Internal audit of Patria sales and marketing processes completed
During this spring Patria commissioned an internal audit targeted at Patria’s international operations and especially the key processes in sales, marketing, and selection of business partners. The audit was performed by an external party specialised in internal audits. The audit was initiated after in February 2018 it turned out that a sales person at Patria had given a written permission to distribute brochures to a party with whom a consultant agreement had not been concluded.
The audit concluded that nothing could be found which would require new, major corrective measures in addition to those already reported. The identified targets for improvement relate to increasing training and developing the practices of documenting, archiving, and signing agreements. On the other hand, Patria’s current selection process for business partners, designed for demanding situations, was found to the rather burdensome for certain situations, so its usability will be improved.
The results of the internal audit have been reported to the Board of Directors and the Ownership Steering Department has been informed of the matter. As a whole, the following corrective actions have already been made or will be initiated:
- In future, as regards the decision-making in the Land business unit, the management team will make all the decisions regarding the selection of country and the potential need for consultants in each market area.
- The business partner selection process will only be started when the need for a business partner in a particular market area has been determined.
- Patria’s internal culture with regard to the partner selection process is further emphasised by training and internal communication.
- Compliance training within Patria is further developed and increased. A separate enhanced training programme will be designed for the management team as well as sales, marketing and purchasing personnel.
- Archiving policies and signatory powers of contracts will be clarified. The business partner selection process will be further developed to suit better for varying purposes and situations.
“Trust in the company by its customers and citizens is of paramount importance to Patria. With these measures we believe this trust will remain high in the future as well,” says Olli Isotalo, President and CEO of Patria.
Patria is an international provider of defence, security and aviation life cycle support services and technology solutions. Patria provides its aerospace and military customers with equipment availability, continuous performance development as well as selected intelligence, surveillance and management system products and services. Patria’s mission is to give its customers confidence in all conditions, and the vision is to be the #1 partner for critical operations. Patria has several locations including Finland, Sweden, Norway and Estonia. Net sales totaled EUR 467.7 million in 2017, and Patria employs 2,800 professionals. Patria is owned by the State of Finland (50.1%) and Norwegian Kongsberg Defence & Aerospace AS (49.9%). Patria owns 50% of Norwegian Nammo, and together these three companies form a leading Nordic defence partnership.