‘People are at the heart of our success’
Everyone at STIHL is talking about transformation these days. And, of course, that means a lot of work for the HR department, and the changes do not stop there. We caught up with Dr Michael Prochaska, Executive Board Member for Human Resources and Legal Affairs, to talk about the challenges HR is facing worldwide, how the changes are being tackled, and which fundamentals remain the same while so much else is changing.
Dr. Prochaska, you have been the Executive Board Member for Human Resources and Legal Affairs at STIHL since 2012. How has your day-to-day work changed since then?
DR MICHAEL PROCHASKA: First of all, I’d like to note that all the trends have been excellent! Let’s start with revenue and employee headcount: In 2012, STIHL’s revenue was just under 2.8 billion euros, and we had a little over 12,000 employees worldwide. Today, we’re at 5.2 billion euros and almost 20,000 employees. The company has seen really steep growth over the past 12 years. The product range has more or less doubled in size, with greater variety, and we’ve turned our focus to the battery segment as an important second mainstay. There have also been a lot of generational changes since the start of my career: The second generation of the Stihl family passed responsibility on to the third, and my former colleagues on the Executive Board have now all retired, along with many experienced managers at all levels throughout the company. Back then, personnel work at STIHL was geared more toward the administrative side, but that has changed as well. Day-to-day work is broader in scope now, more global and much more digital. It makes me smile to think back on it now, but I was the first Executive Board member with a modern BlackBerry back in 2012. Those don’t exist anymore, but smartphones and digital applications have become an integral part of how employees organize their work.
But one thing that hasn’t changed in all this time is our unique corporate culture, founded on bedrock values introduced by the Stihl family, such as financial independence, innovative spirit, quality awareness and good working relationships based on partnership. These values are all the more important in times of great change because they provide guidance and stability
How has HR work changed over this period?
DR. MICHAEL PROCHASKA: he essence of personnel work at STIHL has stayed the same: The aim is still to create working conditions and a corporate culture worldwide that make STIHL attractive both internally and externally. As far as our employees go, we now have a variety of generations on board, from baby boomers and Generation X to Millennials and Generation Z: all with different requirements, but also with different skills that we can put to good use as we come together to successfully shape the transformation of STIHL.
There has always been a mix of generations at the company, and I personally find that very valuable. Another huge change is the digital transformation, which has been significantly accelerated by the coronavirus pandemic. These days, we use a lot more digital technology across all areas of the company, including HR, than we did just a few years ago. Besides that, STIHL operates much more globally as a company, a change we can also see reflected in HR in the form of new structures and processes and greater international connectivity.
What changes/innovations are you especially proud of?
DR MICHAEL PROCHASKA: Our HR organization has modernized significantly in recent years. We follow a clear HR strategy and are rigorous in implementing it worldwide through collective initiatives. Not only does this break down old local patterns and ways of thinking, but it has also spurred much greater dialogue and cooperation with colleagues across the entire STIHL Group. We have common aspirations and goals for HR work and a clear idea of how we can best support the company, employees and managers. We move forward in step. That’s why I’m proud of my team, which has sparked and successfully implemented many changes over the years. That hasn’t always been easy. Together, we are guided by five areas of action — leadership, training, digital transformation, employees and processes. We implement them consistently with suitable measures.
Our strong employer brand, the excellent working conditions and pay we offer, our social benefits and our training and development programs are all assets that we can use to our advantage both locally and globally. I’m especially happy that we now put on an annual digital leadership summit with 2,500 participants from all over the world and international leadership development programs. In addition, 2025 will be the first time that the “Pulse Check” employee survey is conducted at all locations worldwide. SuccessFactors, a global master data system with many HR features, will also be going live soon. All this is only possible with the close cooperation of all HR colleagues throughout the world of STIHL.
You’ve mentioned transformation. STIHL is currently undergoing a major transformation. What does this mean for employees and managers, job profiles, and so on?
DR. MICHAEL PROCHASKA: We’re already the world market leader in the gasoline segment, and now we are transforming into a company that also aims to be a leader in cordless products.
There is no alternative to this transformation, and it is very challenging. It affects us all. It requires all employees to be willing to learn and change, to be open to new ideas, to be flexible, and to have the courage to leave familiar territory and venture into uncharted waters. For those who work in HR, this means providing wraparound support for the transformation processes involved through aspects such as change management and training activities. New global functional responsibilities are bringing changes in leadership and how we work together, and they require new leadership approaches. In general, STIHL managers play a key role in the transformation in that they act as role models and are also tasked with easing fear of change within their teams and emphasizing the positive aspects. Aside from that, the transformation is associated with new job profiles and qualifications, which are needed in order to meet the changed requirements.
We are especially aware of the shortage of skilled workers and have been committed for decades to offering young people career and development prospects in addition to purely vocational training.
What do HR managers need to pay particular attention to these days? What are the needs and expectations of the existing workforce and applicants?
DR. MICHAEL PROCHASKA: These days, we need to pay special attention to ensuring that our interpersonal dealings are guided by our values, as this has always formed the basis for a good working atmosphere, good cooperation and corporate success at STIHL. In times of great change and a diverse workforce, it is crucial to be open to different ways of thinking, different approaches and working styles. Having diverse skills and perspectives can be a real asset to the company. At the same time, in addition to the many benefits STIHL offers, both employees and applicants expect fair treatment and opportunities for growth and development in a respectful and supportive environment.
This issue’s cover story is all about the human factor. What does that mean at STIHL or for STIHL?
DR. MICHAEL PROCHASKA: At STIHL, our people have always been at the heart of our success. Our corporate culture is founded on their hard work and dedication and on a sense of community, which shows up in things like supporting colleagues in difficult times. Many employees have been part of STIHL for decades, in some cases for generations, so we are a genuine family company in multiple ways. We need to focus on maintaining this sense of cohesion, especially in turbulent times. To achieve this, it is crucial to really dial in and understand what our employees need. That’s one of the reasons we will be conducting the “Pulse Check” next year to gain valuable insights for the future. I’m really eager to see the results..
Is there anything you’re particularly looking forward to?
DR. MICHAEL PROCHASKA: The “STIHL Trail 2030” corporate strategy adopted by the entire Executive Board and the Stihl family has mapped out our future path. But a strategy has no intrinsic value in and of itself. Strategy is always measured by its implementation. That’s true of the company as a whole and the work we do in HR as well. By adopting a global alignment for the HR organization and our initiatives, we’ve already taken key first steps to support the company as best we can through the transformation. We can’t slacken our efforts now. We have a long road ahead of us. If we focus on our strengths and our values, we will overcome these changes, I’m sure of it.
Thank you for speaking to us, Dr. Prochaska.
