Many executives are experiencing loss of agility in organizational structure and management system within their company which no longer comply with business strategy and objectives and do not contribute to enhancing investment attractiveness.

If functions and roles distribution within your company is non-transparent, or there is no distinct interaction between management levels, the process of approving and making management decisions is time-consuming and inefficient and finding those in charge of implementing the decisions made poses a challenge, this may indicate inefficiency of organizational structure and management system.

If this is your situation

• You believe your company’s organizational structure and management system no longer comply with its business strategy and objectives
• The current distribution of responsibilities is lack transparency and effectiveness
• You find it difficult to allocate decision-making responsibilities
• Units within your company have overlapping functions
• Interaction between different management levels (e.g. between the corporate centre and subsidiaries or affiliates) lead to conflict
• Senior executives spend too much time discussing minor operational issues
• Your management’s decision-making process slow and ineffective
• Potential investors are unimpressed with your corporate governance

How we can help you

Our services include identifying the most effective operational model and organizational structure for your company as well as the distribution of responsibilities among executives and across management levels, thereby rebuilding the corporate management system. We also assist in handling specific issues, such as transferring for financial purposes the functional and administrative accountability of a subsidiary to the parent company.

Our main services include:

Identifying an asset management model

A management system is part of the overall business structure of a company, which also includes its asset portfolio, ownership structure and the structure of operations between a company and it’s subsidiaries.

Our review of a company’s structure is based on its total assets (including overseas holdings), as management functions must be arranged according the company’s assets. We identify a model for managing operating assets based on economic viability, tax efficiency and investment attractiveness. We also prepare a transition plan for the target management model.

Developing a central structure for operations

We make recommendations for selecting a model for central corporate operations (operator, strategic controller, strategic architect, financial holding, mixed model). We also give advice on the role of the corporate centre within the group's business structure (e.g. a separate management company, providing management functions to the holding company, distributing management responsibilities among several companies within the group), as well as the role of organizational units and their accountability within the central corporate organizational structure.

We prepare a detailed list of primary and secondary business processes required for effectively managing the company. Based on this list, we suggest changes to the organizational structure of the corporate centre and its interaction with other management levels.

We also make recommendations on assigning specific functions to shared service centres, eliminating overlapping functions and redistributing management powers.

Distributing roles and responsibilities across different management levels

We help groups develop the tools for distributing responsibilities across existing management levels and also provide them with a legal framework for implementing these tools within their constituent companies. Set procedures for distributing authority govern the interaction between different management levels when making management decisions and monitoring their execution. The procedures cover all management decisions for a group and are relevant to the operations of individual assets.

Improving institutional and organizational management systems leads to:

• Aligning organizational structures and management systems with company objectives and strategy
• Transparency within the business’s organizational structure and an increase in investment attractiveness
• Improved management of organizational units and subsidiaries
• Increased flexibility regarding changes in the company’s external and internal business environment