A company’s management and owners usually have a clear vision of what will create the most value over time. The challenge for the management is to prioritize, make the plan more concrete here and now, and to ensure tangible results. Marcus Sandberg, with extensive experience as an Interim COO and Chief Transformation Officer in international, often private equity owned companies, emphasizes the importance of defining ‘The Top 5 Must-Wins’ for the coming months together with the management team. We spoke with him about how to drive critical transformations and projects effectively and sustainably.
Marcus Sandberg, has a background from Bain & Co., the Kinnevik group (MTG), and the technology company Net Insight, and has focused his career on strategy, M&A, change management and transformations. The common thread has been to drive the strategic agenda and the initiatives with significant impact on the company’s growth and value creation. In recent years, he has been working on an independently basis.
“I am driven by working with inspiring people and challenges; I am genuinely curious. Being able to support companies whose future is directly affected by major technological shifts such as AI and cloud solutions, more sustainable business models, and the digitization of entire customer flows is very rewarding and appealing to me. As an Interim Manager, I naturally find myself in contexts where change is happening, and it energizes me!”
How do you mobilize an organization, ensure that everyone understands the direction, and guarantee results? These questions are especially important for Private Equity-owned companies with a clear agenda and focus on value creation.
With your extensive experience in driving change, how should corporate leadership think to ensure they deliver in line with the long-term plan?
“The first question should be – ‘What are the critical initiatives here and now?’ It’s better to focus on the most important initiatives and ensure actual results there, rather than underdelivering on all fronts. The process of prioritizing should involve a broader group to get everyone on board. Research by Nobel laureate Daniel Kahneman shows that individuals allowed to influence a choice value the outcome five times more than those who do not have that opportunity. I am a strong advocate for communicating critical initiatives to the entire organization for clarity, full transparency, and buy-in.
To increase the power of implementing critical initiatives and changes, in some cases, it is a success factor to bring in an Interim Manager who can see the overall picture and drive prioritized initiatives. This person can have a line role or a program and/or project management role, ensuring that initiatives are implemented in line with the long-term strategy and timeline.
When I was Interim COO at Sortera, owned by Nordic Capital, the long-term value creation strategy was clear with several focus areas, from which we selected five to six initiatives that we prioritized with clear owners and the right resources. Prioritized initiatives included the integration of an acquisition, a future process facility, the rollout of digital customer solutions, and the reuse of certain materials. We also set up a framework for ongoing work and reporting. It’s important to create ways of working that persist over time; when an interim manager leaves an assignment, the organization must be able to continue working in the same spirit.”
One of the major challenges in driving significant transformations is that it must simultaneously be “business as usual” and it can be difficult to balance daily tasks with a change project. To provide structure to the organization and ensure successful change, it is sometimes necessary to bring in an external resource with the right skills, experience, and leadership. Another advantage of accelerating and ensuring progress in this way, according to Marcus, is that it creates an opportunity to demonstrate concrete results, something that significantly contributes to internal engagement in the long-term plan.
Can you tell us more about the benefits of engaging an Interim Manager in critical transformations?
“All changes must be owned by the management and the broader organization, but as an Interim Manager, you can support and ensure results. In addition to overseeing the overall picture, you often take direct ownership of certain initiatives and drive them very operationally. In previous assignments, for example, I was responsible for a commercial initiative to drive sales growth in a nearby market segment, a post-merger integration (PMI) of an acquisition, an evaluation of concrete business opportunities, and M&A processes. As an Interim Manager, you must quickly identify the key issues and what actually creates value. You act as an advisor to the CEO and the executive team with an outside-in perspective and can address things that others may not dare to, question old truths, and be an important sounding board. Often, the CEO needs someone to talk to who is not directly tied to the organization.
To succeed as an external change leader, the personal aspect is crucial – building trust, establishing relationships, and becoming an accepted member of the team. To earn the trust of potential skeptics, it’s crucial to demonstrate an understanding of their challenges and the specific value you bring.
An Interim Manager also has experience in driving change in a structured and efficient way. Change management is basically the same, regardless of industry, with similar methodologies, priorities, and follow-up models. This allows me to quickly enter a business, understand its challenges, and what needs to be done. I can use my previous experiences and knowledge, eliminating the need for a lengthy start-up phase. A key aspect as an interim is to reuse knowledge.”
Given the current uncertain situation in the world, how should owners and management approach considerations regarding transformation and expectations for outcomes?
“I would say that in these times, it is even more important to ensure progress and tangible results related to strategic priorities, whether it relates to efficiency, growth, or digital transformation. With the reality of today, companies and owners cannot afford to lose six months of business-critical changes due to a lack of resources or competence. Additionally, the management probably has even more to deal with in the daily operations right now. External support is therefore a type of insurance, someone who can ensure that results are truly achieved on time and in accordance with the long-term strategic plan.
The advantage of bringing in an Interim Manager is that this person will sit on the inside, as part of the organization, working cross-functionally, horizontally in the executive team, and vertically at all levels. Driving change primarily involves leadership, and you get a completely different commitment and ability to achieve results when you are part of the team.”