The result from our work with Sveaskog
Strong growth
- +1248 MSEK Operating profit (4% over target)
SVEASKOG in brief
The challenge
Sveaskog is Sweden's biggest forest owner with around 14 per cent of the country's total forest area. Sveaskog supplies logs, pulpwood and wood chips to the Swedish pulp, paper and saw mill industries; biofuels to energy companies and it leases land for wind power, hunting, fishing and nature tourism.
Sveaskog's challenge in the autumn of 2016 mainly concerned creating greater focus on financial performance drivers, increasing knowledge sharing within the organisation and implementing and benefiting from identified income and productivity potentials. This was in order to achieve the ambitious profit targets set by Sveaskog’s owners in the business plan..
A clear CONSENSUS
The solution
In its planning and monitoring, Sveaskog differentiates between the boundaries the organisation must remain within and the most important extension to be achieved. This creates a clear focus for the entire company, while across-the-board management of the matter is made possible.
In the company's business planning process, Sveaskog's Group management establishes priorities one year in advance. The priorities act as input values for the departments and operational units' business planning, providing a common view in the company of what is prioritised for the following year, and why.
Today, Sveaskog spends less time planning and more time following up the plans and objectives adopted. This makes sure that the priorities adopted for the business plan take real effect in the organisation, and that decisions on activities are adapted based on a unit's or department's performance.
Strong growth
The result
Targets exceeded
Sveaskog's main priority for 2017 was to achieve an operating profit of at least SEK 1,200 million. This target was exceeded by 4 per cent, equivalent to SEK 48 million.
In addition to exceeding the financial performance target and today's working method of systematic, constant monitoring, Sveaskog enjoyed a number of other positive effects. Today, financial controllers have a more prominent role and help the organisation with analyses. It also enjoys greater consensus and participation at both the executive management level and among employees regarding common objectives.
- +1248 MSEK Operating profit (4% over target)
TIC support meant we were soon using a common language and methodology for the uniform management of activities at different levels in the company.
Deputy CEO and CFO Sveaskog
Contact person
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Johannes Ingerby Performance Management expert Johannes Ingerby is a partner and performance management expert at The Information Company. Johannes has more than 20 years' experience in performance management, business development and strategic change management. johannes.ingerby@theinformationcompany.se +46 734 44 55 90 LinkedIn
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