our activities in China. Dr. Claassen: I am really impressed by together. We had to adapt to completely That’s normal competition, though. continue working together even if our employees’ flexibility and creativity. new working conditions within just a Nonetheless, consumers still felt we didn’t meet at the office. The One When will life at DMK Müller: We talk a lot about our com- few days — remote working, additional At the beginning of the crisis, poli- as though there could be short- Finance project (see p. 52) shows go back to normal? pany values. I really feel that we are hygiene and social distancing require- ticians called on shoppers to be ages of some products and started we barely lost any momentum. Müller: When someone asked me when actually living them, too, when I ments in production and logistics. I sensible and at the same time told stockpiling UHT milk and pasta ... things will calm down, I said: Probably look back at the past few weeks. have enormous respect for the fact that retailers to look to local agricul- Müller: We didn’t have any supply short- Borders were closed for months and never. We are in an extremely dynamic Entrepreneurial, fair we are managing to keep so many pro- tural producers as a guarantee, to ages. On the contrary: We increased our some still haven’t been re-opened. environment and the coronavirus has and innovative. jects on track and kept working on avoid shelves becoming empty... supplies of particular products by 30 % 26 MILCHWELT July 2020 July 2020 MILCHWELT 27
TOP TOPIC TOP TOPIC What makes a good manager? would also have led to short-time junior employees are aware right from measures managers are using and Listening, communicating, taking action – in the crisis, there’s great demand for working, and insecure jobs. the start whether a company’s executives whether they are achieving the desired management qualities. This is no time for hierarchies, says Ines Krummacker, You’ve worked for DMK for respect them and let them get involved. results. It also shows where things may be difficult so that managers can address Chief Human Resources Officer DMK 34 years and you’ve also Managers have to be trusting ... particular issues. And there’s a new experienced a And that’s why even at interview measure to help us evaluate executives’ Managers have to be strong for their scared of their boss. Nowadays, the oppo- and listen, particularly in tough different stage, we look at whether managerial skills and competencies: employees right now. What kind site is true: employees who are afraid to times. Our colleagues are not only potential managers suit the Human Capital Index. If this is low, of challenges are they facing? contribute – and occasionally make mis- separated from each other in spa- our company culture. the manager clearly has to develop new They are having to draw on their lead- takes! – are only working by the book. tial terms, they are also experi- We make very clear measures and work more on their lead- ership qualities in order to keep their At DMK, people can make mistakes and encing uncertainty in their per- demands of our ership, ideally together with their team. teams together even from afar. They share their knowledge and ideas – those sonal lives. How can I help them? leadership and have to work out whether everyone has are the values we live and breathe. That’s the question to ask – man- when we ana- Who do you see as the right tools to be able to work effec- agers who are putting additional lyze manag- a good manager? tively – whether the tools are in place for You can often see from a distance pressure on people will find their ers’ poten- Someone who knows their own weak- people to be able to work together, or if whether or not a change process is teams perform worse in the end. tial, we nesses and isn’t afraid to name them. some issues should become a higher or working out. How is agile working learn a No one is perfect and when people lower priority. Communication is the going, and are remote working and What would have happened if lot about accept that, they can show their team most important thing, to work out the collaboration tools working out? we hadn’t introduced possi- their per- that they aren’t infallible. That helps mood in the team and to respond appro- They’re going very well, even if some are bilities such as remote work- sonali- employees lose their own fear of fail- priately. That’s not easy. It’s much easier still struggling with them. Most people are ing before the pandemic? ties – even ure. I think mistakes are part of the to sense conflict, undercurrents or sen- realizing that new ways of working are Clearly, our administrative teams before process of improving. That helps man- sitivities in person, when you’re around possible. That’s partly because before the would not have been able to work they come agers to be less distant and be some- or having a direct conversation. pandemic, we introduced the MOVE pro- and that would not only have “A good on board. one that people are able to identify Does anything become more obvi- ject, optimizing all our working processes in order to create much more efficient ways constrained or stopped our operational capa- manager gives How do with. A manager should be techni- cally competent, of course, but it’s no ous when you’re having to com- of doing things. That includes working bilities, it their team the you find out good if they have never learned how municate from a distance? It shows which managers are really cut out remotely and also a culture of feedback. We realize that employees need communi- stage” about their personalities? to deal with difficulties and obstacles. for new ways of working. Many managers cation, need to be valued and need We don’t go into the lead agile teams who work almost inde- structure. That means I need details so much as gain pendently on projects. Employees need to take an inter- a broad overview by asking support and the knowledge that they can est in them what’s important to that person, what contribute their ideas and communicate kind they are concerned about, and what has as equals. A good manager gives their of leader- shaped their lives. We ask them about team the stage – there’s no longer ship culture. Why the challenges they’ve faced in their lives, any room for the kinds of was change needed? and what they want to pass on to their hierarchies where At the start of my career, managers – like children. We look at their resume and people are in many other companies – symbolized ask questions we think are suitable. We better, cleverer people who had a higher can tell from their answers what kind status. Employees were clearly subor- of framework of values the person has. dinate to managers. As a young adult at the company – at the time it was Bot- Can employees also In Person: terbloom Milch + Eiscrem eG – I would judge their managers? Ines Krummacker, 50, Chief Human also make canapes for my boss’ birth- Yes, absolutely! We have tried to assess Resources Officer, has worked for day party at home, or run out and buy a how far our leadership culture is being DMK for 34 years. After completing present for his niece. Crazy, isn’t it, how lived in everyday life in several employee her training at the company, she has times have changed? That was normal opinion surveys over the past two years. held all human resources posts be- back then. You wouldn’t catch younger The “ChangeTracker” is anonymous fore becoming a member of DMK’s workers doing that these days, they’d but it can be broken down by teams. management board in 2015 for the think it was very strange. These days, The instrument shows which tools and personnel sector. 28 MILCHWELT July 2020 July 2020 MILCHWELT 29
TOP TOPIC TOP TOPIC Crisis Manager Hermann “The Coronavirus Task Force” Köster realized Taking the right early on that the pandemic would mean a demanding track through time for DMK. They had to keep heading to work to on suppliers and service providers our lives in the future. What you need keep the business running. The last to follow special health regulations, to do is stay focused, keep a clear head four months have really been a learning and reduced external visits to plants and not get careless, even if there the crisis experience in terms of team spirit and a to an absolute minimum. The list of were times we all had to take a deep sense of “us” across the whole com- recommended measures, developed in breath.” By June, as infection numbers pany, he says. line with recommendations from the fell and hopes arose that normality health authorities and the Robert Koch might return, the German government The logistics “The key Institute, Germany’s eased some of its restrictions. The cri- department, too, had disease control cent- sis manager started to relax a little too. thing is to to adapt to the virus. er, went even further. The crisis team steered DMK through the ”We were focusing They also addressed But it was also clear that the crisis is not pandemic, under Hermann Köster’s leadership. on the virus non- stop,” says Logistics stay calm washroom cleaning cycles, determined a sprint, and is far from over. This is more like a marathon, His main feeling? Gratitude Director Hartmut Buck. and don‘t get where hand sanitizer should be placed, demanding stamina, awareness and caution. Keep a distance “We were working on finding ware- careless.” where partitions were needed if social “We are working and living amid a pandemic and that’s challenging for housing space for distancing was not all of us. The situation, and what we finished goods, packaging and empty possible and determined the allocation know, is constantly changing. That First things first. containers. And at the same time, as of protective face masks.In short, their means we have to be dynamic too, The Task Force, which encompasses international borders were closed and extensive planning addressed every while at the same time staying calm Köster, DMK management and members goods were moving more slowly, we last possible detail. and clear, without going into overdrive I of DMK’s crisis team, started to tell em- also had to keep an eye on our supply and rushing into things,” says Köster t was February when ployees about initial preventative health chains, to ensure we could maintain Each employee received a leaflet ex- as he reflects on one of the most turbu- the management team measures in early March, through regu- 1,500 people,” says Köster. This was a supplies to our domestic and interna- plaining the main guidance on health lent periods in his career. “For us, even began to realize that they lar emails, posters and signs that called critical step, definitely worth taking, tional customers. In this peak phase, and behavior in order to help everyone if the situation is a bit more relaxed were looking at a poten- on people to wash their hands more and is still working well today. we could really sense the company’s get used to the new daily routines. right now, we have to stay alert and tially very serious situation. The DMK often, keep a distance from each other “I had my doubts at the beginning, team spirit.“ And together, all these keep a careful eye on how things are Group’s crisis manager was following and, most importantly of all, to stay at but now that several months have While many desk-based Hygiene measures help prepare the developing. If we keep being sensible the news coming out of China with home if they showed any symptoms of gone by, I have to say that working via employees could work from company for a return to the and behaving with foresight, growing concern, reading about the illness. This focus paid off, as so far, the telephone and video conferencing has home and quickly got “new normal.” Remote we will come through this novel lung disease that was spread- DMK Group has seen very few cases of become an integral part of our daily up to speed with new working is now in place crisis in good shape as a ing rapidly out of Wuhan and raging the coronavirus. processes,” says CHRO Ines Krum- processes and ways for employees on a vol- company, and perhaps through Italy. And while Covid-19 had The group talks every day and is macker. “Teams in some areas have of working, Köster untary basis, initially even emerge stronger than become a familiar term for virologists, in constant exchange about what to even managed to set up video coffee and his task force until the end of Au- before.” Germany’s Bundesliga was still playing watch out for, what could happen next breaks each day so everyone can keep were already on gust. Personnel stores soccer games in packed stadiums and and which preventive measures to in touch.” the next step. They will also remain closed It’s thanks to the good sense and thousands of people were gathering to take, in order to protect the company The pandemic has affected every asked themselves how until then. Meetings are willingness of all farmers and employ- celebrate Carneval. Hermann Köster and its workers. It was clear from the part of the company and every single a “new normal” might only to be held if they ees that DMK has come through the and other crisis managers outset that DMK was one of Germany’s employee. Alongside farmers on their look amid the coronavirus, take place in line with the pandemic so successfully so far – as well moved to set up the DMK key food businesses and of systemic farms, employees in the production what form would daily work current social distancing and as thanks to the painstaking work of Group’s coronavirus task importance. sites have also played a critical role in might take and how would produc- hygiene regulations, if they need to be the Coronavirus Task Force. Or, as CEO force. Germany saw infections surge in ensuring the company was able to func- tion work with the pandemic? Fur- held in person at all. Evening events Ingo Müller puts it, “it makes me proud That group of experts now mid-March, a time when decisiveness tion and keep the populace supplied thermore, they wondered, how could are banned for the time being. to see how we as a company have han- includes more than 30 was needed. The Task Force informed with food. the company prepare for a potential dled this stress test so far. Times members. They all made all executives on March 13 that any “I owe my thanks to everyone for second wave of infections? In the Will the crisis be over after that? like this show what we as a sure that so far, DMK, its desk-based employees should work their tireless work,” says Köster. “And course of the outbreak, the task force That’s unlikely. community are capable employees and farmers, have remotely if possible. “I am so pleased I mean everyone: From the farmers to developed detailed operating proce- Looking back, Köster says of achieving, and what come through the crisis relatively at how quickly our company was able the milk collectors, the internal sales dures to protect employees’ health and one thing was clear to him WE means!“ unscathed, thanks to their swift deci- to work together with IT to roll this out team through to the employees in the secure production and supply chains. right from the start. “No one sion-making and foresight in setting up for around factories and warehouses. And, of They canceled work trips, suggest- could and can say exactly safety measures. course, the administrative teams. ing digital meetings instead, called how the pandemic will affect Stay home if you are ill 30 MILCHWELT July 2020 July 2020 MILCHWELT 31
COMPANY COLUMN One Finance undergoing a core refurbishment, Marco Bode, and in 2021 we will expand the at- head of the SV Werder Bremen tic,” is how Mahlstedt describes it. Supervisory Board and European Transparency provides clarity football champion One Finance also aims to make The focus is on steering the numbers the department gen- erates more relevant. “By establish- ing the Business Units three years ago, we adapted the organizational DMK is modernizing its finance department to make the structure to meet the demands of the market. But there are sever- figures more transparent and working processes more al levels of value creation in one efficient The secret business unit, from production to sales, so the current figures often of success don’t tell us enough.” To gain a clearer picture in the future, plant and sales will be viewed separate- is trust ly as of the summer. This greater Dirk Mahlstedt, Head of Planning& transparency will let management Reporting and Projects take much more targeted action. “Many of the results of this pro- ject are going to be integrated The more a team expected goals and effectiveness. The into a new management report- players are given all this information decision-making. That makes One Fi- year, employees in finance had to up- ing scheme, ready for use right knows about a in team meetings, video analysis or nance an important part of the CFO’s date the plan several times.” Strategic away.” In the long term, all this individual apps. The goal behind all agenda, preparing the department for finance planning means in the future, information will be processed in company’s strategy this is to make sure that the players the future. For the project team, that there will be a ten-year horizon, me- a new foundation that will reflect are as well-prepared as possible for means digging deep into different pro- dium-term plans that look at the next the coming project results.” and tactics, the better the next game! Transparency also cesses and systems. “We’re addressing three years and provide more detail, plays an increasingly important role D almost everything,” says Mahlstedt. and also a concrete plan for the year One Finance also shapes it can perform for companies. W r. Dirk Mahlstedt, Project “Settlement models, reporting, plan- ahead. This is only drawn up once, in company culture One exciting tool is scoreboard Manager of One Finance, ning and the finance organization.” the second half of the year. Mahlstedt and his team have not e already know how management, a way of visualizing is a happy man. He’s been This system will not only be more lost sight of the employees and crucial it is for a foot- key company figures or the progress leading the restructuring Focus on the milk price consistent, as CFO Dr. Frank Claassen stakeholders in all the business ball team that every- made on a particular project. That and modernization of finance at the This may sound abstract but it will sees it. In the future, managers will units, even as they focus on pro- one on the pitch has helps employees or the team involved Group since Decem- have very real conse- also be assessed according to whether cesses, tools and figures. After all, the same tactics in mind, rather than see the current score, and bear the ber 2019, following an “Our quences. One of the first or not they are meeting their short, it is the people in the company who every player pursuing their own goal. shared goals in mind! The tool can initiative by Finance big goals is establishing medium and longer term goals. have to help implement all these Effective communication is needed help support smaller goals, such as Board Member Dr. Frank project an ambitious target milk changes. One Finance is a driver to about targets, strategies and tactics making meetings more effective, or a Claassen. is an invest- price to meet farmers’ „Like a building site“ establish one single way of working, for this to work out. continuing project, The core 20-strong team ment like legitimate expectations “Our project is an investment not only in the finance division but Another key prereq- „Transparency until a company’s working under Dirk Mahl- any other real for a competitive price like any other real investment. It’s beyond, too. That’s why Change uisite is preparing to also plays an financial figures stedt, Claudia Parman, for their milk. This just that we are not buying a ma- Management is also an important meet your rival and become wholly investment” Werner Krieger, Frank Keßling and Florian target price is orient- ed towards what is chine or a building, but investing in processes and systems,” says part of the project, to persuade employees of the value of all these that’s becoming in- creasingly important. increasingly transparent. This approach Haberland are reorganizing process- known as the 11-point average that Mahlstedt. Planning began in au- innovations and to win acceptance One standard part of important requires managers es and steps to make the company’s figures more meaningful and reliable. key rivals pay farmers. Management reporting now makes it easy to see tumn 2019 and the modernization of finance as a function is due to for this new shared way of working, and anchor it in daily life. match preparation, as practiced by our man- role for to place a lot of trust in their employ- Where needed, they call in experts whether the Business Units are be complete at the end of 2021. In This is working well within the ager Florian Kohfeldt, companies.“ ees. If the process from other departments including meeting this target or where there 2020, the focus is on the four milk team already, as the crisis triggered is making sure there’s works, it offers major personnel, Global Business Services, are gaps that need to be closed. Business Units, extending to encom- by the coronavirus has shown. Just maximum transparency when it opportunities, because if everyone Production, Sales and of course IT. pass the Group as a whole in 2021. two months after the start of the comes to all the relevant informa- in a company is armed with plen- A vision for the future One Finance is building on the project, the team members had to tion. Collectively and individually, ty of knowledge and clarity about Part of the CFO’s Agenda For the first time, One Finance is results of previous projects that are start working remotely. Nonethe- the team is prepared to meet its next goals, challenges, problems and also Finance, like the rest of DMK, is introducing strategic financial plan- now being integrated into a single less, they kept working together ef- opponent. This includes analysis, per- successes, that can power employee working to become faster and more ning. In the future, the department coherent system. Right now, the fectively, says Mahlstedt. “The con- formance data and statistics from past motivation and company culture! In efficient, aiming to make the fig- will look further ahead, while needing finance division is in a transition ceptual work was tough at first, at games about the team we’re playing a game of football, after all, every ures that the department generates fewer resources. “Up until now, we year, amid all the changes associated least. Overall, though, I’m amazed against, concerning mileage (distance player can look at the scoreboard at more reliable and transparent to planned for the following year and with One Finance. “Ultimately, we’re at the results you can achieve while and sprints), the players’ strength in any point during the game to see the give management a sound basis for updated it,” says Mahlstedt. “Each like a building site: this year, we’re working virtually.” duels, passes completed, packing or state of play! 32 MILCHWELT July 2020 July 2020 MILCHWELT 33
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