[MUSIC] In this interview we're going to be exploring the concept of stakeholders and stakeholder management. So we know a stakeholder is an individual or group that's got a vested interest in an organization's performance. A stakeholder can be internal, can be external, can be internal and external. So, it's quite a complex matrix that you can uncover when you really start to think about of the number of key stakeholders that can impact on an organization at any one point in time. And therefore particularly at senior level, the ability to, first of all be aware of key stakeholder expectations then to understand them, then to manage them and then try to keep all stakeholders happy at the same time, if you can. Becomes a really compelling priority. We're going to be talking with Dr. Steve Hobbs who's managing director Rittal UK and Ireland and we're going to be exploring how he interacts with key stakeholders both in the UK and abroad. So Steve, looking at your key stakeholders, we're going to explore in all directions, perhaps we'd like to begin with your management team. When you report upward, your stakeholder management upwards. >> We're a German owned global organization and we're privately owned by one person which is Dr. Friedhelm Loh. He has built the company from where it was when his father died into a much, much larger organization. And consequently, he has high expectations. Our ambition is to take market share to be dominant in all market areas, is a very strong demand that he has. We essentially, the way which we have to address our stakeholder in Germany, our major stakeholder, is through performance. We've got to perform in terms financially, so in other words giving the expected returns back on his investment here. And we also have to perform in terms of our ability. To satisfy customers, to excel in the major key areas which we identify ourselves with. In particular with respect to the customers. >> Right so, would you say that your key stakeholder in Germany is your number one stakeholder in terms of your stakeholder management and your prioritization. >> Philosophically, I could argue that our employees should be our number one stakeholder. But there is a reality, if we're not performing and we're not delivering what his expectations are, then there would be no need for him to keep the business open, here in Plymouth. If I then move on to what at least are our very close second most important stakeholder, then we've gotta talk about our employees. >> Right. >> And there we've gotta start making sure that our priorities, or should we say their priority is their employment. And the confidence that the management of Rittal in the UK are doing their jobs properly. Delivering not only results for today but also building the company's strength for tomorrow as well so that we're there for the future. And that then as far as they're concerned gives them the confidence that they will have predictable employment. >> So, we've got a really interesting theme that's emerged already. Because Steve has shared with us about stakeholder ownership in Germany and actually the two real drivers of stakeholder expectations. So the stakeholder's expectations not Steve's, the stakeholder's expectations in Germany are profitability, market share and customer service. And then when Steve was sharing with us the importance of the employees as being key stakeholders, it is about what is on their agenda, their expectations. And in a very uncertain world, what Steve and his team looked to do is to give their employee population that reassurance that they are here for today and they are here for tomorrow. And in a very, very, very turbulent market place globally, UK, everywhere. That is a really admirable set of ambitions, isn't it, in terms of stakeholder management? >> It's essential. As far as the employees are concerned, we have to remember that our company principle number one is looking after the employees. >> Mm-hm. >> So that they're motivated and that they're there for the future. >> So, from the two stakeholders we've heard about so far. So, ownership in Germany, the employee population here. What about your customers, Steve, in terms of them as a stakeholder? And how you understand their expectations, and how you manage that stakeholder relationship? There are a number of different customers which we have in different industries. Essentially, we have our domestic customers, and then we have our OEM customers. If we take the domestic customers first, they have expectations on us to be able to deliver when they want it, at the right quality and obviously cost competitively. And they also have expectations that we're consistently improving, giving them better technical solutions in a modular way. And this is what they're very strong on. If I take the stakeholder expectations from our OEM customers. Their's are slightly different, they are looking for very fast time to market, they're looking for very good technical solutions and to work very, very closely with them to developing the products. So it enhances their own products into the market so that they too are able to get their own good market shares as well. >> So we've got two customer scenarios going on here, haven't we? Those that are local and those at the OEM? >> OEM. >> OEM, right. So the importance of fostering a really effective ongoing relationship seems to be a key part of that. How does that work? If you take, for argument's sake, some of the larger OEM customers. >> Right. >> Their expectation would be that we would develop products with their engineers. >> So a partnership. >> Absolute partnerships, yes, that we understand their problems, and that we understand and contribute solutions for them. So they expect that partnership to be very effective,very. That is, we gotta live the partnership, not just say it. If we then go on to some of the other expectations,they will be availability, along with that cost leadership, quality and delivery. If there's one thing that those OEMs don't want is to be let down for a delivery. >> Right. Okay so we've got some really key factors coming in here in terms of OEM stakeholder management. So delivery on time, we've just heard is really, really important. But actually having a partnership, a collaborative relationship, whereby members of Steve's team go to an OEM customer and work with them to understand their world, to become part of their world. Almost like a consultancy advisory role as well, contributing to what's going on to help them deliver a better tomorrow. Would that be a way of looking at it? >> Of sorts, but they view it very much as an extension of their organization. >> Right, okay. So somebody from your team then integrates into their world? >> Absolutely, and we would have engineers working on their site. >> Right. >> Developing solutions. >> Right, okay. So we've looked at key stakeholder in Germany, we've looked at the employee population as being a key stakeholder, and we've looked at customers and OEM clients as well as being key stakeholders. >> That helped to generate the income that keep profitability up and help to keep growing market share today and tomorrow. What about locally to this plant here, Steve? >> We have social responsibilities. We have to have. And we have our environmental responsibilities. To make sure that we're controlling all of our processes sufficiently, that we're not damaging the environment in any way. But we also have responsibilities and we see ourselves as a key driver in supporting local education and the local community. We re-employ some 500 people across the UK and here in Plymouth in excess of 350. That's a reasonable number of families which we influence and affect. And so in terms of the key stakeholders in the local community, which ones would you pick out as being particularly important? Families I know you've mentioned. So they are obviously key stakeholders on a kind of employee personal level. But where else? >> Further on after that, I think has got to be local education. >> Right. >> Local schools, technical colleges and universities. And we work with local schools to develop projects for A-levels. We work with universities for final year projects, and also the local university technical college, similarly for projects that will help students. >> And when you're building these stakeholder relationships with educational establishments, clearly that is helping to build your reputation outwards. Because you're doing some really good things for the educational institutions. Does that also help to build your recruitment base? >> Yes, it does. Because we've got good relationships with, as I said, the local schools, so we have the careers departments. And also, we have good close working relationships with lecturers at university. So it does mean that when we recruit graduates, we have a very good insight to what they're really like. So we don't just rely on just a single interview. >> Right, so you can actually get some additional feedback. >> And sometimes of course if they have been an intern here as well, we have experienced them working for a full year. And that also helps their employment opportunities as well. >> So you've got helping with projects, you've got internships, you've got apprenticeships, you've got taking on graduates. You've got a whole range of things in which you help in the local community as well as locally here in Plymouth and elsewhere in the UK or the families which are obviously key stakeholders. So what we've really started to discover, listening to Steve here, is that first of all there are a whole diverse range, as we would expect, of key stakeholders, all important in their own way. All of which need to be managed in their own way. All of which depend on their own unique set of collaborative relationships. So you have in Germany, just about perhaps the key stakeholder who is expecting increased profit levels and customer service levels that are fit for today and even fitter for tomorrow. You've got the employee population who need to have that comfort in a very uncertain world. That they have a job for today and a job for tomorrow and the way in which they get to know that is by communication from Steve'sleadership team and right the way through the organization about how it's going, how the organization is delivering, and how well they fit into the bigger picture. You've got the customers as being key stakeholders because as we all know, in terms of key stakeholders, you don't have any customers, you don't have any income. You don't have any income, you don't stay open for very long. And Steve shared with us some examples of customers and OEM clients. And how he and his team work with those to build longer term collaborative relationships, again, fit for today, even fitter for tomorrow. We've just heard about different ways about how the organization interacts with so many different parts of the local community. So, with all the employee's families with education establishments. So, getting out there into the local community, fully adhering to their environmental responsibilities and inviting people from the local community into the organization through apprenticeships. Through internships, through graduate placements and actually building several recruitment channels as well which is a real plus. But what we've also heard and it's been a consistent theme for what Steve has shared with us, that actually the stakeholder relationship begins with understanding what that stakeholder'd agenda is, what that stakeholder's expectations are and what that stakeholder's priorities are. Because without doing that, you may well get the wrong starting point to build those collaborative relationships, which again as we've heard need to be really fit for the day and even fitter for tomorrow. Thank you. >> Thank you. [MUSIC]
