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Case Study Management Audit

Management Audit

Large European Automotive manufacturer Americas’ Division.

 

Management audit is used for the evaluation of the upper and top management levels. It is a useful tool for companies wanting to get a clearer picture of what is really going on within their organization.

Organizations with diverse, inclusive leadership teams consistently attract the best talent, deliver superior customer experiences, and outperform the competition.

 

Our task:

To evaluate the strengths and weaknesses of the management team in relation to the company strategy.

To identify areas of improvement and elicit better performance out of a rather complacent organization which had lost its edge in a key market.

Methodology:

Initially we evaluated how the company had developed, how the strategy for the future had been defined and what the present organization looked like.

We interviewed, in depth, over 35 managers and key personnel across the Americas.

We asked them about their background and education, their professional experience, their current responsibilities and their career aspirations.

Based on these interviews and 360 feedback, we analysed the competence and the potential of each person relative to their current role and the strategy of the company.

We actively sought their criticisms and suggestions for improvement as well encouraging them to articulate a vision for the future of the firm. We remained alert for similar feedback from multiple sources.

Our conclusions:

The biggest issue was the structure of the organisation itself.

The Americas was divided into state organisations with an MD for each market/country and very little interaction or cooperation between them.

Sales were static -they were not bad, but nor were they good. The incentives to really push key people were not evident.

There was loyalty to the brand, but no commitment to achieve what was required.

Some key people were not in the right roles.

Our recommendations:

To restructure the Americas to become one region, just like Asia and Europe.

To appoint from within the organisation, but outside of the Americas, a President.

Reorganisation of the leadership structure to align with the strategic organisational requirements.

To build a factory in America, not because production capacity was needed, but to boost Sales and promote brand loyalty.

Results:

As a trusted adviser we worked with them throughout the implementation of our recommendations.

We restructured to appoint the right people into key roles.

One year on, the Americas had its best performance overall and it is still on upward trajectory.

Because we understand the DNA of the organisation, we remain trusted advisors.

 

Peter Strandberg
President, Friisberg
Partner, Sweden

 

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