Danfoss DNA

Our DNA determines who we are, what we do, and where we want to go. It is our essence. Our irreducible core. The foundation of our values. In principle our DNA does not change with time.

Companies which survive in the long run, companies which are resilient to times of change, are those which understand to both stay true to their origin and constantly develop and improve.

The Danfoss DNA is about keeping the essence of Danfoss while taking calculated risks to develop new businesses and having the courage to walk away from businesses which are no longer central to future of the company.

At any time, the Danfoss DNA should be reflected in the direction and the strategies of the company.

Our DNA also runs right through our company.
Danfoss has a long and proud history as a family company.

Danfoss was founded in 1933 by Mads Clausen. 
We are still a family-owned company, and we intend to remain a family-owned company.

To understand our DNA, one must understand our origins and history.

Danfoss was established during the days of the Great Depression. Domestic refrigerators had only recently gone into mass production.

USA was the only country producing valves for refrigerators, but in Denmark, buying products with dollars was restricted by the financial authorities. Mads Clausen saw an opportunity. He wanted to develop and produce his own high-quality expansion valves.

In the early autumn of 1933 he established the company and started producing and selling refrigerator valves from his parents’ farmhouse in Nordborg. Since then, courage, entrepreneurialism and innovation have been central to Danfoss’ DNA. It was important to Mads Clausen to understand how his products were applied by his customers. The strong focus on application knowledge has remained at the heart of Danfoss.

The competitive advantage of Danfoss has proven to lie within:
1. Deep application knowledge
2. The use of innovation
3. Leading position and excellence in scale

Customers should always be able to rely on Danfoss, on the quality of our products, and the timely delivery of them.

In the early years, the founder himself meticulously performed quality controls by submerging the valves in a tub of water to ensure they were completely tight.

The trust of his customers was critical to him. Mads Clausen was adamant that his company should deliver the highest quality and, representing a start-up company, he understood that delivering high quality was a precondition for gaining the trust of his customers.

Danfoss has always placed the customer at the center. We are focused on ensuring frontline passion to support employees in serving our customers in the best way possible. Danfoss always remains ready to change and adapt to better meet customer needs.

We are committed to the long-term success of Danfoss. This is a core part of our DNA.

It is the wish of the Danfoss A/S Board that the executive management and all Danfoss leaders are focused on the long-term profitability of Danfoss, whilst remaining quick to seize advantage of new technologies, potential acquisitions and joint ventures.

Sustainability, with regard to people and the environment as well as financial performance, is a precondition for Danfoss’ long-term success and for the company’s ability to make long-term, bold decisions.

On many occasions, Danfoss has invested in developing markets or in new technologies without expecting a quick return. Several of the technologies which today are highly successful made losses for long periods following their introduction. We also decided to make China our second home market long before our peers were looking East, and long before China was a profitable market.

Danfoss has evolved into a forerunner in productivity and business processes. Operational excellence is in our DNA.

Today, Danfoss has an exceptionally strong internal operational competence culture. It ensures that every corner of Danfoss is focused on achieving excellence within Safety, Quality, On-time Delivery and Cost.

It is about ensuring that “The way we do things at Danfoss” is followed by all of us.

The Danfoss leadership had heard about how American Fortune 500 technology companies had established a strong internal process and consultancy culture. Jørgen Mads Clausen traveled to North America to learn more about the approach. He visited the headquarters of Danaher in Washington D.C. Upon his return from North America he established the Danfoss Business System. Many large industrial companies have done something similar, but Danfoss is among the few companies that have persisted, ensuring consistent and relentless focus on productivity and Continuous Improvement.