Optimization across business units achieved 93% of KPIs

To grow and innovate, a healthcare technology company implemented a massive optimization effort with initiatives across business units and around the world.

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When a global healthcare technology company approached LaMarsh Global, they had a clear definition of what they wanted to achieve and what was required to reach that goal. The missing step was a change management strategy that would optimize action.

The goals were ambitious, but they are objectives that are shared by companies of all sizes: 

  1. Win in establish markets
  2. Innovate for value
  3. Supplement organic growth with acquisitions
  4. Accelerate in emerging markets
  5. Simplify the operating model

The company had already identified a variety of optimization initiatives across business units – from improving managerial efficiency to simplifying IT services – that were necessary to achieve these strategic goals. Initiatives were planned for multiple business units and locations around the world. 

Even with clear goals and initiatives identified, there was still something missing. Effective and efficient implementation required a strategy so leaders could manage the change they were responsible for and their employees would accept and adopt the change.

A change management strategy was the missing link.

LaMarsh_Blog_Quote-1LaMarsh Global developed a strategy and provided training, coaching and support to key leaders so they had the skills and understanding to carry out each change initiative. A decision-making structure and processes were developed and implemented, including the designation of an executive leadership team and a strategic program sponsor. To ensure the project was headed in the right direction, a clear desired state and key performance indicators for the entire project and metrics for each initiative were identified.

With the support of LaMarsh Global and the Managed Change methodology, the company was successful in achieving 93% of the key performance indicators within the designated timeframe.

As the change was implemented, LaMarsh Global provided training and coaching for key leaders. The company not only completed the large transformation, but it also established a change management Center of Excellence so the organization was ready to manage and implement changes in the future

Project summary  

The organization

A healthcare technology company with a presence in 100 countries and annual sales of nearly $5 billion.

The goal

This large transformation was motivated by five strategic goals:

  1. Win in establish markets
  2. Innovate for value
  3. Supplement organic growth with acquisitions
  4. Accelerate in emerging markets
  5. Simplify the operating model

To achieve these goals, the company identified an assortment of process and organizational changes across business units. It was an ambitious project that depended on the commitment of leaders and employees around the world.

The project

LaMarsh Global supported a multi-year optimization effort of the organization’s business units to achieve five strategic outcomes.

Business units were used to local leadership structures with a high degree of autonomy, so the project required the development of a new leadership structure. The organization has a presence in 100 countries, making the geographic dispersion another challenge to implementing new processes at a local level.

This transformation was a large undertaking and a great deal of change to experience at one time. Specific initiatives included:

  • HR optimization: Provide best-in-class systems, tools, strategic support and centralization of transaction services.
  • Single managing director: Combine select divisions in defined geographical regions under a single leadership structure to eliminate duplication, clarify responsibilities, enable clear accountabilities, improve agility and create a broader career path.
  • New product development and marketing: Improve the effectiveness of the development and marketing of new products.
  • Managerial capacity: Improve efficiency and right size span-of-control compared to benchmarks.
  • Finance: Develop a best-in-class global finance function, including both process and technology improvements.
  • External spend: Capture savings by more effectively managing spend on indirect purchases.
  • IT: Improve service and simplify IT while expanding the selection, approval and delivery of investments.
  • Legal: Develop a best-in-class legal function and reduce reliance on outside services.

Alongside these initiatives, the company expressed interest in improving their internal change capability, so they would have the processes and people necessary to carry out change efforts in future projects.

Our approach

For this large change effort, LaMarsh Global developed a change management strategy and provided training, coaching and support to key leaders. The strategy included:

  • Designation of an executive leadership team to support the CEO in accomplishing the goals of the project, including the designation of a strategic program sponsor.
  • A decision-making structure, processes and roles and responsibilities were developed and implemented.
  • Detailed descriptions of the desired state were defined for each initiative.
  • Development and clarity of key performance indicators for the entire project and metrics for each individual initiative.
  • For each initiative, a workstream team was developed with a program manager and change management lead.

Throughout the project, training and support was geared at improving internal change capability so the organization and people were prepared to manage future changes.

Project outcomes

The project was a massive transformation that required global collaboration and cooperation in order to complete multiple initiatives in a variety of business units.

For the key performance indicators identified from the five strategic goals, this project achieved 93% of the indicators within the designated timeframe.

Highlights from the project include:

  • Managed Change was successfully applied for an ambitious change project that was completed over multiple years.
  • The strategic program sponsor had the support to successfully lead the program and change management efforts.
  • In addition to a successful completion of the project, the organization established a change management Center of Excellence using the Managed Change methodology. The company was prepared to manage and implement change in future projects.

 

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