CASE STUDY
Beyond Budgeting in an international shipping group
Ekan Management and Beyond Budgeting Advisory helped the client in developing a dynamic management model based on the Beyond budgeting principles. Through workshops with the management teams within the corporation, a common vision was created for the group as a whole.
The client: The client is an international privately-owned logistics corporation with over 2,000 employees in seven business areas.
The client's challenge: The client was troubled by a protracted and slow budget process, where the budget was quickly irrelevant in the rapidly changing logistics market. The group had difficulty aligning its many subsidiaries towards the same goal, and managing the business based on the employees' inner drive. The company also had difficulty attracting the right skills and improving it's employer attractiveness.
Our solution: Ekan Management and Beyond Budgeting Advisory helped the client in developing a dynamic management model to tackle these challanges. Through workshops with the various management teams of the group, a common vision and a model based on the Beyond Budgeting principles was created. Ekan contributed with project management, expertise and project support. Some of the achievements of the project were:
• Comprehensive and effective involvement of employees
• Consensus on ambitions and targets
• Customized management solutions with relevant KPIs
The result: Sense of urgancy and fuel for change could be established deep within the organization thanks to a shared vision combined with an agile management model based on decentralization and influence. The dynamic management model with carefully adapted relative KPIs enabled each subsidiary to in turn adapt KPIs that closely follow the value of their respective core business. Early effects show a much greater understanding of the dynamics of the parts and the whole, a more dynamic management that closely follows the development of the market and a clearer impact on the intrinsic drive of the employees.