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Vigorous enterprise

Project development at JM means that vacant or built land is acquired and refined into attractive housing or commercial premises. Project development covers every link in the value chain from acquisition of land to the sale of the new home. In many cases, JM projects mean the creation of new neighborhoods.

 Long-term finances

Since our operations are primarily focused on new production of homes, we have over the years been able to develop our processes while working to improve the quality of our homes. Understanding of customer needs and demand – as well as how these are put into practice through effective processes – forms the basis for JM's value creation. The ability to manage the entire value chain is an important competitive advantage for us and decisive in terms of successful value generation.

Each step in project development adheres to set requirements and decision-making in order to ensure good profitability, an effective and controlled development process and active consideration of sustainability aspects. Value grows step by step, as land use is defined. Full land value is attained when the local plan becomes legally binding, building permits are obtained and the project has been sold to buyers.

Business ethics

Working to counteract corruption is an important aspect for JM since we are sincerely interested in safeguarding our core values. However, it is important to emphasize that we are primarily project developers of housing rather than a regular building contractor. This means that the risk we assume is significantly lower than that of a regular building contractor in terms of the interfaces/relationships in which corruption can arise. The three most prominent risk interfaces for corruption that a project developer faces arise in conjunction with land acquisition, purchasing services and selling the homes.

In short, a major advantage of JM's situation is that most of our work is conducted through relatively controlled operations – which means that we currently have a high degree of control in terms of both the business process and the product. Governance consists of a process-oriented operations system with clear requirements throughout the entire project development period. The product is governed by directives such as JM Original, product descriptions, pre-construction procedures and assembly directions. The high degree of governance limits possibilities to deviate from the appropriate working method and reduces the risk of corruption and improper arrangements.

Furthermore, our residential projects have a strictly governed and controlled project finance structure, which includes project calculations, decision gates and project audits. A great deal of land acquisition takes place via different municipalities. The land acquisition contracts are submitted to various municipal officials before a decision is made by the political leadership. It would be difficult for an individual municipal official to influence the process. At JM, many different people examine potential land acquisitions; these people include regional managers and business unit managers, as well as members of the Business Committee, Executive Management and sometimes even the Board. The number of people who are deeply involved and who make potential corruption difficult is substantial here as well.

JM is increasingly moving away from project purchasing to purchases that are governed by mandatory central framework agreements. The greater degree of central control in purchasing markedly decreases the risk of corruption. All purchasing agreements are also based on JM's Suppliers Code of Conduct. Decisions are also made in several steps by the Procurement Council, strategic buyers, the purchasing director, etc., which means that many different people are involved in every framework agreement, which significantly impedes injurious corruption. Furthermore, suppliers are subjected to a sustainability assessment. This means that both potential and existing strategic contractual partners are assessed in relation to sustainability during procurement processes. The suppliers are required to respond to an exhaustive questionnaire where they must specify how they work with anti-corruption, for example. JM audits the suppliers that are deemed to run the greatest risk in relation to sustainability, social responsibility and ethics. 

The residential sales process is also reviewed by several individuals. The process is already very strictly controlled and would be difficult to circumvent without it being obvious to several employees. Furthermore, the price for residential units is fixed before sales commence, which is a major difference compared to how the second-hand home market works.

Finally, we also employ JM's Ethical Guidelines. We use the guidelines internally to clarify how JM's employees are to behave in relation to ethics. If contrary to expectation unethical behavior is suspected, a whistleblowing function has been available for several years. The function offers a channel for making an anonymous report and for managing abuse or suspected unethical behavior at JM.

Competence

Our employees' skills and experience are important for the success of JM's efforts to structure our production into effective processes.

Internships offer a good opportunity for young people to experience the construction industry and for JM to form valuable ties with the workers of tomorrow. Every year, we offer more than 100 students an internship, primarily within production. We have also initiated collaboration with Tekniksprånget, whereby we offer young people internships with the aim of giving them insight into the construction industry and inspiring them to apply for engineering programs.

We also have a two-year trainee program that focuses on both production and product development.

Our annual succession planning shows that we have a good supply of managers for strategically important positions. We monitor our managers with respect to JM's management skills using, for example, performance reviews. Since JM's need for managers should primarily be satisfied through internal recruitment, we continued to offer a development program for future site managers during the year. Equality and diversity.

High ethical standards are important for us, and our Ethical Guidelines emphasize, for example, that we have zero tolerance for discrimination and harassment. As a means to promote these aspects, there is an Ethics Council and a whistleblowing system. JM's core values – quality, long-term approach, reliability, commitment, sensitivity and a sense of style – are to influence our relationships with our employees.

JM strives to attract more women to the industry, as well as for the women who choose JM to stay here. We have, however, experienced some difficulty recruiting female employees, primarily to production. One goal is to have a more even gender distribution within all parts of the organization. At JM, 31 percent of the salaried employees are women, while the corresponding figure among wage-earners is 0.4 percent (2014). The results of the salary survey show that there are no unjustified differences in salary between men and women. JM provides good opportunities to combine work with parenting. Employees in Sweden receive up to twelve months of parental leave with compensation for loss of income. The purpose of the compensation is to support parents and help achieve improved gender equality.

Diversity is an important part of our recruitment strategy. We always strive for a good balance between, for example, male/female and senior-/junior-level employees. Former employees frequently want to return to JM, so we have an alumni association to stay in contact in an organized manner. JM's Equal Opportunity and Diversity Plan was developed to ensure a holistic perspective on equality and diversity issues. All of the management groups in Sweden have been apprised of the plan as well as of JM's Ethical Guidelines.

Skills development and leadership

Most of our employees' skills development takes place on a day-to-day basis, for example by working towards challenging goals and receiving continuous feedback. Approximately 70 percent of skills development takes place in this manner. We also promote skills development through seminars, training courses and mentorships. We conduct annual performance reviews with all salaried employees in the Group. Some units also hold performance reviews with wage-earners.

Site managers and foremen constitute two of our key positions. Since JM's need for managers should primarily be satisfied through internal recruitment, we offer a development program in Sweden for future site managers and certified foremen.

Newly hired wage-earners in Sweden complete a seven-day course that covers employeeship, work environment issues and the value of performing work correctly from the start as some of the most important points.

Employee surveys conducted in previous years indicate that we need to improve in terms of how we share our know-how and experience. We have introduced a clear meeting structure in all phases of production to ensure that information is spread, discussions are enabled and experience is shared.

Clear leadership paves the way for high performance and enjoyment levels among our staff. As one aspect of the process, JM conducts an introduction course for managers in Sweden. The course clarifies the manager role as well as the responsibilities and authorities it entails. All of the managers and leaders in Norway have completed a course on our core values and leadership skills.

Our annual succession planning shows that we have a good supply of managers for strategically important positions. Managers are monitored with respect to JM's leadership skills using, for example, performance reviews.

Experience sharing between the countries in which JM operates is gradually developing, and the internal mobility between the countries has increased. Employees are increasingly cooperating across national borders.

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Community involvement
Focus on people