Péter Horváth: We need to make a change today to make tomorrow a success – Interview relating to the Deloitte Award
In September this year, Deloitte published the list of companies that have been awarded the 2024 Best Managed Companies title. This year, 8 new companies, including the UBM Group, joined the 13 companies certified last year. Successful Hungarian-owned and managed companies that meet strict international criteria could participate in the mentoring programme. An independent, professional jury decided which companies would receive the certification. The criteria that influenced the decision were based on the following professional pillars: strategy, capabilities and innovation, corporate governance and finances, corporate culture and commitment.
What does this award mean and why is it important for the UBM Group? We spoke to Péter Horváth, CEO of the UBM Group.
Is there good leadership without a good corporate culture? How do you interpret the term corporate culture?
At the end of the day, it’s all about the people, and whether we were able to build and create good things together in a good atmosphere. The company tries to create an environment where managers and employees work around a common set of values, which fosters measurable efficiency and at the end of the process, all this leads to a sustainable, profitable result in the long term. Ideally, this culture is attractive to employees, who want to be part of it. I have found that engagement is mostly driven by trust, i.e. an effective company culture supports employee autonomy, so processes are turnkey. Thus, arguments are more important than hierarchy.
With nearly 30 years of experience, how do you know if someone is a really good leader?
We need to make a change today to make tomorrow a success. Good leaders are not afraid to ask the heaviest questions because that is where the potential lies. They build on strengths; they can recognise how to create unity among staff to achieve common goals. I think many excellent senior managers have courage and a calculated risk appetite. Such leaders push boundaries, strive to innovate and are not afraid to challenge the status quo when necessary. We need many effective leaders who operate in a similar way at all levels of the company.
Strategy is a complex matrix for some companies, for others it is a set of objectives in not more than just five lines. What does strategy mean for UBM?
We like to set high expectations for ourselves, and this can take us a long way.
Our strategic thinking is not static but is able to adapt to changes in the market environment, and we intend to be a few steps ahead. For me, an effective strategy gives clear direction, communicates simply, responds flexibly to changes and encourages the organisation to achieve common goals, while the people in the organisation accept the direction because they understand that if it is good for the company, it is also good for them.
How can UBM remain competitive?
The first step to competitiveness is to keep our word, the skills, professional knowledge and excellent human attitudes of our colleagues are the value proposition. We deliver what we promise to our partners. What is important to them is even more important to us. Proactive strategies to manage financial risks help us maintain stability. In general, large companies are under increasing pressure to provide more and more detailed information about their risks and how they are managing them, especially on environmental and governance issues, and we are no exception. The development of risk management strategies is essential to maintain financial stability, and we pay particular attention to that. The ESG approach has by now spread to everything. Introducing sustainable business practices is not only important from a responsibility perspective but can also bring financial benefits. We are responding to risk reduction with growth. Our objectives cover growing volumes in feed manufacturing and feed raw materials trading, expanding in Central and Eastern Europe through acquisitions and investments, increasing our operational scope and opening additional commercial offices in Eastern and Western Europe. We are looking ahead because that is where we are going.
What does Deloitte’s Best Managed Companies award mean to you?
It’s nice to get a fresh perspective and feedback on our own operations. Objective external eyes can highlight weaknesses or opportunities that are difficult to see from the inside.
We are very pleased with the rating and are grateful for it. Winning this award is not only a recognition of past performance, but also a motivation and a commitment to future improvement. It raises the bar by encouraging us to maintain and even improve our standards.
If you have any questions, please do not hesitate to contact us at investors@ubm.hu.
