This case study focuses on a subsidiary of an international corporation with approximately 200 employees – let’s call it ABC GmbH.
Once the core of the parent company, this subsidiary now faces a challenging situation. Due to fundamental changes in market conditions, ABC GmbH has gradually lost significance for the corporation’s overall success in recent years.
This decline is not due to a lack of employee commitment but rather to structural shifts in the market environment. While other business units gained relevance, ABC GmbH’s contribution diminished, leading to noticeable frustration and decreasing motivation within the team.The Transformation Approach: Employees at the Center
The Transformation Approach: Employees at the Center
Instead of making hasty decisions, senior management opted for a participative approach. The transformation project began with targeted workshops involving selected employees. A dual strategy was deliberately pursued:
- Identifying strengths: What works well? What are employees proud of?
- Uncovering optimization potential: Where is there room for improvement?
To gain a comprehensive perspective and involve the entire workforce, a company-wide employee survey was conducted with similar objectives.
Findings: Three Key Action Areas
The survey results highlighted three main areas requiring action:
1. Leadership and Collaboration
A clear need for improvement in leadership culture emerged. In response, an extensive leadership development program was launched. A key element was the collaboratively developed leadership principles, which offered several advantages:
- Clear guidance for both leaders and employees
- A shared understanding of effective leadership
- Binding standards for collaboration
- Transparency and predictability in leadership behavior
- A foundation for mutual feedback
2. New Products and Services
To leverage the team’s existing competencies for new value creation opportunities, a creative idea competition was initiated.
This competition allowed all employees to contribute their expertise and experience to the development of new business fields. Under the theme “Rethinking Competencies,” the initiative focused on utilizing existing skills and resources for future-proof offerings.
3. Small Improvements with Big Impact
The implementation of small yet immediately impactful improvements proved to be particularly effective. These “quick wins” were crucial in generating momentum and reinforcing employee trust in the transformation process.
They provided immediate proof that employees’ concerns were taken seriously and that real changes were happening.
Results and Outlook
The initial results of the transformation project are promising:
- Increased Employee Satisfaction: Follow-up surveys showed a significant improvement in overall morale.
- Innovation Culture: The idea competition generated several promising concepts, two of which are already in the pilot phase.
- Leadership Quality: The leadership development program has led to improved feedback and a more open communication culture.
ABC GmbH is in the process of reinventing itself – not through radical upheaval, but through a participative process that builds on the strengths and knowledge of its employees.
The journey is not yet complete, but the initial steps demonstrate that by involving employees and focusing on jointly identified action areas, companies can regain relevance in an evolving market environment.
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