Strategy driven operating model transformation

Interested in hearing more? Contact Mikko Pulkkinen

Challenge

Special import and retail customer operating in the Nordics and Baltics had cut down its product portfolio significantly while expanding geographically through M&A. In addition, the industry was under a significant change as the technological advancements, new competition and shifting earnings logic called for a transformation on the way of operating and doing business.

Brave the Future

August commenced the support for transforming the operating model by analyzing selected strategic topics and forming a solid fact base for the work. The fact base was formed via thoroughly covering the current organization and way of operating while also analyzing the business performance in depth.

After baseline, alternative directions for operating model were considered with the top management. With the direction set, a wide number of employees were engaged to design the next levels of the organization as well as roles and responsibilities of units, functions and individual roles. In addition, process framework and related key processes were drawn as a preparation for ICT development taking place during the transformation. Last, the financial structures, responsibilities and KPIs were updated according to the new operating model.

In the organization ramp-up, a head start was taken by commencing the business planning straight away with the new organization – led by the newly appointed leaders. 

Impact

Significant reshape of the organization took place with increased customer focus from meeting the customer all the way up to the management team responsibilities.

Efficiency in operations was gained from centralizing the best fitting teams and responsibilities, while maintaining flexibility in the countries and at the customer front.

The customer and efficiency gains were enabled by common processes, ICT systems and shared KPIs.