Transforming a siloed operation into an integrated business
A Nordic construction sector company wanted to build an integrated operating model and improve its productivity. The client-August team delivered a new organizational structure, enhanced steering and management practices, and created concrete means to improve productivity across the company’s operations.
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Challenge
A segment within the leading Nordic construction company had a very siloed structure with multiple independent units and varying performance across the units.
Brave the future
August supported the company in the transition to a new integrated Nordic operating model. The scope of the work covered operational functions and several countries. The client-August team defined a new process-driven organizational structure, enhanced steering and management practices and identified levers to improve productivity in the operations. The company implemented the new operating model sequentially country-by-country starting from the home market.
Impact
Results from the home market indicated that the new operating model improved productivity through clearer organizational roles and higher level of integration. After the project, assets, resources and best practices were shared across the previously independent and self-sufficient units, which improved the performance. Also, the competitiveness and overall volumes of the business increased as a result of higher productivity and larger capacity where it was needed. The project clearly supported the company’s strategic ambition to benefit from the economies of scale of being a leading Nordic player.