The Key Molecules
Perstorp’s unique corporate culture, known as Winning Formulas, consists of three core values that represent Perstorp’s strengths: Focused Innovation, Reliability and Responsibility.

In recent years the Perstorp Group has grown and changed through acquisitions, new products, an unstable global economy with a recession and a remarkable corporate recovery. During 2010, Perstorp spent a lot of time and energy on Group integration and consolidation initiatives, further optimizing our global production and market footprint.

The Perstorp Performance System – the Group-wide way for production and performance, and the Perstorp Group HR Operating model – the Group’s best practice model – are examples of such initiatives rolled out during 2010. The Perstorp Group HR Operating model caters for the entire HR value chain in four connected group processes: Attract & Recruit, Review & Retain, Learn & Develop and Redeploy & Reward.

Attract & recruit
For Perstorp as a world-leading specialty chemicals company, it is important to recruit the brightest talents. Perstorp therefore works over the short- and long-term to market the process industry in general and the chemicals industry, and Perstorp as a company, in particular to young people and teachers.

Most of Perstorp’s production sites work with local universities and colleges. Employees give guest lectures, participate in labor market presentations and the company provides opportunities for work experience and for students to do their theses.

Perstorp also tries to encourage younger people to become interested in chemistry. In Stenungsund in Sweden, Perstorp is involved in a science centre called the Molecule Workshop where young children can get their first introduction to science. At the site in Perstorp, the company also runs Perstorp Gymnasium, with a chemical-technical program which is highly regarded in Sweden.

During 2010, Perstorp implemented Group-wide policies according to employer branding and recruitment, aligning the Group around a common resourcing strategy.

Review & retain
Perstorp’s skills management policy builds on the principle that all employees should have equal opportunities to develop at work. Perstorp is convinced that diversity in the workplace, in terms of age, gender, nationality or level of education, create a climate that results in greater creativity, productivity and job satisfaction.

Group activities are based on the UN’s Global Compact principles. The initiative is run more structurally in countries where there is legislation to follow, such as the US with its diversity laws, plus Sweden and Germany that have equality laws, but all production sites follow the Group’s policy in this issue.

Work on developing employees’ skills takes place within the framework of a Group-wide Performance Management – PMD process (People Management & Development).

The process emphasizes employees’ participation and consists of annual career development talks. During which the employees’ role and objectives are discussed from a company perspective, e.g. what the company expects from the employee and the individual discusses what skills they need to achieve their set goals and how they personally perceive their future development. This process was further developed with a structured methodology assessing both results and behaviors and was fully implemented throughout the Group in 2010.

During 2010, a Group-wide Leadership Competency Assessment model, designed together with Egon Zehnder International, was integrated in the PMD process to further focus on uniform leadership development within the Perstorp Group.

Perstorp carries out employee surveys annually for reviewing the total state of performance across the Group.

The employee survey in 2010 was the first one carried out for two years, since it was decided to postpone the employee survey in 2009 due to the ongoing Group-wide cost cutting initiative. The survey in 2010 was also the first one ever comprising the entire Perstorp organization. The overall response rate was 81.4%, a high rate in comparison with Perstorp’s industry peer groups, but a lower response rate than in previous years – 91.9% in 2008 and 90.4% in 2007. This was mainly due to the relatively low response rate at our site in France, but the majority of the Perstorp Group sites reported response rates well above 90%.

Perstorp measures two overall goals – Total Performance and Total Leadership: 
- Total Performance: 75% of all teams shall have a Total Performance Index > 3.7 (A value of > 3.7 indicates that the employees have good working conditions from a performance perspective.) Outcome 2010: Group total 3.6 and 34% of all teams have a Performance Index better than 3.7
- Total Leadership: 90% of all teams should have a Total Leadership Index better than 3.5 (A Total Leadership Index > 3.7 means the potential for improvements in leadership from a performance perspective (the employees’ performance) is small or very small.) Outcome 2010: 44% of all teams have a Total Leadership Index better than 3.5

The analysis of the drop in results for the Employee Survey 2010, is mainly assigned to the activities linked to the necessary Group-wide cost cutting scheme, introduced in 2009 and 2010, impacting the workload and organization throughout the Group. The aim is to improve and return back to previous year’s levels, which is why measures for activities are ongoing throughout the Group and will be focused on in 2011.

Learn & develop
Talent Management is a scheme that aims at taking advantage of the company’s various forms of expertise by providing employees with special, po­tentially varying, career paths depending on their strengths and qualifications. The identification phase is based on the individual development plans available to employees in the annual PMD process, linked to the results the employees have been able to show. Employees considered to possess potential will be able to take part in special activities and training in order to further develop in their respective roles. All employees are expected to close their skills gaps agreed on in the PMD individual development plans either through vocational training or in any of the Group’s internal or external development programs.

Three different career paths have been developed – staff management, project management and specialist functions – and each path provides separate levels with clear criteria. Using Talent Management, the company ensures an internal recruitment base and increases the target group when key personnel are being selected. This process also ensures that all development is in line with the company’s future skills requirements.

Redeploy & reward
During 2010 a Group-wide Talent & Succession review process was introduced, called the Perstorp People & Organization review. This process has been set up to ensure an aligned and structured Group, internal mobility and succession planning.

All Group Key Management Positions (GKMP’s) have been assessed and reviewed, individual development plans assigned to the annual PMD process and successors announced.

21 Top and High potentials have been developed into new positions during 2010, as an outcome and an annual Group Talent Review has been introduced in Group management team meetings as well as in Perstorp Board.

Alignment of the Group Compensation and Benefits structure has also continued during 2010 introducing common reward structures across the group.

Safe and motivated employees do a better job.