What do companies need to do to become a top company? Part 1

The SEViX solution approach: Value-based management - finding the bridge between appreciation and value creation and, above all, living it consistently.

Companies that invest in a best-in-class value creation architecture and their employees are also more successful economically. SEViX founder, Rainer E. Ulrich interviews her Senior Executive Partner, Dr. Werther-Halfar and Dr. Forster, Huber and Buch on how profitable sales development and people management work.

Becoming a top company requires a combination of strategic planning, effective execution, continuous improvement, and a strong commitment to customer satisfaction. It's important to note that becoming a top company is not an overnight process. It requires dedication, persistence, and a willingness to adapt to ever-changing business landscapes.

SEViX: Training and retraining cost companies a lot of money. You now say: Developing and challenging the right employees pays off for companies in terms of generating a best-in-class value creation architecture. Can you tell us about your experience in this regard?

Dr. Forster: Finding the bridge between appreciation and value creation and, above all, living it consistently is something that no more than 10 percent of companies manage to be top in both areas. But these companies, which live both their figures and the approach of making their employees sustainably better, are one and a half times more likely than the others to generate sustainable success. And more chances of retaining good people permanently.

SEViX: Why is it worthwhile for companies to invest in developing the skills of their employees?

Huber: Companies that consistently live value-oriented management invest an average of an upper double-digit number of hours per employee per year in continuing education and training. In other companies that focus only on economic success, the figure is just under 20 hours. This investment in developing the skills of ambitious employees pays off, as my experience proves.

SEViX: How can companies develop employees who think and act entrepreneurially, and how, what and whom do you best promote?

Dr. Werther-Halfar: First and foremost, companies need people management that has the same eye level in the organizational chart as financial management, and not personnel administration. Just under half of large German companies have this in place.

The following considerations must be managed proactively:

• Who do I have in the company today - and what capable employees will I need in three, four, five years that are in line with the job requirement profile and strategy?
• ?Then I have to decide: Recruit, deploy employees in new areas, or reskill. Reskilling is learning new skills in order to be able to fill a new job requirement profile with your own ambitious employees and means retraining.

In times of digital transformation, reskilling is becoming more and more important as many new job requirement profiles need to be created in line with the strategy. Since the current labor market does not provide enough skilled workers, reskilling is the only alternative.

SEViX: Does the company have to fear that their well-trained employees will leave for their competitors?

Buch: That's always the big worry, of course. If a development engineer who previously worked in the R&D department of the "Powertrain" market segment is retrained in vehicle software, that will certainly take a year and a half or longer. Even a supposedly simple retraining can quickly add up to 20,000 euros in training costs. In addition, the employee loses at least 20 hours per week during which he cannot do his job but must learn. Typically, companies then try to contractually bind the person to the company for a certain period of time. My experience also shows that people in whom a company invests are more likely to remain loyal. That creates loyalty to the company: The company has now invested in me, and I want to give that back to some extent.

SEViX: Thank you very much for the very insightful interview, which is a very good situation analysis of companies and will hopefully wake up the owners of companies.

SEViX - The entrepreneurial solution provider

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