A leading global sporting goods manufacturer wanted to spin off its international business with merchandising products for external licensors from its Swedish subsidiary, strategically realign it and integrate it into its Dutch subsidiary. The operational business was handled by employees in the UK and there was a need for close coordination with the German headquarters. In this situation, all employees involved were unsure whether they would still be working for the company in the future and what tasks they would perform. For the carve-out, realignment and post-merger integration, the company engaged the interim manager as an expert with great intercultural competence and high emotional intelligence.
Proactive communication and transparency create trust
Carve-outs and post-merger integrations are typically accompanied by a greater or lesser degree of uncertainty among the workforce and management teams. In this case, the challenge was that corporate cultures and national characteristics from four European countries (the Netherlands, the UK, Sweden and Germany) came together. To prevent misunderstandings, the interim manager focused on the greatest possible transparency from the outset and cultivated a culture of open exchange at all times as well as intensive cooperation in international project teams, both in terms of time and space. This quickly created an atmosphere of trust, which significantly facilitated the progress of the project.
International project teams develop target structures and target processes
The interim manager formed international project teams with employees from the companies involved for all business functions such as design, product development, marketing, sales, etc. The teams worked closely with the IT division to develop the target structures and target processes for the future business. Following a GAP analysis of the target and actual status, the members developed concrete steps and implementation plans.
The cross-company IT team evaluated the system in collaboration with an external IT consultancy and determined the costs for necessary adjustments compared to the introduction of a completely new IT system. In close consultation with the specialist departments and management, Microsoft Dynamics Navision was ultimately chosen as the future-proof ERP system. Within two months, the interim manager worked with the teams to define the new structures and processes in detail with the help of process mapping. After a further six months, the new structure and processes were successfully implemented in terms of IT systems and the employees were trained in the use of the systems and applications.
Business with merchandising products for external licensors realigned
Parallel to the reorganization of the entire business process and the integration into the absorbing Dutch subsidiary, unprofitable and low-margin business activities were discontinued. Once it was clear that none of the team members would lose their jobs as a result of the restructuring, their full support was also secured.
In total, the interim manager was able to successfully realign the entire merchandising products business for external licensors within just twelve months. The new structure with newly defined processes was smoothly integrated into the new company.
Numerous projects in sales, marketing and operations successfully initiated
The interim manager initiated various projects in sales, marketing and operations as part of the realignment. These included setting up three new online stores for business partners. The company's own web store and website were completely revised and redesigned. As the restructuring was accompanied by a new company name, the interim manager also led a rebranding in brand communication.
On the recommendation of the interim manager, the company also opened a new logistics location as part of the restructuring, which provided sufficient space for future growth. New suppliers and service providers enriched the existing supplier portfolio, which enabled product costs to be reduced.
Revenue increases by more than 50 percent after restructuring
Revenue had already increased during the restructuring and an additional licensor was acquired. The operating business did not suffer from the effects of the restructuring at any time. The Management Board of the sporting goods manufacturer, the managing directors of the subsidiaries and the employees involved were and are very satisfied with the results achieved. Sales increased by 50% in the following three years - with significantly improved profitability and high customer satisfaction.
