Case Study

Danfoss Core & Clear (C)

6 pages
August 2017
Reference: IMD-7-1835

The case series documents the transformation of Danfoss from a debtladen fragmented industrial holding company close to bankruptcy in 2008 to a high performing, financially robust group with a clear unifying strategy and significant forward momentum in 2017. The case series focusses on the period 2008 to 2013, covering the first two stages in the implementation of the new strategy Core & Clear. The A case describes the crisis situation the company finds itself in in the ftermath of the Global Financial Crisis, the immediate actions taken by the new management to secure its survival, and the development and launch of a new strategy. It provides ample opportunity to assess the steps taken and anticipate the implementation risk. The B case documents the progress of the company from the launch of the strategy (Core & Clear) in early 2010 to mid-2011 (Phase I – “Get Ready” of the C&C). Significant, unambiguous steps have been taken with very positive financial results. According to the original timetable it is time to move on to Phase II (“Get Going”) of C&C, yet the executive committee (EC) are hesitating. The situation described allows for discussion of an assessment of progress and consideration of the pros and cons of progressing to Phase II as planned. The C case reveals the EC’s decision to defer the launch of Phase II – a decision made again after a further year. It provides an update on the progress of the company from the launch of Phase II to 2017 (including the launch of Phase III (“Digital Transformation”) in 2016.

Learning Objective
  • Strategy development (process)
  • The principles of change management (e.g., Kotter’s Eight steps)
  • Managing the complexity of extensive change programmes requiring synchronised progress on all dimensions
  • The role of (central) leadership in orchestrating change across a diverse and fragmented group comprised of historically independent businesses
Change Management, Turnaround
Danfoss Motion Controls, Construction and Engineering, Industrial Engineering
Field Research
© 2017
Available Languages
English, Japanese
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