The challenge
As companies grow, they often reach a point where their operating model needs to evolve. What once supported integration, and scale may no longer enable speed, ownership, or execution in the same way as usual. Not because the model was wrong, but because the business has matured beyond its current model.
This was the case for a large integrated energy and telecommunications group in Denmark. The client had recently developed a new group strategy and updated business unit strategies. It became clear that the synergies once created by being an integrated group were no longer present—at least not for several of the business units.
This prompted a strategic discussion around the “role as owner” and the “role of center”:
- Role as owner: What value does the group truly add as the owner of a portfolio of businesses?
- Role of center: What services should the corporate center deliver to create that value?
The approach
Eraneos supported this transformation by helping the client design and implement a new operating model aligned with its strategic ambitions. Based on the group strategy—including ownership strategy and foundational purpose—we defined design criteria for what the client should continue to be as a corporate owner, and what should characterize the services delivered by the center.
We then identified and detailed all management and support processes across the organization through interviews, process map analysis, and APQC benchmarking. Costs and FTEs were mapped to each process to create transparency around the center’s cost structure and resource allocation.
Using the design criteria, we conducted a decentralization exercise, starting from a fully decentralized model and then defining what should remain centralized. This enabled a clear view of which services should be delivered centrally versus locally and allowed us to build a business case estimating future costs and FTEs in the center, as well as the value delivered by the group as an owner.
The results
In close collaboration with the client, Eraneos helped transition from a classical group structure to a conglomerate model. All customer-facing activities were consolidated, and hundreds of employees were successfully transitioned from the group to the respective subsidiaries. The new model provides greater autonomy, faster decision-making, and clearer accountability, positioning all core business areas to execute, adapt, and innovate at speed.
About the client
Our client is a leading Danish energy and telecommunications provider with over one million customer relationships. The client operates across electricity distribution, broadband, TV, and energy trading, making it a key player in Denmark’s green transition and digital infrastructure.
