Month: September 2017
That’s how it sounds from Lasse Kjær Hansen who has advised Danish and international companies in performance enhancing leadership for 15 years and who sees great opportunities in the use of new technologies to enhance employee satisfaction and engagement. Lasse Kjær Hansen has recently gathered four consultant companies under one collective “umbrella” called People 4.0 and together they work on developing solutions that matches the new leadership demand in business.
Traditional middle level management is a consequence of an analogue and the non-digitalised world where top management need a daily representative to lead, direct and control the employees. This form of middle management can no longer meet the demand that employees have anno 2017. Everyday new employees that are characterised with being technical comfortable, well-educated and clarified in regards to their goals and values step into our companies. These colleagues, young as well as adults are already effective in their work methods. They communicate quick and effectively and they want freedom to solve tasks individually. These types of employees need a new form of middle management and it is the top manager’s responsibility to give it to them if they want to keep the talented employees and secure the future of their organisation
The new type of employees have the following characteristics:
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A wish for autonomy in their work tasks
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A wish for real-time feedback
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A wish for meaningful relations
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Need for professional support and recognition
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Need for a clear goal in their function
People 4.0
Lasse Kjær Hansen has advised senior leaders in multiple Maersk companies, Estée Lauder, H+H and many others. He is an entrepreneur, founder and majority owner of four consultant companies that are now gathered under one common umbrella;” People 4.0”. This has been done to improve the advisory of clients within leadership of the new type of employees and to better offer concrete and (often) digital solutions that can help customers execute the new form of leadership in their organisation.
The four companies that are brought together in People 4.0 are Qeep Denmark (founded in 2002) who advises company leaders within performance leadership: Qeep Sales Excellence (founded in 2010) who advises companies in sales process optimisation: Orchard (founded in 2014) who designs digital solutions to drive behavioural change among employees on the background of anthropological studies: DataDrivenCulture (founded in 2015) who gathers, processes, analyses and presents employee data using artificial intelligence and other tools.
The Fourth industrial revolution sets the stage for companies
The need to view middle managers in a new way is closely correlated to the technological development that society and companies are facing. The new era has been named the fourth industrial revolution, where technologies like the internet, smartphones and artificial intelligence creates an infinite amount of possibilities to work in new and better ways, benefitting customers, employees and organisations as a whole. Automatization has made production quicker and less dependent on manpower, but as such, it hasn’t changed the approach to production and what is to be produced. With information technology, entire new methods are available for understanding and doing things where employees are not superseded, but work differently. We should embrace this and take advantage of it, because it will increase the employee satisfaction and create better results
Background
Lasse Kjær Hansen is Cand.Merc from Copenhagen Business School and has taken an Executive MBA program at Kellog Graduate School of Business. He has been employed as CEO, Marketing Director, Strategy Director, Sales and – Marketing Director in companies such as OAG, Celemi, Budget and Rent a Car. He has worked more than 11 years outside of Denmark in Chicago, London and Malmö and has throughout his career done projects and business in more than 30 countries. Lasse Kjær Hansen is an entrepreneur and started his first company in 1987 called Stud Hat, which conquered 30% of the Copenhagen market Copenhagen in just 2 years.
Privately, Lasse Kjær Hansen lives in Malmö with his wife Kristina Kjær Helgstrand who is a psychologist. They have two 19-year-old twin daughters and a 13-year-old son. In his spare time, Lasse is a passionate snowboarder, which he enjoys doing with his family, often off-piste if the conditions allow it. He loves nature and goes hunting, fishing and sailing as often as the calendar allows for it.
For further information:
Contact Lasse Kjær Hansen on his cell phone 24 88 11 20 or by
mail: Lasse.hansen@qeep.as
Visit https://www.engage.as
SEAS
Unrealistic Goals: Land 40,000 new customers, win back 95% of co-operative owners, and generate energy savings of 39 Gwh – all in 2013
Outcome: 100% achievement of the goals
Solution: Performance Culture Program
The Challenge
The Danish energy market had been regulated by the state for decades. Customers couldn’t change providers, which meant that the main objective for providers in the market was to service existing customers, who were often co-operative owners.
In recent years, the market has undergone extreme deregulation. Operating in this reality provides SEAS-NVE Private (SEPR) the opportunity to expand its business beyond its traditional geographic area.
To seize this opportunity, SEAS needed to transform a service culture steeped in tradition into a committed and progressive sales and consulting culture. In 2012, the company set the goals of growth in customers, customer satisfaction and energy savings through consulting and partnerships.
The Process
We brought all SEPR employees together and involved them in the process of setting extremely ambitious goals for 2013. Each employee also determined what they personally needed to focus on to achieve these goals.
Everyone agreed that these results could only be achieved with new thinking and by freeing themselves from the old “SEAS paradigms”. The department’s established leadership style was examined and challenged, while the ability to cooperate across the organisation and within the individual teams became the primary focus.
The new, unifying agenda was defined as: personal responsibility, prioritisation and focus on results. Weekly follow-up on results-yielding activities became routine on the path to success.
Old Habits
In the old department structure, the management and employees worked in a reactive culture, where nobody took responsibility and maintenance was prioritised above results. Employees didn’t know what management expected of them. They didn’t know which goals had been set, which tasks were critical for achieving results and which activities were required.
In other words, the employees saw no correlation between their daily lives and the message conveyed by management.
New Behaviour
The goals set by the employees and management in SEPR seemed unrealistic and out of reach. And yet, from the outset, both management and employees approached the project with great enthusiasm and willingness to change. As a result, the project progressed steadily and the goals became more and more realistic.
Throughout the entire process, the employees have been involved in the formulation of their department’s ambitions through workshops and quarterly meetings. And to ensure progress, everyone keeps tabs on the results at weekly results meetings, where responsibility for target achievement rests solely with each individual employee.
The new department is now characterised by consistency and the ability to change. Employees demonstrate a strong sense of personal responsibility for their own results, as well as for the department’s and SEAS-NVE’s overall results. With their coaching-oriented and inclusive approach to leadership, SEPR’s management has achieved record-high employee satisfaction ratings.
The Results
SEPR achieved every goal the company set for itself.
The Hero
Carsten Fischer, Market Manager, has brought an unrelenting attitude to his operations, providing a breath of fresh air to the entire SEAS-NVE organisation. And he has done so without losing control of his operations.
Carsten always knew what needed to be done, but now he employs his leadership style to ensure that managers and employees assume responsibility for goals and development. Carsten has given his management team a sense that anything is possible, and SEPR continuously incorporates the changing market conditions into the department’s operations.
Throughout the entire process, Carsten has delegated but never abdicated.
The Unrealistic Goal
Why were the goals of 40,000 new customers and 4,000 returning co-operative owners (95%) so unrealistic? Across the industry, 220,000 customers change providers each year. SEAS-NVE is responsible for more than 20% of that activity.
The results appear even more impressive within the context of the numbers from past years. In 2011, SEAS-NVE moved 6,000 customers, in 2012 this total was 40,000, and this year the company will move 45,000 customers.
The Organisation
SEAS-NVE provides energy and communications services to 400,000 customers and co-operative owners. SEAS-NVE merges its roots in the co-operative movement with modern corporate management.
SEPR comprises two teams – Sales and Post Sales (win-back and churn) – with a total staff of ten, including two managers.
DCC Energy Denmark
Five-fold growth in new customers
Unrealistic Goal: 5,000 new customers in 6 months
Outcome: 100% achievement of the goal
Solution: Performance Culture Program
The Challenge
The challenge for DCC was to attract more customers in a recessive energy market – without negatively impacting earnings.
For some time, the company had seen weak and unsatisfactory growth in market share in the Danish energy market. The introduction of gas distribution had not resulted in the desired customer influx.
The Process
Each employee at the company set very ambitious goals. The employees in corporate and private sales, in particular, set extreme goals for growth in new customers and they carefully considered what it would take to achieve them.
Everyone agreed that the results couldn’t be achieved. At least not without new thinking and putting an end to the old “Shell paradigms”.
The managers were challenged to their very cores in terms of leadership style, ability to work cross – organisationally and internal communication. Responsibility, prioritisation and focus on the end result took over the agenda, pushing aside the old Shell culture. Following up on activities that yield results became an integral element in achieving success.
Old Habits
First, it should be nice to go to work; second to that comes results. That was the culture at DCC – with the results to prove it. It was always someone else’s fault if something went wrong; employees subconsciously resisted each other and took a reactive stance to internal and customer-related challenges.
As a result, productivity remained unsatisfactorily low.
New Behaviour
After massive resistance from management in the early stages of the project, every manager now drives the company towards the end goal via weekly or biweekly results meetings. Responsibility for achieving goals now rests solidly with the individual employee. The “impossible” goals are achieved by focusing on the results, something that managers and employees thought to be impossible just nine months earlier. Consistency has become a trademark of top management and innovative thinking combined with process optimisation are part of daily life for the vast majority of employees.
The Results
- Five-fold increase in the first 6 months:
- 5,000 new customers in 6 months
- 5 new sales channels established in the market
- 5 new products introduced to the customers
And all with earnings on budget for the period.
The Hero
Operations Manager Kirsten Ramsing has always had a good handle on the business, always knowing what needed to be done. In the beginning, she resisted the “rigid results-oriented method which doesn’t suit our business”. But as the process progressed, she embraced the results-oriented method and began coaching her employees to help them achieve results instead of giving them directives. The outcome is “win/win”, in Kirsten’s own words. She is now a better boss, while her employees assume responsibility and profit from the good results.
The two middle managers in marketing and private sales who report to Kirsten have both exceeded their targets for new customers. Together, the three of them have established a fantastic results partnership.
The Unrealistic Goal
For DCC Energy Denmark to grow significantly and gain market share in an energy market under pressure.
To grow from approx. 1,000 new customers in the first half of the year to 5,000 new customers in the second half. The vital result, however, is how the corporate culture at DCC Energy Denmark has transitioned from a reactive energy supplier into an agile, proactive and results-oriented distributor in the energy market.
The Organisation
DCC Energy Denmark has approx. 70 employees and is an energy distribution company seeking growth in the Nordic market. DCC specializes in the distribution of heating fuel, diesel, natural gas and lubricants to private customers and businesses.
DCC Energy Denmark is owned by DCC plc Ireland, which employs approx. 9,500 people.
Sterling
Unrealistic Goal: To turn a loss of DKK 800 million into profit
Outcome: Operations became profitable
Solution: Executable Strategy and Performance Management Program
The Challenge
In 2005, Sterling Airlines and Maersk Air merged via a new Icelandic owner, while posting a loss of DKK 800 million (€ 105 million)The newly consolidated airline had a total of 1,600 employees – 70% of whom came from Maersk Air. In contrast, nine out of ten members of the management were from Sterling and sought to spread Sterling’s low-price business model to the entire company and make it profitable within 12 months.
The Process
At a Breakthrough Workshop, the management pledged to make Sterling profitable via the goals they set, which they called 7-9-13 (operating cost per aircraft seat of max. DKK 700 (€ 94) – operating revenue per aircraft seat of min. DKK 900 (€ 120) – min. 13,000 aircraft seats sold per day).
Then, together with Qeep, they developed a design process that involved the company’s middle management. More than 200 middle managers and other staff members identified the critical factors for achieving 7-9-13 and devised solutions to address them.
The middle management received coaching to foster their support for the solutions and to enhance their ability to communicate these solutions to staff. The coaching also included an intensive focus on results leadership to help them achieve the goal.
Old Habits
A variety of old habits had kept them from achieving their goals. Management normally developed plans and was responsible for ensuring implementation. As a result, only about 50% of the plans were actually implemented. Follow-ups took place only once a month, after the financial reports were completed – the logic being that the finance department could not get the numbers ready in time for more frequent follow-ups. The pilots took the stance that “I won’t fly with a Team Maersk/Team Sterling colleague in the seat to my left” (the captain’s seat). Finally, most of the staff believed that success was simply a matter of following the rules and procedures for their positions. Achieving results was the management’s responsibility.
New Behaviour
The pilots overcame their resistance and began to work efficiently in the cockpit with a combination of staff from both companies. And everyone began to focus on results, with “on time performance” and “fuel saving” providing a new sense of solidarity.
The supervising flight attendants assumed responsibility for in-flight sales results. The realization that each extra sandwich sold per departure could contribute an additional DKK 2 million to the bottom line inspired in-flight sales drives, resulting in significant growth in sales. Meanwhile, the extra focus on in-flight sales was perceived by passengers as an improvement in customer service because they felt much better informed about their choices.
Flight attendants, pilots, maintenance, ground staff, management, finance and customer service followed up on all their results on an hourly basis – as well as daily and weekly. They also communicated their results directly to management and to their colleagues. Middle management – instead of the finance department – became the go-to source for “business intelligence” on the status of the company.
The Results
- Sales increased by 500% in one year
- Operations became profitable
- The consolidated company went from an EBIT of DKK -800 million (€ 107 mill). to an EBIT of DKK –(€ 10.7 million) – in 12 months
- 30% reduction in cost per km flown
- Sales per passenger increased by +1000%
The Hero
Online Marketing Manager Morten Vilsen came to Sterling from a small travel agency. Morten set out to make Sterling Denmark’s first online airline. By the end of 2006, 86% of all Sterling bookings came from online customers and Sterling had Scandinavia’s largest commercial customer CRM database.
The Unrealistic Goal
Sterling achieved all three goals; however, the DKK 700 goal for production cost per aircraft seat was reached so late in the year that the company ended the year with a loss of DKK 80 million (€ 10.7 million) on the bottom line.
The Organisation
The company was founded in 1962 by Ejlif Krogager as a provider of airline services to the package tour operator Tjæreborg. Reestablished in 1993 following bankruptcy, the company was then acquired by the Norwegian shipping company Fred Olsen, which had previously supplied air transport. This incarnation of Sterling was then sold in 2005 to a group of Icelandic investors headed by Palmi Harraldsson via his investment firm Fons Eignahaldsverlag.
At that time, the Sterling Airways limited partnership company had a fleet of ten Boeing 737-800 aircraft and 600 employees. The company entered into negotiations with A.P. Moller-Maersk on the acquisition of the loss-making Maersk Air. After the takeover of Maersk Air, the company now known as Sterling Airlines A/S had 29 aircraft and 1,600 employees.
In the period 2005-2007, Sterling Airlines A/S underwent a dramatic turnaround.
SAS Cargo
Unrealistic Goal: To gain market share
Outcome: 3.8%: increase in market share
Solution: Sales Breakthrough Program – Gain Market Share
The Challenge
In 2007, SAS Cargo lost market share despite strong growth in the airfreight market.
The Process
At the end of 2007, Qeep and the SAS Cargo management held a series of possibility meetings where they set very ambitious goals for 2008.
Qeep then coached and trained the managers, helping to change the mindset at SAS Cargo in the course of the 52-week process.
Old Habits
At SAS Cargo, staff generally thought their job was to take incoming orders: “The customers call when they have freight that needs transporting.” Bringing in new customers and meeting demand was considered “someone else’s” job.
New Behaviour
Customer service representatives took responsibility for proactively maintaining contact with their customers. They began to contact customers to ascertain future demands and in the process were able to determine whether competitors were in play. The new activities included keeping tabs on customers, following up on employee performance and taking action on any initiatives necessary to achieve their goals.
The Results
SAS Cargo exceeded its goals for 2008:
- After one year, sales exceeded budget by 21%
- Individual sales increased by 58%
- 3.8% increase in market share
The Hero
Susse – a customer service representative – increased her sales by 234% in three months. Susse became proactive and chose not to give up on customers who used alternative freight solutions. She aimed for 100% share of wallet when it came to her customer’s airfreight. And she succeeded!
The Unrealistic Goal
To turn declining market share into positive growth.
The Organisation
SAS Cargo is an independent company within the SAS Group. Every day, 165 employees provide airfreight services on 1,000 flights throughout Europe and weekly flights to North America and Asia.
Rambøll
Unrealistic Goal: To supply local governments in the Zealand region
Outcome: Sales to all “White Spots”
Solution: Sales Breakthrough
Challenge
The local government sector is an attractive and highly competitive market. Despite targeted efforts, Rambøll had not had much success landing jobs for local governments in the Zealand region, where the Danish capital, Copenhagen, is also located.
The Process
Qeep and Rambøll worked together for nine months to set and achieve a series of goals, which would ultimately lead to increased sales to the local governments in the Zealand region.
The first step was to define the goal. For the sake of visualisation, the attractive local governments were marked in white on a map of Zealand – giving rise to the name of the project “White Spot Warriors”. The team of warriors initially comprised Rambøll’s Director of Marketing, Michael Schad, and seven area managers. They worked to identify a number of critical factors, drew up personal results plans and met once a week at results meetings, where they shared their successes, followed up on execution and evaluated what worked and what didn’t.
Throughout the process, Qeep’s consultants coached the warriors and ensured the project was firmly rooted in the organisation. They also provided training for area managers in areas where their competencies could be given a boost. This process ensured that the area managers worked in a serious and targeted manner to achieve their goals – without losing touch with Ramboll’s original values and corporate culture.
Old Habits
Ramboll had attempted to increase sales to local governments in the Zealand region without much success.
Area managers were highly focused on sales of their own particular product. When in contact with potential customers, they failed to consider the need for Ramboll’s many other services.
New Behaviour
As a result of the process:
The area managers began to understand that they could involve other departments in their sales efforts – and benefit from this. They started out by selling each other – not just themselves. Then, they stepped out of their comfort zones and began to visit the local authorities more often, discovering a definite interest – not only in their own services, but in many of Ramboll’s other services as well. The success snowballed. One successful call leading to a positive and fruitful conversation made the next call that much easier. And so on.
The Results
The outreach activities and cross-organizational collaboration resulted in a successful breakthrough:
- Ramboll now conducts business with 12 out of 15 local authorities – all new customers
- More than 10% of company revenue stems from these new customers
- Most of the area managers increased sales by 40%
- Three out of seven area managers doubled their revenue
The organisational outcome: Ramboll’s employees are now better at execution and achieving their goals – even after completion of the process with Qeep.
The Hero
Area Manager Michael Vedel experienced fantastic growth during the process!
Prior to the process, he had neither the time nor the resources to approach new customers in the local government sector.
The role of area manager with greater cross-organisational responsibility for accounts and sales was new at Ramboll. Michael took on the task – in addition to his usual operational duties – and performed with flying colours. He generated new business and landed three new local governments in his own area (100% success) via renewed focus, the use of targeted sales activities, increased meeting activity, and interdisciplinary involvement of competencies across the Ramboll organisation.
Michael is an excellent example of the benefits of questioning paradigms and of dropping an “it can’t be done” attitude in favour of an “it works if you focus your efforts” attitude.
The Unrealistic Goal
Qeep challenged the seven area managers to set unrealistic goals. They set the goals of landing new customers in selected local governments and boosting sales across the region by 40%.
The Organisation
Ramboll Denmark is a leading engineer, design and consulting firm, supplying knowledge-based turnkey solutions in construction and design, traffic and infrastructure, environment and water, energy and climate, and industry. The Ramboll Group employs around 10,000 people and operates globally, with 200 offices in 23 countries.
MTH Construction
From project focus to customer focus – sales growth of DKK 700 million
Unrealistic Goal: To establish a commercial organisation and boost revenue significantly
Outcome: Growth in revenue from DKK 2.9 billion to DKK 3.5 billion – in 12 months
Solution: Executionable Strategy
The Challenge
MTH Construction had made several attempts to get their engineers and building contractors to adopt commercial and customer-oriented thinking – and had given up time and again. With the cooling of the construction sector caused by the financial crisis, MTH Construction managed to achieve results by tightening its belt.
Now management wanted to change tactics and give the sales and tender function a boost to achieve a higher hit-rate and profitable revenue growth. The sales function had recently been centralised – in theory. However, in practice, the sales staff were still located in the regional offices and selling locally. National coordination, purchasing criteria segmentation and sales management were insufficient.
The Process
From the outset, Qeep involved both the sales staff and management in the definition of MTH Construction’s commercial breakthrough.
An impartial customer analysis revealed a clear gap between MTH Construction’s view of things and the real life situation. A performance and profile assessment also exposed disparities between the current competency level, the corporate attitude and customer expectations.
The involvement and analysis process identified the need for a new organization that matched the relevant customer segmentation. Meanwhile, a commercial director with experience managing solution sales representatives was appointed.
In phase two, Qeep coached management and new/existing sales staff to help with development and operation of the new function. With the launch of the “win sheet, personal results plan, and weekly results meetings” tools, this process ensured that MTH Construction’s commercial staff executed the planned initiatives, despite in-house resistance encountered by the department. And they achieved their ambitious goal!
Old Habits
The MTH Construction sales staff believed they were responsible for identifying future projects and ensuring that the company had the opportunity to bid on them. However, responsibility for MTH Construction actually winning the bids rested with the tender function – not the sales department.
The sales staff were also convinced that MTH Construction was well known in the market. According to the sales staff, there was only one reason why the company lost orders – they were too expensive.
Sales to national customers were managed centrally. Thus, when necessary, MTH Construction would bid aggressively on national customers, who also had to respect the fact that they might be too busy locally to bid.
New Behaviour
MTH Construction hired a number of market managers. In the centralized commercial function, they began coordinating key customers at national level. Key customers now received regular visits and their wishes could be implemented in all projects – across the country.
Sales staff members were assigned the title of Customer Managers, with responsibility for project win rates. They were tasked with identifying, prioritizing and coordinating customer contact from the initial meeting to the landing of the order. The customer managers now coordinated all the resources and the next step was to make it easier for customers to choose different strategies. For example, customers could now negotiate directly with MTH Construction – instead of always having to put a project out to tender in order to obtain a good price.
The Results
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25% hit-rate – up from 13% the previous year
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Growth in order intake from 2.9 billion to DKK 3.6 billion in a declining market
The Hero
Sales Manager John Sommer is the type of person who devotes all his energy to achieving what he sets out to do. As a consequence, people around him sometimes had trouble keeping up. When John was appointed head of the customer managers, he took on a huge management task that would take more than just energy to fulfill. John proved that he could get everyone to work as a team without losing sight of the goal. John has learned to pace his energy in order to ensure a high degree of execution among his customer managers.
The Unrealistic Goal
Growth in profitable sales of DKK 700 million in a declining market
The Organisation
MT Højgaard is one of the leading building and construction companies in the Nordic region. The company collaborates with customers all over Denmark and abroad on projects of all sizes, from small construction projects to large-scale and complex works, infrastructure projects and the installation of foundations for offshore wind turbines.
Hillerød Hospital
Unrealistic Goal: To reverse a budget shortfall and reduce waiting lists
Outcome: Budget deficit turned positive and waiting lists are shorter
Solution: Performance Management Program – Stay on Budget
The Challenge
In 2005, the OB/GYN department at Hillerød Hospital, located north of Copenhagen, exceeded a budget of DKK 100 million by the enormous sum of DKK 15-18 million. This made it difficult for the department to function smoothly. Thus the challenge: To stay on budget!
The Process
Qeep helped and coached the department management throughout the process. The managers began to set goals and keep close tabs via progress via weekly results meetings.
Old Habits
The patients received proper treatment, but spending exceeded the budget.
New Behaviour
Everyone at the hospital began to view their job as not just to meet the patient needs but to do so within the given budget. Proactive planning and follow-up on expenses for temps, material consumption, occupancy, etc. ensured that the staff assumed responsibility for patient satisfaction and budget compliance.
The Results
- Budget shortfall of 15% transformed into a profit
- Staff sick days reduced by 2%
- Waiting lists reduced by 12%
The Unrealistic Goal
The projected budget shortfall of DKK 15 million made it difficult for the department to function smoothly, leading department management to set a goal of reversing the budget shortfall.
The Organisation
Hillerød Hospital serves 310,000 people in Northern Zealand. The OB/GYN department provides prenatal and birth care, fertility treatments and female pelvic medicine. The department has 283 employees.
Daimler Automobiles
Unrealistic goal: Turn loss of DKK 47 million into profit in one year
Outcome: Profit
Solution: Performance Management Program – 10/10/85
The Challenge
Daimler Automobiles was a top-down organisation where the employees did not take responsibility for common goals. This resulted in a loss of DKK 47 million. To turn the situation around, new CEO Per V. Rasmussen sought in 2003 to change attitudes among management and middle management, inspiring them to embrace greater responsibility.
The Process
Qeep initially helped Daimler Automobiles set a number of breakthrough goals, which they dubbed “10/10/85”. The sales department was to earn DKK 10 million, administration was to cut costs by 10% and the service & repair centers were to increase invoiceable hours by 85%.
Qeep coached management and middle management to help them execute their personal action plans while tracking the goal and results.
Old Habits
Daimler Automobiles was a top-down organisation. When something went wrong, it was more important to explain why than to look at what it would take to achieve targets. Management and middle management did not assume responsibility and work towards the common goal.
New Behaviour
Management and middle management began focusing on what they could change to reach their ambitious goal instead of on how they could avoid making mistakes. They assumed responsibility!
Numerous concrete changes culminated in the realization of 10/10/85. The parking facilities were modified to save time when a car was in for service. The spare parts assistants were transferred from the warehouse to the service & repair centers so they could fetch parts for the mechanics, who used to have to wait in line. The supervisors signed an agreement with key accounts to call cars in to service on short notice when an opening appeared in their schedules.
The new attitude among the managers also resulted in major organisational changes. Communication improved and they began to work in a more results-oriented manner based on new procedures.
The Results
- The annual results improved by DKK 52.5 million before tax
- The sales department gave a profit
- The gross profit per car sold increased by several hundred percent
- The efficiency of the service & repair centers increased from 57% to 82%
- The invoicing time for all service & repair centers increased significantly
- Shorter waiting time for spare parts
- Faster decision-making
The Hero
Supervisor Erik Bo Pedersen is the hero of this story! He successfully boosted efficiency, while maintaining a high utilization ratio at the Hillerød Service & Repair Center.
The Unrealistic Goal
Daimler Automobiles set the unrealistic goal of transforming a significant loss into a huge profit – and achieved it!
The Organisation
Daimler Automobiles, now known as Mercedes Benz CPH, is one of Denmark’s largest car dealerships, employing more than 100 people at showrooms and service & repair centers located throughout Greater Copenhagen.