The price war within the German DSL market led to falling average sales per customer and the falling profit margins had a negative effect on the operating result. Against this background, a program was launched at Versatel to improve earnings and secure the company’s long-term competitiveness. The activities ranged from restructurings to drastic cost reductions and staff adjustments.
Globalise quickly made a success of the restructuring program. The HR restructuring specialist expertly negotiated with internal stakeholders, employees, the staff council and the unions. The improved structures and processes meant that Versatel could be set up to be competitive and strong for the future.
Peer has been CEO of Versatel AG since 2007. He has worked in management positions for more than 15 years. Past employers include TeleBel Gesellschaft für Telekommunikation Bergisches Land mbH and Tropolys GmbH.
“The goal was to become significantly more profitable and efficient.”
We were confronted with entirely new challenges in the restructuring program. There were tasks that required the know-how and expertise of a specialist, but at the same time the total implementation reliability that only an experienced manager could offer. We wanted an HR man who wasn’t doing a restructuring for the first time – and we didn’t have any time to lose looking for one.
Specialist know-how, experience and a hands-on approach were the focal points, while total expertise in restructuring projects was a must. The interim manager had to be well versed in the legal challenges of an HR restructuring, as well as having dealt successfully with similar situations several times in the past. He also needed to be strong at the operational level.
“We made the Globalise anager manager project manager in addition to his responsibilities as Head of HR, before ultimately offering him a personal position.”
It was based on two pillars: the first was a bundle of immediate measures for quickly exploiting potential for more efficiency. The second pillar describes aspects of operational excellence: i.e., an improvement of organizational structure, processes and IT, as well as marketing and sales effectiveness, with the aim of securing lasting competitiveness and growth opportunities. Of course, the efficiency improvements went hand in hand with significant adjustments of staff capacities.
For us, interim managers are always the best solution when we are faced with challenges that require a special track record to ensure that they are mastered well. But also when we also know we won’t need that expertise to the same extent once the situation is taken care of – and when we are in a hurry. So when we are under pressure to fill a line or project position and have to be understood quickly, Globalise is always our first choice.