Vorwerk Worldwide. 125 Years in Touch with People. The Jubilee Magazine. Short Line to the Customer Success Factor Direct Sales

Transcription

1 The Jubilee Magazine Short Line to the Customer Success Factor Direct Sales Commitment Pays A Career with Vorwerk 125 Years of Vorwerk From Carpet Factory to International Corporate Group Vorwerk Worldwide 125 Years in Touch with People

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3 125 Years of Vorwerk. The Jubilee Magazine

4 EDITORIAL Continuity, Change and the Personal Touch Carl Vorwerk 1883 Dr. Jörg Mittelsten Scheid Years of Vorwerk It is the anniversary of an entrepreneurial idea and its devel - opment. It is the anniversary of a family company that has continuously changed and reinvented itself over the 125 years since it was established by Carl Vorwerk. And it is an anniversary founded on such values as trust, courage, respect and openness to innovation. Here at our Vorwerk family enterprise, we have always been good at combining great continuity with a constant willingness to embrace change. The Mittelsten Scheid family, the group owners, will continue to safeguard that continuity and at the same time to boldly tread new paths wherever necessity dictates. Willingness to embrace change is an attribute that runs like a leitmotif through our family history. Our embarking on direct sales in 1930 is a fine example of this. Which bank or shareholder, after all, would have financed such a step? Today Vorwerk generates sales in the region of 700 million euros with the Kobold alone. And the direct sales launch of the Thermomix, a virtually unknown kitchen innovation in the 1970s, was also a risky venture and one that has paid off exceptionally well, when you consider the annual 400,000 appliances we sell today. And taking over the U.S. American JAFRA Cosmetics in 2004 (a company providing jobs for 500,000 consultants and dealing in what were, at the time, foreign products in a foreign culture for Vorwerk) also seemed a bold step to some and yet that decision turned out to be one of the family s best. However, 125 years of Vorwerk are also, and primarily, an excellent reason to say thank you: to our employees in administration, production and the service companies, and to our sales advisers, representatives and consultants all around the world. You are what shape this company and make it successful and to you we owe a special vote of gratitude. This 125th Vorwerk anniversary is also and most especially your anniversary! Yours, Dr. Jörg Mittelsten Scheid Advisory Board Chairman, Vorwerk & Co. KG 4

5 August-Mittelsten-Scheid-Haus, the Vorwerk group headquarters in Wuppertal: a photo dating from

6 CONTENTS 4 Editorial: Continuity, Change and the Personal Touch Page 8 All around the world, people are working hard to make Vorwerk a continuing success story. People 10 The Owner Family Mittelsten Scheid 55 Vorwerkers over Generations Part of the Family Worldwide 8 The World of Vorwerk at 10 in the Morning 12 Interview: 125 Years in Touch with People 16 Success Factor Direct Sales: Short Line to the Customer Years of Vorwerk: From Carpet Factory to International Corporate Group 56 A Career with Vorwerk: Commitment Pays 58 Vorwerk Academy: Create (y)our future 60 International Teams: When Different Cultures Work Together... Page years of Vorwerk: milestones in the company s history. 6

7 Divisions 26 Kobold: One for All 30 JAFRA Cosmetics: The Power to Transform Lives 34 Thermomix: Perfect Partner for Good Food 40 Lux Asia Pacific: Cleanliness and Freshness 43 Feelina Ironing System: Ironing in Half the Time 44 Engineering: Uncompromising Quality 46 Carpets: New Room Feeling 48 HECTAS: Spotless Career 50 akf group: Partnering Mid-Scale Businesses Page 66 Vorwerk supports SOS Children s Village all over the globe. Innovation 62 Product Development: Added Value Through New Ideas 64 Product Design: A Deciding Factor Social Responsibility 52 Family Manager: The Most Important Job in the World 59 Fundraising Campaign Organized by and for Vorwerkers : The Vorwerk Group Sticks Together 66 Vorwerk Family Fund: Committed to Helping Children in Need 68 Joint Foundation anstiftung & ertomis: Ideas for a Humane Future Page 34 Thermomix: the indispensable kitchen aid. Page 30 Quality cosmetics and competent advice from JAFRA. Page 46 Vorwerk carpets create a New Room Feeling. 7

8 WORLDWIDE The World of Vorwerk... at 10 in the Morning In the customer s home, the research laboratory, on the assembly line and in many other workplaces, there are more than 550,000 people contributing their efforts to Vorwerk s success. We stopped the clock and took a minute to glance over their shoulders. U.S.A. Only the best for your skin: Jianchun Zhang tests the quality of cosmetics at the JAFRA research laboratory in Westlake Village, U.S.A. Spain Quick and tasty: Representative Ana González soon has her customers convinced of the advantages the Thermomix offers. These people make sure that JAFRA cosmetic products are absolutely dermatologically safe, work with top precision to guarantee the outstanding quality of Kobold vacuum cleaners, advise customers on their ideal skin care, clean buildings, oversee the management of entire ve-hicle fleets, work on the latest carpet collections or delight customers with their demonstrations of the many advantages of the Thermomix or the Feelina Ironing System. All over the world, the people who work with Vorwerk play a key role in the global growth and success of Vorwerk with their input: their ideas, their dedication and their motivation. The success story continues even during this one minute. Mexico Perfect care: The skin gets just the care it needs at a JAFRA class. Italy Bit by bit: At the Folletto facility in Arcore, Brigatti Ivano assembles accessory parts for the Kobold with great precision and concentration. 8

9 Germany André Breker sets up one of the carpet looms at Vorwerk Carpets. Germany Perfect service: akf consultant Barbara Hennecke helps a customer over the phone. Germany Ironing done in half the time: Monika Stein demonstrates the advantages of the Feelina Ironing System. Poland All clear: Teresa Stelmach of Hectas makes everything gleam. China Powerful dust buster. Kobold sales adviser Xiaoli Cheng explains what makes the Vorwerk vacuum cleaner such a top performer. Italy Clean and fresh: Sales adviser Mirko Pavoni demonstrates the Kobold s enormous suction power to his customers. Thailand On the move for clean water: Pin Pakaew with the Lux Asia Pacific water purifier system, Alva. Taiwan Perfect rice soup: Team leader She U Lu shows how it goes at a Thermomix demonstration. Indonesia On their way to a customer: Mijan and Priyo Cahyono in Jakarta all ready for a demonstration. 9

10 PEOPLE Our Best for Vorwerk The Owner Family Mittelsten Scheid The Vorwerk brand is known to millions of people around the globe. Yet only very few are aware that the company has remained in the hands of a single family to this day. For over 100 years, the Vorwerks have been called Mittelsten Scheid. Like few other families, they embody their company. And it is with continuity and fresh ideas that they have transformed it into an international corporate group. When company founder Carl Vorwerk was looking for a successor in 1904, he decided on his son-in-law, August Mittelsten Scheid, who came from an old-established Wuppertal textile company himself. His family had already been successfully manufacturing ribbons and borders for some generations. August Mittelsten Scheid took up the challenge and made Vorwerk the brand name of the Mittelsten Scheid family. In the ensuing period, three different generations would stand at the company s helm. After August, it was his sons Werner, who brought back the idea of direct sales from the U.S.A. but sadly died as early as 1953, and Erich, who headed the company into the late 1960s, introducing broad diversification and a new structure. Then it was the turn of Jörg, Werner s son and August s grandson, to lead the company. August Mittelsten Scheid receives Germany s Federal Cross of Merit in 1954 on the occasion of his 50th anniversary with Vorwerk. For 40 years he put his personal stamp on an entire Vorwerk era with motivation, humor, enthusiasm and pleasure in what the company produces. Continuity and Willingness to Embrace Change At the same time, Dr. Jörg Mittelsten Scheid embodies like no other the family s style of leadership, which has always ensured the company s great continuity. This is due to its willingness to embrace change. For Dr. Jörg, as he is known to employees, entrepreneurial creativity and new ideas are the prerequisites for a dynamic operation. A goal that doesn t make your heart beat faster, doesn t create a light-bulb effect, possibly even trigger amazement or delight, will never spark the energies necessary The family businessman thinks in a long-term context because he is less concerned with rapidly increasing the value of the company than with being able to pass it on to the next generation. Dr. Jörg Mittelsten Scheid Chairman of the Advisory Board We manage a large and successful family enterprise: The Mittelsten Scheid family today numbers 46, 19 of whom are company shareholders. Five of them are members of the Advisory Board. 10

11 to totally motivate people. The Mittelsten Scheids have never been short of such ideas. From the creation of the first Kobold to the introduction of direct sales, entry into new markets by opening up and reorganizing the company through to the internationalization and transformation of the medium-sized company into a global corporate group in every generation, their innovative strength and entrepreneurial pluck have set developments in motion that opened up new perspectives for the company. The ability to combine such innovative spirit with a long-term corporate policy is the true secret of the Mittelsten Scheids success. That s because sustainable corporate management has always been and still is the principle objective, and an objective backed by every member of the family even those not involved in the active management of the company. What unites us is the feeling that in case of doubt we would place the needs and necessities of the company before our own, says Jens Mittelsten Scheid, Erich s son and Jörg s cousin, describing the family s sense of collective responsibility. Room for unconventional thinking, too Werner Mittelsten Scheid managed the company alongside his brother Erich from 1943 until Exactly how that works is very well illustrated by Jens Mittelsten Scheid s personal history. He himself has never sat on the Executive Board. After a one-year internship at Vorwerk, he decided against following in his father s footsteps and in favor of studying philosophy. Today he does his bit by contributing his talents to the anstiftung & ertomis foundation and also by serving on the Advisory Board of the Vorwerk group. So there is no pressure on a particular family line to continue at the top capabilities and inner conviction are the deciding factors. In the same way, unconventional thinking and social responsibility have always had their place with the Mittelsten Scheids. Each contributes whatever he or she can give to the company. That s how, over the years, a corporate culture has evolved with which not only the family, but also the people who work with Vorwerk can identify. Decisions from the middle But maybe their name also has something to do with the Mittelsten Scheids becoming the pillar of calm stability throughout the company s eventful history. In the 16th century, namely, the Mittelste Scheid was the middle part of a family estate that was divided three ways and the one inherited by the family s present line from their ancestor Hans op tem Scheide. The family s cohesion and faith in the company form the basis of a development that has been in progress for 125 years. The family has given the Vorwerk brand a great deal: a new face, a portfolio of top-quality products, an international direction and a living tradition in fact, the only thing the Mittelsten Scheids have preferred to keep to themselves is their name. Dr. Dr. h.c. Jörg Mittelsten Scheid, who guided the company s fortunes from 1969 until the end of 2005, today chairs the Advisory Board. Dr. Erich Mittelsten Scheid was managing partner from 1943 until

12 WORLDWIDE Interview 125 Years in Touch with People In the 125 years since 1883, Vorwerk has come a long way: from a carpet factory to a highly diversified, international corporate group with 2.3 billion euros in business volume and 566,000 employees and sales advisers worldwide. Jürgen Hardt, Senior Vice President, Vorwerk Public Relations, talked with the Chairman of the Advisory Board, Dr. Jörg Mittelsten Scheid, and the Managing Partners, Achim Schwanitz and Peter Oberegger, about the reasons for Vorwerk s success and asked them to share their vision of the group s future. 12

13 That is precisely why we are growing: Because we are committed to preserving our personal touch and giving people what they want. Dr. Jörg Mittelsten Scheid Chairman of the Advisory Board Jürgen Hardt: Gentlemen, you represent three generations of executive management at Vorwerk. What do you see as being this anniversary s central focus? Achim Schwanitz: 125 years, that s a very long time and it has made its mark on our company. In these 125 years, the foundations were laid on which we build today: the different divisions centered on our direct dealings with the customer, Vorwerk s diverse international activities and, last but not least, our loyal and qualified employees and sales teams. Peter Oberegger: What we can learn from our history is that over the decades, Vorwerk s distinguishing features have been the group s great adaptability and growth orientation. By constantly changing and going new ways, we progress and develop and that is ultimately the key to our success. Dr. Jörg Mittelsten Scheid: At the same time, Vorwerk has preserved its family character. The Mittelsten Scheid family is always right there behind the company, assuring its independence and backing its forward-looking strategy. Are there differences between family enterprises and publicly traded companies? Dr. Jörg Mittelsten Scheid: Family enterprises think about the next generation, too, and so take a long-term view. That has always been good for Vorwerk. Without the family s farsighted approach and its support, many of the decisions that made Vorwerk great would not have been possible. One instance of this is when we took the plunge into direct sales in 1930, an entirely new concept for us back then. It was a move that revolutionized the company, but at the time it was regarded with great skepticism. Another example is our entry into the direct sales market for cosmetics in 2004 through JAFRA. Many people said, We know nothing about it My reply was that we do know something about people and about taking a direct, personal approach with them. That s what counts. And you have been proved right. JAFRA is highly successful and has made excellent progress under Vorwerk ownership Peter Oberegger: This is the message the anniversary holds for the future: We are successful when we are bold and adaptable and respond appropriately to changes in the world and 13

14 WORLDWIDE in our consumers. Had we stuck to making carpet, Vorwerk would have long ceased to exist. Carpets is as much a part of the company today as are our direct sales companies for household appliances Kobold, Thermomix, Feelina, the water purifier Alva and for JAFRA cosmetics. HECTAS Facility Management and akf Financial Services make the ideal complements to our portfolio because they, too, place an emphasis on people. Vorwerk has a number of divisions, each of them successful in its own field. At the same time, all of our divisions operate internationally from Japan to Mexico. This structure offers great growth potential because it enables us to profit from the positive development of dynamic markets worldwide. How does Vorwerk keep its bearings in times of change? Achim Schwanitz: Whatever changes have taken place, Vorwerk has always preserved its identity and its values. We orient our corporate policy according to the five Vorwerk principles. Our success depends on people, and that means it depends on our customers, our sales teams and our employees. Then there s our high standard of quality quality and performance matter. The customer rewards us with loyalty to the brand and to the products. What s more, we are prepared to make changes and to accept progress and constantly strive to make our vision of dynamic and profitable growth for our company a reality. We think and act in a longterm context that s part of our tradition as a family company. Vorwerk is committed to a sustainable corporate policy. Growth through change that is the key to our success. Peter Oberegger Managing partner Peter Oberegger: Over the coming years, we will be doing even more on this front. The Vorwerk principles my partner just mentioned really do guide our daily activities. But measuring our day-to-day dealings against these benchmarks and finding answers to new developments that are in line with our corporate principles is an ongoing task. For example? Whatever changes have taken place, Vorwerk has always preserved its identity and its values. Achim Schwanitz Managing partner Achim Schwanitz: For example, when it s a question of winning 21st century customers over to the Vorwerk products and services. Many companies claim to make the customer their focus but here at Vorwerk, that really is what we do each and every day. Direct contact to the customer, that s our business model. Through direct contact, we help to satisfy an important human need that exists worldwide. Many people want personal contact, detailed information and service. That s why, in the future too, the world will hold tremendous potential for our form of distribution, direct sales. 14

15 Peter Oberegger: In order to do even better in existing and new markets, we should systematically implement the successful concepts of our strong sales companies when we expand into new areas. Applying best practices is a golden rule that helps us to penetrate new markets faster and more efficiently. This calls for an intensive discussion of experiences across national and divisional borders. Our international conferences and management programs serve this end. How will Vorwerk look ten years from now? Achim Schwanitz: Growth is the goal step-by-step, profitable growth. We have already defined the strategic areas of growth that should help us to double our sales in ten years. Each division must develop its own targets and define its own priorities. We want to have far more sales advisers and employees around the world and to be able to offer them new opportunities for career development. Aside from Europe, we see Asia and the Americas as becoming our future market base. Peter Oberegger: I am working to achieve within ten years the goal outlined by Achim Schwanitz and backed by the family and the Executive Board. My vision: In China we will have a very large operation in There, as in the rest of Asia, we will have become a well-known brand. We will also be able to report thriving business activities in India, Brazil and Russia in In Europe, we will then I hope be the market leader in home care not only in Italy, as we are today, but also in many other countries. The Thermomix will continue to conquer markets outside Europe. Feelina will have, possibly with a modified sales model, lots of satisfied customers. JAFRA Cosmetics will be firmly established in many countries around the world and Lux will be well represented with its water purifiers and home care systems in large parts of Asia. HECTAS and the akf bank will have a thriving European business in 10 years time. The number of people working with Vorwerk will have crossed the one million threshold. And most importantly of all: Everywhere in the world, there will be happy customers and sales advisers who believe in Vorwerk and its products. Dr. Jörg Mittelsten Scheid: That is precisely why we are growing: Because we are deeply committed sometimes even counter to current trends to preserving our personal touch and giving people what they want. The Executive Board of the Vorwerk group (l. to r.): Eberhard Pothmann (Finance), Jochen Sarrazin (Controlling), Peter Oberegger (Managing Partner), Achim Schwanitz (Managing Partner) and Wolfgang Bahlmann (Human Resources and IT). 15

16 WORLDWIDE Success Factor Direct Sales Short Line to the Customer Some revolutions start off secretly and silently and sometimes they carry on the same way but they re still revolutions. Vorwerk counts as a trailblazer in one such revolution, a form of selling that is a million-dollar business today: direct selling. In just 80 years, Vorwerk has become the worldwide Number One in the direct sale of quality products. But what s behind the great success of this form of selling? Better to shop conveniently at home than spend ages searching for the right product in crowded stores. The Direct Sales success story: Kobold sales advisers in the 1960s (left) and a demonstration of the Bimby in Portugal (center). Right: A Feelina adviser demonstrates the pleasant job of ironing with the Feelina system. 16

17 Intensive consultation that s the great advantage of direct sales. A JAFRA consultation in the United States, water analysis in Thailand or a Thermomix party in Taiwan it s the personal touch that leads to success. It all began with a shelf warmer. Back in 1929, when Vorwerk invented the Kobold, it was a technical sensation because it was the very first example of modern vacuum cleaning technology that was light and handy, unlike it s cumbersome predecessors. But that was also its disadvantage because no one could believe that such a small appliance could be so efficient. Despite its attractive price, the Kobold remained on the shelves like a dead weight. Fortunately for Vorwerk, Werner Mittelsten Scheid, the Vorwerk founder s grandson, brought the clever business idea of direct selling back with him from a trip to the United States. The basic idea was that talking personally with customers and demonstrating a product on the spot was the best way to convince them of its advantages. What started out as an emergency solution would pave the way for a new industry. Many products are sold direct today and the industry is booming. With the Kobold, the Thermomix and the Feelina Ironing System, the water purifiers and vacuum cleaners produced by Lux Asia Pacific and the JAFRA cosmetics program, Vorwerk is prominently represented in direct sales. Some 530,000 consultants and representatives make Vorwerk the world s foremost direct seller of highquality household appliances and consumables today. The company generates an annual business volume of over 2.3 billion euros. Thanks to its dynamic growth, Vorwerk Direct Sales offers attractive job opportunities and career openings for sales advisers and representatives. Opportunities for sales advisers, advantages for customers Intensive consultation: That s one way to sum up the direct sales system because it offers customers the chance to try out products for themselves. And that s not all, direct sales cashes in on the advantages of other forms of selling without customers having to put up with the disadvantages involved. Instead of walking around crowded stores, they can stay comfortably at home and still discover for themselves the quality and efficiency of a product. Generations of housewives have been astonished to see how much dirt the Kobold can extract from their carpet. Even the best sales assistant at a store would hardly be able to demonstrate such outstanding performance. Retail stores are often not in a position to provide qualified advice, particularly when it comes to products that require explanation. While the retail trade is increasingly cutting staff numbers and with them the level of assistance customers receive, direct sales companies constantly promote their advisers competence by giving them training and further training specifically developed to turn them into genuine product specialists. Facts & Figures Vorwerk, with its divisions, moves in a growing global market and is one of around 700 direct sales companies in more than 50 countries around the world. Together, they have a market volume totaling 110 billion euros and provide jobs for some 60 million sales advisers. 17

18 WORLDWIDE Close contact with the customer in turn leads to sales advisers and consultants and therefore the company receiving direct feedback about products, which then flows straight into development. Naturally, the products ordered are delivered straight to the customer s home so there is no risk of the customer receiving the wrong or unsuitable articles. What s more, the quality of many of the products which are sold direct is superior to that of comparable retail products after all, customers are the toughest testers. All in all, direct selling is on the advance, worldwide, because it has many advantages not only for the customer, but also for the company. Facts & Figures Direct selling is firmly in female hands: Around 84 percent of the sales advisers in all European companies are women. Many of them work part-time so that they can strike the ideal balance between their job and caring for their family and at the same time earn some attractive extra income. And that s not all. Vorwerk Direct Sales offers some genuine career opportunities for sales advisers. Self-discipline, a sociable disposition, flexibility, specialist knowledge and enthusiasm for the product are the requisite qualities for success. But then there are literally no limits to what sales advisers can achieve irrespective of whether they prefer to work full-time or opt for a part-time model that gives them an attractive extra income. Different forms of direct selling Vorwerk uses different forms of direct selling around the world. There s the classic door-to-door system, where a sales adviser visits the households in a previously defined sales territory; the referral system, which relies on personal recommendations for new contacts, and the socalled party plan, where a hostess invites a group of potential customers to her home for a product demonstration. Which form is used when and where varies according to product and region. In Spain and France, for instance, good recommendations are the greatest asset both for the Thermomix and the Kobold. In other countries, on the other hand, the classic door-to-door method is favored, while demonstrations of products such as the Feelina Ironing System, cosmetics from JAFRA and also the Thermomix rely on the party plan. It s all about trust and the right timing Typical countries for door-to-door business, where the sales adviser knocks at the customer s door, are Germany, Austria and Italy as well as Asian countries, such as Indonesia, Thailand and China. Cultural norms in Asia differ from those in Europe, which means that different rules apply to the different sales teams. The Vorwerk divisions naturally each adjust their direct selling system to fit cultural differences. Direct selling is booming worldwide. There are more than 700 direct selling companies operating in over 50 countries Good recommendations are our greatest asset. Pepi Martin Kobold sales adviser, Spain People are happy to recommend good products to others, and that s what the direct sales business thrives on: with water purifiers in Vietnam (left) and with the Kobold cleaning system in Spain (center). 18

19 around the globe. The market volume in 2006 totaled some 110 billion euros and was generated by around 60 million sales advisors. There are great expectations that Latin America, the Asia-Pacific region and eastern Europe in particular will see strong growth in the coming years thanks to the tremendous market potential of the rising middle class there. Good prospects are also seen in western Europe, even though the markets will not develop as strongly as before. Companies wishing to assert their position in a competitive market will have to adopt new sales strategies. For many companies here, direct selling is an alternative with a future and as such will generally gain significance as a sales form. Good news for all our customers: Many consumers see direct selling as the ideal way to shop convenient, easy, with qualified assistance and a personal touch. A sociable disposition and infectious enthusiasm these are the distinguishing features of a good sales adviser. Being a people person is part of the job. Good sales advisers and representatives have so much faith in their products, it rubs off on their customers the best prerequisite for successful sales. Vorwerk Direct Selling Ventures Growth Capital for Innovative Direct Sales Operations We back young start-ups with innovative ideas in the business of direct selling and we are the only company to make this kind of investment, Dirk Meurer explains. He is one of the two managing directors of Vorwerk Direct Selling Ventures. Formed in 2007, the company invests chiefly in young, fast-growing businesses. The individual investments we make are in the region of half a million to five million euros. The main focus of our activities is presently still in Europe; in the coming years, Vorwerk Direct Selling Ventures also plans to increase its international investments, says Eberhard Pothmann, a member of the Vorwerk Executive Board and CFO of the Vorwerk group. Both partners benefit from Vorwerk Direct Selling Ventures interest: Young companies gain a sound capital basis and can draw on Vorwerk s broad international experience and market know-how and thrive on that basis. Vorwerk, on the other hand, profits via its investments in those start-ups from the dynamic growth of the global direct selling market. Vorwerk Direct Selling Ventures is the ideal partner for entrepreneurs wishing to achieve their growth targets with a long-term investor without relinquishing control of their business, says Norbert Muschong, Managing Director of Vorwerk Direct Selling Ventures, summing up. 19

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21 From Carpet Factory to International Corporate Group

22 The Vorwerk Group 1883 The brothers Carl and Adolf Vorwerk found the Barmer Teppichfabrik Vorwerk & Co. in Wuppertal on April Carl Vorwerk further develops the English looms and applies for his own patent. Soon after, production commences in the company s own machine shop August Mittelsten Scheid, Carl Vorwerk s son-in-law, joins the company and becomes sole managing partner The company celebrates its 25th anniversary by this time, Vorwerk provides jobs for some 500 people The Vorwerk Products 1883 Production of high-quality carpets commences Vorwerk patents a new, closely woven carpet that Carl Vorwerk invented on the chance discovery of a production error Besides carpets, Vorwerk now also sells its own looms Vorwerk becomes a registered carpet trademark, creating serious competition for oriental carpets. Contemporary History 1886 Karl Benz builds the first automobile The Statue of Liberty goes up in New York Carl Gustav Röntgen discovers X-rays The first 100,000 HP steam engine is built The Wuppertal suspension railway opens. 21

23 1920 The 1920s is a period of extreme economic fluctuation between record profits and difficult phases Werner Mittelsten Scheid introduces direct sales marking a new chapter in the history of the company Vorwerk Folletto, the first international Kobold company, is founded in Italy The war puts a stop to direct sales. The plant is almost completely destroyed in an air raid. Dr. Erich and Werner Mittelsten Scheid take over management of the company Vorwerk chief engineer Engelbert Gorissen develops a small, hand-held vacuum cleaner A patent is taken out on the Kobold vacuum cleaner and sales begin. Diverse accessories follow, including a hair dryer and a grooming attachment for horses The one millionth Kobold is sold First World War The radio takes the world by storm Lindbergh makes the first non-stop flight from New York to Paris First Football World Cup Championship is held in Uruguay Second World War.

24 1953 Following the death of his brother, Dr. Erich Mittelsten Scheid heads the company alone Vorwerk founds the Wuppertal-based akf bank Dr. Jörg Mittelsten Scheid joins the Executive Board Vorwerk founds the facility management company Hygienic Service Gebäudereinigung und Umweltpflege GmbH (today s HECTAS Gebäudedienste) Starting 1955 Systematic expansion of the product lines floor care and kitchen appliances, refrigerators and washing machines The original Thermomix goes on the market Market launch of the Tiger cylinder vacuum cleaner The United Nations (UNO) is founded Mount Everest is conquered for the first time The Berlin Wall goes up Neil Armstrong becomes the first human being to land on the moon The Peace Movement is formed in Europe and the USA.

25 1990 Vorwerk opens a branch in China; other international branches follow in eastern Europe internationalization of Direct Sales continues apace Lux Asia Pacific, headquartered in Singapore, becomes part of the Vorwerk group Since 2004, the U.S.-based JAFRA Cosmetics has been a member of the Vorwerk group. The company produces and sells skin care products, cosmetics and perfumes years of Vorwerk with some 560,000 sales advisers, representatives, consultants and employees all around the world Vorwerk Direct Selling Ventures starts up The hard floor polishing appliance, Pulilux, comes out Vorwerk begins selling not only vacuum cleaners, but also water purifiers, washing machines and air purifiers in the Asia-Pacific region Sales of the Feelina Ironing System commence JAFRA Cosmetics launches the Dynamics product line IBM presents the first PC to the world Fall of the Berlin Wall Birth of Dolly the sheep, the first mammal to be cloned Inauguration of the world s highest skyscraper in Taipeh (508m). 24

26 DIVISIONS Kobold Vacuum Cleaner One for All Top quality, durability, a unique deep-cleaning system and high performance coupled with low wattage these are the qualities that make the Kobold the best in its class. Yet this iconic vacuum cleaner was originally born of necessity. The Kobold is everybody s darling today, but the history of the highquality iconic vacuum cleaner started with a crisis and with an ingenious idea. When the market for gramophone drives went into decline with the advent of the radio in the 1920s, Vorwerk could no longer find buyers for its small motors. But the company rose to the challenge with an innovative idea and a willingness to take a new direction. In 1929, chief engineer Engelbert Gorissen de - signed a simple vacuum cleaner consisting merely of a motor, a dust bag and a Gleaming hard floors brilliantly simple with the Pulilux. handle. A revolutionary invention be - cause at that time, vacuum cleaners were monstrous machines that had to be transported on horse-drawn carts and operat - ed by two men! The hand-held vacuum cleaner was patented in 1930, but Modell 30 didn t sell. Customers simply didn t trust the little vacuum cleaner to be a top performer. In fact, it only became a roaring success in the wake of a revolutionary import from America. Werner Mittelsten Scheid, son of the then company owner, came back from the United States with the idea of selling the product not through stores, but where it would be used, in the customer s home. Direct sales Vorwerk s successful sales concept soon caught on and the success story of the Kobold took its course. A success story takes its course Very soon, the handy little helper had conquered the hearts of women and many men, too. And no wonder, because the motorized broom could be transformed in a jiffy into a hair or clothes dryer, a perfume atomizer, insect killer or a device for cleaning and grooming animals. Over time, Vorwerk adapted the vacuum cleaner to the needs of modern households by increasing its suction power and producing new accessories. Today, with the Kobold, Tiger, Pulilux and co., Vorwerk produces a complete household cleaning system that cleans and cares for carpets, hard floors and upholstery all the way into to the tiniest nook or cranny. And the innovative strength of Vorwerk s engineers remains unbroken, as the latest generation of vacuum cleaners demonstrates: They are extremely energy-saving and equipped with a highly effective filter system that swallows up even the finest dust particles, letting allergy sufferers breathe freely. The Kobold has enjoyed cult status in Germany for decades and it has already been a long time since the Kobold family began to take the international market by storm, too. Today the green and white appliances help family managers in many European and Asian countries perform their daily chores. Federico Materazzi CEO Kobold 26

27 Innovative floor care: the Kobold 53 dating from1953 and the new Kobold 136 with the electric brush EB

28 DIVISIONS 1929 Modell 30: It all started with the original Kobold Now, if that isn t a good reason to buy! Starting in late 1950, Vorwerk produced a new Kobold accessory, the legendary hair-dryer hood Advertising pamphlet for the Modell 33, which was produced between 1932 and Used on animals, the Kobold grooms and cleans in one go and stops the stable smell from clinging to the groom The Kobold 53 appears for the first time in green and beige design and is die-cast in unbreakable thermoplastic. Sold since: 1930 Division headquarters: Switzerland Countries: The division has its own direct sales companies in Italy, Germany, China, Austria, Spain, the Czech Republic, France, Russia and Switzerland and sells via distributors in 14 other countries CEO: Federico Materazzi People working with Division Kobold: around 14,300, of whom some 9,700 are sales advisers Website: Facts & Figures The rotor, or fan wheel, of the Kobold vacuum cleaner motor covers an average 750,000 kilometers during the course of its life. That s like traveling to the moon and back. Smooth out the surface of the vacuum cleaner s FL-A13 active carbon filter and it measures 6,000 square meters that s the size of 10 soccer fields put together. 28

29 1967 Vorwerk demonstrated the advantages of the Kobold to an international public at trade fairs all over the world The 50 millionth electrical appliance comes off the production line at Vorwerk and it s a Kobold. Johannes Rau, prime minister of North Rhine-Westphalia, and later Germany s president, is on hand to witness the event Customers are still buying the Kobold where they need it: in their own home Floor care made by Vorwerk Tremendous suction power and durability, low energy consumption and a host of applications are what make the floor care products from Vorwerk so universally popular. The high-quality products continually score top marks in independent tests. Here are the most important members of the Kobold family that ensure cleanliness and freshness. Clean-cut solution: The new Kobold 136, a particularly energy-saving hand-held vacuum cleaner, is equipped with a multi-step filter system that lets allergy sufferers breathe freely. Wild for dust: The new, large-capacity cylinder vacuum cleaner Tiger 260 (1) is ideal for big households. Multi-talent for carpets and hard floors: the electric brush EB 360 sweeps away every speck of dirt. Smart carpet cleaning: The Frischer-Kit carpet freshener and the electric brush really get to the bottom of carpets. Dust just doesn t have a chance: The Polsterboy PB 420 (2) has vibrating suction brushes that make sofas and armchairs look as fresh as new. A gleam that can t be bettered: The Pulilux PL 515 (3) vacuums and cleans hard floors all the way into the very farthest corner. Neat little nozzles: Hard floors or tiny nooks and crannies Vorwerk has the nozzle attachment to fit the bill. Cleaning agents for deep-down cleanliness: Kobosan active for daily care; Kobotex to fight stubborn stains; Kobolin, the special treatment for hard floors; Lavenia for freshening up mattresses. 29

30 DIVISIONS In addition to my important responsibilities as housewife and mother, I was looking for an activity that gave me the chance to get to know people. Karla Plaza Arriola JAFRA consultant, Mexico 30 JAFRA Cosmetics has the right care products for every type of skin.

31 JAFRA Cosmetics Career Opportunities for Women The Power to Transform Lives As in any large metropolis, Mexico City is a place where the extremely busy lifestyle, pollution and the diversity of weather conditions have negative effects on people s skin. Unfortunately, these elements contribute to premature aging, accentuating expression lines and diminishing skin s luminosity. For JAFRA skin care consultants, however, this reality is not an obstacle but a great opportunity to demonstrate the top-quality JAFRA Cosmetics products to other women and at the same time build a secure, financially independent business for themselves. Karla Plaza from Morelia, the capital of the federal state of Michoacán in Central Mexico, is one of the more than 435,000 JAFRA consultants in the country. For 18 years, she has promoted the culture of skin care among women interested in improving their personal image through scheduled home get-togethers known as classes. She also uses the classes to encourage others to join JAFRA as a consultant. Now is the right time to join JAFRA JAFRA Cosmetics, with all the experience of 52 years in direct sales, gives women the opportunity to earn an income and build a home-based business selling top-quality beauty and skin care products, while taking full advantage of their personal time. At the classes, which are held at the customers home, consultants sell skin and body care products, perfume, decorative cosmetics, SPA and anti-aging products. And now is a particularly good time to become a JAFRA consultant as Frank Mineo, President and CEO of JAFRA, agrees: There has never been a better time for women to go into business for themselves. Women-owned businesses are the driving force of the U.S., European and Mexican economies." Karla is a living example of this in addition to my important responsibilities as housewife and mother, I was looking for an activity that gave me the chance to get to know people. Importantly, I was looking for a well-paid activity that would provide me with total economic independence. The JAFRA slogan The Power to Transform Lives also plays on the unparalleled opportunity the company offers women to achieve impressive levels of personal and professional growth and so to improve their own lives and those of their families The idea of offering women an attractive job prospect with quality products was a key consideration for company founders Jan and Frank Day from the United States, who gave the brand its name, JAFRA. In the diary Jan Day kept from 1956 to 1973, in which she kept a record of the early JAFRA years, she writes: JAFRA consultant Karla Plaza Arriola knows her customers skin care needs. 31

32 DIVISIONS JAFRA has become one of the world s major cosmetics companies thanks to its innovative beauty and skin care products that combine new technologies with natural active ingredients. Frank and I wanted to sell only the finest, the most elegant cosmetics it was possible to produce. We dreamed of a company with a heart a company sensitive to the wishes and hopes of everyone connected with it. A company with a conscience. Frank Mineo CEO JAFRA Cosmetics Karla begins every class with an individual skin test, which allows her to learn about the skin type of her guests and, in that way, recommend the right products for their specific needs. Sitting around the table, each with a small mirror, the potential customers pay careful attention to the experienced consultant s demonstration. Personal advice, solid know-how Applying eye cream to one guest and massaging it gently into the area around her eyes, Karla explains the many benefits that this product brings to the skin. The other women spontaneously talk about the natural appearance of small wrinkles, impurities, dry patches, redness unwanted blemishes and frequent prob - lems that can be prevented or even eliminated with special skin care products. At the end of the class, everyone is happy: Karla is pleased about all the orders she has booked and her lucrative income, while her guests feel they have been given excellent advice and are delighted with the products and career opportunities JAFRA offers. One of JAFRA s strongest advantages over the competition is personal advice through classes, says Mari Loli Sanchez, Senior Vice President and President JAFRA Mexico. JAFRA consultants consistently broaden their knowledge by attending training courses and learning from experienced consultants, who pass on their know-how at the many seminars JAFRA holds. Karla Plaza Arriola also spent several years traveling all over Mexico as a member of JAFRA s regional trainers team, sharing her expertise and knowledge with her JAFRA peers. In business since 1956, JAFRA became a member of the Vorwerk group in 2004 Division headquarters: USA Countries: JAFRA has its own direct sales companies in Mexico, the USA, Germany, Italy, Switzerland, Austria, the Netherlands, the Dominican Republic and Russia and sells via distributors in 9 other countries CEO: Frank Mineo People working with JAFRA Cosmetics: around 516,700, of whom more than 515,000 are consultants Website: 32

33 The JAFRA success formula that creates The Power to Transform Lives is its direct sales party plan. JAFRA believes its significant sales increase in 2007 is just a first blush of what to expect in the future and reinforces its global expansion strat - egy for 2008 and beyond, says Frank Mineo. Since the company began, JAFRA has leveraged its cutting-edge beauty and skin care products, unique innovations blending new technologies and natural ingredients, and its direct sales party plan to become one of the world s largest cosmetics companies. New technologies and natural ingredients are also responsible for the success of the revolutionary skin care program JAFRA DYNAMICS, which was launched last year. DYNAMICS is a major milestone for JAFRA, says Pragna Chakravarti, JAFRA Vice President Research & Development and Chief Scientific Officer. New skin care program creates a competitive edge The JAFRA DYNAMICS range of skin care products combines exclusive botanical complexes and the ancient wisdom of Ayurvedia herbal blends with the innovative INTELLISHIELD technology. One of its active ingredients is the membrane that protects red marine algae from the extremely harsh conditions of their deep-ocean habitat. The second ingredient, a biotechnologically produced polysaccharide, acts like a second skin, providing protection from harmful environmental influences and changing climatic conditions. The products slow down the skin s aging process and also repair damage caused by the environment. Individually formulated to suit the moisture and oil content of different skin types, there are four JAFRA DYNAMICS skin care lines: Calming, Hydration, Control and Balance. The new JAFRA DYNAMICS program also has Karla Plaza convinced. Our new image and skin care put us far above our competitors and give us exciting reasons to contact everyone we know right now, she says, pleased that thanks to the innovative new products, she can further expand her clientele and win over even more women to both JAFRA products and JAFRA career openings. The products of the latest skin care program JAFRA DYNAMICS: Calming, Hydration, Control, Balance. 33

34 DIVISIONS Healthy, Delicious Meals with the Thermomix Perfect Partner for Good Food Everyday meals or elaborate menus, European or Asian specialties with the Thermomix, they all turn out beautifully. Family managers all over the world love the highly innovative kitchen helper that saves them lots of time in the household. Find out for yourself just what this highly innovative all-rounder can do give it a try with some international recipe favorites. Three generations of kitchen technology: below a VKM5, a Vorwerk mixer from the 1960s; above, the original Thermomix VM The current Thermomix TM 31 (left, with the new Varoma attachment) truly is a technical masterpiece. 34

35 How much more does a modern kitchen need? The Thermomix TM 31 chops, minces, blends, weighs, stirs, grates, grinds, mixes and cooks, and so replaces at least twelve house hold appliances as well as virtually cleaning itself after cooking. So it not only saves lots of space, but lots of time, too. And with the Varoma steamer unit, it can produce a full meal for four in just half an hour. What s more, this is such a gentle way to cook that no fat is needed and not only the full flavor of the ingredients but also the valuable vitamins and minerals stay locked in. The Thermomix is one of the most important kitchen aids since the invention of fire, says German 3-star chef Dieter Müller praise indeed! Sophisticated menus or good home cooking, baby food or light, airy mousses even complicated meals are simple to prepare and always turn out successfully with the all-rounder from Vorwerk. No wonder the Thermomix is also at home in the kitchens of such international top chefs as Alain Ducasse in France and Ferran Learning from good examples How do I go about building up a successful Thermomix sales operation? Which rules do I need to follow? What are the pros and cons of the different tools available for motivating representatives? Why are regular Monday team meetings so important? The answers to these and other questions can be found in the so-called Best Practice Guide published by Division Thermomix. We got together for the first time a few years ago with people from our successful sales companies to develop this guide, says Andreas Zeidler, business development manager at Division Thermomix. A new edition is due out this year. Adrià, the Spanish inventor of experimental molecular cuisine, who actually uses 15 Thermomix appliances in his kitchen. Technical innovation in a minimum of space: 23 patents The success story of the unique kitchen helper began in France back in Because thick soups are a favorite there, the then Director Sales of Vorwerk France, Hans-Jörg Gerber, hit on the idea of designing a device that would be able to mix and cook all at once. Vorwerk enthusiastically took his lead, and only a short while later, in 1971, the original Thermomix VM 2000 came onto the market originally in France, then later in Spain and Italy, where people traditionally appreciate good food and fresh ingredients. Naturally, the multi-talent was soon selling like hot cakes. More and more representatives in more and more countries began to delight hosts of customers by demonstrating the advantages of this clever form of cooking. Over time, Vorwerk gradually developed new models with improved performance and new functions. The latest of these is the current TM 31, for which a total of 23 patents have been filed. The all-rounder is chock-full with innovations, such as a reverse function for particularly gentle stirring, blade wings for finest mincing, built-in scales that weigh ingredients in 5-gram steps and also a detailed temperature indicator. Every 100 seconds, a Thermomix is sold somewhere in the world today. And the kitchen star s interna tional conquests continue in eastern Europe, for instance, in Mexico and in Asia. That s because the popular allrounder gives women and men all over the planet what they want: the means to cook tasty, healthy meals in a jiffy. Exchange between sales companies is fostered by regular meetings and two international conferences a year, where best-practice lectures are frequently on the agenda. For younger sales operations, in particular, this is a tremendous advantage - and for Division Thermomix, it s an important basis for entering new markets. Sold since: 1971 Division headquarters: Switzerland Countries: The division has its own sales companies in Spain, Italy, Germany, France, Portugal, Poland, Taiwan and Mexico and sells via distributors in 30 other countries CEO: Jörg Körfer People working with Thermomix: 17,300, of whom more than 16,300 are representatives Website: Walter Muyres, Co-CEO Thermomix Jörg Körfer, CEO Thermomix (right) 35

36 DIVISIONS The Jubilee Menu Eight countries one cooking pot. The Thermomix is ideal for preparing specialties from every corner of the planet. Try some spicy Polish pasta, for example, pasta with swordfish from Italy, an exotic rice dish from Taiwan or a genuine French quiche. And round off your meal with a light, fluffy Spanish flan washed down with a mouth-watering cocktail from Mexico. Spicy Pasta Parcels from Poland Pierogi Ruskie Russian Pasta Parcels Ingredients Pasta: 480 g wheat flour, type 550, 1 tsp. butter, 1/4 tsp. salt, 300 g hot water Filling: 150 g onions (halved), 40 g butter, 320 g boiled potatoes (without skins, from previous day) 2 tbsp. semolina, 3/4 tsp. salt, 1/2 tbsp. black pepper (ground), 480 g cottage cheese Preparation Pasta: 1. Place all pasta ingredients in mixing bowl and knead 1 min/ /. 2. Remove pasta, set aside and knead briefly by hand. If the pasta is still sticky, add a little flour. Cover and leave to cool. Filling: 3. Place onions in mixing bowl, chop 6 sec/speed 5. Heat butter in a frying pan and sear the onions until light brown. 4. Place potatoes and semolina in mixing bowl, chop 4 sec/speed Add salt, pepper, cottage cheese and half of the browned onions, mix 10 sec/ /speed 3 with aid of spatula and continue mixing for another 20 sec/speed 4 with aid of spatula. Tasty Bread from Germany Apfel-Nuss-Brot Apple and nut bread Ingredients 750 g apples (quartered), 100 g sugar, 150 g sultanas, 500 g flour, 11/2 packets baking powder, 1 tbsp. cocoa, 1 tsp. cinnamon, 200 g whole nuts (mixed) Pierogi: 6. Roll out the pasta dough 2 mm thick on a floured surface and cut out circles with a glass (Ø approx. 6 cm). 7. Place some filling (1 tsp.) on the pasta circles and then fold the circles into half-moons and press the edges together. 8. Immerse the pierogi in boiling salt water and simmer for another 3 minutes once they have floated to the surface. 9. Serve pierogi with the remaining browned onions. Preparation 1. Place apples in mixing bowl, chop 5 sec/speed 5 with aid of spatula and transfer into a bowl. 2. Place sugar, sultanas, flour, baking powder, cocoa and cinnamon in mixing bowl and blend 10 sec/speed Add the nuts and chopped apples, knead approx. 3 min/ / with aid of spatula. 4. Place the dough in a greased loaf pan (30 cm) and bake in a pre-heated oven for 60 minutes at 180 C. 36

37 Delicious Pasta from Italy Pennette allo spada con melanzane al rosmarino Mini-penne with swordfish and rosemary aubergines (eggplant) Ingredients (to serve 4) 1 aubergines (250 g), 250 g swordfish, 1 bunch parsley (10 g), 2 garlic cloves, 1 shallot, 40 g olive oil, 1 sprig rosemary, salt, 1 small dried chili, 100 g dry white wine, 150 g diced tomatoes, 1200 g water, 320 g mini-penne Preparation 1. Wash aubergine and cut into 2 cm cubes, salt and leave to drain in a sieve for 30 minutes. 2. Clean swordfish, remove skin and dice. Set aside. 3. Place parsley and one garlic clove in mixing bowl, chop 5 sec/speed 7. Set aside. 4. Place shallot and second garlic clove in mixing bowl, chop 3 sec/speed Add 30 g olive oil and sprig of rosemary, sauté 5 min/100 C/ /speed Add washed and well-drained aubergine cubes and cook 10 min/varoma/ /speed. 7. Add diced swordfish, salt and chili, cook 5 min/ Varoma/ /speed. 8. Add wine and cook 10 min/varoma/speed. 9. Add tomatoes and half of chopped parsley, cook 10 min/varoma/ /speed. 10. Pour sauce into a bowl and set aside. 11. Pour water into mixing bowl and bring to a boil 7 min/100 C/speed Add mini-penne and cook for time indicated on pasta packaging/100 C/ /speed 1 and arrange on a serving dish with the aubergine-fish sauce, sprinkle over the remaining parsley and drizzle remaining olive oil over the top. Hearty Soup from Portugal Sopa de grao com espinafres Chickpea soup with spinach Ingredients (to serve 8) 300 g fresh leaf spinach, 120 g dried chickpeas, 1000 g water, 1 tbsp. salt, 200 g onions (quartered), 50 g olive oil, 200 g carrots (cut into pieces), 3 cloves of garlic, 150 g turnips (cut into pieces), salt, pepper to taste Preparation 1. Place spinach in Varoma receptacle and set aside. 2. Place chickpeas in mixing bowl, pulverize 30 sec/speed 9, transfer into a bowl and set aside. 3. Add water, salt, onions, olive oil, carrots, garlic, turnips and pulverized chickpeas (on top!) to mixing bowl. Place Varoma in position and steam 25 min/varoma/speed Set Varoma aside, insert measuring cup and blend 1 min 30 sec/speed Place spinach in a bowl, pour soup over it, seasoning with salt and pepper to taste. Mix soup with spinach and serve hot. 37

38 DIVISIONS The Jubilee Menu Healthy Treat from Taiwan Rice porridge with goji berries and Asian sweet potatoes Ingredients: 1200 g water, 150 g rice, 200 g Asian sweet potatoes (alternatively yam roots or potatoes), 30 g fresh shiitake mushrooms (cut into cubes), 100 g diced chicken breast marinated in wine and salt, salt, 5 g dried goji berries (alternatively cranberries) Preparation 1. Place water in mixing bowl and bring to a boil 10 min/100 C/speed Add rice and cook 10 min/100 C/speed Add Asian sweet potatoes, mushrooms, diced chicken breast and salt to taste, cook 4 min/100 C/speed Add dried goji berries, cook 1 min/100 C/speed 1 and serve hot. A Classic from France Quiche Lorraine Ingredients (to serve 4) 100 g Gruyère cheese Pastry: 150 g flour, 75 g butter (in pieces), 1/2 tsp. salt, 50 g water Topping: 250 g water, 200 g diced bacon or ham, 30 g flour, 30 g butter, 250 g milk, 1 pinch nutmeg, 1/2 tsp. salt, pepper, 3 eggs, 2 tbsp. crème fraîche Dried peas for blind baking Preparation 1. Place Gruyère cheese in mixing bowl, grate 20 sec/speed 7. Transfer to a bowl and set aside. 2. Place all ingredients for the pastry in mixing bowl and knead 1 min/ /. 3. Mix pastry 10 sec/ /speed 2 and then remove from mixing bowl. 4. Roll out pastry 2 mm thick and place in a buttered and floured quiche dish. 5. Preheat the oven to 180 C. 6. Pour 250 g water into mixing bowl and heat 4 min/100 C/speed As soon as the water is hot, add diced bacon or ham and heat 1 min/100 C/speed 1, then place in a bowl and set aside. 8. Prick pastry in the quiche dish, cover with aluminum foil, scatter over dried peas and bake in the oven for 15 minutes at 180 C. 9. Place flour, butter, milk, nutmeg, salt and pepper in mixing bowl, mix 4 min/90 C/speed Set Thermomix at speed 3, then add the eggs, crème fraîche and grated Gruyère. Stop the Thermomix. 11. Sprinkle the diced bacon or ham over the pre-baked pastry, cover with the milk-mixture from the mixing bowl and spread evenly. Bake in the oven for 45 minutes at 180 C. 38

39 Refreshing Drink from Mexico Strawberry Margarita Ingredients 300 g strawberries, 500 g ice cubes, 50 g sugar, 1 peeled and pitted lemon, 60 g Cointreau, 150 g Tequila Typical Dessert from Spain Flan Caramel pudding Ingredients (to serve 8) 500 g milk, 4 eggs, 130 g sugar, caramel sauce, 700 g water Preparation 1. Place milk, eggs and sugar into mixing bowl, mix 10 sec/speed Pour some caramel sauce into 8 soufflé dishes (approx. 4 cm high) and fill them with the mixture. Wrap soufflé dishes in aluminum foil and place them into Varoma receptacle and Varoma tray. 3. Pour water into mixing bowl, place Varoma in position and steam 30 min/varoma/speed 1. Carefully remove aluminium foil and insert a toothpick to check if it comes out clean. If some mixture sticks to the toothpick prolong time by a few minutes more. 4. Allow to cool 1 hour before placing in fridge for at least 1 hour. 5. Turn soufflé dishes upside down onto plates and remove soufflé dishes. Tip: How to make your own caramel sauce: Place 200 g of sugar in a saucepan (Ø 16 cm) and cook over medium heat, stirring constantly, until the sugar melts, becoming a light brown. Remove the saucepan from the heat and carefully add 100 g of hot water, stirring constantly. Cook the sugar and water again over medium heat, stirring constantly until it reaches the consistency of syrup. Pour into a container and let cool. The caramel will then have the consistency of liquid honey. It s a good idea to make the dessert the evening before you plan to serve it so that it can cool properly. Preparation 1. Place strawberries in mixing bowl and puree 10 sec/speed Add remaining ingredients and blend the Margarita 1 min, gradually increasing speed from 5 to 10 with aid of spatula. Tip: Moisten the rims of the Margarita glasses (Martini glasses) and dip in a mixture of sugar and salt. Then pour in your Strawberry Margaritas. The international Thermomix Recipe Team works together on all aspects of Thermomix recipes, including quality standards. The countries recipe developers put together and test recipes for the Thermomix to keep advisors and customers constantly supplied with new ideas for conjuring up delicious treats with the Thermomix. From left to right: Alexandra Mas, Miriam Aguirre (TM Spain), Irmgard Buth (TM Germany), Alex Guignet (TM Export), Valentina Acquilino (TM Italy), Anne-Laure Allien (TM France), Corinna Haase, Kai Schäffner (TM Vorwerk International), Cristina Vela (TM Spain), Maja Ortner (TM Vorwerk International), Maria Acquaviva (TM Italy), Maria José de Resende (TM Portugal). Not in the picture: Renza Pivetti (TM Italy) 39

40 DIVISIONS Our sales advisers are experts where cleanliness and freshness in the home and water quality are concerned. Brigitte Leiner CEO Lux Asia Pacific 40

41 The thorough demonstration includes a detailed water test. Lux Asia Pacific Cleanliness and Freshness Well-being and purity: This is the promise Lux Asia Pacific products hold for customers and their families. That s because both the Alva water purifier and the Vorwerk vacuum cleaners sold under the Lux brand name make for gleaming cleanliness and a fresh, healthy environment in customers homes. Lux Asia Pacific has been part of the Vorwerk group since With the acquisition, Vorwerk secured itself a broad base in what was then the world s most vigorous growth region. The number of households there is high and disposable income rising all the time, says Brigitte Leiner, CEO of Division Lux Asia Pacific, describ - ing the situation in Asia. Already some 20 percent of households in the emerging markets there have an income that allows the purchase of high-quality articles. The situation in markets such as Japan and Taiwan, on the other hand, has already been comparable to that in Europe for quite some time. The water purifier Alva delivers drinking-water quality. Lux Asia Pacific concentrates on the sale of two product groups: home care appliances and water purifiers. The Lux brand is already well established in Asia and the products all come from Vorwerk s own production facilities. Just as in other divisions, these appliances are sold direct. Our goal in the countries of Asia is to establish a large number of satisfied customers who will remain loyal to our products for a long time to come, says Ms. Leiner. Special emphasis is therefore placed on the training of management staff and coaching of sales advisers. The slogan Lux for Life is set to gain even greater significance in the future, both for customers and sales advisers. 41

42 DIVISIONS Demonstrating a vacuum cleaner in Indonesia. Water purifier demonstration in Thailand. Facts & Figures 1.2 billion people in the world do not have access to clean drinking water Our sales advisers are experts where cleanliness and freshness in the home and water quality are concerned, she adds. The water purifier, especially, is a prod - uct customers need to have explained thoroughly before deciding to buy. As a core product, the water purifier is of particular significance. Water quality is inadequate in many regions, which means there is a genuine need for which we can provide a complete solution, Ms. Leiner stresses. Contact with the custom - er continues after the sale because the Lux purifier package includes a service contract and regular filter replacement. Before Alva is launched in a particular region, the company always ascertains the general water quality there. In the cus - tom er s home, the sales adviser will then, where necessary, use the so-called water evaluation panel, a mini-test lab, to detect impurities in the drinking water. Depending on the situation in the various countries, the sales teams work either on a door-to-door basis or use an address recommendation system to arrange appointments for demonstrations. Cultural differences and the market situation are very important here, says Brigitte Leiner. As a general rule, European products, and German ones especially, enjoy an excellent reputation in Asia. That s an important talking point for the sales advisers, but also a decisive argument for each individual customer. Brigitte Leiner CEO Lux Asia Pacific Cultural differences considered The following test really demon strates the purifier s efficiency and is far more impressive because the customer can immediately see the difference. The test involves a red liquid dye being added to the tap water, which is then pumped through the water purifier and in the end flows clean and clear into the glass. If the customer decides to buy, the appliance is usually delivered and connected to the main water supply the same day. Founded: 1926, Lux Axia Pacific has been a member of the Vorwerk group since 2001 Division headquarters: Singapore Countries: Lux Asia Pacific has its own companies in Indonesia, Japan, Thailand, Taiwan, Vietnam and the Philippines and sells via distributors in 7 other countries CEO: Brigitte Leiner People working with Lux Asia Pacific: 4.900, of whom some 2,900 are sales advisers Website: 42

43 Feelina Ironing System Saves Half the Time Ironing is one of the most time-consuming household chores. A family manager in a four-person household spends around 150 hours a year doing the ironing. That doesn t have to be because, with the Feelina Ironing System, the job can be done in half the time! Tedious sorting, ironing on the wrong side, fiddly pleats, shiny patches, seam marks these all belong to the past thanks to the Feelina Ironing System. A family manager irons 520 kilos of laundry a year. That s a mountain that would take a month to iron if Ralf Brockhaus CEO Feelina you did it all in one go, says Ralf Brockhaus, CEO, Division Feelina. With the Feelina, it can be done in half the time, so our customers have more time for themselves and their family. The Feelina Ironing System was launched onto the German market in That same year, it won the internationally coveted red dot award: product design But it s not just the design that has made it a favorite with customers and the 280 Feelina advisers who present the prod uct. Technically speaking, the Feelina System leaves nothing to be de sir ed thanks to its suction and airbag function, special base and oodles of steam power, all of which make ironing a breeze. Ironing with an airbag With the iron s special base, the temperature is always just right. Even delicate fabrics, such as silk or appliqués, can all be pressed at the same, constant temperature. Even T-shirts with transfer prints can be ironed on the right side. It s really true, nothing sticks to the special base, Feelina branch manager Monika Stein enthuses. The airbag also simplifies the job. The airbag function inflates clothes making them literally float above the board. A quick swipe of the iron and you re finished without pressing in any seam marks. The suction function, on the other hand, prevents fabrics from slipping as you iron. And thanks to the enormous steam power and the patented descaling system, every piece of clothing turns out beautifully smooth and lime-scale marks don t spoil your laundry. With the Feelina, ironing truly is fun! Founded: 2002 Division headquarters: Switzerland Countries: The division has its own sales company in Germany and sells via distributors in seven other countries CEO: Ralf Brockhaus People working with Division Feelina: more than 300, of whom 280 are sales advisers Website: 43

44 DIVISIONS Uncompromising Quality Each of our employees knows how important quality is to us. This is as true at the facility in Shanghai as it is in Italy, France and here in Wuppertal. Heinrich Peterwerth CEO Vorwerk Engineering However much Vorwerk products may differ, there is one thing they all have in common: top quality. Whether cosmetics from JAFRA, carpets or household appliances, all of the products Vorwerk turns out are associated with modern technology and high standards. This image is the result of the traditionally stringent quality management at Vorwerk, which will continue to be of prime importance in the future, too because only satisfied customers remain loyal to a brand, and only satisfied customers recommend a brand to others. Unique, durable and robust, that s what the Kobolds, Thermomixes and Feelinas have to be, and they should make an equally positive impression on sales teams and end customers alike. We want our product to surpass the customers expectations, says Dr. Günter Poppen, the man in charge of quality management at Vorwerk Engineering. He is the point where all lines concerning the quality of Vorwerk household appliances converge. We integrate our processes from the very start, when a product goes into development, Dr. Poppen stresses. His department is an integral part of research and development. One thing holds true for the entire Vorwerk world: quality is never complete! Our work is an endless process of continuous improvement. Audits are still performed after a product has gone into serial production. If errors crop up, they are analyzed and corrected. Extensive testing The general rule is that before a Vorwerk appliance leaves the factory, it is thoroughly tested. Each of our em ploy - ees knows how important quality is to us. This is as true at the facility in Shanghai as it is in Italy, France and here in Wuppertal, as Heinrich Peterwerth, CEO of Vorwerk Engineering, is keen to point out. A network of quality control officers in all locations ensures that quality is always high on the priority list everywhere. Today, Günter Poppen can claim with confidence that we currently have the best quality we have ever had. Compromise is something we cannot accept! That s an assertion Pragna Chakravarti, Chief Scientific Officer and Vice President Research & Development at JAFRA 44

45 Cosmetics in Westlake, USA, would certainly subscribe to. Our customers know that our consultants have been giving them good advice for more than 50 years and that they can use our products with - out any risk. Before a new product is ready for the market, it undergoes a series of microbiological and clinical tests. We want to rule out skin irritations and allergies as much as possible. That s why we take around one year to test every aspect of a new formula. We test whether the pro - d uct remains consistent over a longer period, whether it tends to become contaminated or whether a chemical reaction is possible between the contents and the packaging. Clinical tests are run to ensure quality and, depending on the product, the cosmetics company works closely with dermatologists, pediatricians and ophthalmologists. Completing the process, further tests are then run to ascertain both how well different skin types toler ate a product and also its end user acceptance. Only then is the product released for sale. Our customers are discerning and willing to pay a little more for good quality, Pragna Chakravarti explains. She knows that all the effort pays off in the end. Factors such as quality, design, health and ecological production are relevant to carpets, too today customers Quality The quality of a product or a service depends entirely on all product requirements being met both the objectively measurable features and specifications of the producer and the subjective expectations of the customer. The basic principle of quality planning is prevention the zero-error principle is adopted as standard in all areas of the company. These principles apply in this or similar form to all Vorwerk group production facilities. Division Engineering is responsible for the manufacture of Vorwerk household appliances and has plants in Germany, Italy, France and China. The products of Lux Asia Pacific are also made in China. JAFRA Cosmetics has a production facility of its own in Mexico. Division Carpets has its production site in Germany. expect more and the premium market is growing. When we deliver our high-qua - l ity products, we deliver quality of life, Johannes Schulte, CEO of Vorwerk Carpets explains adding to the purely technical concept of quality such elements as structure, color and design. All of these factors must combine perfectly and many other factors contribute toward the development of a new design. Heinrich Peterwerth CEO Vorwerk Engineering The aim during production is to ensure a high-quality result. The weaving and tuft ing machines may operate automatically, but every error, no matter how small, is identified by a camera system fitted to the machine and corrected immediately by hand. An expensive and time-consuming business with just one goal in mind: giving the customer the best possible quality Vorwerk quality. Volker Solbach at the Thermomix test bench performing quality checks on new appliances. 45

46 DIVISIONS Division Carpets New Room Feeling It s lying in a Tokyo theater, in a 5-star hotel in Barcelona, a London stadium and in the International Business Center in Abu Dhabi. It rides in high-speed trains through Germany and France and lies at the feet of Hollywood stars during award ceremonies. It is already 125 years old, yet at the same time younger and more modern than ever before: Vorwerk carpet. Carpet is a product closely interwoven with the Vorwerk company and its history. A part of that history from the very first moment, carpet has an eventful 125 years behind it, during which time its quality and versa - til ity have always been its great strengths. Vorwerk Carpets is now taking another step into the future with a program of equally high-quality and creative prod ucts. Vorwerk today presents its line of carpets under a new aspect: New Room Feeling. The word feeling plays a central role here. After all, carpet is an almost unique furnishing element in that it determines through its material, its color and its structure the emotional dimension and perceived warmth of a room. That is why Vorwerk has expanded its program in this explicit direction. The Recommended by the German Asthma and Allergy Federation (DAAB): Vorwerk carpets reduce the fine dust content in the room air of homes and offices. division was also fortunate enough to gain for the project the creative services of the internationally acclaimed designer Ulf Moritz, who has won several awards for his avant-garde textile and wallpaper designs. Extravagant design His new collection, Ulf Moritz by Vorwerk, offers everything the premium carpet segment could wish for: exciting color worlds, exquisite materials, extravagant design, discreet luxury. A prêt-àporter collection with a touch of couture is how the designer himself describes the collection, with which the Hamelin-based Vorwerk Division Carpets is positioning itself as an exclusive brand for the most discerning tastes. 46

47 Johannes Schulte CEO Division Carpets Aside from emotionalizing the product, the new direction principally aims to open up new markets and market segments. Internationally, Carpets wants to continuously expand its field of activities; in the commercial property market, the plan is to step up activities in the hotel and office segments. The aim: to contin - ue to set trends in a difficult competitive environment and to unlock new potential through growth and internationalization. In other words: Vorwerk will not be resting on its carpet laurels. That would run counter to the corporate philosophy after all, you only get to reach 125 years if you look ahead and focus on the future and its needs. That is why Vorwerk itself researches and develops in many differ - ent directions: not only real-life future scenarios Vorwerk received an innovation prize, the Zukunfts-Award, for a carpet equipped with RFID sensors but also areas such as the environment and health. Top environmental standards, recognized certification Along with an international team of scientists from 15 universities and institutes, Vorwerk developed a household dust analysis, for instance, which for the first time ever made it possible to make a qualitative statement about the level of allergens in the household. The German Asthma and Allergy Federation (DAAB) recommends Vorwerk carpets because they are particularly effective in reducing fine dust contamination in room air. In addition to the DAAB recommendation label, the carpets have also been awarded the certificates of TÜV Nord Für Allergiker geeignet (Suitable for allergy sufferers) and the GUI seal Reduziert effectiv Feinstaub in der Raumluft (effectively reduces fine dust in room air). Since August 2007, Division Carpets has been working in compliance with the universally recognized environment management system DIN ISO This also marks a success for the Executive Board, which has included environmental concerns in its corporate principles and expressly encourages the use of environmentally friendly materials and production techniques. Carl Vorwerk probably never dreamed that the company he founded would come such a long way. But he would surely have been pleased to hear that Vorwerk carpets are still making their mark in the international home and commercial segment as they did throughout the company s 125-year history. Founded: 1883 Division headquarters: Germany Countries: The division has its own companies in Germany, Austria, France and Switzerland, and exports to 47 countries CEO: Johannes Schulte People employed by Division Carpets: over 350 Website: We want to lend some emotional touches to our carpets and turn interior design into a genuine experience. And that is precisely what we have managed to do with the collection Ulf Moritz by Vorwerk. Johannes Schulte CEO Division Carpets 47

48 DIVISIONS HECTAS Facility Services Spotless Career HECTAS counts among the most successful companies in the field of infrastructural facility services in Europe. In the future, the company plans to expand its position throughout Europe HECTAS sets a shining example with innovative facil ity services of excellent quality in several European countries. Its extensive portfolio encompasses the systematic cleaning of buildings, facility and security services, as well as all-round consulting and special offerings for greater satisfaction in the workplace. Thanks to its sound industry expertise, HECTAS guarantees to satisfy each customer s specific requirements, whatever the sector: administration, retail and logistics, the food-processing industry or health care, to name but a few. Excellent performance makes all the difference In all sectors, HECTAS positions itself clearly as a provider of quality and that in an industry where dumping prices are commonplace. To deliver on its promise, the company operates a sophisticated system of quality assurance, under which its services are regularly assessed by both project managers and customers. Process-optimization experts work tirelessly to Facts & Figures Nineteen HECTAS staff from Duiven in Holland cleaned 415 windows in 37 minutes. That s a world best that earned the team an entry in the Guinness Book of Records. improve workflows. In addition to this, the different country operations regularly compare notes on best-practice solutions. With 60 branches in Europe today, there are many experiences other sites can learn from and good ideas to adopt, Jens Koenen explains. He is the man responsible for marketing and business development at HECTAS. Such ideas can be successful sales concepts or an organizational tool, such as quality cards for the monthly assessment of customer satisfaction. In 1994, HECTAS became one of the first in the business of cleaning buildings to receive DIN 9001 certification. Today, quality management and environmental management form an integrated management system that conforms to both DIN 9001 and DIN standards and applies Europe-wide Founded: 1974 Division headquarters: Germany Countries: The division has its own companies in Germany, the Netherlands, Austria, Poland, the Czech Republic, Belgium, Hungary and France CEO: Hans ter Pelle People employed by Division HECTAS: more than 11,500 Website: 48

49 and to all branches. This fits in perfectly with the company motto: HECTAS. All taken care of. As a true Vorwerk company, HECTAS attaches great importance to quality and know-how as well as to setting itself high standards as an employer. That s why HECTAS has always, among other things, paid all of its employees a fair wage. After all, dedicated service staff are really the company s capital. They are the people responsible for on-site results and customer satisfaction; without them, HECTAS would not have become the flourishing brand that it is. That s how HECTAS manages time and time again to set itself apart from its competitors by introducing innovative developments. The latest of these is a holistic hygiene system, of which the new surface disinfectant Oxidice S-Des, which ensures unsurpassed hygiene in food-processing plants and clinics, is a key element. HECTAS sees growing potential in the market for health and community facilities, where hygiene standards are now playing an increasingly important role. This is a market where the company can make its mark as a professional provid - er of quality services. Innovation with a future This is the strategy with which HECTAS has gradually devel - oped into a European enterprise with industrial standards over the years since its formation in A number of branches and new services have been added to date and more are continually boosting the company s portfolio. Facts & Figures The HECTAS team is made up of people from 93 countries. Communication problems? Practically unheard of! Hans ter Pelle CEO HECTAS Facility Services INTERVIEW with Hans ter Pelle HECTAS on Course for Growth What opportunities for development do you see in your industry at present? The facility services market is already well developed in Central Europe. The only way to stand out from our competitors here is by offering new service types, or specialist or particularly high-quality services. In less well-developed markets, such as Eastern Europe, for example, there is still great potential for growth in the facility services sector. Talking of growth, which targets have you set yourself? By 2012, we would like to have achieved a presence in all of Central Europe by build - ing up operations in Spain, Italy, Portugal and Switzerland. At the same time, we want to consolidate our position in our existing markets by offering new services. We also plan to expand our activities in Eastern Europe. No matter how much we expand, however, we will never compromise on quality or on the way we treat our employees. Which are your strategies for opening up new markets? If customers expand into new countries and ask us to go along with them, we will do so provided it is a lucrative proposition for us. Or we might buy up an existing company and then expand it in line with our portfolio and quality standards. We have already been very successful with both models in the past. 49

50 DIVISIONS You have to keep the customers work input to a minimum. Martin Mudersbach CEO akf group akf group Partnering Mid-Scale Businesses Close contact with customers is not only a typical feature of Vorwerk s business in household appliances and cosmetics, but also of the services provided by the akf group. That s why the akf group has developed into a flourishing provider of financial and leasing services and is now expanding successfully in Europe. Personal contact to the customer is the akf group s great strength, Eberhard Pothmann, member of the Executive Board and Vorwerk CFO, emphasizes. Our great field staff allow lots of time for personal consultation. What s more, we are constantly expand - ing our branch network to be as close as possible to our customers. The Vorwerk subsidiary akf was formed in 1968 to help customers finance the purchase of a vacuum cleaner a major acquisition in those days. Today, the company has become a thriving specialist in the leasing and financing of mobile investment goods. These include cars, trucks, construction and production machinery, and computer and laboratory technology. Even boats, helicopters and horses can be leased or financed through akf. Individual quotations, speedy processing and full personal service, says Martin Mudersbach, CEO of akf bank, who knows very well what his customers want. You have to keep their work input to a minimum. Successful expansion to Poland and Spain That s why a 24-hour Internet service, a Saturday telephone service for automobile dealers, fleet management software and an online costing tool that lets dealers calculate financing and leasing rates quickly and simply are naturally all par for the course for the bank that partners small and medium-sized companies. Customer proximity and innovative offers clearly pay off. In 2007, the akf group s 50

51 business volume totaled million euros; that s year-on-year growth of some eight percent. So what could be a more obvious next move than to export this successful business model? In the past two years, the group has set up its first international companies: the Madrid-based akf equiprent españa and akf leasing polska in Warsaw. Both are coming along very well. Demand is growing And the demand for leasing and financing services is growing because more and more German customers of akf are venturing into new markets abroad. As Martin Mudersbach puts it in a nut - shell: The European Union has 27 members. There are some interesting markets opening up for us here. Direct contact to the customer, and not only at trade fairs that s the key to the akf group s success. akf group Established: 1968 Division headquarters: Germany Countries: own companies in Germany, Spain and Poland CEO: Martin Mudersbach akf group employees: over 300 Website: Personal service: An akf customer takes delivery of an entire fleet of vehicles. We are expanding further Martin Mudersbach CEO akf group INTERVIEW with Martin Mudersbach Fleet leasing is one of the main areas of the akf group s activities. How did that come about? Because Vorwerk is a direct seller and delivers its products direct to the customer, in Germany alone there are 8,000 sales advisers on the road in a fleet consisting of 1,000 vehicles. The logical next step was to add fleet management to our portfolio. And we soon noticed that we could offer other companies attractive deals in this segment, too. What s special about the services the akf group offers? As a family enterprise, we can empathize with and respond flexibly to the needs of the small and medium-sized enterprises that are our customers. We offer them that little extra in service they don t get from other leasing providers. And what does the future hold? We want to be as close as possible to our customers, so we are continuing to set up new branches and are also pushing ahead with our international expansion. 51

52 52 SOCIAL RESPONSIBILITY

53 Family Manager The Most Important Job in the World Family managers are assertive, strong communicators, competent, responsible, motivated, good at setting priorities and getting along with other people just like managers in business. What s more, they are also nannies, cooks, teachers, personnel officers, chauffeurs, event managers and spiritual advisers all rolled into one. What makes this job so unique? There are family managers all over the world, even if that s not what they call it. That s because women everywhere (and sometimes men, too) put all their energy into making sure that their families have it good and life runs smoothly. The everyday lives of these all-rounders can be very different. There are family managers who concentrate entirely on their job at home while others additionally go out to work. There are mothers and fathers who raise their children alone or with a partner, large families, small families and multigener - ational families. The family culture is basically just as colorful and diverse as the job itself. Whereas the most widespread type of family in northern Europe is the small family unit, in which men also increasingly contribute actively to family management, in many Asian countries, grandparents play an important role. In southern Europe and South America, it is perfectly natural for relatives to be considered a part of the family network. In big cities especially, there are more and more families in which both partners go out to work, but only in very few countries is child care provided by the state. In the end, there - fore, it is the mothers and family managers around the world who are responsible for coordinating child care, job, household, cooking and leisure time themselves. That many women are more flexible today than they once were, despite their numerous duties, is due to the technical household aids that lighten their load. Things were very different 125 years ago. In those days, household chores were hard physical labor and left a woman almost no time to devote to her children and family. Even less than 80 years ago, the launch of the first Kobold vacuum cleaner caused a sensation. Household machines had never been so handy before, but then, suddenly, appliances became available that made household chores easier, simpler, faster to do a devel - op ment that over the following decades would greatly alter the housewife s work and ultimately make the role of family man - ager possible. Yet the purpose of helping family managers do their job remains an important element of the Vorwerk corporate philosophy to this day. Itself a family enterprise with a long tradition, Vorwerk is concerned with social issues, and each year publishes a family survey in Germany and awards a deserving nominee the title Family Manager of the Year. Aside from If I can spend some time cuddling with my kids in the evening, I know all the effort has been worthwhile. 53

54 SOCIAL RESPONSIBILITY Thanks to an array of modern appliances that make housework less of a chore, today s family managers have more time for their loved ones. Vorwerk's well-known time-saving and family-friendly cooking, vacuuming and ironing products, actually working as a sales adviser or consultant with Vorwerk is something that offers family managers a new perspective. Women all over the world take advantage of the opportunity which a job in direct sales with Vorwerk offers them to balance family and work to suit their own needs. JAFRA classes and Thermomix and Feelina home demonstrations are particularly popular with women as part-time jobs that also leave them time for their family. In the end, it is up to every family manager to determine how she runs her own small family business. In that sense, she is very like her manager colleagues in commerce and industry. For both, not only cultural and social factors but also the size of the business and their own personal style of management play a key role. And even if family managers don t earn a manager s salary and don t have an office, cannot expand or hand in their notice, not one of them would likely wish to trade with their business counterparts. The responsibility they carry is simply too great. After all, theirs is the most important job in the world. Even if family managers don t earn a manager s salary, not one would likely change places. 54

55 PEOPLE Vorwerkers over Generations Part of the Family For many people who work with Vorwerk, the family enterprise is almost family itself. We introduce two families, one from Germany and one from France, who have been working for Vorwerk for generations. 120 years of Vorwerk: the Pahnke family from Ennepetal The Pahnke family is a true Vorwerk family with three gener - ations already having worked with the company. Some 120 years is the total time Stefan Pahnke, head of maintenance and repair, together with his father, his grandfather and his wife, Kerstin, have worked for Vorwerk. When Stefan was a small boy, the Pahnkes lived right next door to the factory and he could often drop in on his dad, Hans Joachim, during the lunch break. Stefan soon decided that he wanted to follow in his father s and grandfather s footsteps. Lothar Hausmann, Stefan s grandfa - ther and Hans Joachim Pahnke s fatherin-law, was a Vorwerker for an impressive 49 years, Hans Joachim Pahnke, for a total of 36 years. His son Stefan is close on his heels. He, too, has been with his first and only employer for almost 25 years. And if it s left up to him, that s not about to change. I can t imagine working for any other company, he says. I ve never thought about switching, I ve found my perfect employer. Vorwerk brought him luck outside the job, too, because it was at work that he met his wife, Kerstin. By Pahnke standards, however, the human resources officer is almost a greenhorn with her mere ten years at Vorwerk. Even the Pahnke s 11-year-old son, Christopher, already has plans to carve out a career for himself with the family company and so carry on the family tradition. Together for the Thermomix: Françoise and Stéphane Leroy That cooking is supposedly a female domain is an assertion Stéphane Leroy disproves on a daily basis. That s because the 34-yearold is not just a passionate amateur chef but also one of the most successful team lead ers with the Thermomix direct sales company in France. His enthusiasm for Vorwerk and the Thermomix is something he inherited from his mother, Françoise, who has already been working with the company these past 23 years. As an area manager, she is responsible for 350 representatives and several team leaders, one of whom is her son. It s difficult to be your own son s manager. We agreed from the get-go that we would never discuss Vorwerk in private. We both wanted to avoid any work problems that could cast a shadow on our relationship. Stéphane is happy he de - cid ed to choose the same career path as his mother. I cannot thank my mother enough for introducing me to Thermomix. It was anything but easy to begin with because I had absolutely no sales training. These days he is just as success - ful as his mother and, although now in line for a post as area manager and there fore no longer giving many demonstrations himself, he still cooks with the Thermomix every day at home, for his family. So what is this Vorwerk family s recipe for success? Here, too, mother and son Leroy agree, The most important ingredients are enthusiasm and sociability the rest can all be learned. 55

56 WORLDWIDE A Career with Vorwerk Commitment Pays Exciting challenges within a highly diversified corporate group: Vorwerk attaches great importance to being an attractive employer. 56

57 Balancing family and job is not a problem for me. As a freelance Kobold sales adviser, I initially worked part-time and then moved on to full time. I decide myself when I work and that lets me choose the time I spend with my family. Pepi Martin Sales adviser Vorwerk Kobold, Spain A talent for organization, conceptual intuition and my strengths as a team leader help me in my work and ensure that we can all be successful together. Adriana Gonzalez Lady Grand Master JAFRA Cosmetics, Mexico Top employer and family enterprise all rolled into one: Vorwerk prides itself on offering people not only interesting lines of work and good prospects but also a sense of identification with their own corporate culture. Because the people who work for Vorwerk are also part of the family. This mix of personal closeness and international breadth is probably what makes Vorwerk such a special employer. We help to promote the Vorwerk growth strategy and contribute toward making the Vorwerk group a first-choice employer everywhere. This statement from Wolfgang Bahlmann, Executive Vice President and Chief Human Resources Officer, underscores Vorwerk s aspiration to offer people interesting jobs and career opportunities at all levels, in administration, production and in sales, too. Our success depends on people, it says in one of the five Vorwerk corporate principles. For us, training and motivating our employees and sales partners is of the essence. The quality of our work together is based on trust, honesty, respect and fairness. We respect people as individuals, quotes Mr. Bahlmann, adding, Combined with high motivation and a willingness to embrace change and progress, that is the basis for good cooperation with our staff. Vorwerk Principles Five principles govern the quality of cooperation at Vorwerk. They connect and guide all member companies of the Vorwerk family and form the basis both for how our staff work together and also for how we are perceived in the marketplace and by the general public. Clear Customer and Performance Orientation We always strive to provide our customers with first-class products and services. Within the company, too, we are dedicated to achievement, accepting only the highest standards. Vorwerk aims to secure long-term profits commensurate with our performance. This is only possible if our customers can put their faith in our performance. Successful with People Our success depends upon people. Extremely important to us, therefore, are the qualification and motivation of our staff and sales partners. The cooperation we value is founded on trust, sincerity, respect and fairness. We respect people as individuals. Outstanding Thanks to Quality and Innovation Vorwerk perceives itself as an innovative enterprise. As we have direct contact with our customers, we know their needs and wants and accordingly provide them with top-quality products and services. At the same time, we are committed to using our natural resources sparingly and attach great importance to the environmental friendliness of our products. Thinking and Acting with a View to the Future Since its formation in 1883, Vorwerk has been a family business. Thinking and acting with a view to the future is a matter of tradition with us. This is how we make decisions and weigh up investments. Based on this long-term view, we also assume responsibility for our staff and sales partners. That responsibility includes involving ourselves in our social environment. Prepared for Change and Progress Progress is unthinkable without a readiness for change. We recognise the need to introduce changes and are ready and willing to do so. This is a challenge we perceive as an opportunity for our dynamic company. The USA, Australia, Germany and now Italy. Because I rise to the challenges every new day brings, I am internationally successful at Vorwerk. I am now in charge of an entire sales area in Italy. Things couldn t be going any better for me. Patrizia Castellano Area manager Vorwerk Contempora, Italy My training at Vorwerk is great fun and I really enjoy working in a harmonious work atmosphere. The job also offers me excellent prospects. Dominik Begoll Apprentice tool mechanic Vorwerk Elektrowerke, Germany 57

58 WORLDWIDE Vorwerk Academy Create (y)our future Growth and a constant process of change these also mean the need for the special training and development of staff. Since 1999, the Vorwerk Academy has existed to give aspiring managers an international perspective. One goal that is firmly anchored in Vorwerk s corporate principles is global fitness. The company s desire and intention to impart its own international perspective to its employees and to make them fit for management roles in an international environment are what global fitness is all about. Learning from other countries and profiting from other people s experiences that s what has benefited me most. Giovanni Gueli is Vice President Administration & HR at Vorwerk Contempora in Italy and he has already participated in several Vorwerk Academy programs. His words are typical of how most participants rate their experience. In addition to further training led by internal and external lecturers, these international programs also place emphasis on in-depth exchange between skilled and managerial staff from different countries. The Junior and Senior Management Programs target managers and executives of all divisions and aim to teach general management skills. The altogether ten different schools of business convey specialist know-how relevant to all divisions, such as controlling, for example, intercultural management, technology or direct sales. The target group comprises skilled and management staff. Attending the Vorwerk Academy forms part of an employee s career development and is agreed upon during the annual development consultation between an employee and his or her superior. However, there are a number of conditions an employee must satisfy in order to be able to participate in a program. The participants are our high potential, who have been working for Vorwerk for at least two years, have a good command of English, wish to gain a better general idea of fundamental management processes, are interested in learning some new skills and prepared to take on other duties within the group in the near future, says Wolfgang Bahlmann, Exec - utive Vice President and Chief Human Resources Officer. People like Paul Verkerk, in fact, who has already worked in several different international postings with Vorwerk and is now Director Controlling in France. He has been on the Junior Management Program since February It s an excellent opportunity for many colleagues to get to know different people from different countries and divisions and to introduce themselves and their work. Particularly if you haven t previously worked at one of the holding company s affiliates, it can sometimes otherwise be difficult to make and cultivate international contacts. That s important for the participants, but also crucial to the future of the Vorwerk group. Its transformation into an international player calls for its employees to think in terms of international structures. We already have more than 30 nation - alities represented in management positions today, says Barbara Lehr, Senior Vice President, Corporate Management Development, who is responsible for the Vorwerk Academy programs. One of the main jobs of corporate development will therefore continue to be the systematic fostering of competent trainee managers. In addition to the Vorwerk Academy, which is the chief corporate development tool the holding company has at its disposal, the individual divisions also run their own programs. These are specially designed for sales and management train - ees. Elements of these programs have an international focus and so foster the development of staff on the one hand, and of the entire Vorwerk group on the other. Here a small selection of the entrance and trainee programs Vorwerk offers: House of Talents (DivisionKobold) Tutorship Program (Division Thermomix) Management Trainee Program (Division Lux Asia Pacific) Marketing Trainees and Branch Managers (Division HECTAS) Junior Sales Managers (Division akf group) 58

59 SOCIAL RESPONSIBILITY Speedy aid after the 2004 tsunami: Lux Asia Pacific helped provide clean water in the flooded areas. Fundraising Campaign Organized by and for Vorwerkers The Vorwerk Group Sticks Together JAFRA staff, too, were among those who lost their home in the devastating floods that swept the Mexican state of Tabasco. The Vorwerk group was not slow to provide relief, however, and immediately launched an appeal for donations as in the past, when the tsunami disaster hit Southeast Asia. Since last November, nothing has been the same in Tabasco, where rain fell constantly for three weeks, transforming the southeastern federal state bordering the Gulf of Mexico into a disaster area. Some 100,000 people at the heart of the flooded state capital, Villahermosa, were completely cut off by the water. One million people, almost half of the total population, lost their homes and all of their possessions in the floods. Eight people died and many have been missing ever since. The harvest was devastated, food became scarce and both medical services and the telecommunications system collapsed. Plundering completed the chaos. Many employees of the direct sales company JAFRA Cosmet - ics were also affected by the flooding. JAFRA has an office in the capital, Villahermosa, with 18 permanent em - ploy ees. The office supports seven Lady Grand Masters, 489 team leaders plus almost 12,000 consultants. At least three JAFRA people lost their home and many consultants could not be reached during the disaster. So it s good thing that in disaster situations like this, where people really are up to their neck in it, the Vorwerk group rolls up its sleeves and does everything it can to take care of its employees and to ease the effects of the disaster. Back in 2002, when monumental flooding hit East Germany, Vorwerk set up the Vorwerkers help Vorwerkers campaign to raise funds to help the victims of the disaster. Two years later, in December 2004, when a tsunami caused widespread devas - tation in Southeast Asia, the Vorwerk group once again made a worldwide appeal for donations to provide on-thespot help for the families of Lux Asia Pacific representatives who had died or been injured. Once again, the response was overwhelming: Vorwerk s Executive Board provided 200,000 euros in immediate aid. Further donations from em - ployees, sales advisers and representatives from all international operations brought the total aid for those affected up to over 450,000 euros. Lux Asia Pacific staff also distributed water purifiers to the suffering population. When the horrific pictures started to come in from Tabasco, JAFRA launched a large-scale appeal for donations. Every euro, dollar, peso, ruble or Swiss franc JAFRA employees gave during the period November 19 to December 19 was doubled by JAFRA and Vorwerk. The donations have meanwhile been passed on in the form of goods vouchers to the JAFRA consultants affected by the flood. The Mexican consultants will likely never fully recover from the anguish they have suffered, but at least a donation goes a little way toward softening the financial blow. 59

60 WORLDWIDE International Team Dynamics When Different Cultures Work Together How do hierarchies look in other cultures? Who is the best person to approach? And where will a phone call, a short or a personal conversation be more likely to have the desired result? In order to be successful in an international arena, it is important to know the different cultures, how they differ and also what they have in common. To enable them to move with confidence on such terrain, the Vorwerk group prepares its employees for international challenges at training courses on intercultural management. To ensure that cooperation within international project groups works well, it is useful to be familiar with the different cultures and their values. Ina Baum Coach, Intercultural Management 60

61 Consideration and humor are ideal door openers when dealing with people from different cultures. Germann Bumb Manager of the Vorwerk Engineering appliance production facility English is the corporate language within the Vorwerk group. For Vorwerk, going global is not just a slogan but a way of life. That s what makes Vorwerk so successful and also adds to the company s appeal as an employer. Within a context of international cooperation, Kobold vacuum cleaners travel a long way from production to final delivery at the customer s home. Along the way, there are numerous negotiations to be held with internation - al partners and suppliers. This is a long process that starts with a screw and continues through electronic components all the way to final assembly of the appliances in one of the production facilities in Wuppertal (Germany), Arcore (Italy), Semco (France) or Shanghai (China). Other cultures, other points of view That linguistic and cultural differences can present a particular challenge is something Germann Bumb knows all about from daily experience. He manages the Vorwerk Engineering appliance production facility in Wuppertal. Even if Vorwerk staff receive language classes in the group s corporate language, English, to prepare them for work at international level, that certainly doesn t mean that the counterparts they have to communicate with are fluent in English. In order to overcome language barriers, a conversation may occasionally be held in a different language. If necessary, drawings can also prove a very useful aid for engineers when, for example, an external Chinese supplier without any English and a German want to talk, says Bumb, who has already gained a great deal of experience with intercultural teams in Italy, France, China, the United States and Mexico. Interpreters can help with small talk, but they are usually out of their depth when it comes to specialist discussions full of technical terms. But even if every member of an international team does speak English, communications can be im - paired by cultural differences. According to a survey conducted by the business consultancy KPMG, some 54 percent of international deals are not finalized. In 65 percent of cases, cultural differences are the main reason for this failure. That s partly due to the fact that people often see other cultures only from their own point of view and always compare them with their own. It they are similar to their own, they are perceived as normal and good. Anything different will often be considered bad. We don t see things the way they are. We see things the way we are, as French author Anaïs Nin also discerned. Small wonder, then, that Mexicans and Japanese, for instance, have quite different descriptions for the typical German. The Mexicans see Germans as being serious, reserved, cautious, inhibited, selfcontrolled and always in a hurry. By contrast, the Japanese view of the Germans is of a relaxed, friendly, spontaneous, unin hibited, emotional and impulsive bunch of people who are prepared to take risks. Respecting and creatively benefiting from differences To ensure that cooperation within international project groups works well, it is useful to be familiar with the dif - ferent cultures and their values, says Ina Baum, an intercultural management specialist who coaches Vorwerk group employees and at in-house seminars helps them understand the work practices of other cultures. When interacting with foreign cul - tures, it is important to be familiar with and to respect cultural differences. But it s not a question of desperately trying to copy the foreign culture, but of being able to respond with humor should an unusual situation arise, as Germann Bumb advises. One thing s certain, he wouldn t trade his wide experience of different cultures and already anticipates with pleasure his continued cooperation with colleagues from Europe, Asia and America. 61

62 INNOVATION Product Development Added Value Through New Ideas Basically, it all sounds very simple: The product division commissions a development, Engineering implements the requirements. Simple? Not quite because there are so many little hitches that can arise once work begins on the details of a development. An innovative product has to go through several stages before reaching its market and quite often, the initial idea comes straight from the customer. Innovative: the improved heating system of the Thermomix 31. Kobold motors are getting smaller and more powerful all the time. Prize question: What can be broad and narrow, thick and thin, as well as hard and soft all at the same time? No such thing? Oh, yes there is, says Michael Wissmann, who is fond of citing the soft nozzle of the Kobold vacuum cleaner as an example of what appear at first glance to be the contradictory requirements of a new product. Michael Wissmann is in charge of research and development at Vorwerk Engineering and describes his job as living with contradic tions. The soft nozzle, also often called the housewife s flower, is a shining example of how a new and innovative product can be developed in collaboration with the sales companies. Innovation is more than just an invention. An innovation creates added value through new ideas and is ultimately also That is one of our great strengths. We find out what our customers want and can then provide the appropriate input for the product development process. Michael Wissmann responsible for Research & Development Vorwerk Engineering successful in the marketplace, says Mr. Wissmann. So the way he defines it, innovation is not an end in itself, as the example of the vacuum cleaner motor clearly confirms. We have made some huge improvements to the Kobold motor over the past few years. It is now 50 percent more powerful and three times as fast, but weighs about five times less. That s a deciding factor because vacuums need to perform better and at the same time become lighter all the time. But how does an innovation come about at Vorwerk? As a general rule, our sales advisers and representatives find out where demand exists for product development through their close contact to the customers. That s one of our great strengths, he believes, and adds: Thanks to our direct sales teams, we are in very close contact with our customers, talk to them about their needs and can then provide appropriate input for the product development process. The Thermomix TM 31 is a good example of this. A technically mature predecessor model needed to be optimized, and Division Engineering and the sales companies worked hand in hand on new concepts for the blade, the heating system and on the overall structure of the appliance. That s why the new model is such a success. Because it was a genuine step forward for the customer, for the sales people and also for the developers. But how do such innovative leaps come about? Vorwerk uses a so-called product calendar that shows which products are designated for renewal or improvement in the coming years. We can plan our development activities according to the calen- 62

63 A prime example of cooperation between the sales companies: the soft nozzle for the Kobold, which is also known as the housewife s flower. dar, Mr. Wissmann says. So in the preliminary stage, the developers can take specific suggestions into consideration, discuss ideas and try to bring new technical possibilities into line with upcoming requirements. We can then hand the sales people a catalog of possibilities. The new ideas must focus on some ambitious targets. If I ask for a 10 percent improvement I might actually only get five percent, he continues. So the targets need to be differently formulated: in the case of a new motor, for example, double the power plus a weight reduction. Only then can we shake off old ways of thinking and see a thing from a different angle. The result is often better then than the original target. Employee know-how is a key factor in the business of innovations. Above all, young engineers need to be brought in. Fresh ideas are important for us, Mr. Wissmann confirms. These young people get to work on their products from start to finish and that s a great incentive for them to come to Vorwerk. Experienced staff members contribute their expertise in project groups and by exchanging ideas and information, we manage to achieve, over and over again, what at first seemed to be impossible: developing an innovative Vorwerk product from apparent contradictions. Facts & Figures Vorwerk provides jobs four some 1,200 people around the world in the production as well as research and development of all the Vorwerk products. 63

64 INNOVATION Product Design Design: A Deciding Factor Design encompasses form, function and color. But not only it s also about material and construction. Design is vital if we want to be distinguishable, says Ina Struve, development manager at Vorwerk Carpets. Rolf Strohmeyer, chief designer at Vorwerk Engineering, puts it this way: Industrial design is the overall concept of a product. It s not just a question of good looks. Ergonomics, aesthetics, the unmistakable face of the brand and the typical brand impression are also key factors. 64

65 How can we make products destined for direct sale interesting and give them emotional appeal? Rolf Strohmeyer, the man at Vorwerk Engineering responsible for the design of the Kobold, Thermomix and Feelina products, asks himself this question long before product design gets under way. The design team is in on the process from the very first meetings between the sales companies and the research and development experts. At this stage, we develop some basic ideas and make a few sketches and models, says Mr. Strohmeyer. Over time, the technical and design concepts are brought into line, always in close consultation with the sales companies. The sensual component of design is important to Rolf Strohmeyer. Our brand defines itself by the appearance of the products, the impression they make is a deciding factor. Yet design is not an end in itself. The design must always make sense and clearly benefit the customer. In order to keep their finger on the pulse of current trends, the Vorwerk designers regularly collaborate with such illustrious partners as the universities of Essen and Budapest. The design must always make sense and clearly benefit the customer. Rolf Strohmeyer Chief designer, Vorwerk Engineeering Vorwerk Kobold, Spain So it s a holistic understanding on which the design and styling of Vorwerk products are founded. A look behind the scenes at Vorwerk Carpets reveals how true this is. Naturally, color still plays a dominant role in carpet design, and current tastes go for warm, mellow, homey hues. Naturally, design is much more than just coloring to us. We are constantly striving to surprise with innovation and emotion, to introduce highlights and find special, unique structures. We like to inspire and set trends, says Ina Struve, development manager at Vorwerk Carpets and the person responsible for design. What people want today are carpets and carpeting that follow international style trends and have a distinctive character. Surfaces are dominated by clear, warm colors, and have lots of volume and a certain graininess, she adds. In terms of product design, this means carpeting with a much higher pile and surfaces that are more intensively structured. What s more, historical carpet designs are being newly interpreted. One example of this is a reincarnation of the old flokati: the new shaggy style that s currently all the rage. To stay abreast of the latest trends and to strengthen their market leadership, the people in Hamelin work closely with well-known artists, who provide valuable input on patterns, shapes, colors and grades. Bolder design elements are in demand today, says Ina Struve. So the new slogan New Room Feeling ideally expresses the latest trends: three dimensions that lend special emphasis to artistic statements. Design plays a key role at Vorwerk, say Ina Struve, development manager at Vorwerk Carpets (above), and Rolf Strohmeyer, chief designer at Division Engineering (right). 65

66 SOCIAL RESPONSIBILITY Children also receive medical care at the SOS Children s Villages. Vorwerk Family Fund Committed to Helping Children in Need Providing help for the children of this world that s what Vorwerk employees have been doing for years by supporting SOS Children s Villages with their generous donations and creative fund-raising activities. Thanks to their contributions, a new village is now being built in Central Vietnam. Asecure home, a loving mother, carefree games with siblings, regular meals, schooling and medical care: For many children, these are not things to be taken for grant -ed. That is why, for more than 50 years now, SOS Children s Villages has been providing homes in which children in need can receive the care, love and security Facts & Figures Over 480 SOS Children s Villages in 132 countries around the world provide a new home for some 66,000 children. they need. There are over 480 SOS Children s Villages in 132 countries today, chiefly financed by donations. Doing their utmost to support that work is something close to the heart of Vorwerk s employees, representatives, consultants, sales advisers and managers. As members of an old-established family enterprise, they identify closely with the concept of family. In 2002, Vorwerk set up the Family Fund, which raises funds worldwide for SOS Children s Villages. So far, the donations have funded the building of three family houses in an SOS Children s Village in Hyderabad, India, and two in Moín, Costa Rica. What s more, until the end of 2005, the fund provided for the continued care of the children living in the Vorwerk houses in Hyderabad. Since the beginning of 2006, the village has been able to support itself through local donations and sponsors. The anniversary year target: a new SOS Children s Village The Vorwerk Family Fund has set itself a particularly ambitious goal to mark the company s 125th anniversary: It is helping to build a complete new SOS Children s Village in Vietnam. The search for a suitable location is almost con cluded 66

67 The Vorwerk Family Fund owes its existence to the exceptional initiative of the international Vorwerk staff and companies. The people of Vorwerk are highly creative in finding ways to raise funds. The Family Cent is another way of boosting funds in the donations account: Every employee has the opportunity to donate the odd cents on his or her pay check to the Family Fund. That donation is then doubled by the Executive Board. The tremendous support Vorwerk and its staff all over the world have given us over many years really is something special. Ute Kister Donor liaison officer with the Hermann Gmeiner Fund Vorwerk Family Fund SOS Children s Villages Commerzbank Wuppertal Account number: Sort code: IBAN: DE BIC: COBADEFFXXX (= Swift Code) and in a few months time, the foundation stone will be laid. The fund aims to make its involvement in the village a long one by actively supporting it even after its completion. Ute Kister, donor liaison officer with the Hermann Gmeiner Fund, which supports SOS Kinderdorf worldwide, is delighted about the help the Vorwerk Family Fund provides. The tremendous support Vorwerk and its staff all over the world have given us over many years really is something special. We are extremely grateful and look forward to working together on the new project in Vietnam. Playing and learning together at a Vietnamese SOS Children s Village. A new children s village is urgently need ed here since Vietnam counts among the world s poorest countries. To this day, the country has not recovered from the long and bloody war. There are twelve SOS Children s Villages in Vietnam at present, but the need there is still great. We wish to help here and to collect as many donations as possible, says an emphatic Dr. Jörg Mittelsten Scheid, Chairman of the Vorwerk Advisory Board and founder of the Vorwerk Family Fund. I am certain that Vorwerk people all over the world will once again contribute enthusiastically. Every cent is well used For SOS Children s Villages it is selfevident that all money raised is properly and transparently allocated. The annual financial statements satisfy the strict requirements of the German Commercial Code and are audited by an independent firm of accountants the latter applies both to the German and the international SOS Children s Villages organizations. The organization does entirely without professional fundraisers and pays no commissions. The cost of administering SOS Kinderdorf worldwide totaled some 4.5 percent of the total budget in 2006, and that is far below the average. That s why the German Central Institute for Social Issues (DZI) regularly awards the organization its donation seal of approval. 67

68 SOCIAL RESPONSIBILITY Charitable Initiatives of the Mittelsten Scheid Owner Family Ideas for a Humane Future A garden tended by people from very different nations, a house for fostering craftsmanship and artistic activities the foundation anstiftung & ertomis supports projects that foster individual initiative and the peaceful co-existence of cultures. The Mittelsten Scheid foundation has made this work possible. It also sponsors other scientific, charitable and cultural projects. Alittle piece of home. A garden of their own that was what a group of Bosnian refugees in Göttingen wished for. Soon the women s dream came true when they were presented with a plot of land. This became the first international garden that would be jointly tended by refugees and German families. That was in Since then, with a little help from anstiftung, the idea has borne lush fruit. In Göttingen alone, 300 people from 20 countries of origin work on the international garden project. Many similar initiatives ensued. The international gardens are a prime ex - am ple of initiatives the nonprofit orga - nizations anstiftung and ERTOMIS since January 2007 merged to form Stiftungsgemeinschaft anstiftung & ertomis have been sponsoring for many years. Other examples of the foundation s work are the Haus der Eigenarbeit in Munich and the Kempodium in Kempten, two centers set up by anstiftung that have for many years provided opportunities for craftsmanship and artistic activities, exchange and events. The foundation also publishes research reports, organizes conferences and links and advises several initiatives. That s how an extensive network has grown up over the years that enables people to turn their visions into reality. And that s not all. The Mittelsten Scheid foundation also backs diverse research and university education proj - ects, the arts, museums and exhibitions as well as the restoration of historical buildings. That s why, whenever it s a question of works for the common good, the name of this great family of entrepreneurs comes up again and again. Ertomis Stiftung GmbH was initiated in1973 by Erich and Charlotte Mittelsten Scheid and Vorwerk & Co. KG. The research company anstiftung was founded in1982 by Jens Mittelsten Scheid. In January 2007, the two companies merged to become Stiftungsgemeinschaft anstiftung & ertomis. The foun dation s key focuses are historical awareness, self-determination and a sustainable understanding of social wealth. The foundation sponsors culture, science and research, and supports projects that foster sustainable lifestyles. 68

69 Every human being has far more talents and abilities than he or she realizes. We would like to create the conditions in which such potential can develop for the benefit of the individual and of society. Jens Mittelsten Scheid Member of the Vorwerk owning family Najeha Abid with freshly picked vegetables from her International garden. 69