Group-wide transparency of customer and product profitability

Industry: Dairy

Annual sales: >2 bn.CHF p.a.

Challenges:

• Squeezed margins and rapidly changing market conditions
• Product and customer portfolios hardly controlable due to highly fragmented information
• Intransparency of profitability on customer / product level

Approach:

• Collection of data missing for profitability assessment, group-wide integration of information
• Identification of EBIT-potential and levers for optimisation
• Definition of measures for implementation

Results:

• Group-wide integrated database with data on profitability
• EBIT potential of >mCHF 50 identified
• Profit improvement by overall mCHF 14 (mCHF 9 within 12 months from project start)
• Development of preconditions for an effective, group-wide profitability management process on customer / product level

Review of strategy and innovation engine

Industry: Industry, metalworking

Annual sales: >mCHF 500 p.a.

Challenges:

• Strategy check for a highly successful business organisation
• Cyclic market environment

Approach:

• Strategy check and specification
• Check and adaptation of the “Makro” in place, consolidation of micro design
• Extension and consolidation of the innovation engine in place (Modellingplan 5Mi©)

Results:

• Competitiveness improved sustainably through a strategy that is less dependent on market cycles
• Business development process institutionalised in order to actively steer the entire organisation

Walter Hess CEO, Swiss Steel AG

Thanks to HPO success factors for a sustainable performance improvement have been established

"Basis for the growth realised in recent years has been created by the «High Performance Business Design» performed 10 years ago. At that time I was impressed by the integrated approach of HPO, which saved the Swiss steel industry from demise. Therefore, it was a logical step to perform a strategy check with HPO after 10 successful years and access their specific expertise in the industry. The interplay between internal experts on the one hand and the integral approach coupled with the unique consulting capabilities of HPO on the other hand have made this project a success as well."

Identification of potentials and levers for performance improvement

Industry: Energy infrastructure industries

Annual sales: ca. 16,9 bn. EUR

Challenges:

• No common steel sourcing strategy present in specific businesses
• Diverse and partially highly complex steel value chain
• Potential for performance improvement presumed

Approach:

• Sourcing Model Benchmark
• Interviews with >40 employees on 8 global sites, covering all specialist functions of the steel value chain, verification of interview results
• Systematic illustration of different value chains in specific businesses and identification of potential for performance improvement
• Formulation of clear basis for decision making and next steps

Duration:

• 3 months

Results:

• Levers for performance improvement identified
• Clear basis for decision making developed
• Recommendation for next steps formulated

Comprehensive analysis of processes and performance

Industry: Building industry (engineering, deep mining, measure systems, test tunnel)

Staff: About 260

Challenges:

• Complexity and diversity like in a group despite a size of a SME
• Too little use of synergies within the group
• Dimensions of growth known, but not to handle within the existing structures
• Business development and innovation not sufficiently engrained on the level of the group

Approach:

• Analysis of current processes and services
• Identification of the essential business areas ‘services’ and ‘systems’
• Implementation of the model to the level of detailed processes, IT requirements and job description

Duration:

• 16 months (with interruptions)

Results:

• Business process models and detailed processes for ‘services’ and ‘systems’ defined
• Organisational optimisation implemented
• Customer acquisition & care in the area engineering established with clear interfaces to production
• Business development established and operationalised

Felix Amberg President and owner of the Amberg Group

With HPO analysis of the whole Amberg group and elaboration of the processes and structures based on the strategic cornerstones

"Even before kick-off two essential cornerstones were clearly defined for the Amberg Group. The Amberg Group should be prepared for the future by a certain growth in the two dimensions ‘International ‘and ‘Products/Competences’. In the course of the project the aim was to elaborate the appropriate processes and structures in order to make the growth scaleable and to make it work with minimal complexity. The methodically established approach ensured that the solutions which had been elaborated together with the management team were implemented and were accepted by the other members of staff. It was mainly the very profound knowledge of the various industries of the HPO consultants which lead to the fact that consultant and management team trusted each other very quickly. This resulted in the elaboration of practical and feasible solutions. In retrospect I can say that HPO was the right partner for the Amberg Group!"

Derivation of organisation corresponding to strategy and processes

Industry: Building company

Annual turnover: >200 m€

Challenges:

• High complexity
• Rapid growth in the past

Approach:

• Positioning in the industry model construction
• Identification of unclear interfaces, overlapping and redundancies
• Derivation business process model
• Elaboration of organisational models

Duration:

• 3 months

Results:

• Clear analysis of current situation with identification of essential potentials
• Initiation of an optimisation of the life cycle (process & organisational engraining)
• Business process model with continuous customer acquisition & care, as well as clear interfaces between customer responsibilities and value performance
• Derivation of an organisation conform with strategy & processes

Check of the innovation architecture in view of a new divisional structure 

Industry: Industry

Annual Sales: >200 mio. CHF turnover p.a. 

Challenges:

• Ensure an optimal use of F&E resources in the new divisional structure without losing interdisciplinary synergies
• Assignment of the former F&E resources on the divisions and one remaining central unit
• Definition of roles, competences and responsibilities of the F&E division and organisational anchorage
• Central F&E resources should support the new divisions in specific areas of application 

Approach:

• Review of the strategy and the divisional structure
• Derivation of the future requirements of the F&E unit
• Elaboration of a market performance architecture consistent with the strategy and of the innovation machines of the divisions 

Duration: 4 months

Results:  

• Innovation machine which is consistent with the strategy and adapted accordingly in the divisions and the central unit
• Clear roles, responsibilities and competences
• Interdisciplinary synergies ensured

Optimisation of service delivery and introduction of innovation management

Industry: Insurances

Key figures:

• Members of staff in the analysed department: appr. 2000
• Indemnification payments: more than mCHF 3 p.a.

Challenges:

• Complexity in the steering due to a matrix organisation resulting from process and line
• Partly different decentralised implementation of the process targets in the agencies
• Partly unclear roles and separation of tasks, among others in the area of innovation management

Approach:

• Comprehensive and critical analysis of the whole process regarding the handling of claims by considering all those concerned (incl. departments in the head office, 19 agencies, military insurance, two own rehabilitation clinics)
• Setting up of a business process model delivery for a comprehensive process optimisation, clarification of roles, micro design for the optimisation of the various processes and organisational structures of the different departments
• Development of business model innovation for the establishment of an integral innovation management

Duration:

• 9 months

Results:

• Clarification and optimisation of the performance in daily business (processes, roles, interfaces and organisation)
• Establishing of a new innovation management
• Development and implementation of the various measures for an increase in efficiency respectively for a sustainable reduction of the administration efforts (medical, judicial & administrative activities)

Felix Weber Director Insurance Benefits and Rehabilitation department, Member of the Management Board, Suva

Analysis and optimisation of case management at Suva with HPO

«As part of our project OptiCare we have conducted a critical in-depth analysis of the entire department “Case Management and Rehabilitation” as well as the process Care with all people involved. Within the project, we mutually developed areas for improvement, evaluated different options and determinedly implemented the solutions. In addition to the departments responsible for case management at the headquarter, partially case management at the 19 agencies, military assurance and Suva’s proper rehabilitation clinics, RKB and CRR, were also involved. In total, this project concerned the work environment of about 2000 employees as well as insurance benefits of more than 3 billion Swiss francs per year.

I came to know HPO as a highly reliable partner during this intense project. The thoroughly well-grounded methodology, as well as the broad industry knowledge and business acumen were crucial prerequisites for a successful project cooperation. In collaboration with HPO, we were able to formulate strategic issues for the future and also develop and implement possibilities for improvement in daily case management operations. Moreover, we redefined and repositioned our innovation management.

Thanks to the sound analysis and critical questions of HPO, we were constantly challenged to search beyond the already existing options for new solutions. At the same time, HPO disposed of the necessary understanding of the specificities and particular needs of Suva. HPO consultants managed to win the confidence of both, management team and staff thanks to their sensitivity, the careful and accurate working methods and the fact that they never gave the impression of enacting changes just for the sake of it. Thus, HPO was definitely the right partner for this project.»