B STATE's Case Study on Global Manufacturing Comany
IT Group Drives Company-Wide Transformation Saving Millions
For two and a half years, the IT group of a global manufacturer with over 90 sites on four continents attempted to implement a new business model without success. While senior leadership was confident in the simplicity and soundness of the model, middle managers seemed dedicated to challenging it rather than understanding and adopting it. Time was running out. If they didn’t find some way to change their trajectory dramatically in 18 months, not only would the organization as a whole suffer, but the IT group would be outsourced.
In just 9 months – half the time allotted for the change
- Saved 45 million Euro per year going directly to the bottom line
- The new business model was implemented with every business unit in the company across 4 continents
- 100% of the 7 most important projects were on time, on budget, and meeting deliverables
- 50% of all projects were meeting schedule, cost, and deliverable milestones, in contrast to a previous 10%.
- Reduced IT project load from 1300 projects to 240
- Correlated measures demonstrated a dynamic, sustainable transformation in their leadership culture
- 96% of the Habits of Collective Execution improved overall, 61% significantly
- Relationships improved an average of 40% over 15 measured areas, including meetings, decisions, trust, communication, confrontation, and accountability
- By month 6, a major vendor was integrated into Middle Manager team meetings and presentation
- By month 9, the decision was made to transform vendor relations from a customer/supplier model to a true partnership model for key vendors