06: Post-Merger Integration with Restructuring and Transformation for a Leading Railway Group
Global Railway Group
Leading manufacturer of high-speed trains, locomotives, metros, monorails, trams, and propulsion systems; provider of turnkey solutions, service offerings, infrastructure, signaling technology, and digital mobility. Present in 63 countries with over 80,000 employees and 175 nationalities. Key figures 2022/23: Orders €20.7 billion, Revenue €16.5 billion, Order backlog €87.4 billion.
Site Managing Director R&D Center
- Executive management with responsibility for Program Management, System Engineering, Design Engineering Electrical/Electronics, Software and Mechanics, Finance, Human Resources, Procurement, Quality, EHS/Occupational Health Management, Industrial Manufacturing/Assembly, IT, and Facility/Site Management.
- Development site for locomotives.
- Signaling technology business with separate legal entity,
- Propulsion technology business with accelerated transformation to “Green Traction” with drive and battery technology for battery and H2 trains.
- Light rail business for trams, commuter, and monorail trains.
- Service with vehicle conversion and component business, maintenance and repair services.
- Leadership of ~1,100 employees with ~900 highly specialized railway engineers and technicians, as well as ~200 employees in non-technical functions, with 10 direct reports (department heads)
- Reporting line to the VP Rolling Stock & Components of the DACH region (Germany – Austria – CH/Switzerland).
- Member of the Rolling Stock & Components (RSC) leadership team.
Initial Situation & Objectives:
- Acquisition of a competitor approximately 1 year before project start.
- Difficult financial situation in the DACH region due to underutilization of several sites and structural issues.
- Organizational, process, and cultural differences between both companies.
- Challenging project situations on both sides, partly caused by the introduction of new technologies for “Green Traction” (electric propulsion systems with battery technology).
- The objective was to lead the Post-Merger Integration (PMI) and integrate the R&D site into the network of existing development sites.
Activities / Measures:
- Definition and implementation of a transformation program for all business units at the site. The main objective, in addition to leading the Post-Merger Integration, was to ensure productivity and efficiency improvements at the development and engineering site.
- Introduction of a KPI-based project reporting and tracking system to measure and secure performance improvements, with weekly sync meetings and monthly status reviews.
- Restructuring of the site with focus on the development and engineering organization.
- Definition and introduction of the “Green Traction” organization for battery & H2 train projects of the railway manufacturer.
- Definition and successful implementation of a cultural change program, supported by a “change ambassador concept.”
- Strategy development for the Mannheim site derived from current and future business mandate.
- Implementation of process integration including process optimizations.
- Implementation of measures to reduce engineering hourly rates (e.g., reduction of unproductive time, space reduction, etc.).
- Negotiation of a “future collective agreement” with worker’s council and union for the development and engineering site to increase competitiveness.
Key Achievements/Results:
- Site performance was significantly improved; critical projects in the locomotive, signaling technology, and “Green Traction” businesses were stabilized.
- Profitability of the locomotive business was significantly increased as a result of a successfully implemented cost reduction program.
- Very strong business development with locomotives and “Green Traction.”
- “Green Traction” organization was successfully established for battery & H2 train projects.
- Structural adjustments and process integrations were implemented without noticeable issues on the business side.
- Successful integration of the R&D Center into the global network of development and engineering sites.
- Improvement of communication at the site through introduction of “All Employee Meetings,” “Round Tables,” “Straight Talks,” and installation of an effective site SharePoint.
- Successful cultural transformation at the site, expressed through restored team spirit, tangible motivation, and commitment to performance.
References
“You elevated my leadership mindset and taught me how to drive performance across an entire organization.”
Director Green Energy / Traction
Global Railway Group
“Drive Performance is a very good summary of Klaus’ impact during his assignment with us.”
Chief Strategy Officer & EVP Locomotive & Components Division
Global Railway Group
“He creates bonds with ease, with teams and stakeholders alike. He is authentic and communicates clearly and comprehensively, so that people follow him, even if unpopular topics need to be addressed.”
Risk and Cost Improvement Director
Global Railway Group
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