Fluss AG, the Swiss parent company of FWD (Fluss Washer and Dryer Division), having 51,000 employees was established in 1947. Fluss specialized in design and manufacture of large households Appliances and also expanded its business across the globe. FWD division was divided initially into three geographic regions: Asia, Europe and the America. After becoming Director of FWD in 2004, Johannes Linden restructured the geographic regions from three to six ( i.e. South America, North America, Europe & North Africa, China & South East Asia, Japan-Korea & Australia and India & Indonesia) to get all aligned with the strategic division for FWD. After implementing the new regional structure, Linden created the Global Executive Committee (GEC), which consisted of his corporate staff and six regional directors, to make strategic and major investment decisions and to provide necessary support and expertise to Regional Directors to execute divisional strategy. Outside the GEC meetings, Linden also kept close contacts with the RDs and participated actively in the discussions and developments of the annual business plans for the most country managers. Due to lower material cost in 2011, Linden faced a challenge whether or not to change targets of sales for each country to reflect new price(lowerprice) as GEC members were not very supportive with the new targets for their regions.
Q 1- How effective has Linden been in leading the GEC?
Johannes Linden created the Global executive committee (GEC), which consisted of his corporate staff and the six regional directors (RD) with him at the top of hierarchy. The best practice to handle global team it to stay connected and meet the team frequently and address issues as soon as u can. So, Linden agreed with GEC to meet three times a year in Basel to focus on operational matters and important initiatives, and once a year at a regional headquarter to discuss on long term strategy. He always reminded the corporate