Learning Transformation: Building the Capacity for IT Supported Change

Organization Background

Tri-Divisional¹ is a mid-sized multinational organization headquartered in Western Europe. Founded more than 150 years ago, the organization has since grown to encompass three independent lines of business operating in three very distinct industries. Although somewhat weighted toward neighboring countries, Tri-Divisional’s revenue base and workforce are globally distributed (Figure 1). In the five years leading up to 2008, the company experienced relatively consistent growth in both sales and profitability. Sales over this period rose from approximately 4.2 billion USD to almost 6.3 billion and profitability moved from a loss of 150 million in 2002 to a profit of 322 million by 2007.² However, the 2008 financial crisis hit the organization hard with 2009 sales falling to 3.4 billion. This precipitous decline in sales resulted in a loss for the year of almost 330 million. In an effort to respond to the situation, substantial restructuring and cost cutting was undertaken that led to a workforce reduction of approximately 12.5% and a reduction in operating expenses of approximately 35%. Despite their apparent severity, these changes placed the organization on a solid trajectory for recovery in the 2010 fiscal year (Table 1).

Figure 1.

Sales and employment by geographic region