The Volvo Group defines sustainable transport solutions as solutions that “improve the short and long term economic and environmental performance meanwhile social impact is considered".
Strategies can be viewed as maps that guide everyday work and decision-making in order to achieve the Volvo Group Wanted Position 2020 and the Vision. The strategies are part of the overall Volvo Group strategic framework. Corporate core values, Group policies, directives and guidelines lay the foundation for how the Volvo Group operates and conducts business.
All work within the Volvo Group is based on a sustainability perspective, which will contribute to long-term success. Assuming responsibility for a sustainable development is deeply rooted in our culture and has its base in our corporate core values and policies in the Group’s Code of Conduct. We strive to assume economic, environmental and social responsibility for the operation, products and services in the areas where the Group has the potential to influence. This will enable us to strengthen our brands and relations with business partners and thus create new business opportunities that offer long-term growth and improved profitability.
Long-term plans and strategic objectives
Long-term plans define the direction in a 5-15 year time perspective. They serve as a tool for management to drive change, protect strong positions and prioritize with regard to financial consequences. Examples include product plan, industrial plan, sales and marketing plans and service offering plan. The plans are aligned and reviewed regularly. Some long term-plans are Group common and some are specific to Group Trucks or an individual business area. The plans may impact activity plans for strategic objectives.
Strategic objectives are made on Group Trucks and business area-level, for one fixed three year period at a time. Each strategy consists of a number of key focus areas, which in turn contain strategic objectives. The strategic objectives are broken down into a large number of road maps and activity plans – ultimately affecting employee’s Personal Business Plans.
Both the long-term plans and the strategic objectives aim to reach the Wanted Position, which consists of five statements that describe where the Group wants to be by the year 2020. They represent important milestones towards achieving the Vision.
The Volvo Group has undergone a dramatic change in the past decade. The Group has grown considerably in emerging markets and has welcomed new employees and companies. As a consequence of this, the Group currently has operations in approximately 190 markets and employs about 110,000 individuals, who strive to create efficient and sustainable transport solutions.
Adaptation of governance
We have made extensive efforts to adapt the Volvo Group to the conditions and expectations of the business world and the future – and to achieve our wanted position by 2020. The efforts resulted in us taking a step toward governance as one Group with clarified roles and responsibilities. We have established a distinct brand portfolio and have moved from a regional focus with individual brands to a globally coordinated approach. In addition, we have created a more distinct distribution of responsibility with measurable targets. It is necessary to have all of this in place prior to the commencement of work based on the new strategies. Our structure for governance encourages close monitoring, as well as rapid and efficient decisions and early adjustments, when necessary. The system also aims to involve all employees, by clarifying how each individual is important to achieving the targets.