The world's second largest wholesaler in its industry has a national subsidiary, which had been in deficit for five years in a row. The management team had been changed 3 times - nothing else had changed. People were fighting it out locally, but it was uphill.
At the core functions, you did your job, but without being aligned with operations and customer functions.
Process
Together with Brandculture, a new structure was set up, a large development programme was launched to ensure alignment and then growth came third
First, when the new structure had been set up, a clear process plan was laid down in the management group. Then the development process was set in motion. It created alignment and engagement through involvement and insight. Faith in the future was restored. There was a focus and a much better clarity in priorities. Efforts were focused on customers and performance creation.
Confidence was put in place internally and next customers started trusting the company again with increased efforts towards the existing customers, The basis was created for the next phase to go on to new customer sales the year after delivering a profitable result.
Results
After 5 years of deficits, the year of the start-up of the process generated a small surplus with a stabilisation of market shares. Every year since, profits and market share have increased steadily. Turnover in the subsidiary has increased by 150% in 5 years and the result has been reversed from 45 mio SEK annually to 110 million SEK in profit. There is a great deal of employee satisfaction and the confidence in company, management and own abilities is top notch.