Group-wide performance improvement program

Challenge

The Client was a family-owned Group with four Business Areas and operations in several countries. The Group had focused on growth and internationalization through multiple acquisitions. Overall profitability of the Group was not on targeted level and performance across businesses varied. The leadership lacked a shared view of the Group’s role and targeted synergies, priorities for different BAs and the levers to improve the profitability.​

Brave the Future

We first created a top-down view of the financial performance improvement potential of each business. Consequently, we performed opportunity diagnostics for each business to pinpoint the strongest performance levers, covering costs, pricing, growth, net working capital, and synergies between the businesses.​

Throughout the work, we challenged the existing thinking and plans with analysis and outside-in thinking. Thus, we were able to surface additional levers and turning scattered ideas into concrete quantified opportunities.​

In parallel to the full-potential analysis, the role of each business was clarified in the portfolio. Further, the operating model changes needed to capture synergies were defined, outlining what should be organized within each business and what should be driven together at group level.​

The work culminated in a prioritized implementation roadmap for the Profit Improvement program, and execution started immediately after the project.​

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Impact

Quantified fact base and a shared direction for a step-change in performance:​

• ~20 mEUR EBIT improvement potential identified through full-potential analysis – equivalent to roughly doubling the baseline EBIT​
• ~30 mEUR NWC release potential identified​
• Prioritized implementation roadmap for the Profit Improvement program ​
• Clearer business portfolio roles ​
• Operating model changes defined, needed to capture synergies