An international client who wants to develop an organizational structure from a function-driven operating model to an operating model driven by business areas and business units.
Globally, the client had 150 sites and 6,000 employees.
Alongside the process of structural change in the business units/areas, the client wants to build a global shared service centre containing 2,000 employees.
The assignment included a cultural aspect, an organization structural aspect, and a management aspect. We designed the assignment to be executed in 3 phases:
Uncover the organization’s culture and value system. This includes identifying the resources available to the organization, which were to be preserved regardless of which new structure was chosen, as well as which development areas the organization had not worked with, and which might block a development process.
With the executive board, describe the guiding principles for the future organizational structure. This includes setting specific targets for what the process should add to and achieve for the organization, which was not functioning optimally.
Setting a vision for the organization that would reflect the development, the future organizational structure was intended to support. Identifying critical strategic programs that had to enter into focus in order to obtain the desired result.
Train managers to drive the process, loyally and with dedication. Lifting the management’s competence level to be able to perform management tasks within the new structure.
Along with ex-board and next-level managers drive the implementation process. Work with culture and change workshops, which created understanding and commitment and involved all the right stakeholders in the process.
Execute organizational change and implement the new operating model with the guiding principles as a focal point through management competency within the organization.
Globally, the organization implemented a structure of business areas and business units. Responsibility was made more clear between business areas and units and cooperation was changed from intention to necessity.
It delivers more efficient and less costly services in HR, Finance, IT, and administration. The organization reduced the number of employees globally, and obtained flexibility in the allocation of resources.
The leaders are competent to drive change from a holistic view of the organization rather than a functional perspective.
A global infrastructure company. 2,000 local staff and 11 joint venture partners involved in the daily collaboration and production. The organization was purchased by a private equity fund. The company was given new and very difficult targets for growth and earnings.
The business was to be commercialized and money were to be made from all services, while collaboration with all joint venture partners was maintained. A new organizational structure and collaborative platform had to be defined and implemented.
We organized the process in the following phases:
Thoroughly interview all relevant stakeholders in both the parent company and joint venture companies.
Identify interest and motivation for the given change. Identify barriers to growth, potential, and delimit for cannibalization of cooperative relationship with partners. Identify key employees and core competencies to achieve earnings and growth.
Describe the organizational mindset, the organization’s self-image was to be changed under.
Along with top management, design a process which made visible that there were benefits to all from working to implement a new vision, strategy and organizational structure in order to work commercially.
Facilitate a development process for vision, strategy and organizational structure. Ensure a process where core staff was maintained while motivating them for great changes in working methods and tasks.
Train and run a process for top management and the three next levels of managers in the ability to communicate, live and be role models in the commercial mindset and work according to the new organizational structure, which required a different kind of collaboration and management focus.
Train top management and next-level to be role models in the change process. Change management task from being a private matter to a common and binding concern about a commercialization of the organization’s processes. Identify and implement a management model that could support the behavior of the organization.
The organization has a genuine commercial mindset and achieved an increased growth of 12 % despite the world economic crisis. It reduced its staff from 2,000 to 1,675. An image-change was achieved as well as increased media interest, which was a strategic goal for attracting the right skills.
Increased growth of 12 %
The management structure, management forums and management foundation were changed, enabling collaboration to be driven by necessity and optimal utilization of resources.
The benefits of collaboration in the joint venture companies were changed and a more desirable partner model was achieved.
To change from a large local to a significant “glocal” player in the industry, where the company is best.
The company was not able to grow further in the local marked, only to optimize its processes. To reach the goals of growth it wanted to go “glocal”, i.e. local in a global structure.
2600 local employees.
The process implied a market research initiated by another vendor. The result from this was the background for the process and design:
Together with top-management, defining the future picture, setting a vision, a strategy, and the targets on behalf of the aim of the future.
Initiating a new operating model ensuring best possible utilization of resources and competencies in a cross-organizational perspective.
Assessing the competencies in top-management and next level managers to drive the process forward.
Implementing the vision, strategy and a defined organizational culture. Creating motivation and inclusion in the process on all levels in the organization. Using the inspiration and interest from the implementation of the vision, strategy and culture to implement the new operation model and structure.
The organization has implemented vision, strategy and operating model.
The top management has changed performance from a highly functional driven group to a business driven team. The implications of this change is rewarded in the organization through cross-organizational teamwork, through a high level of responsibility for the organization in total and not only in own responsibility, and through more efficient processes measured in time to delivery on result.
The organization has penetrated the international market according to strategy. The competency flow in the organization has become flexible and by that more economic. The change process was finalized from maul in 2011.
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