GMH Gruppe’s goal was to strengthen its position and grow its value within the challenging and increasingly competitive European steel market. To do this, it needed to redesign its organisational structure to incorporate multiple independent legal entities, redirect investments from loss-making entities and reintegrate the value chain.
Working with GMH Gruppe, PwC led a full and comprehensive transformation advisory project – from strategy to execution – using our Fit for Growth* platform and shared services, as well as our group’s tax, HR, legal and IT capabilities. We assisted with the development and implementation of a newly defined operating model to reduce complexity, increased the impact of key functions, and set up new market and value chain-orientated business units. The key components of our advisory approach included benchmarking organisational and cost structures, helping GMH adopt the organisational design, defining and validating performance measures, and setting up the measurement tracking and programme management office for the business transformation. Based on our capabilities-driven strategy approach and insight into key market perspectives, we helped GMH define a new strategy at both a group and business unit level.
The new group structure – with strong business units, cross functions and core group functions including finance and HR – was implemented in a lean and efficient manner. Significant performance improvement measures, at a top-line, operational and selling and general administrative level have been identified, validated and implemented. A new vision and strategy for the group has been defined, along with the strategic paths for the business units, and is in the process of being implemented.
*Fit for Growth is a registered service mark of PwC Strategy& LLC in the United States
We’ve been working side by side with the CEO and his core team this past year, becoming trusted advisers for their strategic transformation. We already had a long relationship with GMH Gruppe, so we were able to provide a comprehensive end-to-end transformation advisory service that integrated our knowledge of their regulatory, tax, legal and industry landscapes.