In the aftermath of the financial crisis, several Nordic companies have taken the opportunity to launch new organisation models as well as profitability and cost reduction programs. SSAB, SAAB, Nobia, Eniro and Husqvarna are a handful of Swedish companies that will have a new organisation model and new reporting structure as of January 1st 2010.
When communicating purpose and goal with a cost reduction program, remember that investors and analysts want detailed information about milestones as costs as well as risks. Most of all, they want to know when estimated savings will have full effect.
Operational Excellence and Manufacturing Footprint are often used key words, but unless you connect them to quantified financial targets and numbers, they will just be empty phrases.
Full transparency about estimated savings and costs are crucial success factors for providing trustworthiness to a reorganisation and profitability program. If you successfully communicate progress as well as setbacks, your investors and analysts will have greater patience that time plans can be changed and costs can increase, as long as they are convinced that you are on the right track.