Management Assessment

Assessing the Capabilities of the Management Team – Accelerating Growth

Challenge

Our client, one of the world's leading manufacturers of environment-friendly heating and air-conditioning technology, had been present on the Russian market for almost two decades selling through distributors in excess of EUR 40 million and employing 30 people. They had built a stable and profitable business with low double-digit growth on average each year. Having recognised the Russian market’s high growth potential, the company’s headquarters set challenging targets to double the revenues while improving profitability even further within three years. However, the management at headquarters was aware of a long-lasting conflict in the local management team in Russia that was negatively impacting day-to-day business, and thus had concerns that the local management might not be up to the challenge of delivering high growth.

Solution

The newly appointed General Manager for Russia contacted Excelion Partners International for advice on how to deal with the situation he had encountered in the local team. Working alongside the General Manager, we conducted several diagnostic interviews with selected members of the management team in order to explore the situation and develop methods for resolving the conflict and achieving these ambitious growth targets. Having completed the diagnostic interviews, we came to the conclusion that a thorough assessment of the entire management team would provide a framework that would help to resolve the crisis in the team and at the same time evaluate the team’s ability to deliver high growth.

Working together with the client we developed a comprehensive competency model which in our opinion would serve the purpose in that particular situation based on our previous experience, and at the same time would also incorporate the client’s internal competency framework to ensure consistency with internal HR processes. We then conducted rigorous assessment interviews followed by 360 degree reference checks with each participant, specifically focusing on such competences as leadership, results orientation and teamwork, while at the same time benchmarking them against their peers on the Russian market. As a result of the management assessment, we came to the root of the conflict and also identified significant competency gaps and development needs amongst the management team.

In response to the results of the assessment and after the consultation with the client, we developed a comprehensive plan which consisted of different steps. Firstly, we advised our client to re-assign several managers to different positions or newly-created roles that would be better suited to their skills. Secondly, we recommended the replacement of two managers who did not fulfil the requirement of their jobs and had limited potential for future development. The marketing director was replaced by an expatriate from headquarters in order to provide a stronger link to the headquarters and specifically the possibility to tap into marketing know-how gained on other developing markets. We helped to replace the sales director with a high-calibre individual from the market with strong commercial, strategic and team leadership skills, who would be able to take the sales organisation to the next level. Thirdly, we developed a customised coaching and development program for each individual assessed and the management team as a whole, which was implemented and managed by the HR department.

Impact

Within six months, based on the findings of the assessment, our client was able to create a more efficient organisational structure with a stronger emphasis on sales and marketing, and upgrade the management team with high calibre individuals who were more motivated, energised organisation and able to work more effectively together and are now better positioned to achieve the challenging targets set by headquarters.