• Webinar on Creative Leadership

    Click on image below and enjoy this 50 minute video

    We discuss the challenges that companies face in times of continuous transformation, with special focus on the Pöyry case. You may decide to purchase the case after watching the video, no need to prepare in advance (https://www.thecasecentre.org/main/products/view?id=165070). We will also offer a sneak peak on LEADX3Ms CreActive Leaders framework and assessment tool currently being developed as part of the book Creative Leadership that Jennifer von Briesen and LEADX3M CEO Henrik Totterman are co-authoring.

     

  • Pöyry Plc: Creating an Intrapreneurial Culture in International Consulting

    Pöyry Plc. is an international consulting and engineering firm that serves clients globally across the energy and industrial sectors and provides local engineering services in its core markets. Its focus sectors are power generation, transmission & distribution, forest industry, chemicals & bio-refining, mining & metals, transportation and water. Year 2008 turned out to be the best year for this 60-year old company to date. The soon to follow global financial crisis changed everything and forced the company into a 10-year survival struggle in a rapidly changing market.

    Purchase case from The Case Centre (press here)

    The challenge

    The five points below sum up the nature of the significant challenge facing Pöyry at the end of 2015:

    1. Volume challenges: fewer larger projects, capacity adjustments, exit from international infrastructure business, divestments and closures in oil & gas, real estate, international water, and energy businesses.
    2. Project challenges: burdened by a number of loss making projects stemming from a former business. 
    3. Investigations, disputes and legal cases: multiple litigation and arbitrations, as reported in the company’s results.
    4. Activity and project contribution challenges: volume losses relating to higher fixed costs – despite restructuring.
    5. Cultural health challenges: engagement levels in 2014 were significantly lower than the global benchmark norm. Whilst the majority of employees were generally proud to work for Pöyry, levels of satisfaction, advocacy and commitment in particular scored lower than the global average 

    The following short and midterm actions were identified in Spring 2016:

    1. Establish an ‘intrapreneurial’ culture to drive operational transformation: Essential to interact closely with clients to better understand their challenges and changing needs, and also to drive team motivation and empowerment throughout units.
    2. Simplification actions: Move away from a complex reporting structure with a significant executive leadership group, and streamline legal entity structure, and the organization to current and future business volume. 
    3. Introduce a new business management system: increase transparency across the organization for administrative and business efficiency purposes. 
    4. Reduce number of loss making units: Transform previously successful business models into ones that provide sufficient level of profitability now and in the future. 
    5. Aligning with future demands along with the global megatrends: Continue to attract key new employees across different levels of the organization, and focus on growing new business offerings that create higher customer value, aligning future demands along with the global megatrends applicable to prioritized industries. 

    Key figures: Pöyry as of February 2019:

    • At the end of the fiscal year 2018, Pöyry’s adjusted operating results showed ten consecutive quarters of improvement.
    • The results improved in the Energy, Industry and Management Consulting business groups and remained stable in the Infra, Water and Environment business groups. 
    • The adjusted operating result was EUR 43.2 (26.0) million, supported by increasing net sales across all business groups. 
    • Similarly as shown in the table below (greater detail in Appendix 4), the order intake increased compared to the corresponding period in the previous year, in terms of the group’s order stock, ending at EUR 536.3 (448.5) million. 
    • Net cash flow from operating activities amounted to EUR 76.8 (40.1) million, which pushed gearing to -58.7%.
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