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Quarterly Magazine, November 2023

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Published by Barbara Esquinca, 2023-11-19 13:01:26

NeapcoOneMagazine

Quarterly Magazine, November 2023

NOVEMBER 2023 1 E Unrivaled Quality and Dependability at a Global Scale NOVEMBER 2023 ON MAGAZINE


NOVEMBER 2023 2 NOVEMBER 2023 Neapco’s rich history of excellence, customer prioritization, engineering expertise, and advanced manufacturing, delivered passionately everyday by our team members define the company’s competitive advantage. All Neapco products are precision engineered and manufactured to exacting tolerances to deliver premium performance to our customers. In this first edition of our new Neapco One Newsletter, you’ll find several examples of how Neapco is growing and succeeding globally, all driven by our team members living our core values. In this first edition of our Quarterly Magazine ONE NEAPCO, we introduce the facilities around the world, their hisotry and achievements. It’s very important for us that we feel part of the same corporation, sharing programs and themes that concern us all. Neapco around the World Pages 3-12 Safety First Page 13 Sustanability Matters Pages 14-15 Talent & Engagement Drivers Pages 18-21 “Sztamy” Award Gala Page 29 Neapco’s Lean Thinkers Pages 16-17 The Quality Corner Pages 22-23 CEO MESSAGE Thanks for being part of the Neapco Team Kenneth L. Hopkins President and Chief Executive Officer THIS EDITION Sense of Belonging Pages 24-28


NOVEMBER 2023 3 NEAPCO AROUND THE WORLD Neapco Holdings Global Headquarters FARMINGTON HILLS Neapco Drivelines BELLEVILLE, MI Neapco Components BEATRICE, NE Neapco Distribution Center GREER, SC Neapco Poland, Off-site Engineering Office GLIWICE, POLAND Hangzhou Plant HANGZHOU, ZHEJIANG, PRC Neapco Mexico SALTILLO, MEXICO Neapco Germany DÜREN, GERMANY Neapco Asia Headquarters SHANGHAI, CHINA Neapco Turkey KOCAELI Wuhu CV Axle Plant WUHU CITY, ANHUI PROVINCE, PRC Neapco Distribution Center LAS VEGAS, NV Neapco Poland PRASZKA, POLAND Chongqing Plant CHONGQING, PRC 1 2 3 6 4 8 12 7 11 10 14 5 9 13 NORTH AMERICA EUROPE ASIA DISTRIBUTION CENTERS 3 1 2 4 5 6 8 7 9 11 12 13 14 10


NOVEMBER 2023 4 In 2006 was established in Saltillo city, the first Neapco Plant in Mexico with 90 employees. Since then, we have grown steadily, changing the plant location in 2016 to another industrial park in the same city. Now we are expanding the building size from 324,950 ft2 to 689,966 ft2 . MEXICO After 17 years from the start, we are more than 500 employees. Production has been increasing more than 8 times since 2016. We currently sell 3.6 million units per year. Our main clients are BMW, GM, VW, Ford and Stellantis but we also send products to our Neapco Plants in Belleville, Beatrice, Praszka and Dueren. Our operations include Propshaft assembly, Halfshaft production and assembly and we also assemble parts for solar panels. The trend of our business is the production of electric vehicles, which gives us a competitive advantage that allows us to win new business with clients such as Honda and Mercedes Benz. 2006, 1st. Building in Saltillo. 2015, Industrial Park Mencorsa. 2023, 2nd. Expansion Neapco Saltillo SALTILLO, MEXICO Recently we launched a successful campaign called “8 Quality basics” to maintain awareness of important aspects about product quality, the ownership of the process, a systematic approach and client focus. This best practice will be implemented by all sites in the next months. NOVEMBER 2023


NOVEMBER 2023 NOVEMBER 2023 5 We proudly are certified on IATF 16949, ISO 140001 and ISO 45001. In 2023 we got our first Socially Responsible Company Distinction and the process to obtain that recognition includes an external audit of our practices in human rights, working conditions, business ethics, environmental care, and community development programs. As part of our compromise, we recently took a human rights training to human resources staff and other best practice was the develop and implementation of a Decalogue as Socially Responsible Company as a guidance for employees and a public statement for all the stakeholders. We have a strong communication system that let us take quick response to emergencies, and good communication practices as monthly meetings to inform all team members in the plant about our KPIs, programs and news; an internal monthly magazine with fresh news of events, information of training, EHS, sustainability, new projects updates and a section named “Meeting Us”. Through the Care & Share Committee we support local NGOs, schools and vulnerable groups organizing activities that include donations of food to relatives of hospital patients, donations of furniture, materials, paint to schools and cleaning of natural areas or reforestation. A t N e a p c o S a l t i l l o o u r s t r e n g t h i s b e i n g a u n i t e d t e a m t h a t complements each other to bring out the best in each of us!


NOVEMBER 2023 6 In 1957, “Automotive Equipment Plant in Praszka” was set up. From 1973 production is held in current localization. Our clients are BMW, Mercedes, VW, Ford, GM, Stellantis etc. POLAND PRASZKA PLANT At the moment we hire over 1070 employees. We are able to produce over 6 million halfshafts a year. There is also aluminum foundry here with our own tool room, where we can produce 6 million castings a year. Our flagship product is halfshaft. NOVEMBER 2023 There are many departments in Praszka Plant: Production of halfshafts and castings, Process Engineering, Quality, Laboratory, Facility Management, Maintenance, Tool Room, Logistics, Continuous Improvement, IT, HR, EHS, Purchasing, Supplier Development, PD, Testing, Prototyping Room, Application, Sales, PM, New Launches, Accounting and Finance.


NOVEMBER 2023 7 Our local organizational culture is strongly influenced by the fact that the plant is built in a small town and is the largest in the area. Most employees know each other privately, they are neighbors, they spend time together after work or they went to school together. Many employees work at the plant their entire professional lives. Three generations have been working with us, often from one family. Until recently, the average length of employment at the plant was 22 years! Therefore, we can safely say that we have a family working atmosphere, based on private relationships. We regularly share knowledge by organizing internal and external trainings, we have internal trainers as well. We introduced a Leadership Development Program, a Mentoring Program, we improve processes in TPM, and we actively participate in the Kaizen suggestion system. We cooperate with secondary schools and universities, organizing internships for students, and demonstration classes for young people who do not yet know what they can do in the future. We compete healthily during numerous sports events organized by the company Sports Committee, and we organize blood donation campaigns several times a year. We also care about the environment and try to involve our employees every time. Recently, for example, we planted 120 tree seedlings on the Neapco area, together with employees and their children. Every year we organize a forest cleaning campaign, to which we also invite scouts. We regularly support charities. W e h a v e a l o t i n c o m m o n , b u t a l s o w e a r e a w a r e t h a t e a c h o f u s is different. Nevertheless together we create ONE Neapco. POLAND


NOVEMBER 2023 8 This year we had the pleasure to celebrate two monumental occasions, the 55 year anniversary of our plant on July 22, and 40 years of the successful apprenticeship program on September 1. Also this year’s highlight was definitely the visit of the German Chancellor, Olaf Scholz, on August 22. GERMANY DUEREN PLANT The history of our plant is young compared to Neapco’s more than 100 years of existence, but it is certainly turbulent. After several changes of ownership from Ford to Visteon and Tedrive, we have been part of the Neapco Group since 2010. Back then we were still over 90% dependent on Ford, today we supply most of the well-known car manufacturers around the world. Our flagship is the halfshaft and differential business where we work closely together with the Polnish and Turkey plant as one team. But we are the only plant within the Neapco Group to assemble electric vehicles and to develop an in-wheel motor. Currently we hire around 600 employees in different production areas and departments such as Sales, Program Management, Engineering, Application, Prototype shop, Quality, MPL, Purchasing, Accounting and Finance, IT, HR and EHS. In addition, we have our own plant fire brigade. What makes our site so special is our vocational training program, which, as already mentioned, had celebrated its 40th anniversary at the site and earned Neapco the title of “best training company in the automotive supplier industry” by Focus Money magazine in 2017. An award we are absolutely proud of.


NOVEMBER 2023 9 Some of our employees have worked at Dueren for the vast majority of its history and notice that most of what we do in Dueren now is much different from when you started – a great commitment to our Neapco core value of agility. And of course, we also live the five other core values of Neapco in our daily business. One Team. One Mission. Since 1921. Turbulent years lie behind our German facility but also behind the whole automotive sector. However, we constantly and successfully evolved with the changing markets and driveline technologies. So thanks to all our passionate team members over all these years who always searched for solutions to not only meet but to exceed the customers’ requirements and worked hard to become better, faster, and stronger. To give something back to the employees, the groundbreaking ceremony for the so-called employee oasis took place this year. A project that will be runned for and by employees on a voluntary basis. It should become a place where all team members could come together during their lunch breaks or before and after their shifts to relax and enjoy mother nature. In future it should also be a place for team building events and BBQs. It will include a pavilion with seating, a garden shed, a biotope, different trees and herbs and a wildflower meadow with honey bees that will be cared by an experienced employee. GERMANY


NOVEMBER 2023 1 0 Neapco Shanghai China was established in 2011, and the service includes: Sales & Marketing/Engineering & application support/Supplier quality & development. CHINA SHANGHAI HANGZHOU NINGBO CHONGQING At present, we have 34 employees in Neapco Asia. 19 in Shanghai 10 in Hangzhou 1 in Ningbo 4 in Chongqing 1992 The production Facility of Neapco Wanxiang Hangzhou China was established in 1992, and the operation includes Halfshaft production & assembly/Full-service test & prototype facility. 2013 The production Facility of Neapco Wanxiang Chongqing China was established in 2013, and the operation includes Halfshaft production & assembly/Propshaft assembly/ Paint shop. 2015 The production Facility of Neapco Wanxiang Wuhu China was established in 2015, and the operation includes Halfshaft component machining. 2006, 2014 The production Facility of Neapco SPS Ningbo China was established in 2006, relocation to the new plant in 2014, and the operation includes Halfshaft production & assembly. Our product is halfshaft. and the main customers are BMW, BYD, Xiaomi, Lotus, Ford, Mercedes Benz, etc.


NOVEMBER 2023 1 1 Founded in 2008, Neapco’s Belleville facility embarked on a remarkable journey after acquiring the F-150 business from ACH-LLC (Formerly Visteon). BELLEVILLE BELLEVILLE FACILITY As we continue to evolve, it is important to reflect on our unique history and the strong sense of community that has defined us. Our journey here in Belleville, Michigan, has been characterized by growth and innovation. We have taken the legacy of the F-150 business and transformed it into a thriving hub of expertise and excellence. We are proud of our accomplishments, and our journey is far from over. Over the years, we have grown from humble beginnings with just 100 employees and a few machines to now proudly employing over 600dedicated individuals and multiple contracts with the big three automakers. One of the distinguishing features of our Belleville facility is the team atmosphere in our work environment. Many of our team members today can be traced back directly to the original 100 that have contributed to our success. We often find that our employees are not just colleagues; they are neighbors, friends, and sometimes even family. With an average length of employment exceeding 5 years, and the highest seniority members at 15 years we can confidently say that we have cultivated a workplace culture rooted in trust, loyalty, and lasting relationships.


NOVEMBER 2023 1 2 BELLEVILLE At Neapco Drivelines, we prioritize the well-being and development of our team members. We have established a comprehensive Employee Training and Development Program that facilitates the seamless onboarding of new hires and fosters the continued growth and learning of our existing employees. This program includes one-on-one training, an apprenticeship program and more, ensuring that every employee can reach their full potential. Safety is important, at Belleville we value our employees and want them to go home safely every day. We continue to enhance our Environmental Health and Safety program that places the safety and well-being of our workforce above all else. Our EHS team continually assesses the needs of our people and the requirements of their jobs, ensuring that our workplace remains secure and compliant. Collaboration is at the heart of our success. Our continuous improvement team works closely with all departments to ensure that no good idea goes to waste. We believe in the power of shared innovation and constantly seek ways to improve our processes. Our varied teams include Production, Engineering, Quality, Environmental Health and Safety, Facility Management, Maintenance, Sales, Logistics, Continuous Improvement, IT, HR, Purchasing, and more – all in service of the same goal, a quality product for our customers. But it is not all about work at Neapco Drivelines. We also emphasize the importance of team building and a healthy work-life balance. Throughout the year, we organize summer cookouts, birthday lunches, holiday meals, sporting events, and family fun days, providing opportunities for our associates to come together, have fun, and strengthen their bonds as a team. Our commitment extends beyond our workplace. We are proud to support charities, participate in community events, and engage in environmental initiatives. Our workforce has contributed to ‘toys for tots’ and family meal assistance programs annually – a chance to help Michigan families in need during the Holidays. At Neapco Drivelines, we value our customers, suppliers, team members, communities, and shareholder. Paramount to our success is the delivery of high-quality products with sustainable economics in an environment where our partners prosper. To accomplish this, our vision, mission, and values provide a framework for every thought, action, decision, and engagement.


NOVEMBER 2023 1 3 SAFETY I R S T Building a sustainable EH&S culture requires all of us. Our culture is a collective way of belonging and continues to define us and our operations. We have a culture where employees and contractors are engaged in EH&S and care for each other. The Global EH&S Team has created a calendar of Environmental Awareness Days to raise awareness for each location on the same day. THEME: ‘The Journey to a Greener Future’ ENVIRONMENTAL, HEALTH & SAFETY Health and Safety Standdown Day Global Recycling Day World Day for Health & Safety at Work World Environmental Day 2024-03-18 2024-04-28 2024-06-05 2024-07-01 2024 World EH&S Events Calendar


NOVEMBER 2023 1 4 NOVEMBER 2023 SUSTAINABILITY The Sustainability Assessment Questionnaire (SAQ) is a globally recognized sustainability standard for the automotive industry, used by many automotive OEMs and Tier 1 suppliers. The questionnaire focuses on several topics including human rights, environmental sustainability, business conduct and compliance and responsible supplier management. The SAQ is offered by NQC, a risk and compliance platform specifically supporting global supply chains. In line with the Global Automotive Sustainability Guiding Principles, the SAQ is updated every two years. The questionnaire is location-based, so Neapco is required by several customers to complete it for each manufacturing and office location. In late 2022, NQC released its latest version of the SAQ. Version 5.0 includes new topics which reflect the influence of emerging legislation such as the German Supply Chain Act, EU Supply Chain Law and Uyghur Forced Labor Prevention Act. The new version includes 21 new questions, 5 major and 14 minor changes to existing questions and 5 questions omitted. matters SUSTAINABILITY ASSESSMENT QUESTIONNAIRE 5.0 1 4


NOVEMBER 2023 1 5 NOVEMBER 2023 •Your company should have a certified management system to manage energy issues (ISO 50001). •Your company’s sustainability risk assessment should cover direct and indirect suppliers. •Your company should participate in raw material specific initiatives. •Your Corporate Social Responsibility/Sustainability Report should disclose: identified human rights risks, existing measures that your company has already taken to address human rights risks and review of their effectiveness, future measures your company plans to take to manage your human rights risks. These and other recommendations will be included in our goals and objectives to be addressed before the end of 2024. Neapco passes this requirement along to suppliers. In early October, Neapco’s SAQ 5.0 campaign for the supply chain will be sent to nearly 250 production and MRO suppliers. We have updated our SAQ to the new version for our locations in Düren, Praszka, Saltillo, Hangzhou, Chongqing and Shanghai. Assessments for the remaining Neapco locations will be completed in October. The assessment requires an answer and supporting evidence for each question. Once the questionnaire is reviewed and validated, we receive a score and recommended improvements. We can update a questionnaire whenever we make an improvement. Some examples of the recommendations we received as we completed version 5.0 for Neapco locations: QUESTIONS FALL UNDER 7 CATEGORIES: •Company Management •Human Rights & Working Conditions •Health & Safety •Business Ethics •Environment •Responsible Supply Chain Management •Responsible Sourcing of Raw Materials 1 5


NOVEMBER 2023 NOVEMBER 2023 1 6 By: Javed Cheema We are lucky to be working for Neapco in turbulent times for the past few years due to events beyond our control but the warm feeling that our leaders really take care of people brings a deep sigh of relief. Neapco is known for being a fast learning and actionable knowledge creating organization. Neapco do not sell just engineered products but being a design responsible producer, our customers invariably get valuable innovative insights too. This article is about simple steps we can take to maximize the value proposition of knowledge creation process and lean thinking: The Neapco way. Having trained and certified several Neapco team members for Six Sigma and other lean tools, we value the feedback from all trainees. Here are a few tips to make work more enjoyable and emotionally fulfilling. These are simple behavioral modifications to help create an enterprise-wide lean culture. Neapco Lean Thinkers Lean Learning: The Neapco Way Say, instead of traditional views like, “A good or a bad day at work” rephrasing to, “A good or a great day”. Pre-qualifying a question with, “It is a dumb question, but...”, or “It is a foolish answer...” or “I wish I were more intelligent...”. In real life there are no dumb questions, no foolish answers and no one is less intelligent than others.


NOVEMBER 2023 NOVEMBER 2023 1 7 In Neapco, the thought leaders accept and recognize, “The right to make honest errors” in learning events. Errors when realized and fixed, enrich the learning process and contribute to superior knowledge creation. Overcoming the fear of making errors is a great way to start generating creative ideas and out of box solutions. As the phrase goes, “Numbers do not lie...” – and they don’t. It is human nature to sometimes feel a bit pressured when dealing with big data. Making sense of data is both a science and an art, but availability of big data is a blessing in disguise because we can tame the numbers to our advantage, all it requires is the ability to see beyond the obvious. Once that skill is developed, playing with data like Lego blocks becomes enjoyable, the possibilities are unlimited. Data can be our best friend, or can be our worst enemy, and the later situation must be avoided at all costs. A very critical element of lean thinking at Neapco is accountability, our leadership encourages it, and the best form of accountability is self-accountability. We must hold ourselves accountable before others hold us accountable. We live Neapco’s vision, mission, and values; and excellence in everything we do is expected every day. N e a p c o i s a u n i q u e p l a c e t o w o r k , a l l o f u s w o r k i n g h e r e a r e l u c k y. I t i s a j o y t o s e e N e a p c o g r o w a n d e v o l v e , f e e l p r o u d t o b e p a r t o f t h e j o u r n e y.


NOVEMBER 2023 1 8 Talent Management has become one of the important strategic topics for managers in global organizations and businesses in general. Introduction In recent years the concept of talent management has been distinguished as fairly new and it has attracted the interest of most of the business organizations. Human capital is the mixture of skills, experiences, knowledge, motivation, and capabilities of the employees. Because of that, it is important to recognize how to manage and control the talented employee, to invest in their skills, experience, knowledge and to enhance productivity and performance of organization. Most booming businesses recognized years ago that the most efficient practices of talent management are directly associated with the organization’s culture and strategy. In the current business environment, there is a high demand for talented employees in organizations. In this 2023 Neapco considering the importance of implementing actions for our talent workforce, created a Talent Management Strategy. Where their Mission is : Neapco strives to provide a Global Talent Management Strategy focusing on improving the Human Resources programs and processes to attract, onboard, engage, develop, and retain high-performing team members who are inspired and empowered to drive their own performance and development through the use of smart organizational tools and processes. TALENT ENGAGEMENT & drivers!


NOVEMBER 2023 1 9 The main objectives of this strategy are: • To promote and implement a strong business Leaders group focused on a sustainable business and personnel growth based in developed, inspiring and empowered their team members as a team around the world. • Create, develop, and implement new smart strategies, tools, programs and systems of Learning and Development, that support the organizational growth and individual development of the professional competencies, attitudes and aptitudes identified and required for our team members. • Create a teamwork environment that inspire and empower our team members to Learn, discover, explore and develop new technologies, new techniques, new system or ways to do smarter our current and future work. • Create and implement a robust performance review process that permits increase the operational efficiency and establish the performance high levels for individual and organizational growth. • Promote a true teamwork environment where the team members feel valued and recognized, establishing actions and programs for retain and motivate the employees and make the strongest culture that lives their organizational philosophy and behavioral expectations. • Identify and develop High potentials and successors of key positions that permit to create a high professional bench to be ready when the business demand will be required. • Create and develop a successful and attractive Employee Value Proposition with the objective to attract the best talent for our organization promoting Neapco as the best employer brand. Collecting all our Talent Management needs we established the framework with the priorities of Talent Management for the following years.


NOVEMBER 2023 2 0 Neapco focuses on Talent Management priorities developed the following projects in this 2023 and these will continue in 2024. These projects are: SUCCESSION PLANNING: Proactive and Systematic process where the organizations identify key positions considered to be at the core of the organization creating a strategic plan to fill those positions with qualified and capable team members. This the succession Planning Process: 1 2 3 4 Source Talent Develop Talent Pool Assessment, Review & Readiness Promote and compensate (Internal Fill) MENTORING: A voluntary professional relationship based on mutual respect, trust, and agreed expectations that is mutually valuable to all involved and includes personal and professional development, growth, and support. LEARNING MANAGEMENT SYSTEM: A learning management system is software installed on a web server that is used to manage, distribute, and control the non-face-toface training activities of an institution or organization. An LMS makes e-learning not only easier for an organization, but also for its students, and can increase enrollment rates and engagement.


NOVEMBER 2023 2 1 NEAPCO COMPETENCY MODEL: Serves as a general guidance regarding expected behaviors and skills for all team members and leaders across the globe. Within the model you can find for each competency the key actions that reflect how the competencies should be displayed. The NCM (Neapco Competency Model) is a guideline for all team members and is aligned in support of Neapco’s Vision, Mission and Values, with a focus on: • the assessment of goals and behaviors in feedback discussions • the establishment of training and development plans and activities • the identification of emerging talent • the progression and succession planning • the staffing and selection decisions This guide will assist you with understanding how to apply the NCM in your daily life within Neapco. NEAPCO GLOBAL ENGAGEMENT SURVEY: An employee engagement survey is a structured and systematic approach organizations use to assess the level of engagement, satisfaction, and overall satisfaction with the company. An employee engagement survey allows open and honest feedback between employers and the organization. It provides an opportunity for direct communication about where your organization is succeeding and where more support is needed. An employee engagement survey tells your employees that their voice matters. Inside of this section you will find all the actions and drivers that Neapco is implementing in the different locations focus on the engagement and professional and personal development of their employees. Wait for the following editions, you can find great activities where you can participate!


NOVEMBER 2023 2 2 Neapco held its first Global Quality Management Summit in Farmington Hills Michigan, the week of September 18-22, 20023. During the “One Neapco, united to deliver on our Quality Policy” summit, Quality Managers and other quality professionals from Neapco, gathered to discuss current quality trends and challenges with the purpose of aligning Quality initiatives across sites to benefit Neapco as a whole. The Quality Corner 2023 Neapco Global Quality Summit Hoshin Kanri Throughout the five-days summit, the participants benefited from updates from Sales, Product Development, Corporate Quality, Purchasing, and Sustainability, as inputs to Strategic Planning. Considering these inputs, the group then worked through the first few steps of the Hoshin Kanri process, completing SWOT analysis, prioritizing, and aligning initiatives utilizing the HK X-Matrix.


NOVEMBER 2023 2 3 At the conclusion of the summit each group presented their local X-Matrix which is aligned with our SWOT analysis and Corporate Quality goals. The group also had several opportunities to network and get to know each other better, through dinners, warm-ups, ice breakers, or social activities. Join your local quality team to celebrate Neapco’s 5th World Quality Week from November 6th to November 10th, 2023 #WQW23. World Quality Week is celebrated every year on the second week of November by the Chartered Quality Institute (CQI) to celebrate and recognize the contributions of Quality Management and Quality Professionals to an organization. The theme this year is Quality: Realizing your competitive potential. We all know when we have great Quality, we make it a bit easier for our executives and sales team to pursue more business opportunities for Neapco! “In today’s complex and dynamic risk landscapes, maintaining a competitive advantage requires more than just operational resilience. Quality improvement principles and methods can help organizations quickly and effectively address inherent inefficiencies, allowing them to meet changing customer expectations faster, more economically, and sustainably than their competitors.” (Source: CQI). November is Quality month! Get involved, ask your local Quality team!


In Neapco, when team members feel a sense of Belonging, they take ownership in their work and personal responsibility for the quality and value they bring to the organization. Striving to support a workplace of Belonging requires the incorporation of three important actions: Acknowledge and celebrate team members for their contributions to Neapco and our culture. Create an environment where team members feel comfortable in their workplace, including being treated fairly and respected by their colleagues. Establish meaningful relationships with team members throughout the organization. Belonging in Neapco Our Goal! NOVEMBER 2023 2 4 SENSE OF BELONGING! 1 2 3 You’ve likely seen belonging become an increasingly popular topic of conversation for HR and business leaders over the past year. However, ‘belonging’ has been on the minds of leadership for some time now. All of which prompted academic research examining the business implications of belonging, which demonstrated that individuals who feel a sense of belonging at work have higher overall employee engagement. More specifically, those who feel a deep sense of belonging at work are more likely to experience greater job satisfaction, better mental health, higher levels of productivity and lower levels of both fatigue and emotional exhaustion. Belonging is proving to be a critical driver of employee and business performance. WHY IS IMPORTANT BELONGING FOR NEAPCO?


NOVEMBER 2023 2 5 In 2021 Neapco has established the Global Belonging Council, a volunteer group of team members from various locations, departments, and leadership levels who are passionate about fostering a culture of belonging and committed to helping Neapco reach its full potential. The Council is intended to capture the voices and experiences of team members from across the globe and build an inclusive workplace community where psychological safety and belonging are our top priority. Focus on this in 2022 was created the Neapco Global Diversity and Belonging Strategy with an action plan for 2022-2024. The structure of the Global Belonging Strategy based all their actions on three pillars: Culture, Career and Community, these are our 3 C’s. These are aligned with our Neapco Values and DEI guidelines, The Leadership group and the Global and Local council teams are the main support for the success of this strategy.


NOVEMBER 2023 2 6 Do you understand what the acronym DEIB means and why is important for Belonging? The acronym DEIB means (Diversity, Equity, Inclusion and Belonging) when all of these concepts are present in the organization, normally you can find a Sense of Belonging in the employees. How can we make it easy to bring to our memory these concepts? This is easy when you remind: THE DEFINITION OF DIVERSITY IS: THE DEFINITION FOR EQUITY IS: THE DEFINITION FOR INCLUSION IS: THE DEFINITION OF BELONGING IS: Diversity is a FACT of our unique characteristics as individuals that identify us. Equity is a CHOICE to give our employees the appropriate treatment and the resources needed to be successful and reach their full potential. Inclusion is an ACTION to create a culture of Belonging and value, where everyone is respected and encouraged as individuals. Belonging is a SENSE of our team members when their uniqueness is accepted and valued by the organization and colleagues. Global diversity & belonging council strategic pillars The structure of the Global Belonging Strategy based all their actions on three pillars: Culture, Career and Community, these are our 3 C’s. Neapco Values & DFI CULTURE BELONGING CAREER COMMUNITY Global and local Council Teams Leadership Group


NOVEMBER 2023 2 7 Global diversity & belonging global and local council teams: GLOBAL BELONGING COUNCIL TEAM MEMBERS The three pillars of the Belonging Strategy Strengthen our organizational culture by educating, celebrating, and acknowledging the unique differences that make us better Attract, retain, and develop a high-performing workforce reflective of the communities we serve Support our external and internal communities through outreach and philanthropic engagement CULTURE CAREER COMMUNITY Local Belonging Council Team Beatrice Plant. Local Belonging Council Team Mexico Plant.


NOVEMBER 2023 2 8 THREE-YEAR IMPLEMENTATION ROADMAP Join us on our journey to strengthen our team culture and enhance our potential! If you do, please complete and forward the BRG Registration Form to your local Human Resources Department. WOULD YOU LIKE TO BE PART OF THIS GREAT TEAM IN SUPPORT OF NEAPCO’S GLOBAL BELONGING INITIATIVE? • Diversity, Equity, Inclusion and Belonging (DEIB) Trainings. • Cultural Celebrations • Leadership Engagement • Expand External Community Partnerships • Promote Culture of Belonging • Strenghten Connection to Neapco Values • Recruitment • Career Development • Retention • Internal Community Building Activities • Company-Wide Social Events • Quarterly Communication Newsletter 1 2 3 3 PHASE PHASE PHASE


NOVEMBER 2023 2 9 “SZTAMY” AWARD GALA On Friday, October 20, 2023, the “Sztamy” award gala took place in the auditorium of the Municipal Center of Culture and Sports in Praszka. “Sztamy” (trans.: ”shaking hands for agreement, friendship”) are statuettes given to people, companies and institutions that support local culture and sport. The winners are very special to local community. The guests of the ceremony were: Mayor Jarosław Tkaczyński and his wife, Danuta Janikowska - deputy Mayor, Councilors: Zofia Kokot, Łukasz Bilski, Edward Szaniec and Marian Hombek, Krystyna Preś - Director of the Commune Cooperative “Samopomoc Chłopska” in Praszka and Kamil Kowalczyk - president of Goskom. Awarding of those titles has been taking place in Praszka since 2014. “We are extremely pleased to announce that Marta Cieśla from Neapco Europe in Praszka is the winner of “Sztama 2023”. It honors involvement in activities for the local community. The gala was hosted by Jacek Pac - Director of the Cultural Center in Praszka and Jarosław Knaga - his deputy. For years, Marta has been co-organizing football tournaments for children – “Neapco Cup” and “Praszka Cup” and many others, and the latest initiative is the “Night Swimming Marathon” (for the Great Orchestra of Christmas Charity). Marta, thank you for your contribution and we are glad you are with us!”


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