The value of taking a holistic approach: an interview with Henrik Grand Petersen, CEO Stena Recycling

We are grateful and proud that so many in our network are reaching out and sharing their experiences in these unprecedented times. It helps to share different perspectives on what it means to do business as usual, in unusual times. We recently interviewed Henrik Grand Petersen, CEO of Stena Recycling.

Below follows a transcript of the interview

You have led many sustainability businesses. Is that different to leading other businesses?

It is. Sustainability is a theme that is growing an developing, particularly in Western societies. That means that although some of the companies have been active in the market for many years they have undergone and are going through quite some changes to adapt to these new demands.

Does this also effect the whole culture of the organisation when working with sustainability as a product or service?

It does. In Stena we probably talk more about the circular economy than we talk about sustainability. The terms might seem interchangeable but it is more specifically about the ability to circulate the resources that we take in and our aim is to reuse as much as possible – make them into new raw materials.

How is this working out? Can we see more material being recycled?

I think we are. Arguably the improvements are too slow, given the state of climate change and we should speed up the process, but I acknowledge that there are some fundamental challenges. More and more private companies are investing in innovation. We do have the renewable energy sector that is investing in new and better green energy sources. Even more traditional companies are being more discerning about what materials and packaging they use. At Stena we are trying to facilitate that process for the customers that we have had for many years.

So has Stena become more sustainable as a business?

We are very much driven by the purpose of what we are doing. Fundamentally we are developing sustainable solutions, trying to limit our emissions and our effect on the environment we live in. One of the important things these days is the climate and hence CO2, but also other toxic products and substances that are bad for the world. The companies I lead have this purpose at the very top rank of the business and they filter through our strategy, the way we manage the companies and even how we recruit people – the purpose and values around that is crucial.

So being a purpose-driven leader. Does that mean standing up front and ‘being’ the purpose? How does this affect you as a leader?

It is true. When I started my career, some 30 years ago, we were focussed on efficiency, growth., globalisation and these things are still valid as such, but there is now a fourth factor – being purpose driven. I as leader, my leadership team and Stena as group in general, have to be much more firm in the values. Luckily some long held values of Stena fit well into those of society and the environment right now which makes things easier, but you are right there is pressure on us as leaders to be very focussed on that.

Do you see a lot of innovative ideas that you can also bring into your business?

We are all forced to disrupt ourselves a little bit because we have to challenge ourselves with the traditions of how we are developing and using products and of how we eventually dispose of them. The whole value-chain is up for discussion. We are forced to look internally to see what innovative possibilities there are from the many innovative smaller companies out there. What technologies do we believe in and want to invest in?

If you look back at yourself, say 20 years’ ago – how do you see your leadership skills developing and changing over time?

Leadership has been my life for the last 30 years. In my younger days I was very adventurous with dreams of getting to know the world better. I liked other cultures and I still do – cross-cultural differences and border lines are very interesting. But what came randomly into my life about a decade ago was that I jumped from traditional companies that made products and services into this sustainability area. In hindsight perhaps I was a little fed up of just producing faster and faster, more and more – tapping into the whole growth economy. I started to reflect, not just on my growing older but what we leave behind us in our lifetimes and what we pass onto the next generations. The fundamental leadership skills are very much the same, adapting to change, communicating, empowering people and all – but it now goes hand-in-hand with being purpose driven.

Has being purpose-driven made you better as a leader?

That’s for other people to judge! <laughs> But I do feel it has made me more complete. I feel that the way we work is more holistic and by that I mean we have to look across the whole value chain. This means being culturally adaptive to say: IT companies, supply-chain companies, traditional manufacturers. In that sense your leadership skills are tested because of the broader spectrum of complexity and difference.

Where do you draw your own inspiration from?

Meeting people. Inspirational people and companies give me good ideas and force me to ask myself questions that are often challenging for me to answer. In sustainability there are some inspiring people, take Elon Musk with his daring approach to the automotive industry. I like to look forward and wonder what society will look like in the future. How can we get the best from digitisation, sustainability and create a better world for humanity? How can we as private entrepreneurs contribute in the best way to that development.

How do you cope with the global turmoil that surrounds us and hits your business?

It is not easy. Take the war in Ukraine, that is having quite an impact on world markets and ours. We have realised that we cannot predict what will happen even 6 months from now. So we are trying to stabilise and mitigate risk as far as we can whilst also being innovative in trying out new areas. We are telling ourselves in the management team to be both wise in how we manage the company in a crazy world but at the same time to stick to our strategy of becoming more innovative and market leading in delivering sustainable solutions. Because, regardless of whether we are going through a crisis or not, that big issue will remain there, even after war, even after Corona – the long-term perspective is right, and we must cling to that. Honestly though, it is not easy. Sometimes a crisis, drives more innovation or maybe new demands force you to think differently. Take the war in Ukraine and the way governments have been forced to move away from fossil fuels and towards renewable energy – in that way you could at least say some good will come.

So a crisis can help foster a sense of urgency for change. How did you make use of that when it came to the pandemic?

What we learnt was that we do not have to take a plane every time, take the car across the country, we can become quite efficient meeting online. We have also been forced to look at the way we work together. Could some of the work be done from home, saving the commute? So, we took two steps forward in that direction – but now we are taking one step back because we also realised the importance of the creativity that happens when people are together, and we started missing that. We are finding a new balance about when we meet physically and when we don’t.

For a while you had to lead remotely – how does it feel to meet with people again?

It’s great, as I said before I gain a lot of inspiration and energy from other people, sitting in my home office was not the same.

When you look at new leaders that are coming up through the company – what are you looking for in those people?

I’m looking for people with energy and commitment. I’m looking for the person that is willing to take that extra step and someone who is a team player – because you will never succeed alone. If you have drive and energy and the ability to work well with others, then most other skills you can learn.

Do you think that there are new skills and traits around the corner that leaders will have to adapt to?

We have always had to adapt to change but now it is happening faster and faster. Working across the value chain also sets new demands on leadership. Communicating where we want to go and how we want to go there. Leaders have to look upstream and downstream to see how they can create more sustainable solutions. Sustainability is not only CO2 and climate footprints, but also the use of resources. Resources are becoming more scarce, and recycling becomes even more important as scarcity grows.

You have worked as an international leader but do you think there is a specific leadership style of Scandinavians?

There are differences between Swedish leadership and Danish leadership – even differences between leaders in different areas of Denmark. <laughs> If there is a common denominator of Scandinavian leadership it is that we are less formal, more inclusive across the organisation in our decision making. It makes us faster and more agile and the likelihood of the decision being taken being right is better. Also coming from smaller countries, we have learnt to adapt across cultures and languages – otherwise we couldn’t do business with the larger players.

Looking back on your career what are you most proud of?

It is always nice to be acknowledged for your achievements, but there is nothing that gives me greater pleasure than when I see a whole team succeed. What I do is less important than what the team achieves. It brings me great joy and I’ve had a few of those situations that I’m quite proud of. When I manage to get German, French and English people to work together and be efficient then I’m proud, because that’s not easy I can tell you! <laughs>

How do you approach leading a multi-cultural group?

I’m simple and honest and firm on the goal we are heading toward. I put the obstacles on the table so that we can all agree on how to overcome them as a collective. If on the journey, we encounter new obstacles then I lay them out fast for everyone to see – they don’t stay hidden. Honesty, transparency, openness, communication has so far made it work for me.

When you have changed jobs – how have you used your first 100 days?

I need to understand the business and that sometimes takes time because of complexity. Take the company I am in currently – we are active in so many industries. You have to accept you won’t learn everything in only 100 days. I start with people – management, key personnel – understand where they are and what drives them – what improvements do they see as possible.

When you enter a company do you try to adapt to its culture or try to change it?

If my own value set corresponds with the company’s values (which it definitely did with Stena) then its easy. I’m of an age and position now where I can evaluate a company and ask myself if I fit well with them – if I’m going to spend time in a company then it needs to match my own values. Every company is on a journey and we will always be looking at how we can adapt and work better in the circle of business models. On that journey I will contribute whatever I can from a Danish perspective.

How do you think boards can change and adapt and take decisions to be part of this process?

I think the board has become even more important for companies over the past few years and they can bring even greater value to stakeholders and senior management. With the demands on companies from the world and society becoming so massive for sustainability and ESG in general, senior management need support from people with a longer term and wider vision. The board plays a valuable role in supporting the executive management to understand the company’s role in that context.

As a CEO you have to take both long and short-term decisions. How do you keep a balance between them?

Well I’m fortunate to be in a company that is primarily long-term, and I think that will be key to a successful future. However, I accept that you have to deal with the short-term also – markets are changing , the tides are changing faster than expected. In Stena we have a well-defined strategy and we stick to it. That means despite having to make short-term decisions we remain firm in the long-term vision and ensure that they do not conflict with that. If the long-term is unclear and undefined then you have more of a problem.

What advice would you give to the next generation of business leaders?

Pursue something that gives you purpose in life. To spend 40 or 50 years of your life at work – it has to be doing something that’s worth it. I see for the younger generation it is something they are naturally asking for. Find out what drives you in life; do not ever be driven by money because that can lead you in the wrong direction. Be open to the world. Travel and get inspiration from it, because that will stand you in good stead for having fresh perspective and making better decisions in the future.

So being a purpose-driven company with purpose-driven leadership – is that a benefit in winning the war on talent?

We had to challenge ourselves a few years ago as a Danish organisation and say ‘why should you come and work for us and not somewhere else?’. We listed down what we could offer. One thing was the purpose of sustainability, but also for the younger generation it was about what influence they could have. Would they have to sit and wait for 20 years to be in a management position or could we include them in a better, earlier way? We’ve been quite successful in the last 6 months about attracting newly qualified talent from education and I can say that some of them are already very influential in some of our solutions – and that is just great to see.

The value of taking a holistic approach: an interview with Henrik Grand Petersen, CEO Stena Recycling

The value of taking a holistic approach: an interview with Henrik Grand Petersen, CEO Stena Recycling

Below follows a transcript of the interview

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