Exemplary Organizational Model at Brose

Cutting costs, increasing efficiency and enhancing employee motivation -  this feat is something Brose has successfully achieved with its innovative and intelligent concept, the “New Brose Organizational Model". At the automotive supplier’s locations worldwide, there are approx. 2,500 salaried development and administrative staff working in a both customer and performance-oriented environment, enhancing Brose’s attractiveness as an employer and providing staff with the greatest possible flexibility in terms of working time. 

The innovative organizational and working-time model has enabled the international producer of mechatronic components and systems for vehicle doors and seats to clearly improve the cost effectiveness and appeal of office jobs. By introducing leading edge working methods and state-of-the-art communication technology, principles of efficiency long-since standard on the shop floor were transferred to salaried staff in administration and development. At the same time, the “New Brose Organizational Model” was a response to the demanding competitive environment in the automotive supply industry and the company’s intensive efforts to recruit highly qualified manpower.

Unprecedented in Germany, the concept combines four modules: a flexible office concept incorporating desk-sharing and a state-of-the-art IT structure, variable working-time, result-oriented remuneration as well as attractive social amenities such as catering and fitness facilities. The “New Brose Organizational Model” is greatly appreciated by the employees, a fact substantiated by the results of in-house employee satisfaction surveys, very low employee turnover and an absenteeism rate which is well below the industry’s average.
  
In professional circles this exemplary concept has also met with high acclaim. The family-owned company was one of the ten most attractive employers in 2002 and 2003 according to the findings of the TOP JOB benchmarking project. An analysis carried out by the economic journal Capital also showed that Brose was regarded as one of the best employers in Germany in 2004 and 2005. At an international level, a survey carried out during the Great-Place-to-Work competition ranked Brose as one of the best 100 employers in Europe.

Restructuring of working world started at Brose central locations

Am extensive modernization program affecting 40 company buildings at the central locations of Coburg and Hallstadt provided the automotive supplier with a one-off chance to undertake a fundamental reorganization distinguished by its clear structures, short distances and optimal processes.
 
Whereas departments used to be scattered over the premises in numerous buildings, now employees, who work closely together in the course of their project work, sit in open-plan offices. Staff no longer have their own dedicated desk space.

Documents are housed in a mobile container on wheels and project files can be accessed electronically. Where employees choose to sit and how long they work depends on their tasks. It is possible for staff to log into any computer available and access their project data.

Innovative office concept: cutting costs and greatest possible flexibility

Hallmarks of the modern office concept include the greatest possible transparency, efficiency and cost effectiveness, thus creating a working atmosphere of openness, communication and flexibility.

The desk-sharing principle, originally practised in Japan, saves Brose approx. 20 percent of the costs in terms of floor space, IT and equipment, thanks to the ratio of 0.8 desk space per employee. This means twelve employees share ten desks since some of the staff is always going to be away on business trips, training courses or vacation. The one-time investment costs für new equipment could be cut by about 9 million euros. Approx. 3 million euros less are spent a year because day-to-day maintenance costs have dropped and shorter distances in the office have made communication faster.

Desk sharing has been seen to not only cut costs but also promote team-building, thus enhancing the quality of employee performance and reducing the time required for project processing.

Since employees are no longer bound to a certain work station, the seating layout of customer teams can be rearranged daily to suit the ever-changing requirements of a project, integrating not only employees into project work but also customers and suppliers, if need be.
 
State-of the art IT, sophisticated office technology, flexible furnishing system

State-of-the-art IT is also available for the necessary global data exchange. By logging in their personal password, all employees can access their own work-related electronically-filed documentation at any Brose location. The company uses its own globally networked communications system for data, speech and video transmission. This simplifies and accelerates collaboration in cross-functional projects.
Furthermore, prudently planned office solutions include a central technology pool with printer, fax machine and photocopier, further reducing purchasing and maintenance costs.

Work is to a very great extent no longer paper-based, as all documents are saved on a central server. This requires self-discipline and self-organization exemplified at Brose by the “clean desk“ principle. Nevertheless, all employees have their own container on wheels for housing personal work documents. Not least thanks to the flexible furnishing system, it is now possible to create, within a very short time, an individual work station at any of the identically equipped desks.

Additionally, there are combined informal communication/break areas located within the office. These are equipped with a coffee bar, mobile tables and TV sets. Conference zones are directly integrated into the offices.

Variable working time: where performance counts instead of time

Brose has also translated the flexibility of the new office concept into the way working hours are regulated. The aim of the variable working time model is to enhance the efficiency of employees as well as allowing them sufficient scope for balancing work and non-work commitments. In coordination with their boss and other team members, white collar staff can decide for themselves when to begin and to finish their work and when to take their breaks. The new organizational model ultimately provides an innovative working environment empowering employees to achieve a better fit between work and family life.

Working time is not recorded for the purpose of remuneration, since working time is not determined by the clocking-in machine, but by the amount of work in hand and international activities. Depending on the status of current projects, staff can rise above or fall below their previous “normal working hours”.

Remuneration: result-oriented payment

At Brose, remuneration on the shop floor has been related to performance for a long time now, whereas payment in the administrative area was based on the time the employee spent in the company. That was neither logical nor fair. Subsequently, Brose has transformed the time-related payment system in the development and administrative areas into a system based on results, subsequently enhancing employee motivation and performance.

At the beginning of 2001, overtime for white-collar staff ceased to be recorded or paid – something unprecedented in a metalworking company in Germany. It is now possible to receive a company bonus which can be as much as double the collectively negotiated bonus. Since this time, an increase has been seen in the time employees work a day.
 
Today, payment is calculated on the basis of the employee’s performance evaluation and objective achievement. It consists of a negotiated salary related to job content and a performance bonus of up to 30 percent.

Achievement of objectives, quality and quantity determine performance bonus

The bonus is calculated once a year and depends on work-related results in terms of objective achievement, quality and quantity. Annual objectives are agreed to between supervisor and employee, progress is then regularly discussed during the course of the year and subsequently evaluated in an in-depth one-to-one dialogue.
 
Leadership skills are more important in such a context than in the past. Supervisors have to have a greater insight into the work contents and results of their staff. The target agreement process involving the definition of common goals for one business year calls for more intensive coordination between managers and staff than before. This has increased efficiency and speed within the company.
 
Innovative social fringe benefits: more motivation for employees

To reward employees for their higher level of flexibility and their greater commitment to the job, Brose has expanded the scope of its employees regarding working hours and has set up catering, health and fitness facilities which can be used by employees and their families seven days a week. The distinction between working and break times is subsequently becoming increasingly blurred, thus reconciling work and leisure to an even greater degree.

Brose has social amenity buildings in Coburg and Hallstadt, housing the most up-to-date sports and health facilities. Canteen and bistro opening hours have been adapted to accommodate the variable working time model and 3-shift operations. Since the introduction of the new organizational model, the company has been subsidizing employee meals to an even greater extent than before.

The fitness and health amenities encompass weight and cardio machines, a diverse range of classes, sauna, steam bath and massages. Employees accompanied by one family member can use the facilities with doctors of occupational medicine and physiotherapists on hand to give advice. The fact that there are meanwhile some 1,500 employees in Coburg and Hallstadt going to the company gym on a regular basis proves how great the response has been.

The company’s ongoing growth has resulted in numerous new locations being set up worldwide. The "New Brose Organizational Model" which has been introduced by Brose at its foreign sites expresses the essence of the company culture, making Brose an attractive employer that can provide a variety of career opportunities in a dynamic, international environment.