All InADECE First of all, good morning. And I'm very happy to be here today. And I've really been looking forward to share our experience from transformation here at APM All-in-Mersk and APM Terminals. And more so to learn from the rest of you at this conference on this important topic. I want to share our learnings from a large lean transformation we are going through at the moment, which is a critical part of our strategy. As you saw in the video, I have spent the last couple of decades around the world either being leading or part of large global transformations. And there's more failures than successes, I'm sorry to report. But changing hearts and minds and getting thousands of people to walk in the same direction is not for the faint of heart, nor is it easy, but it's always very rewarding. So today I wanted to share some of my learnings and perspective on this ever-changing question. How do we succeed with large-scale global transformation? Next slide, please. Even before I get into the details, I want to talk about the people, because this is really a story about the people. And let me introduce you to Varadzik, who's one of my colleagues in Morocco in 10 years. He joined us in 2007 as an electrician, and he now manages our machine shop, which takes care of all the cranes you can see there in the background. During the past three years, he's been on a personal transformation. And I think the transformation for me is from being an employee who was paid for his time and labor to now a problem solver, a teacher, and somebody who cares deeply about both improving himself and improving our operations. I spoke with him the other day and asked for permission to use him today. And he said, you know, when I come to work every day, it's really about a couple of things. I want to keep my colleagues safe. I want to serve our customers. And I want to save a little bit of money for the company in doing it with less waste. And then I want to learn every day. And something he's also taken into his personal life. He now also sees a clear link between the business strategy and his daily work. And he's soon to be a lean coach where he will teach both managers and fellow employees alike. And I ask you this question, right? If you have 22,000 people like him in your company, do you think it gets better? But when we do transformations in our companies, it's really about improving performance and making us more successful. And I think the metrics matter. And this time around, there's some numbers that tells me that we in APM Terminals are going in the right direction. More than 8,600 colleagues have been trained in lean and problem solving. That's about 40% of our workforce. Almost 2,100 local Kaisons have been performed. That's about five a day. And it's accelerating, importantly, both in numbers and in quality. We have happier customers with our NPS that has moved up in double-digit numbers. But more importantly, it's gone from negative to positive. And we have seen a plus 40% increase in productivity in our largest terminals. And we have taken our cost at the end of it at $123 million, which is substantial for our business. And our assets are more efficient. But before I go into the learnings, let me take you back to 2017, where APM Terminals had been growing for more than a decade on the back of global trade and on the back of globalization. We had built and bought terminals in more than 58 countries and accumulated over 70 terminals. We ran these ports as a portfolio company because that's the only thing you can do when you grow that fast. And every terminal was managed by a competent leadership team who did this job to the best of their capabilities. However, global trade has been slowing. There was overcapacity after a lot of building. And customers consolidated and changed. And when you put it together, we ended up with lower financial performance. We had endemic issues around safety, customer performance, and low people engagement. But the good news is that this is actually a good business and a good industry. And we thought we had both the capacity and the people to succeed with this. But to do that, we needed to create a common way of bringing our performance up. And we really wanted every brain in the game. There should arrive a poll shortly on your screen. And the question is this. In your experience, what is the most challenging part in transforming people and culture in your organization? I'll just give you a minute to answer that. Okay, let's move on. So coming from that portfolio company, it was important for us to leverage every brain in the game. And we said we will go from freestyle to franchise. And becoming world class here, working together. And we wanted to start with a company where the customer comes first. And safety of employees, given the industry that we're in. So we created APM Terminal's way of working. And we did on the side of developing and training a lot of our colleagues. And a simple way in the beginning we talked about this was five ones. So one set of processes, one set of numbers, one way of managing and one global organization. And one improvement method. This was the best way we could put the people who was closest to our customers and to the, and to GEMBA to work together to solve our problems. Toyota has their TPS. Thanahoe has their DPS. And APM Terminals has its business system, which we call ways of working. It's a detailed setup and a structure for how to execute the work that we have to do today within a framework. And we say success does not happen by coincidence or chance here. We have a proven way of doing it. And you probably have similar systems and programs. So let me just briefly mention the elements so you can relate to your own world. So for the top-down part, it's from the managers. We call that the operating system. And the components is around standard work. It's about performance management. It's about process design and how we manage these processes. It's about how we educate and train in people and skills. And it's how we do improvement management. So this is hard-coded into the DNA of how we run our mini terminals. And then it's bottom-up, and I think this is important. It's a way to develop the frontline colleagues to become true problem solvers. And here we teach eight basic lean tools. We involve and expect chisons from them. We work a lot on mindset and behavior. And importantly for them, there's a lot of personal development in it. And let me get now to the learnings. And in my opinion, what is most important ingredients for succeeding in transformations like ours. And I will go through them in some detail. So the first one is around discipline. When you commit to change people's behavior and mindset, this is about a change of lifestyle. It's not about deciding on the right diet. It's all about the discipline to follow the diet that you have decided on. This is multi-year. It is multifaceted. And it really matters that in a world of business where fats and budget cycles can change the world fast, that we have the staying power and the discipline to continue. It's about making sure that the customer is visible and present in all of the transformation. There's a natural gravitation towards internal focus in most of these programs. And in this case, we need to look at why we do it in the first place, which is for our customer. And in our case, also for safety. And then it's about a very big commitment to training and education. We need to invest in people and give them mandate to improve. And it's impossible to underinvest here, actually. Our reality is that in many markets, we are dealing with unionized labor. And we have a history of adverse relationships. And we want to change that. But if you are going down that route, you are committing to multi-year, maybe even multi-decades investments in chains of hearts and minds. And this one, as the leader of the program, I think is important. When you have leaders that, after a long time and a lot of conversation, has demonstrated that they don't want to do this, then you have to let them go fast. And you need to fill their jobs quickly so the organization can get on with its journey. I think in large organizations, and this is an area that's becoming more and more clear for every year that goes, incentives matters a lot. And you must make sure that your incentive structure is supporting the strategy and the components of it that you want to achieve. I think in particular, for lean programs and standardizations and process-based improvement programs, I think 80-20 is a very important principle to keep in mind. And for us, it's really about harmonizing and applying principles and concepts rather than being dogmatic and compliant around the exact standard. And the last point, which is one that we continue to fail on, and at least I do personally, is around communication, communication, communication. When you have decided to take on the chains of hearts and minds, you commit to a very large ongoing communication program. I will wrap up with my three top personal learnings, which I hope you will find interesting. A new direction is really around transforming people's way of thinking. This is hard and it takes time. It's also messy. And we are saying either you are leading it, learning it, or leaving us. We designed the Frontline Academy to teach, to co-create, to involve, to iterate. And it's really a question of getting as many brains in the game as possible and embrace the ambiguity that comes with it. This is a significant personal development. And I believe that it can create win-win, which will eventually add that rocket fuel to your transformation. At the medium and tactical level, this is really around when you are deciding to go in a direction where you haven't been before. I think it's both hubris and naive to think that you can do this alone. You need to partner with people and companies who have been where you are going and who can translate principles into your business context. For us, we have done that with many companies, both through consultancy to help for building the operating system, to visit to other companies who have shared their experiences very openly, to teaching or not teaching, from partnering with companies like Toyota to work on specific terminals and application of programs. There is a lot of insecurities and a lot of vested interests in the middle management layer in particular. And you need help and you need guide stars to help you through that journey. At the long term and my last learning, it's really around role modeling from the senior management. There is no chance that any behavioral program can succeed unless the top wants it and role models it. We are blessed with a CEO who is an advocate and is supported and is thinking about this in the right time frame and the right magnitudes. And this will enable this change to be sustainable and it will enable the results to accelerate in the years to come. But just as a single point of learning, I thought that where we would be after three years was completely naive and it is now five years. So as you go along the journey, it's important that you have leadership and stakeholders that share the vision and that we all agree on where we are going. And then we use the short term results, which luckily are there, to boost our confidence and resolve as we go through the journey. And it acts as fuel for the long day. I'll conclude here with a picture showing a small crowd of heroes celebrating another improvement achieved. And I will leave you with the thought that this is about people. And then I thank you for listening to me. Thank you. Great. Thanks a lot, Keith. And throughout your great conversation, basically, we received a lot of questions. And I would like to bounce a couple of them to you and hear about your thoughts. And the first one is actually from Maria saying, how did the transformation, this transformation that you just mentioned, came into play in the times like we are right now? I mean, throughout the last couple of months, we've seen a lot of shocks throughout the world, right? Did that help in any way? Or can you mention a couple of examples where that was important? Yeah, so the last six months has been challenging for all of us. But actually, there's a couple of things where it's helped with us. All our work, all our standard work has, we moved it all to teams and we all stopped traveling and we never missed a heartbeat. So that's one very positive learning. Another positive learning was that we have used problem solving extensively to solve both customer problems and operational problems and health problems the last six months. And so far, we have operated every single customer's container and we have kept all our ports operating. And relatively to society at large, very few people have been hurt by COVID in the operation. So I would say that without the operating system and some of these components, I'm not sure how well we would have done, actually. But I've been super impressed. On some of the challenging side, I think GEMBAS, we have now tried with cameras and GoPros and stuff like that. And we removed all our academy learnings online. And I guess the jury is out whether it's as good as what we had before. But at least we are continuing. And I can see that we have good feedback on it. So I hope we will see. Thanks. And moving to something a bit different. We had something from Fabian. What has been the most important factor for you in order to create motivation throughout this journey? Because you mentioned this takes some time, right? So how do you keep people motivated along the way? I think the number one learning is the bottom-up approach where we actually start by telling people, what do you want to work on? How can I help you? And how can I make you more successful? I mean, I have been the amount of personal stories where people are transforming their lives, where people are, you know, you have grown-up stevedores with tears in their eyes and saying, I worked here for 25 years and nobody has ever asked me for my opinion. I think the secret sauce here is really the involvement of all our colleagues and really meeting people at eye level and taking them seriously and asking for them to contribute and help. Okay. Great. Another one then. Now, what time did it take for the productivity to increase to the levels that you mentioned, more or less? You might have mentioned a couple of things, but I guess it didn't happen, you know, from zero to 40. It took some time. Yeah. Yeah. Yeah. I would say it took about a year before there was some concrete things to show. And I think a lot of the early results on productivity, for instance, really came down to standard work and performance management, where all the improvement tools and lean tools are only starting to kick in now, where we are looking at flow and how we can level the various parts of the system. And so, but nevertheless, productivity came up and we have much more to bring in the years to come. Great. Thank you. Now, a bit on the communication part. Christian asks, what has been your preferred channel of communication? I mean, reaching so many people requires easy access to communication and information, and there must be some kind of strategy there. Yeah, I think what we already knew, that email is not a great media for that. We didn't do particularly well, actually. But what we gravitated to, and which I can see works a lot better, is really the social media challenge, both on Yammer, which is the Microsoft product, but a lot of WhatsApp groups, where colleagues are actually celebrating and sharing their successes among their peer groups. And as the organizational experts tell us, I mean, praise from peers are much more important than from the system. And I see that happening. So, videos and social media is what works best for us at this particular moment. Thank you very much. And now we have really not that much time. So, just one take. What would happen if you leave the company right now? Would the results be still there? Or? I am confident that they will continue and do even better. And I think this is a good question to think about when we lead transformations. How do we not become the transformation? But how do we leave something behind that is actually sustainable? Fantastic. Thank you very much, Kip, for joining us.