The Corporate Strategy

GRI Indicators

Our corporate policy is not aimed at short-term success, but rather at forward-looking development. We make our decisions with a view to the interests of future generations. This means that we align business activities with the principles of economic, ecological and social values. We are firmly convinced that a long-term and value-oriented approach is the key to economic success. This is why we have also anchored such an approach in our corporate strategy.

 

In Vision 2020, Hochland SE has described its goals for all sites up to the year 2020. The subsequent Vision 2025 is being finalised at the time of reporting. The Hochland Group’s strategy is derived directly from the key variables market position, innovation performance, productivity, attractiveness as an employer, liquidity and profitability. These characterise its entrepreneurial ambitions and form the focal points on the basis of which success is measured.

The Hochland Wheel

Hochland Germany’s central instrument for corporate management is the Hochland Wheel with a rolling three-year horizon. This tool shows the strategic goals of Hochland Deutschland, derived from the group’s vision, in a circular graphic arrangement – hence the name. The company uses New Performance Management as a tool to address the key issues set by the wheel. This process takes place both at the level of the management team and at the level of each area of Hochland. The performance of the annual and four-month targets set within this framework is evaluated once in the tertial period.

Management

Hochland uses management systems to implement overriding corporate objectives with the help of self-control based on continuous optimisation. All management systems that ensure continuous improvement are established as certified standards, according to IFS, ISO 50001 and other standards or norms.

The Hochland Wheel valid at the time of publication of this report is divided into three main sections, each with several themes:

Foster Growth

Cooperation and Partnerships

Partnership models with regard to all areas of the supply chain are part of the Hochland growth strategy. Hochland strives to expand its portfolios, ranges, services and fields of action with regard to sustainability, for example through licence marketing and regionality.

Preferred Supplier Status

Hochland aims to expand its position as a preferred supplier to selected customers through intensive networking up to the top levels of the retail trade as a competent discussion partner in all aspects of sustainability.


Diversification of Business Units

External customer orientation is to be further promoted by Hochland gearing its processes more closely to the needs of individual customers.


Development of New Business Models

In order to generate sustainable growth, Hochland plans to advance existing business models and generate additional ones. Possible examples are digital business models, profit centre models and platforms for utilising milk to the full.


Lighthouse Projects for Recycling Management

Hochland is convinced that future economic success can only be achieved if resources are used in a socially and ecologically responsible manner and are not consumed. Hochland sees the principle of the circular economy as providing the necessary decision-making aids.

 

Ensuring Stability

Future Prosperity of the Dieue Site

The Hochland Group plans to establish Dieue as a location for sustainable milk production and as an innovation platform for three categories of cheese. – Note: The Dieue site in France belongs to the Hochland Group – but not to Hochland Deutschland GmbH. This section only serves to explain the Hochland Wheel in this regard.

Awareness of Productivity and Profitability

Hochland strives for a holistic approach to productivity and competitiveness from the perspective of its customers. This can be achieved, for example, by means of value analyses, hedging strategies or robustness in the event of price fluctuations on the commodity market. The existing focus on productivity and efficiency of processes in production and administration will be expanded in this way.

Business Process Orientation

Hochland strives to further improve its own business processes and actively align them with the needs of external and internal customers. Digital tools are used to continuously improve transparency and efficiency with regard to internal and external customer orientation.

The compliance management system already in place for adherence to legal regulations and ethical standards will be further systematised and thus strengthened.

Supporting Transformation

Digital Literacy and Attitudes

Hochland aims to promote a positive attitude towards digitisation within the company and further develop the digital competence of the organisation. New digital tools are seen as an opportunity and a way of making work easier.

Encouraging Personal and Individual Responsibility

Employees’ personal responsibility and scope for action are to be further expanded. Hochland seeks to promote decision-making at all levels of the hierarchy. Managers are to provide guidance, develop teams and provide an orientation framework. Hochland employees are to take responsibility for their actions – also with regard to their own resources. More space for dialogue and strategic discourse is to be created.

Employer Branding

For Hochland, its own employees are the decisive factor in recruiting and retaining staff. Hochland is aware that each and every person makes a significant contribution to the attractiveness of Hochland as an employer.

Leader in Milk

Hochland wants to continue to live up to its claim to be the Leader in Milk. The company is raising awareness of the milk issue among retailers, non-governmental organisations and consumers. Hochland will continue to actively offer retailers its expertise in the development of new concepts based on sustainable milk, especially in the areas of animal welfare and circular economy. As in the past, education and training is to drive the transformation of Hochland to become a learning organisation with extensive self-management.

 

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