Developing strategy and organisation together in a trading group

The overall architecture linked future and positioning, leadership and organisation, and structures and processes. The external consultants were to connect internal knowledge with outside perspectives and also support implementation. Content, cultural conditions and timing were considered together, and the process architecture remained open to adjustment as new insights emerged.

An international stakeholder analysis examined the expectations, challenges and views on trends of members, contract suppliers and other partners. Qualitative interviews added depth to the online survey. In parallel, the company identified its core competencies and tested them through an employee survey and feedback from selected partners. Both perspectives formed the basis for the strategy work.

Cross-functional teams developed strategic business model options. They drew on the analysis results, information on revenue structures and competition, and input from dealers, suppliers, young entrepreneurs and external experts. Once the options had been selected and explored in more depth, the management board formulated a vision of the future and agreed it with the advisory board’s spokespersons’ committee. It was presented at a joint meeting in July 2017.

Requirements for the organisation were derived from the vision of the future and compared with the existing structure. The teams developed options for tasks, responsibilities and interfaces, which specialists and managers tested in joint workshops. The functional analysis deliberately came before anyone drew an organisation chart. After review by the relevant committees, the concept was approved for implementation.

In the core merchandise division, separate functions were set up for member management, purchasing management, and supplier and product group management. A dedicated member manager pooled each dealer’s requirements and coordinated them through to implementation. This allowed the organisation to tailor its services more closely to its members’ needs. The report also describes closer collaboration across departmental boundaries.

Which changes among customers and partners call for a new strategic response, and which tasks, decisions and interfaces need to change as a result? The case helps treat market understanding, vision of the future and organisational design as one connected leadership task.

• A vision of the future built from analyses and evaluated business model options, presented in July 2017.
• An organisational design derived from that vision and approved for implementation by the relevant bodies.
• Separate, documented functions in the merchandise area and clear responsibility for looking after members as a whole.

The case describes the historical development process documented from 2016 onwards. The organisational changes reported are not an independent measure of productivity, revenue impact or long-term business success, and they say nothing about the current state of implementation.