Strategic coordination with a common thread for objectives and strategy
Mälarenergi felt that they lacked a clear common thread in the breakdown from their group-wide strategy and scorecard to business areas, subsidiaries and group functions. There were several overarching plans and goal documents that each unit was theoretically expected to consider. However, in practice, the units often relied on their own knowledge or chose what to base their decisions on. At the same time, the overarching plans mixed group-wide issues and objectives with business area and subsidiary-specific items, adding further complexity.
New process for the formulation and breakdown of strategies
Mälarenergi and Sigholm collaborated to develop and implement a new process for formulating and breaking down strategies and goals within the group. The solution ensures that the company now annually creates a unified overarching group strategy, which is then broken down into strategies, tactical plans, and scorecards for the group's business areas, subsidiaries, and corporate functions. Within each unit, the overarching scorecards are further broken down into operational scorecards for departments and teams. This approach creates a common thread in governance, aligning the group management's direction with the operational activities, ensuring everyone works toward the same objectives.
Clarity without micromanagement
Mälarenergi now has a clear process for formulating strategy, tactics and goals that creates a common thread from group level down to departments and units without micromanaging the operations.
The article was published 28/10 - 2020
