A large member-owned Construction and Management Company

Background

One of Sweden’s largest member-owned property and property management companies with more than 2,500 employees, had struggled for more than ten years with three major problems in the field of property management:
1. A strategy and profit plan laid down every five years, but the budgeted profit increase never occurred in reality
2. Reactive behaviour in combination with an abundance of activities
3. Lack of self-confidence in both the individual and at the group level

Confidence decreased from the top management down to the individual employee, because the company was far from achieving the strategic goals and profit.

Also, the company had used many external consultants for several years to solve the problem, but the consultants had “sat” on the employees, and the organisation was tired of consultants.

The group management had decided to introduce an advanced ERP system, and it was likely that the employees would not adapt to this system and would control the process when the would be added later on.

The new head of the Business Area Property Management took dramatic action and did away with all external consultants. Instead, a RaaS (Result as a Service) was established with Reforce where the manager stressed the importance of a partnership.

Reforce value contribution

Reforce contracted via a RaaS agreement that linked to the problems and challenges. We added HOW including a way to control and measure the acceleration from the first day.

The strategy and business execution was started top-down (from the inside-out), where first management got trained in HOW, i.e. how one could increase proactivity, control and measure the acceleration as well as how focus could be improved so that whirlwinds and negative stress decreased.

Then, underlying managers and gradually the entire organisation trained in HOW. Reforce added tools, management, measurement and coaching at all levels so that a fast acceleration of behavioural change would take place.

Results

The result of the partnership between the customer and Reforce was that already after one year, a long-standing negative profit development had turned into increasing profits which were above the strategy and budget. The individuals in the organisation received increased self-confidence, fewer whirlwinds and more time for proactive efforts that affect turnover and profits.

The head of the Business Area Property Management made and still makes a great effort by consistently operating HOW and acceleration top-down where each manager truly takes ownership of tools, controlling and measurement so that acceleration and behavioural changes occurs in practice.

In funds, approx. 20-30 different activities become one HOW, which makes it easier and faster for the entire organisation.

Facts

  • The acceleration is 47% within agreed acceleration KPIs
  • Turned many years of negative profit deviations compared with the budget into an increase in profits and +15% above the budget
  • Increase in revenues of SEK + 210 million only during the first two years with the RaaS agreement
  • Cost reduction SEK – 10 million per year
  • The RaaS agreement includes an annual increase in profits from 2.3 to more than 5% per year, which is equivalent to SEK + 143 million in increased profits
  • For over half of all processes involved, the time has been able to be reduced by more than 35%
  • In total, all managers and gradually all 2,500 employees are affected where everyone learns a HOW and increases proactivity and continuously obtains improved self-confidence