The successful fusion of two cultures

Molio – the construction knowledge center has effectively merged two corporate identities and created a strong organization

Af Sofine Høgedal, CfL, april 2019

One of the great challenges for Molio – the Construction Knowledge Center – was to bring together two cultures from Bips and Byggecentrum. When the two companies merged to form Molio, each organization came with its own ideas about the goals and future foundation for the new organization. Strengths had to be identified, and weaknesses left behind.

"Our challenge was also our plus. We were two cultures – one strong in business and organization, the other strong in networking and development. We had to merge these elements securely into the new organization and create a common culture that would make us stronger," explains Jørn Vibe Andreasen, Managing Director of Molio.

Upon the merger, the management decided that Molio should undergo a fundamental strategic analysis of the organization, which became the basis for a three-year strategic plan that would steer Molio strongly through the fusion.

"We wanted a partner to help us with the process. We needed external eyes that could look objectively at our strengths and weaknesses. The partner had to have the entire strategic toolbox and be able to follow us from start to finish during the strategy development. Our choice fell on CfL, which has the entire toolbox and is always up-to-date with the landscape," says Jørn Vibe Andreasen.

Strengths: Data and Digital Tools

Molio is a knowledge center for the construction industry, with the purpose of strengthening companies’ competitiveness within construction, civil engineering, and operations. In early 2017 — one year after the merger — it was time to assess the organization’s strengths and weaknesses. The challenging process of phasing out work areas had arrived for the new organization.

"With CfL’s help, we gained complete clarity about where we want to go. Having an objective partner really helped with the tough discussions about what to phase out — which is always much harder than choosing what to keep or add. We had those discussions with CfL playing the role of the bold voice at the table, challenging us on our assumptions," says Jørn Vibe Andreasen.

Molio is strong in data, digital tools, guidelines, and structures — elements they were eager to maintain after the merger.

In collaboration with CfL and the leadership team, these strengths were viewed in a broader market context. Analyses were conducted and new scenarios developed to map Molio’s market position. This provided a solid foundation for making both immediate and long-term strategic choices.

"Throughout 2017, we developed a flow that made us feel confident in our decisions. Now, a year into our strategy, we’ve hit our targets very well. That’s because we put in the groundwork beforehand. I’ve seen strategies built by simply adjusting old tools without really digging deep. This time, we invested the effort to build a strategy from the ground up using every tool available. In that, it was incredibly helpful to have CfL on board as an advisor. We gained access to their full range of up-to-date insights from the sidelines," says Jørn Vibe Andreasen.

Molio becomes a strong company

After a successful implementation of the strategy in 2018 and the achievement of intermediate goals, with continuous support from CfL, the organization solved its biggest challenge – to combine two cultures into a common culture.

"We have created a common molio culture, where we work more across divisions and move away from our weak areas. Synergy has been created, and the interplay between the two companies' strengths is now natural and unified in molio," explains Jørn Vibe Andreasen.

Throughout the strategic process, the organization’s ambitions and new identity became clear: The company should grow by 25% from 2017 to reach a turnover of 100 million DKK in 2020 with a profit margin of 10%, by positioning itself as the central knowledge actor in the construction sector.

"CfL sharpened us on our goals and our key areas of focus – expressed in our must-win battles – to achieve these objectives. Our goal is clear and concrete. The clarity that our goal has set for us is, and will be, very important going forward," says the managing director.

"It was absolutely the right decision for us to have an external advisor during the merger. The toolbox and the clarity that comes with having a partner who understands our unique way of operating and takes our strengths and weaknesses as a starting point have provided the perfect foundation for creating a strong organization with a robust strategy," concludes Jørn Vibe Andreasen.

Molio fusion – step by step

2016: The knowledge center Bips looked for a partner to achieve its future goals and strategy. The choice fell on Byggecentrum, which was housed in the same building as Bips.

Mid-2016: The merger between the two organizations is completed. Bips and Byggecentrum become Molio – the Construction Knowledge Center. The management decided to work with a strategic process with an external partner that would lead to a three-year strategy.

Early 2017: CfL is brought into the strategic process, and it is decided that the strategy will cover the period 2018–2020.

Early 2017 to November 2017: The strategy is developed in collaboration between the leadership group and CfL, including trend analysis, assessments of strengths and weaknesses, and scenario thinking. Based on these, goals, selections/deselections, and prioritized initiatives in the form of "must wins" were established. The objective was to achieve a turnover of 100 million DKK in 2020 with a profit margin of 10%, creating room for development and investments.

Late 2017: The strategy is approved by the board and launched.

2018: The strategy is implemented with continuous support and consulting from CfL.

Early 2019: Growth and intermediate goals are monitored. The organization has solved its biggest challenge – combining two cultures into a common culture.