03: Turnaround with restructuring and subsequent strategy & business development for the “Signaling Technology” railway sector of an integrated electronics group
Railway sector “Signaling Technology” of an integrated electronics group
The “Industry” sector offers solutions for production, transport, and building technology and includes, among others, the Industry Solutions and Mobility Divisions. The “Mobility” Division is the internationally leading solution provider for Transport & Logistics.
Mobility Division, Business Unit Rail Automation. Leading manufacturer and provider for railway infrastructure worldwide; signaling technology with interlockings, switches, and signals; project, system, and product business.
Head of Strategic Projects “Rail Automation” / Plant Engineering
Responsibility for the worldwide restructuring & change project of the “Rail Automation” Business Unit within the “Mobility” Division; BU with a business volume of €1.3 billion and 6,000 employees worldwide.
Initial Situation & Tasks:
- The Business Unit’s operational performance completely collapsed, falling significantly into the red.
- The turnaround project “Mobility in Motion” initiated by the Division Board had to achieve a reversal of the trend within 2 years.
Activities / Measures:
- Reduction of 500 employees with a social plan, establishment of a transitional company.
- Process and organizational optimization of the Business Unit with a focus on project, risk, requirements & quality management.
- Productivity increase in plants, purchasing, R&D, and project engineering/plant construction with stringent target costing.
- R&D footprint optimized with a low-cost engineering center in Eastern EU.
- New Business Development strategy with a focus on growth regions and key customers.
- Management of Mergers & Acquisitions projects in Russia, establishment of joint ventures and strategic cooperations.
- Leadership of Culture Change program for 1st to 3rd management level over 3 years.
- Reporting line to the CEO of the Business Unit, leading 12 employees in HQ and approx. 60 employees in the key regions “DACH”, USA & China.
Special Achievements/Results:
- Productivity increase significantly exceeded the target value by 40% after just 1.5 years.
- Earnings turnaround achieved after 1 year and double-digit EBIT after 1.5 years, significantly above target.
- Definition and implementation of central quality management to ensure precise quality and project status for TOP management.
- Establishment of a joint venture with a Russian railway supplier for switch drives; HQ in Moscow.
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