Subsidiary governance: Note on international best practice

Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company’s current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certain shortfall, the company needs to attract young coffee drinkers among Millennials and Generation Z, whose consumption and values are significantly different from the current base. Management is being forced to reset its historically successful strategy for a new era when today’s young consumers will soon account for the bulk of the global coffee market.

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No company can grasp the potential of AI until it has set up a data-driven culture enabling employees to create value from the insights that emerge from data analysis. This means that before setting up an AI strategy, organizations must transform and prepare their infrastructure and culture for the AI age. This case study discusses the initiatives developed and rolled out by Marianne Galvin, initially Head of Data Office and then VP of Digital Transformation, as she worked to turn Civilia Engineering into a data-driven company. The case explores what Marianne put in place over her first 22 months with the company. This included: Governance structures and an educational program that proved to be highly popular. As the initiatives took root, Marianne and her team began to gain acceptance of use cases and dashboards for data-driven decision making but there were still several challenges to overcome, in particular how to work with an IT team more focused on architecture and improving legacy systems. The case closes as Marianne looks ahead to 2024, outlining what still needs to be done to gain digital and data maturity. The case provides a comprehensive understanding of the critical aspects of building a data-driven organization, particularly focusing on the interplay between value, data, and people. Through this case, learners will develop a nuanced understanding of the three pillars that sustain data-driven organizations, how to create a data-centric culture, how to avoid pitfalls in data-science projects and the nuances of digital transformation in non-digital organizations. They will be equipped with the knowledge and skills necessary to effectively lead and contribute to the building of data-driven organizations, fostering an environment that embraces data-centric decision-making and successfully navigates the complexities of digital transformation in an increasingly data-driven world.

What does it mean to be excellent, not perfect, in 2024, and why should luxury brands weave the answer into their strategy?

In a world where agility and global foresight are crucial for business survival and growth, the FUCHS case presents a compelling narrative of transformation. This case study follows FUCHS, a leading global lubricant company, on its journey to navigate the complexities of a rapidly changing business environment while staying true to its decentralized roots. The story unfolds from the company’s humble beginnings, detailing how FUCHS has grown into a global player under the stewardship of CEO Stefan Fuchs. It emphasizes the challenges of operating in a fragmented market and the need to embrace new global forces, such as digitalization, sustainability and evolving customer expectations. The case highlights the strategic pivot FUCHS makes when it created its first ever corporate strategy, “FUCHS2025,” marking a significant shift in the company’s approach to global market dynamics. A central theme of the case is how FUCHS rethinks its matrix organization and implements agile networks. This strategic move illustrates how FUCHS balances its traditionally decentralized structure with a growing need for global integration and efficiency. The case details the intricacies of these networks, particularly focusing on HR, to show how FUCHS harnesses the power of cross-functional collaboration and shared leadership. Readers of the case will gain a comprehensive understanding of how a traditional, family-led business can successfully adapt to global trends and internal challenges. It’s a tale of strategic evolution, highlighting the delicate balance between maintaining core values and innovating to stay competitive in a fragmented world. The FUCHS case is not just a story of a company, but a blueprint for businesses facing similar global challenges, demonstrating how to win in a decentralized yet interconnected market landscape.