Large-scale transformation from regional to functional organization

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Client: Leading power and gas provider
Objective: Transform regional commercial functions into central functional units (14 months)

The project consisted of three main parts: managing the PMO for transformation of a regional to a functional organization, leading the reintegration of a facility services subsidiary into the fleet organization, and supporting the HR transformation and harmonization projects including negotiations with the works council.

The main PMO defined and managed four project phases: 1) generating transparency between the goals of the central organization and the setup and operations of the regional organizations, 2) supporting the planning of the transformation itself, 3) accompanying the transformation and ensuring a good flow of communication, and 4) solving operational problems during and after the transformation. Regular meetings with the C-Level team, new divisional heads, regional heads, and the production fleet allowed an open and constructive flow of communication and provided a forum to quickly address any problems that surfaced.

The reintegration of the facility services subsidiary involved identifying all services that were provided to the parent, ensuring purchasing specifications were present and up to date, and subsequently analyzing demand, defining and agreeing on the necessary budgets, and placing orders for the needed services to ensure smooth service during and after the reintegration. Key personnel was also identified and transferred to the parent company.

The HR transformation had the task of migrating all personnel processes into a shared service center, and simplifying the current works agreements (Betriebsvereinbarungen) to ease the transition. We supported the planning of the transition for one part of the organization, analyzed and simplified several works agreements, and supported discussions and negotiations with the works council.

Key success factors: Extensive stakeholder management; generating transparency for all parties involved in all aspects of the transformation