Audi Hungaria Next Level – that is our strategy. It is already a part of our everyday lives, and is delivering results in every area of the business. During a roundtable discussion with the members of our board, we take stock of the strategic process by talking about high points, teamwork, a new approach, and our specific successes on the road to the future of the company.
Audi:A new generation of electric motors, new vehicle projects, new services… Anyone who has followed Audi Hungaria in 2022 might think we have already reached the ‘Next Level’.
Alfons Dintner: That’s true, and we are really proud of the results we have achieved, together with our team. We are heading in the right direction. Securing the future of Audi Hungaria is at the heart of what we do, and the Audi Hungaria Next Level strategy looks far beyond our day-to-day progress – which is how it should be. Our world and the attitudes that define it are changing a dizzying speed. All the relevant stakeholders are repositioning themselves: to be digital, sustainable, electric and completely synergistic… As a service provider covering the broad spectrum of the automotive industry, this opens up a lot of doors for us in particular – as long as we are able to change proactively, together with the wider world. This is what is required to reach the Next Level, and there are many tactical steps involved. The first strategic milestones we reached in 2022 reinforce everything that has made us stand out over the last 30 years. We embody progress.
Audi:Which means that…
Alfons Dintner: We are advancing step by step with our processes – building competencies, together, in a targeted way, with great discipline and awareness of costs. As a provider of a wide range of services for to Volkswagen Group and the Audi premium brand group, we have enormous and unique expertise in the end-to-end production of powertrains and vehicles. We are constantly developing this knowledge, both inside and outside the company.
Kinga Németh: Let’s take the example of our collaborations with institutions of higher education. These partnerships provide us with an additional advantage by helping us build relationships with the people we are likely to work with in the future to implement our Next Level strategy. This is why strategy, persistence and, of course, inspiring career prospects are so necessary in HR. We can never stand still – even if we are considered the most attractive employer in Hungary in the automotive and integrated services categories. This is an era of transformation, and standing still means going backwards.
Dr. Patrick Heinecke: That’s right, Kinga! First of all, transformation in itself is about redefining things – building existing and new competences, in both current and new business areas. Of course, this applies to all business sectors and the strategy development process as a whole.
Audi:Do you think the current strategy development process is different to previous ones?
Alfons Dintner: Yes, it is much more comprehensive. In today’s incredibly complex ecosystem, if you don’t build with a holistic approach, you won’t be able to move forward and create a more liveable world for everyone. As members of the board, we define the frameworks for this process. For example, by identifying timespecific objectives for the middle of the next decade…
Robert Buttenhauser: That’s right. At this point, being able to let go and trust the team is the key to success. In order to reach the next level, we have to examine ourselves in comprehensive detail, and from every angle. We then have to question ourselves and rethink the way we work – on every level.
Proactive and consistent budget management
has helped make us strong. This is the key to
our financial performance.
Dr. Patrick Heinecke
Zoltán Les: Robert mentions something very important: rethinking things. This is something we have done consistently, and why we quickly involved a large number of leaders and other colleagues from every level of the organisation in the strategy creation process. Because that’s how the strategy can support the widest possible group – the entire Audi Hungaria team.
Alfons Dintner: We’re receiving more and more positive feedback. The entire Next Level strategic process is extremely flexible – we are continuously optimising and renewing it in the form of feedback loops. In other words, continuous improvement starts here. This is further enhanced by the fact that our activities are consistently monitored ‘from outside’. This is what our strategy management team and strategy ambassadors are working on.
Audi:Who is on the team of strategy ambassadors?
Alfons Dintner: At the moment, a total of 70 motivated Audi Hungaria leaders and colleagues, who represent all of our business areas. Our ambassadors meet each other regularly, coordinate, then inform our colleagues about how things are going and what activities they are focusing on. This is a very dynamic process, because there is a constant stream of new information from the outside world.
Audi:How does this process work?
Kinga Németh: First, our ambassadors identify a topic they would like to examine in detail. They then begin the ‘exploration’, where they assess the issue in depth in light of external perspectives. Based on these experiences, they hold up a mirror to our company, and we are all able to learn from it.
Dr. Patrick Heinecke: Exactly. Research related to competitors, suppliers and many other key stakeholders allows us to periodically learn new perspectives in relation to our portfolio. This enables us to develop the products and services we offer our clients in a targeted and timely manner. We also need this to deliver on our mission, because our clients are at the heart of everything we do.
I focus on innovation. This is an area where
we have traditionally always been strong, and still are today.
Zoltán Les
Robert Buttenhauser: We provide them with added value. In my business area, this is exactly how Audi Hungaria’s success story began 30 years ago. Today, we represent premium quality in every area; we offer the best value for money and operate with a clear understanding of the needs of our clients. Isn’t that right Zoltán?
Zoltán Les: Exactly, Robert. This is thanks to our position in the production network: to the group, we are not some distant supplier. It’s true that we have high expectations to live up to, but when we are able to meet these demands, it creates a high level of trust.
Audi:So, your clients are enthusiastic?
Alfons Dintner: Definitely. Otherwise, we would not have had the chance to begin production of our new model, the CUPRA, in Győr, nor would we have been able to offer our services to the group’s sites around the world. In any case, our Next Level strategy is helping us to strengthen this third pillar of our business, and our SCC team is delivering success after success. Our strategy is to ensure that all areas of our business continue to develop with maximum efficiency. In the long-term, the secret to having a forward-looking process is focus. And this also applies to strategic processes.
Audi:What is the board focusing on?
Kinga Németh: Naturally, Alfons always has to have the big picture in mind – it is his responsibility to keep steering our strategic ship in the right direction. And we, the other four members of the board, see ourselves as opportunity creators, focused on our own areas. I am concentrating on the team’s competencies, which is one of our biggest strengths. This is something we want to develop even further, adapting it to the transformation of our industry so that we have the greatest level of expertise to take us to the next level of competition.
Zoltán Les: I focus on innovation. This is an area where we have traditionally always been strong, and still are today. Next Level reinforces our roles – you could say that we are working as a kind of innovation incubator within the group. This is especially true when it comes to new technological challenges.
We have to exude strength, not just in our products,
but also as individuals. This is also a part of Next Level.
Kinga Németh
Dr. Patrick Heinecke: As Alfons has already emphasised, proactive and consistent budget management has helped make us strong. This is the key to our financial performance, so of course it is of the utmost importance to me that we continue to secure an attractive financial position in the future, too. Our competencies in this area are key, and we will leverage them even more in the future to bring additional group-level products and services to Győr.
Robert Buttenhauser: We are on the right track thanks to the lean structures and flexibility that make us unique. I would say I am the driving force behind this crucial area: I want to put even more emphasis on the further development of end-to-end processes and the attitude and independence fostered by the spirit of ‘Made by Audi Hungaria’.
Alfons Dintner: One thing has become clear during our work together: the strength of Next Level lies in the interconnectedness and mutual support of our business areas. This approach goes far beyond the focus of each individual area. With this comprehensive approach – something we are all taking – our strategic goal will be more than a summary of the objectives of the business areas. It encompasses a mindset where we focus on supporting each other, something which we are also actively working on in the strategic process.
Audi:What do you mean by this, exactly?
Alfons Dintner: That everyone has to ask themselves the question: have I reached the Next Level yet? And how is my team doing in this sphere? What can I change to provide our clients with Next Level added value for their future success, as well as our own? All renewal comes from your mindset, your way of thinking, and it always starts in the head.
Kinga Németh: We also see the fact that our colleagues are passionate about Audi Hungaria as a huge plus. We simply need to create the general conditions for them to dare to be bold and sail forth to new shores.
Dr. Patrick Heinecke: We can definitely achieve real success with the right way of thinking – backed by passion and courage.
Our strategy is to ensure that all areas of our business
continue to develop with maximum efficiency.
In the long-term, the secret to having a forward-looking process is focus.
Alfons Dintner
Zoltán Les: That’s why the concept of ‘Must Wins’ makes sense: we had to make sure the objectives in this category were clearly defined in the first year of the strategic process. One Must Win is the further development of our Vehicle Factory in the direction of e-mobility, and also towards greater flexibility with different brands. This also demonstrates our capacity for innovation.
Robert Buttenhauser: Or the further development of electric powertrains, which is naturally another of Next Level’s eight Must Wins. We are already excited about PPE and MEBeco drives, and it’s clear we have the competencies to show the world.
Dr. Patrick Heinecke: And this applies both to our Must Win of digitising our business model with innovative solutions for the whole company, and also for our competency- based services. Our SCC business unit is also a Must Win. We also have so much expertise in this area that we can develop this area of competency even further, which would be a huge victory. Of course, we plan to do this in a forward-looking way, with the interests of our clients in mind, and to enter the market with a new range of services. Our goal is to be at the cutting edge, just as we are with AUDI HUNGARIA AHEAD Kft.
Kinga Németh: This is a bit like handball – you’ve given me a great set-up, Patrick! For a Must Win such as inspiration and innovation culture, staff confidence has to be high, something that another Must Win will also help us with: building strategic competencies. We have to exude strength, not just in our products, but also as individuals. This is also a part of Next Level.
Alfons Dintner: At the same time, it’s important not to forget that even good wine needs a label. Which is why corporate marketing is one of our next Must Wins. We are capable of many things, but often not every potential client in the Volkswagen Group is aware of these capabilities. This is why we would like to build Audi Hungaria’s ‘brand’ systematically. We can only be winners in the future if we put all our energy into this.
Audi:Can you explain this in more detail?
Alfons Dintner: We have defined Must Wins with the expectation that they will encompass areas that are key to the future – where we need to be at the forefront strategically. That’s why ESG is so important, and we are already doing a lot of work within it in individual areas the environment, social responsibility and corporate governance. Audi Hungaria is a pioneer in these areas – with our climate-neutral operations, to name just one example. However, if we look at the issue from the point of view of the product supply chain of the group brands, Audi Hungaria can also contribute to the success of the group in other areas.
We are already excited about PPE and MEBeco drives,
and it’s clear we have the competencies to show the world.
Robert Buttenhauser
Audi:The first year of the strategic process came to a close in 2022. How will things proceed in 2023?
Alfons Dintner: My personal experience – as with our collective one – has been very positive, and I can say that on behalf of the entire board team. In the future, we would like not only to manage, but also to actively shape processes. Concrete measures are also being developed that will immediately enter the implementation phase.
Dr. Patrick Heinecke: The strategy management team regularly evaluates our measures and strategic projects across all business areas. This is funded from an existing dedicated budget.
Kinga Németh: The feedback from these events has also helped us to further optimise and develop each format. 2022 was a pilot year for us, when we tested new formats, like the Boxenstopp (Pit Stop), the integration workshops and strategy days for our different business areas.
Robert Buttenhauser: To use a metaphor, our strategy is now moving from pre-production to series production.
Alfons Dintner: That’s right, Robert. We successfully tested the Next Level strategy in 2022, and now we are ramping up production. The ‘sample’ is ready, and this is what we want to follow in the next few years.
Zoltán Les: Always with the qualities that distinguish Audi Hungaria, of course: being faithful to the process, with the highest level of quality, and getting straight to the point.
Alfons Dintner: Well then, my friends, keep it up! Next Level, let’s go!
