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Translating an M-DAX Group Strategy into Functional Strategy and Execution

Industrials & Technology

Case

A German M-DAX company faced a fundamental challenge: its clear group strategy, focused on decentralization, cost competitiveness, and structural flexibility, had not yet been embedded in a key central corporate function. This function was too centralized, insufficiently scalable, and economically uncompetitive. Together with TTE, the company translated its group strategy into a clear functional strategy, anchored in a future-ready operating model and target organization.

This strategic foundation enabled a decisive execution phase, including portfolio redesign, organizational restructuring, and a shift toward a lean, multi-partner setup. The journey required tough decisions, significant downsizing, and the redesign of more than 80 functional services. TTE was chosen to create strategic clarity at functional level, to drive execution under extreme pressure, and to co-create solutions with the organization – ensuring ownership, buy-in, credibility, and sustainable impact.

We drove - The Strategy Hattrick

Strategic Clarity
Starting from the existing group strategy, we worked with the client to translate strategic intent into a clear functional ambition. Together, we defined the future role of the central function within a decentralized group, clarifying its mandate, scope, and value contribution. This included the development of a comprehensive target operating model and the full target organizational setup. Activities were systematically assessed and assigned a clear future home: remaining central, moving closer to business units, being sourced externally, or being discontinued. The result was a board-approved functional strategy and roadmap, fully aligned with the group strategy and anchored on a targeted €80m+ cost impact over a five-year horizon.

Execution that sticks
The functional strategy and operating model became the blueprint for execution. From day one, delivery was embedded in the organization’s reality. Responsibilities and decision paths were redefined, governance was redesigned, and legacy structures were actively challenged. More than 80 services were transitioned, transferred, or discontinued while ensuring continuity for the business. TTE worked closely with the teams on-site, established robust steering and escalation mechanisms, and ensured alignment across functions – up to board level. Targeted change and communication formats made the transformation tangible and manageable throughout the organization.

Co-Creation for real buy-in
This was not a consultant-led redesign – it was a jointly owned transformation. Internal leaders took accountability for services, workstreams, and decisions. Together with the function’s leadership team and their employees across all hierarchy levels, we co-created both the target setup and the path to get there. Ownership visibly shifted to the client: leaders stepped into the “owner role”, made difficult decisions, and actively shaped outcomes. This created credibility, commitment, and long-term sustainability in a highly sensitive context.

Growth & Value

By combining functional strategy development with disciplined execution, the company established a future-ready central function fully aligned with its group strategy. Structural costs were materially reduced, targeting €80m+ savings over five years, while flexibility, resilience, and transparency increased. Business units gained greater independence and decision speed, supporting decentralization and potential carve-outs. Organizationally, the retained central unit evolved into a lean, strategically focused organization centered on governance and partner orchestration rather than operational delivery. Despite the human impact of significant downsizing, confidence and capability within the retained teams were strengthened.

With These People 

The transformation was shaped together with the function’s executive leadership, the entire function across all levels, key external partners, and representatives from business units and corporate functions. In a highly sensitive environment, collaboration was built on transparency, empathy, and a shared understanding of the strategic necessity for change. By structuring the journey into clear phases and openly addressing concerns, trust was established – even during difficult decisions. This enabled teams to take ownership, contribute actively, and shape their future roles within the new functional setup.

The results we achieved together

~12 

months transformation program


1

functional strategy 

that fully and holistically supports the Group strategy

1

functional TOM 

that enables the functional strategy delivery

80+

functional services 

redesigned, transitioned, or discontinued

~85% 

reduction of central function FTEs


€80m

targeted cost savings

over a five-year horizon

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