Our governance model requires acquired companies to have a well-functioning business operation and management team. Each company has its own President, who is ultimately responsible for managing the operations. A typical Indutrade company generates annual sales of between SEK 50-100 million. This amount enables each President to maintain overall control, and quickly adapt the business to customer requirements. All companies define their own profitability and growth targets, which means that while some may be cutting back on costs, others are investing in more personnel.
Acquired companies maintain their independence
Our companies enjoy considerable freedom, which promotes customer adaptation and flexibility and provides ideal conditions for retaining an entrepreneurial spirit within the organization. Moreover, the self-determination exercised by Presidents is an important factor for retaining key employees in acquired companies. In our acquisition model, acquired companies also retain their name, culture and management when they become part of the Group. Acquired companies are not divested.
Niche focus determines subsidiary strategy
Decentralisation is also a natural consequence of the Group’s niche focus. In order to develop the expertise required to create customer value, and thus profitability, the operations must be concentrated in a number of niches. However, the vast array of differences between each of these niches requires each Group company to formulate its own strategy.
Performance management and professional development
We support our companies with industrial expertise, financing, business development and performance management. Internal networking meetings present opportunities for comparison and informal exchanges of ideas and experience between our companies. Internal benchmarking is carried out each quarter in the form of a ranking list to clarify the objectives for the companies and to keep managers informed about best practices in other Group companies.
Our companies are often focused on solving customer problems – an ability that builds on the professional and technical expertise of their employees. As a result, Indutrade attaches great importance to continuing professional development in the companies, which also helps to attract and retain key employees.