There was a lack of transparency and trust in local management in the subsidiary of an Austrian group with production in the Czech Republic with over 1000 employees working in multiple shifts on site.
The management of the parent company did not have a clear picture of the situation on site and was accordingly unsettled and dissatisfied. Corporate standards did not appear to be implemented. In the past few years, the Czech plant has always achieved an acceptable positive result every year, but for some time the financial ratios have deteriorated.
Country-specific culture and language obviously formed a barrier between the subsidiaries and the HQ. The position of COO in the Czech Republic had never been filled before and was previously held by the local CEO in personal union. The deployment of a consultant sent by the HQ for several months did not lead to any significant improvements.