An international manufacturer of luxury goods had always been family owned and operated. It now faced a change of generation. Two of the three general managers were due to retire, and five younger members of the family were to join the executive team.
The objective was to redefine responsibilities and ensure the management team remained effective.
In an initial analysis, we spoke with the members of the family and clarified their individual intentions, expectations, and abilities. It emerged that additional personnel would be required, for senior management to operate properly. As a result, two individuals who were already employed by the company, but were not family members, were appointed to the executive board.
During the ensuing discussions and workshops, the new general managers presented their ideas and reservations, and jointly developed new rules for working together within the executive team. This resulted in new internal operating procedures.
What followed was a formulation of the most important common management initiatives for the period ahead. A new mission statement served as a basis for working together until the company was in a position to consider a long-term strategy.
It was now possible to include management levels N-1 to N-3, to clarify key aspects of the company’s individual business areas. This resulted in a better understanding of where the respective competencies of the executive team were not yet coordinated. We then fine-tuned the scope of individual responsibilities accordingly.
Our first step was to reallocate tasks in the executive team. That was followed by concrete strategic orientation for each area of responsibility as well as the executive team as a whole. We then applied insights gained from our practical strategic work to bring the company’s strategy back into line with the structure of the organization.
Contrary to our client’s initial ideas, we expanded the management team by adding executives who were not family members. On the one hand, this raised the level of know-how on the executive team. On the other, it guaranteed the legitimacy and leadership competence of the new executive team vis-à-vis the organization.
To allocate assignments in the new executive team effectively, the organization was reorganized. Managerial accounting was separated from finance, and two new departments were created. Today, the company has a well functioning management team, and the new generation is a proven success.
Dr. Kai Matthiesen | P +49 (4106) 617-0 | E KaiMatthiesen@metaplan.com