Case study 9

The local management team is underperforming. How does the global HQs intervene?

Company I was concerned with the quality of its European management. The team had missed targets and gave excuses that were not credible. Moreover, the local organisation became increasingly defensive and started blocking information. Global HQs did not have anyone with sufficient command of English or experience of doing business in Europe. The Company’s global CEO took direct responsibility in turning around the European organisation. First, he hired a team of local consultants and reviewed business performance and organisational health. Then, he replaced the European CEO with an experienced executive that he personally head-hunted from another European pharmaceutical company. The Company also seconded in a team of English speaking high potential managers from HQs to work with the new European CEO.