In a leading controller role and for 4 years implemented a comprehensive earnings improvement program within major process industry groups. The company had about 500 employees with several major industrial plants in Sweden. The organization that delivered services within the Group had traditionally not measured customer benefit and costs, which meant low profit and cost awareness. Market development meant that the benefits in the service sector needed to be increased at the same time as costs were reduced. The business consumed large amounts of fossil energy and other resources and affected the environment with emissions. A clear strategy was established and the program I worked with implemented performance improvements, increased cost awareness and reduced resource consumption and environmental impact.
The program:
The insight into the need for change was achieved in the entire organization through workshops with employees that clarified the need for development of the services, reduction of the environmental impact and price and performance improvements.
The profit units that were created were given incentives and the right to control their overall budgets, for example for the competence development area. Positions with responsibility for results were filled and meant career opportunities for the staff. Career opportunities were created in both management and expert roles for the staff.
The staff was trained in monitoring finances, key figures, resource consumption, environmental costs and management and control of sales and delivery for their respective profit centers. Mentorship and training were carried out in management, budget / forecasting, business and contract negotiations as well as the environment and quality in deliveries.
The profit centers were given an organizational status that enabled the business and staff to develop and achieve their goals. Each profit center was given full responsibility for its operations for customer agreements, deliveries, budget / finances and further development of its business. System support for budget and key figure follow-up was created for each profit center. Forums for governance, management, investments, business negotiations, contract signing, budget and forecasting process were introduced.
The continuity of the change process was maintained by organizing profit centers in business areas that worked out action plans in line with the overall strategy. The business area plans were decomposed into tactical plans by the profit centers, which then became concrete business plans and budgets.
