Management

Caruna’s management is based on the company strategy, values, guidelines and good governance.

Caruna’s management

Caruna’s management practices are based on the company’s strategy and values, as well as on policies and principles defined on the Group-level. Our management practices adhere to good corporate governance and the best leadership principles. We have defined Caruna’s strategy and business goals on a Group-wide basis and shared them with the entire organisation.

Our management practices adhere to good corporate governance and the best leadership principles.

Caruna’s operations are led by our Management Team, in charge of long-term strategic planning and the business plan. The business plan is drawn up for four-year periods and adjusted yearly as necessary. Each business unit uses these documents as the basis for their own yearly operation plans. In September 2017, an extended Management Team was created to support the Management Team. The first priority of the extended team is to steer the strategic changes in the Group.

The operations and goals are monitored regularly by the unit management teams, the Caruna Management Team and the extended Management Team. The results are reported to the Board of Directors.

A set of company- and unit-specific performance indicators have been created for monitoring Caruna’s operations, including a range of targets down to a person-specific level. The operations are examined as a whole, and the indicators have been designed to exclude the possibility of partial optimisation. Each employee’s performance is compared with the company’s strategic business goals. The set of indicators also functions as a basis for our reward system. Caruna’s reward system applies to the entire personnel.

The quality of management is evaluated by yearly personnel surveys. Caruna promotes self-management and encourages employees to actively participate in improving the working environment.

Organisational structure

Caruna’s organisation was reformed in September 2017. Until then, Caruna had three business units: Asset Management, Network Operation and Customer Relations. In September, the number of business units was reduced to two: Electricity Networks and Customer Relations. Network Operation and Asset Management were merged into the Electricity Networks business unit.

Communications and Public Relations along with the HR continue to be led by their own heads of units. ICT, legal matters, regulation and finances were merged into the Company Services and Strategic Planning. Each unit’s head reports directly to the CEO and is a member of the Caruna Management Team. The Management Team convenes twice per month.

The Management Team is supported by the extended Management Team, which primarily acts as the steering group for strategic changes. The extended Management Team includes all Management Team members, two employee representatives and key persons from the business units appointed by the CEO.  The extended Management Team convenes once per month.

In Caruna’s management process, the business unit management teams undertake preparatory work. They are responsible for ensuring that the tasks delegated to them by the CEO are carried out by the appropriate people.

Management of different areas

Asset management

Caruna’s Asset Management unit is in charge of managing the electricity network assets and responsible for the principles of network asset management. The management of assets is guided by the network building and maintenance principles, and the network development plan submitted to the Energy Authority every two years. All plans take account of Caruna’s customers, quality standards and the environment.

The key principle and factor steering Caruna’s asset management is the reliability of electricity supply.

The key principle and factor steering Caruna’s asset management is the reliability of electricity supply. Electricity network building is also guided by the age of the network, growth and the needs of a changing society.

Network investment, along with maintenance projects and programmes, are discussed and approved as part of investment reviews. The purpose of these reviews is to ensure that Caruna’s electricity network development is aligned with Caruna’s strategy, financial and technical targets and the network building and maintenance principles.

Management of occupational health, safety and the environment

Caruna’s occupational health, safety and environmental (HSE) policy defines the principles of our health and safety management and environmental action. Our HSE policy also applies to our partners and covers our entire supply chain.

Caruna’s HSE management is based on goals and on the principle of continuous improvement. Safety-related matters are set goals and targets, whose realisation is monitored and communicated regularly. The frequency of incidents causing contractor absences is one of the key indicators on the level of the entire company. Caruna’s safety management covers our entire supply chain, including our partners.

Caruna’s safety management covers our entire supply chain, including our partners.

Caruna’s Management Team sets the shared rules, goals and targets for HSE activities, and monitors their realisation. The Management Team ensures the availability of personnel and material resources required by these goals. Responsibilities are further allocated to business units in accordance with the types of their activities.

In occupational health, safety and environmental management, the Management Team is supported by the HSE Manager, together with the HSE working group composed of representatives from the business units. Caruna’s occupational wellbeing team and industrial safety committee handle issues related to the occupational health and work-related wellbeing of the company’s own personnel.

Caruna’s occupational health and safety management system, which complies with OHSAS 18001:2007, was certified in 2016. Caruna also has set up a certified environmental management system that complies with ISO 14001:2015.

HR management

Caruna’s objective is to be a desired employer who attracts and retains competent employees. Caruna’s HR policy guides our day-to-day operations. The Head of HR is responsible for the management and development of Caruna’s people. The Head of HR is a member of the Management Team. The HR unit together with supervisors and employee representatives are responsible for the implementation of Caruna’s HR policy.

We support Caruna employees’ career and development opportunities.

We observe the following principles concerning Caruna’s people:

  • We believe that good leadership is the cornerstone of employee engagement and performance excellence.
  • We observe fair, open and competitive remuneration practices at each level of the organisation.
  • We support Caruna employees’ career and development opportunities.
  • Resourcing at Caruna is based on long-term planning.
  • We provide a safe and healthy working environment.
  • We respect the freedom of association and the right to negotiate collective agreements.
  • We are an equal rights employer.

Caruna’s supervisors are expected to share a set of supervisor competences. These have been defined as direction, high-quality decision making and development of teams and individuals. Attention is paid to these competences in recruitment, and they guide the development of supervisor activities.

Procurement management

All purchasing-related areas and processes have been assigned to Caruna’s procurement organisation. A centralised organisation working under the Head of Procurement enables a professional procurement function and adherence to high standards.

Our competitive tendering is guided by the act on public procurement in specialised sectors which includes provisions on the tendering process.

Our competitive tendering is guided by the Act 1398/2016 on public procurement in specialised sectors (erityisalojen hankintalaki) which includes provisions on the tendering process. In the process, particular attention is paid to fair and non-discriminatory treatment of bidders and the total cost of purchases, including quality standards.

Risk management plays a key role in Caruna’s Source to Pay procurement process and selection of partners. The management of supplier risk is an essential part of Caruna’s procurement function. We seek to proactively minimise supplier risk and secure Caruna’s business operations and continuity under any circumstances.

Customer relations management

Caruna’s Management Team is responsible for the management of customer experience, seeking to develop Caruna’s business operations efficiently and with a customer-centric approach, in line with Caruna’s strategy. In the 2017, Caruna discontinued the customer experience group established in late 2016, and each unit has taken responsibility for developing and implementing the customer experience in their own area.

Caruna’s Management Team is responsible for the management of customer experience, seeking to develop Caruna’s business operations efficiently and with a customer-centric approach.

The implementation and development of Caruna’s customer services belongs to the Customer Relations unit, which ensures a high-quality customer experience for electricity network service customers with regard to their customer service, fault service, metering service, balance management, invoicing and debt collection. The Customer Relations unit is responsible for Caruna’s customer communications in all channels. Customer Relations coordinates Caruna’s customer communications and events in collaboration with the other units.

We manage customer relations in accordance with Caruna’s general leadership principles. Clearly defined responsibilities, goals and on-going monitoring are management cornerstones. In addition, HR management plays a key role in customer relations management.

Customer satisfaction is the most important principle and factor in guiding customer relations management, along with customer contacts, up-to-date invoicing and our partners’ operations as part of the service process.

Customer Relations reports to company management and the Board of Directors.

Financial management

Our responsibility as a company is to ensure our business is profitable and to improve our operations and network assets with a long-term view. The profitability and competitiveness of our business enables us to be a reliable employer and a significant investor and buyer of services.

Clearly defined responsibilities, goals, on-going monitoring, and internal supervision are management cornerstones.

We manage financial responsibilities in accordance with Caruna’s general leadership principles. Clearly defined responsibilities, goals, on-going monitoring, and internal supervision are management cornerstones. In addition to these, risk assessment is critical for financial management. A comprehensive coverage of market and operative risks allows us to optimise Caruna’s financial performance and minimise any factors threatening our business operations.

The Corporate Services and Strategy unit is in charge of financial reporting and of verifying the accuracy of the reports every month. The Group employs appropriate financial reporting systems, used in accordance with internal supervising principles.

The Finances unit provides the Management Team, the Board and the Audit Committee operating under the Board’s direction with reports of the Group-wide, company-wide and unit-specific financial performance.

The Board uses this information to assess the Group’s current and future condition. The company’s financial statements are approved by the Board.

In addition to the Audit Committee, the accuracy of financial reporting and functionality of processes are audited by Caruna’s internal audit and an independent Authorised Public Audit company. The Group’s consolidated financial statements are drawn up in accordance with the IFRS standards, and the separate financial statements of the parent company and affiliate companies follow the Finnish Accounting Act.

Management of corporate responsibility

Caruna’s corporate responsibility is guided by the company’s vision, mission, values, and strategy. Good corporate citizenship is one of the priorities in the updated strategy, and it shows both in the planning of activities and operative implementation.

Good corporate citizenship is one of the priorities in the updated strategy.

Caruna’s Board of Directors and the HSE Committee reporting to it are responsible for the strategic monitoring and guidance related to corporate responsibility in the entire company. The CEO, Head of Communication and HSE Manager report the corporate responsibility goals and results to the Board. Corporate responsibility is discussed regularly by Caruna’s Management Team. The key indicators of the priorities set out for corporate responsibility, such as reliability of supply, contractor safety and customer experience, constitute an important component of the company’s KPIs that are monitored monthly.

The Head of Communications is responsible for materiality analysis, determination of priorities, corporate responsibility programme, indicators and objectives. Caruna’s Management Team and Board approve the priorities, objectives and key actions of corporate responsibility. Coordination and implementation of corporate responsibility are carried out by the extended Management Team with members from all Caruna business units. The Head of Communications and the HSE Manager are responsible for more detailed planning and implementation of matters related to corporate responsibility within their own competences.