Stuttgart/Karlsruhe. It is not quite three weeks since the Board of Management of EnBW Energie Baden Württemberg AG presented its new strategy to the Supervisory Board – which now heralds the second step towards strategic realignment: The EnBW Supervisory Board gave its approval in its meeting yesterday to the organisational restructuring and the associated new "ONE EnBW" management model. The path for this decision was smoothed beforehand by a consensus reached between the company, the employee representatives and ver.di (German trade union) on a collective agreement concerning employee representative structures. "The Supervisory Board greatly welcomes the outcome of the negotiations, which is a synthesis of the different interests of the respective parties in the interest of the company", said Dr. Claus Dieter Hoffmann, Chairman of EnBW's Supervisory Board.
"Our aim is to strategically realign EnBW towards the future with an efficient, powerful and cutting-edge organisation structure. Yesterday's decision lays the foundations for this goal and underscores EnBW's determination to focus consistently on the market and on its customers. This step also shows that management and the employee representatives are acting responsibly and all pulling together. I would like to extend my warm thanks to all parties involved", commented Dr. Mastiaux, EnBW's Chief Executive Officer.
EnBW's new structure will considerably reduce the Group's complexity. With this in mind, six core companies are to be combined together, a new management model established and the financial organisation changed. In future, the Group will be managed via business units and functional units. Core business activities will be concentrated under the business units. The functional units will assume groupwide support and governance tasks. The model of a central holding will be dispensed with, along with numerous company executive and supervisory bodies and functions in top management. The employee interests within the new corporate structure are secured through the collective agreement in terms of content and structure.
Streamlining the executive and supervisory bodies and committees as well as management levels is expected to enhance EnBW's efficiency considerably in the double-digit million range. Decision processes will also be greatly accelerated and the high administrative outlay to date, partly addressed by numerous different committees, will be significantly scaled back under the new structure envisaged.
The restructuring associated with the new management model is to commence immediately and be implemented before the end of the current year. The new management structure as well as the business and functional units are be defined in the coming months. The process of corporate restructuring is to be completed in the first half of 2014 with the combination of EnBW's core companies, specifically EnBW Trading GmbH, EnBW Operations GmbH, EnBW Vertrieb GmbH, EnBW Systeme Infrastruktur Support GmbH and EnBW Erneuerbare und konventionelle Erzeugung AG, and their integration into EnBW AG. The aim is to implement an integrated group model so as to take account of the new "ONE EnBW" management structure, which will be aligned towards the business and functional unit model, independent of legal entities. Legally autonomous companies will only be retained for special strategic, legal and fiscal reasons. Examples include legal requirements, as is the case with the grid companies EnBW Regional AG and TransnetBW GmbH, as well as fiscal and strategic reasons, such as with EnBW Kernkraft GmbH for instance, or plans for a third-party participating investments.
Frank Mastiaux: "The new management model is intended to send a powerful and effective signal for our new start together and promote an even stronger team spirit among all EnBW employees. Responsibilities will be regulated more transparently and, at the same time, give managers and employees more scope for entrepreneurial activity. All workflows and processes will be aligned to forwarding the uniform interest of the company. Our intention is to enable our customers to perceive us more strongly as "ONE EnBW" in future.
Within the integrated company, the business units will each be headed by one business unit manager and one commercial manager who will bear responsibility. Functional units will all have one manager each.
The Board of Management will focus on managing the Group strategically and on managing the business and functional units by applying stringent performance management and control in material matters. The Board will continue to represent TOP issues externally. The allocation of tasks at Board of Management level will be consistently structured in line with either business units or functional units.
In the interest of promoting the concept of performance, the consistency of the financial organisation will be ensured by having all the commercial managers of all business units report directly to EnBW's Chief Financial Officer.