issue 1 - Roland Berger

The formula for growth DOSSIER #01
According to v. Pierer, this type of code of conduct creates
trust and a sense of confidence among both
employees and customers.
TRUST-BUILDING MEASURES designed to reinforce
its own identity are also used by Tchibo Holding, based
in Hamburg, Germany. Founded as a coffee roaster in
1949, the retailer’s everyday goods and services division
has experienced double-digit growth in the last
four years. This division is currently responsible for 60
percent of sales and 95 percent of earnings. This
change could be seen as a cultural revolution that
ended up presenting fundamental questions about the
company’s purpose. Nonfood board member Stefan
Swinka answered these questions after consulting
closely with employees, whose expectations and feedback
influenced the new mission statement. “You can
no longer run a large company on authority alone,” says
an obviously convinced Swinka. Instead, he explains,
he relies on credibility, authenticity and openness—a
sentiment with which the experts at Roland Berger
Strategy Consultants could not be in greater agreement.
They discovered that companies that are strong on
communications and have flat hierarchies are the most
successful. These types of structures increase individual
responsibility, permit faster decision-making and
create more flexibility. In managing innovation and
creativity, three- to five-year objectives are the most
likely to lead to success. They should be ambitious
because only then will they create the necessary pressure.
At the same time, an incentive system in the form
of salary scales, success-based bonuses or similar
types of compensation should be put in place to demonstrate
to employees that good performance is indeed
worth the extra effort.
THESE TYPES OF MECHANISMS also guard against
some common, negative aspects of success, such as
satiation, sluggishness and complacency. A prime
example of a company almost strangled by its own
growth is IBM. The undisputed market leader in mainframe
computers in the 1980s, Big Blue almost missed
the PC trend and was only saved by the smart turnaround
management of its CEO Lou Gerstner, who took
the helm in 1993. Developers had retreated into a realm
of technological insider knowledge while failing to come
up with marketable products. “A lot of people confuse
invention with innovation,” warns Michael Zisman,
»A model European company«
A MARKET LEADERS’ RENDEZVOUS: ROLAND BERGER STRATEGY CONSULTANTS AWARDS
PRIZES TO EIGHT GROWING FRENCH COMPANIES PURSUING EUROPE-WIDE EXPANSION.
Bernard Bourigeaud, CEO, Atos Origin
Atos Origin, France’s leading IT service
provider, was created from the merger of
Atos and Origin. Today, the group is a major
European player, achieving sales of more
than €5 billion, with 45,000 employees in
50 countries.
One of the most sought-after corporate awards in
France, the Prix de l’Entreprise Européenne, was
awarded in September. The competition was judged
by Roland Berger Strategy Consultants, the HEC
Management School and the economic magazine
Enjeux-Les Echos and was subdivided into eight categories.
“We want to promote what characterizes a
European company and highlight the background of
its market success,” explained Vincent Mercier, head
of the Paris office and a member of Roland Berger
Strategy Consultants’ Executive Committee.
Atos Origin, an IT service provider, won the grand
prize in the “More than €3 billion in sales” category.
The jury lauded the company for having
smoothly sailed through the turmoil affecting the
industry sector. Eurofins Scientific, a life science
group, also received a grand prize, this one in the
“Less than €3 billion in sales” category. The company
was acknowledged for its rapid development
from start-up to global player.
Air France received the prize for best merger for
its fusion with KLM, while steel giant Arcelor was
awarded a prize for its fight against cheaply made
goods (B2B). Food giant Danone stood out for its
worldwide sales expansion (B2C), as did Air Liquide,
an industrial gas supplier, for its international sitelocation
strategy, and EADS, the aviation group, for
best research and development. ST Microelectronics,
a semiconductor group, was deemed to have the
best corporate governance.
think: act 27