- Wolfgang, thanks a lot for taking the time.
When we started together, I think EnBW was doing record
results, and still you decided
to launch a transformation program.
What drove you to that decision
or what was the trigger point?
- We were going from a normal phase into
a huge investment phase, and when you grow very fast
or you have to grow very fast, efficiency is not
your main topic, actually.
And we created
that program in a different way than normal restructuring
programs and
therefore we were looking for different methodologies
and different ways of doing such a thing.
And I think we have found quite a good one.
- So we had very conscious decisions on
where do you reinvest,
but also how do we finance that investment out
of other areas where we need to save, which is
the core of the zero-based budgeting method.
- Cost cutting was exactly not the plan.
We wanted to do something different,
and zero-based budgeting leaves you room
for getting the buy-in of the people
and also doing it more thoroughly than when you do
a top-down cost-cutting program.
And therefore we had a lot of opportunities
in quite a long phase of doing those efforts.
Zero-based budgeting brings you the possibility
to invest in other things.
- Can you summarize a little bit where the program led you?
What is the outcome?
And also what's a little bit the way forward now
for the next steps in performance and growth?
- First of all, we had efficiency gains in an amount
of more than 300 million euros permanently.
And that is very important for me,
because we were not gaining quick results.
We wanted to have efficiency gains
that are really working permanently.
We also changed a little bit the culture
of looking towards efficiency within EnBW,
and now we are talking more about a performance
culture that is necessary in order to accompany growth.
- What do you think are the key success factors
that made this program what it is
today?
I think one of the key success factors
is that you are not in a hurry.
It's not like a normal restructuring program where
you fight against the clock. It's something different.
You have to be constantly on the priority
for improvements,
but you have to give people room to find the right way
for such improvements,
and at the end, you must not lose your focus.
- Wolfgang, thank you so much for the insights
and the continued collaboration.
- Thank you. My pleasure, Constantin.