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Case: Transformation and Cost Cutting

Background

A listed international media company appointed a new CEO.  The industry in which the company competes is growing through a technology shift and it is increasingly facing competition from even larger players that have come much further in exploiting the new technology.The company had in the past been operating more like a holding company, and synergies between markets had only been exploited to a limited degree.

 

The Project

Enhancer was asked to run a series of workshops with both internal and external participants to develop a successful strategy and a clear mission for the company. Enhancer was also asked to map the then current organizational structure and staffing to get a clear picture of the talent pool and to find out to what degree the organization was organized in the requried way.

Furthermore, Enhancer was asked to develop a master for how to delegate, structure and staff a subsidiary. The master should thereafter be implemented in each market. The ambition was also that within the first year, each manager on all levels was to have a clearly-formulated mission. To ensure the transition and to generate resources for necessary investments, a substantial cost reduction was made part of the program.

 

Results

A clear strategy has been developed and the mission for the company has been decided by the board.

A new management structure has been introduced. The process of developing and implementing the master with clear delegation to all managers and the required structure has resulted in the identification of non-required levels in the organization.

It has also been possible in the already-implemented units to decide about the adequate dimensioning at different functions. Reductions were decided on that when implemented would result in yearly savings of at least SEK 300m.

Improvement in organizational effectiveness and efficiency by introducing the required delegation structure, staffing and follow-up combined with well-defined best practices will lead to further results.