ALDIs Turbo Turnaround

New strategy, new processes, new stores, new products – and much, much more. ALDI has changed everything, and since spring 2018 over 300 leaders have participated in a tailored program.

By Pia Fuglsang Bach, September 2019

“Every day, even better.” That is how simply Finn Tang, CEO of ALDI Denmark, formulated the discount chain’s mission – and it has been the guiding principle for ALDI’s strategy ever since the top executive took charge in the autumn of 2017.

Simplicity should not be confused with ease. ALDI has undergone a gigantic turnaround where everything from organization to stores and product range has been up for change. The pace has been turbocharged – and although the group has not yet reached its final goal, every single day has moved in the right direction.

CfL was brought into the process in spring 2018, and since then over 300 leaders have participated in a tailored program.

Main Ingredients of CfL’s Consulting and Development Program

• Data and research: In collaboration with top management, CfL collected and analyzed all relevant and available data – including store visits – during spring 2018.
  
  
• Toplederseminar: Finn Tang gathered the management team, including the three regional directors, for a three-day seminar facilitated by CfL. At the seminar, five must-win battles were formulated:   

• Attractive stores
• Fresh products
• Unique spot items
• Communication of price and quality
• Winning mentality

• Expanded Leadership Group: The business management – comprising approximately 40 category managers – was involved in the process and in developing concrete action plans.
  
  
• Training and Involvement: Next came the district managers followed by store managers. During the process, all leaders and managers were introduced to the five must-win battles. They then provided input on where the challenges lay – that is, how they would meet the goals within the constraints of the resources available. The method, called brief-backbrief, created involvement and accountability.
  
  
• Continuous Status Updates: While the process moved quickly, top management and CfL continuously monitored progress: Was there a need to postpone or stop the rollout? If planned activities were not being met, it was back to what ALDI had defined as “fix the basics.”
  
  
• Meta-Learning: During the development program, CfL and ALDI management reviewed what worked and what did not – and subsequently adjusted the various training programs accordingly.
  
  
• The Personal Action Plan: The development program continued into spring 2019, and every employee received their personal playbook. In ALDI’s spirit, the playbook is simply called an action plan. In practice, it is an A5 booklet that explains how each individual can focus their energy on what they can truly influence.

Change Management in Full Operation

The tools used were drawn from classic, time-tested strategy and execution programs – with one major difference: the speed of execution.

The company changed everything while the organization remained fully operational – a performance that Ejner Jacobsen, Chief Advisor at CfL, describes as remarkable.

If I were to sum up ALDI’s turnaround, it is that the company has changed everything while remaining in full operation – and that is quite a feat.

“It is hard, and it can be brutal, but at ALDI it appears that top management has found a good balance. Finn Tang has managed to create huge engagement – both among leaders and employees,” says Ejner Jacobsen, CfL’s lead advisor in the ALDI project.