Employees who never stop learning are our source of innovation, Bühler Group, Switzerland

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I have learned from a friend of mine familiar with Swiss industries that there is a company that sends young apprentices of 15 to 16 years old to China for six months. (Note for Japanese readers: “Apprentices” is a part of professional training system unique to Switzerland. They are not employees of a company but students of professional schools. They work in a company, which provides on the job training for 3-4 days a week. They thus obtain professional skills on the shop floor through work.)

This company sends apprentices to overseas for as long as six months, though they are not its employees. What company is it?

Those personnel who carry on international business are indispensable for the Swiss industries as they largely address the markets worldwide. It is also true that the industries owe much on personnel for innovation, for which Swiss companies incessantly strive to stay competitive in the international markets.

That said, why does this company invest that much to grow its personnel? What is the management philosophy behind?

With these questions in mind, I interviewed Mr. Dipak Mane (Photo), Director of Global Human Resources of the company, Bühler Group (https://www.buhlergroup.com/global/en/home.htm).

 

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mr.dipak mane

What company is Bühler?

Founded in 1860, Bühler continued developing over more than 150 years as a family-owned company.

Based on the original strength of iron casting and roller mills based on the iron, the company developed to become the first-class company in the world markets for the its excellent technologies. During the course of development, Bühler steadily enlarged its business areas to include those areas related to its core competence of iron casting and roller mills.

“The company presently provide machines and solutions indispensable for food industries, ranging from raw materials such as grains, rice, cacao and coffee to medium- to end-products, and livestock feed (Source: https://premium.ipros.jp/buhlergroup/). Bühler further extends its business edge to support sustainable mobility and the total solutions to ensure production of the healthy food.

What are policies of the HR department to ensure competitiveness in international markets?

Two things are most important. One is the sense of purpose, i.e. to be always conscious with the purpose of technologies. The sense of purpose has been the spirit of our company since its birth. To serve this purpose, we have been investing 4 to 5 per cent of turnover in R&D.

The second important thing is the profit.

We must hold these two things together.

The family-management enables to maintain these two essential points. Top managers may manage the company in line with their own management philosophy and make decision swiftly without interference by external stakeholders.

The HR policy is to put the management philosophy into practice. The purpose of Bühler’s HR policy is to maintain employees motivation high. Those are people who always improve their skills and knowledge and who are interested in doing better job all the time. Such employees continue self-improvement all the time by participating in training opportunities. In this sense, our company is a training company, such as a university.

We invest much in trainings. One per cent of Bühler’s personnel costs is spent in training and we plan to raise it to two per cent by the year 2020. In Swiss Francs, the investment is about 6 – 9 billion Swiss Francs per year.

One employee takes 1,85 days of training per year. We plan to increate this number to be 2 in the year 2020.

As for apprentices (those young women and men of 15 and 16 years old) who just stepped in the professional lives, Bühler has a history of 100 years of their trainings. The total number of the apprentices we trained adds up to 7,700.

We started an overseas training program about ten years ago. About 600 apprentices who come to work in Bühler every year are sent to various countries as a part of the training program. One half of them stays in Switzerland and the other half go abroad, such as Austria, China, India, Brazil and South Africa.

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Bühler’s young apprentices in China

What are reasons of such a HR policy? What do you think of a risk that those employees who obtained higher skills and competence may leave the company for better salary?

Our CEO thinks that we would have to keep a number of employees with low skills and competence who may not leave the company, if we do not provide them with training opportunities.

In fact we see positive results. An employee retention rate of Bühler is as high as over 73 per cent. One thousand apprentices out of those who came to the company for training join Bühler as formal employees.

We witness significant results in the young people who leave their hometowns to meet the new people in other countries with different cultures.

In general terms, many people wish to stay in the company that provide trainings, as they may improve their competence and obtain new skills such as management. Young apprentices watch during their training period how long-lasting employees develop themselves, and project their own future over the elder workers. This makes the young to wish to continue working in Bühler.

What does the company obtain from this unique training?

We obtain the diversity and inclusion (D&I), which are indispensable for innovation. Bühler has a built-in system for people with a wide variety of background to work together.

Though it is surely a large investment to send apprentices to overseas locations for several months, the return is huge. The young learn through their day-to-day work cultures, languages and the market needs.

We not only send apprentices to overseas. We also provide an online program for them to stay in touch with the Swiss Headquarters during the overseas training period. It is a remote sit-down training based via video conferencing (ClassUnlimited). The program is available starting from Switzerland and China to become available in other countries.

Such a training lies in the centre of the company. Apprentices obtain skills and leadership in order to brush up the sense of purpose.

We do not expect a return on investment (ROI) in the short terms, because it is our belief that the smart employees are the core resource of a company.

We always seek ways to improve competence of employees. Means to do so is not limited to trainings.

We are aware that training is a long-term investment and continue increasing the variation of the training.

It should also be noted that those who enjoy benefits of trainings are not limited to a small number of employees who are expected to take senior management positions in the future. It is Bühler’s management philosophy that we address all the employees for trainings.

In what ways would HR department contribute to the innovation?

The birth of innovation requires a certain ecosystem, or a chain of various factors. The HR department is an integral part of the eco system of innovation. For example, the HR provides the office environment that enables employees to communicate better with each other, encouragement of collaboration with Universities, and sponsor some research programs in Universities.

In Bühler, we organise an innovation competition participated by 2,000 employees worldwide. This means 15 per cent of all the employees participate in the competition.

We must find those needs which market has not yet found. Our Chief Technology Officer (CTO) always tells us that 99 per cent of knowledge is outside the company. We must continue looking for good ideas all the time. For this purpose, we will continue working with those outside the company, including start-up companies.

What kind of company would Bühler want to be in the future?

We want to see Bühler for which employees want to work most in the world. Young employees know well what such as a company is all about. They wish to work for a company that has social purposes. They want their company contribute to something that help people, such as to alleviate adversarial consequences of the climate change, etc. Social contribution is Bühler’s tradition. We wish to continue investment in R&D. Going beyond Industry 4.0 is only a part of the company’s future.

We want to see Bühler running the top of the industry worldwide.

One example of our contribution is a new innovation centre, Cubic innovation centre (Photo), to be open in February 2019. We invested CHF 65 million in Cubic. Cubic is a contribution to the industry. We have been organising an event called, “the Networking day”. The event is to open factories to people from outside. We will be able to invite the public all the time after the opening of Cubic.

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Cubic innovation centre

Notes by the author

We know that people are essential resources of a company but rarely see the one like Bühler that provides opportunities for the young apprentices to experience the world and for all the employees life-time training programs. This would surely create employees with eyes wide open and who may produce products, systems and services with the sense of purpose.

It is said that Diversity and inclusion (D&I) is essential for the innovation. Bühler proves this is true. The company’s success in the innovation owes highly motivated people with diversified knowledge and background, and an environment that enables them to work together.

  • The article is originally prepared in Japanese for News Letter published by Swiss Business Hub Japan, Tokyo, Japan, December 2018

(Photos provided by Bühler Group)

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Robots supporting the elders being tested

 

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Pick of the week from Japan, 11 – 15 September

11 Sep. Field experiment of robots supporting the elder

The day may be coming close when robots support a comfortable living with security of the elders. Fujita Health University (Toyoake-shi, Aichi-ken) has just opened a filed laboratory of a small robots for the life support. It is planned to improve the robots integrating the voice of the elder who will have used the experimental ones.

The rapid aging of the Japanese population is known to the world but not known so well that a quarter of the household is inhabited only those who are over 65 years old, of which a half is a single household. Hence robots are expected to support millions of the elders living alone.

Japan has much to contribute to the world. Drawn upon its manufacturing capacity based on craftsmanship coupled with the aging of the population fastest in the world, a robot supporting the elders’ lives is an excellent example.

The aging is a fact of life for everyone. I hope that Japan will find a brand new area of its competitiveness using the country’s resources, including the elders, who have not been valued in society.

  • The news items referred here are picked up from “Asahi Digital”, and translated by Europe-Japan Dynamics. The cited titles or articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 12 to 16 Jun. 2017

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Please enjoy fresh & hot news from Japan with comments by Europe-Japan Dynamics.

12 Jun. Robot suit for workers of nuclear power generation decommissioning, a subsidiary of Panasonic to develop

A subsidiary of Panasonic, ATOUN (Nara city), announced a plan to develop “the power assist suit” using the robot technology for workers engaged in decommissioning of the nuclear power generation. One may lift heavy things by small power when he/she wears it.

Comments: It’s great that robot technologies may be used for the cloth. This idea may be used to support people with limited mobility, such as the aged and handicapped people.

The robot suit is to be developed based on the existing product, Power Assist Suit

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13 Jun. Bus accident on Tomei Expressway immediately recorded in video and seen via the Internet by the operating company 

There was a massive collision of a car and sightseeing bus on the Tomei Expressway in Shinshiro-shi, Aichi on 10th. The operating company of the bus immediately grasped the state that a car jumped from the opposite lane and crashed against the bus. he bus was equipped with the Drive recorder which allows to watch driving video and driving record through a cell-phone network.

Comments: It is brilliant!

Video of the accident –> https://www.youtube.com/watch?v=9jH5Hjt6lJQ#action=share

14 Jun. Jam-packed bus, disappearing flavor of old days …. Dilemma of Kyoto of rapidly increasing number of international tourists

While the number of foreign tourists is rapidly increasing in outstanding tourist city, Kyoto, its side effects are creating unexpected effects on everyday life of inhabitants. Public buses are always full and the number of illegal lodgings is increasing. Some started crying that the status has reached to the limit and that sightseeing is “pollution by tourism”.

Comments: The same happened some 40 years ago by Japanese tourists in Kyoto. The city just can’t keep up with the rapid change.

15 Jun.  “3D map” becoming infrastructure supporting the era of automatic driving

Production of the full-scale three-dimensional “digital map” necessary for the automatic driving of a car is getting momentum of production. The Innovation Network Corporation of Japan, the fund established by the Government and Mitsubishi Electric announced that  they would gather data of all the expressways and 30,000 kilos of exclusive motor ways  in Japan by 2018. It is intended to create the  infrastructure needed by he automatic driving and thus aim at leading international competition.

Comments: Being instruments needed for enabling the automatic driving is developed. automatic driving may not be dream any more sooner than one would imagine.

16 Jun. Aiming at automatic driving taxi, an automatic driving venture and Hinomaru Transport allied

Hinomaru Transport  (Tokyo),  One of the largest taxi companies in Japan, and ZMP (Tokyo) of the automatic driving venture announced that they would work together to enable the practical use of the unmanned taxi. It is intended to operate an automatic driving taxi in limited areas in Tokyo by 2020, the year of Tokyo Olympic Games.

Comments: Another marvelous development of automatic driving in Japan! Who will be clients of such taxi? — Maybe those who are curious. We need to learn my uhf through experience before taking benefits of technologies.

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 20 to 26 May 2017

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20 May Shogi Maestro Amahiko SATO defeated by AI

The Shoji Maestro Amahiko SATO was defeated by PONANZA,  artificial intelligence (AI) of Shogi, at the second match between the human Shogi maestro and AI held in  Himeji-jo Castle of Himeji-shi, Hyogo. This win has became the two successive victories of PONANZA, which marked the defeat of the human maestro who was the top of the Shogi world.

Comments: It is endless in what AI could do.

23 May Japanese LCC, Peach Aviation to introduce bit coins, aiming at more passengers visiting Japan

A Japanese Low Cost Carrier (LCC) Peach Aviation will enable purchasing airline tickets by a virtual currency bit coin  within this year. While an increasing number of retail stores and restaurants have begun introducing it as a means of payment in Japan, this is the first case among major means of transportation. Peach Aviation is expecting the use by overseas visitors to Japan by facilitating the payment.

Comments: It’s a marketing strategy to use bit coins to facilitate visitors from China.  Market volume counts.

24 May Pushing market development of pharmaceutical companies in the newly developing economies, a new organization to be established on the basis of public and private sectors partnership

The Japanese Government is establishing an organization in cooperation with the private sectors to push forward the Japanese pharmaceutical companies in the rising economies. The organization may build a factory in host countries so that participating companies may use it. Prime Minister Shinzo Abe, who till be the general manager of the organization is going to announce the plan in the strategic promotion office of the health and medical sectors to be open in June.

Comments: Would the pharmaceutical sector need that much hands-on support by the Government?

25 May Discovered possible therapeutic drug of the intractable disease ALS, Univ. of Kyoto by using induced pluripotent stem cells

A research team of Professor Haruhisa Inoue (neurology) of University of Kyoto discovered the compound that may be a candidate of the therapeutic drug using the induced pluripotent stem cells made from the skin of a patient of the intractable disease “amyotrophic lateral sclerosis” (ALS) that causes symptoms of muscle weakness.  It was confirmed by experiment using mice that the compound works to suppress the progress of illness.

Comments: Good news!

26 May Orix to sell an electricity subsidiary, Kansai Electric Power tenders a bid for sale

Prix is selling is subsidiary, Orix Electricity (Tokyo) that undertakes a mass sales of the electricity apartments. Prix is going to decide the sale by a bid from June to August.  Electricity majors, such as  Kansai Electric Power, and city gas majors are examining participation.

Comments: Does this indicate a failure of liberalization of the power supply?

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 18 to 19 May 2017

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18 May How about a cup of coffee before taking Hankyu train? Nestlé Japan to install more coffee stands in railway stations

Nestlé Japan and Hanky Railway Corp. will build more “Nescafé stand”, which they originally built in the five stations of Hankyu line, including Tsukaguchi station, last year. The “Nescafé stand” sold more than 500,000 cups of coffee in the past five months, that had been expectations. The companies will build the stand in seven more stations from the end of May onwards.

Comments: Why there were not many coffee stand in the commuter railway stations? It is a good marketing!

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19 May Costs of Tokyo Olympic Games and Paralympics to be paid by Tokyo Metropolitan, estimated to be max. 900 billion yen

Concerning the costs of Tokyo Olympic Games and Paralympics in 2020, it was revealed that Tokyo Metropolitan experimentally calculated the expense to be maximum 900 Billion yen out of the estimated total costs of  1,600  to 1,800 Billion yenTokyo Metropolitan expects in this calculation those local governments which do not have Olympic venues to bear 40 Billion yen as costs for guarding, etc.

Comments: Who pays what is still controversial.

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 8 to 12 May 2017

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8 May LIXIL returned the best sales performance, thanks to a solid shower toilet selling well in China

The net income of the settlement of accounts (international accounting standards) of a house equipment major, LIXIL Group, recorded the highest gain of 42,500 million yen for March, 2017 period (cf. a deficit of 25,600 million yen in 2016).  This was due to results of cost cutting and good sales performance of overseas restroom business including China.

Comments: This news indicates consumer interests in China have turned to the improvement of living conditions.

9 May You may be a sales person even above 70 years old, Daiwa Securities to lift the age limit of reemployment

Securities major Daiwa Securities Group Inc. decided to lift the age limit of the reemployment of the sales job, which presently is 70 years old. It is intended to reinforce sales force by utilizing abundant experience of the veteran work force.

Comments: Good not to eliminate resources because of the age, but what will be their payment? A major problem of the present Japanese reemployment after the legal retirement age is a sharp decrease of wages even for the same job.

10 May Film for tablets that may not be broken, invented by RIKEN TECHNOS Corp.

A plastic film maker, RIKEN TECHNOS CORPORATION, returned a record high operating income of 5,800 million yen for March 2017, up by 15.3% from the previous year.  While the main product was a vinyl  chloride material for automobiles, the company developed a plastic film which was hard to be broken for the screens of tablet terminals, anticipating that the number of cars produced in Japan may not grow any more.

Comments: From core-competence, taking into account the digital markets, innovation is born.

12 May Search by a smartphone application of strolling person due to dementia, the first field trial in Aichi-ken

A trial to look for an elderly person strolling around because of dementia using an application of smartphone started. Those who look for such person may send some information of the missing person such as his/her characteristics to  the smartphones of the cooperators, thus expand a search network to the entire region. The first field experiment in Japan took place in Kasuga-shi, Aichi-ken in April.

Comments: A key to success may be to have a large number of people who install and pay attention to such an application, or social awareness raiding.

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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My “Taken for granted” is not the same as yours — Cross-Cultural Understanding with Japan

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The workshop of “Cross-Cultural Understanding with Japan” was very resourceful, participated by a good-mixture of European and Japanese people.

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Yoshiko Kurisaki is moderating discussion

Here are a summary of highlights for those who couldn’t come and those who wish to know clues underlying the Japanese business:

  • Culture is like an iceberg. Eighty percent of the iceberg is under the sea and we don’t see it. So called “typical” Japanese culture, such as sushi, high-tech instruments, kimono, bowing, are all the tip of iceberg supported by the rituals, geography, history, values, etc. hidden under the water.
  • Major factors from which Japan is made  — Geographic location and its historical consequences, climate, rice-growing culture and the peace that lasted for 700 years.
  • The Japanese trap — Unconscious bias by the Western managers visiting Japan
  • A significant difference in the meaning of silence and space between Europe and Japan. It was proven that thirty-seconds’ silence is too long and uncomfortable for the Europeans, while nothing in particular for the Japanese.
  • Uchi- Soto“, the way the Japanese position you as a European business partner.
  • Relationship, not individuals, counts

It is worth noting that discussion by participants enriched the workshop, as well as eye-opening exercises.

Listening and observing others without judgement by one’s values is a good start for understanding of other cultures. In doing so it is natural that you may get upset or find someone strange. Such moment is a wonderful opportunity for you to know your own values. Think “Against what criteria am I upset? “

Working across cultures is not always easy but rewarding. Cultural diversity enables 1 + 1 be more than 3, 4 and more, and ultimately leads to the innovation.

Last but not the least, many thanks must go to the Swiss-Japanese Chamber of Commerce (SJCC) which invited us for the workshop and Sunstar SA for the nice seminar room and warm reception!

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Veronica De la Fuente

 

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Discussion by participants was a vital part of the workshop

 

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