The experience base has been increased and can benefit others. External inspiration and sparring is often the strongest driver of change and value growth.
Press release November 8, 2012
Kohberg offensive
Kohberg aims to be the customers’ preferred supplier of bread, no matter where they buy or enjoy it. To achieve this, Kohberg merges all in all 4 companies into one strong company and assigns a new CEO who knows the industry in depth and has a proven track record.
JO Informatik is an example from my own board portfolio – a small Danish software company that designs and develops digital archives and software for digital administration. Three years ago, the founder and CEO Jesper Olsen decided to establish a professional board of directors and since then the value creation has accelerated significantly. Revenue has grown 66% over the last two years, a negative result has turned positive and the company consistently executes on the strategy, which recently has paved the way for an entry into the Norwegian market.
I would like to share some selected highlights from an article on JO Informatik’s experiences:
The book’s 250 pages are easily read, but it does certainly not make it worse. It is at eye level and catches the reader with concrete punchlines - a book that you do not easily leave on the bookshelf.
No longer only about management - leadership will make the difference
The book points out new guidelines for the modus operandi of the board. Without slackening control, more focus must not surprisingly be forward-looking, which puts greater demand on the board leadership itself. It is no longer only a question of management with focus on plans, control and doing the right things. Now leadership it is evenly important to ensure execution and that right things are done right. The book provides concrete input for the board composition based on both individual professional skills and collaborative skills relating to the team in question. A steady stream of real life examples are turned into checklists for the board’s own reflections, and not least its self-evaluation.
Clear trend on board professionalization and competent teams
Private equity funds have long been at the forefront when it comes to professionalization and composition of board teams based on business challenges and competence needs, rather than classical networking relationships. With a typical exit horizon of 4-7 years and clear ambitions to maximize value creation during the ownership period, it has been natural to introduce new management paradigms from top to bottom of the management systems.
With a typical exit horizon at 4-7 years and clear ambitions to maximize value creation during the ownership period, it has been natural to introduce new management paradigms from top to bottom of the management systems.
Examples of this are, when private equity funds already during the acquisition process have made extensive fact analysis, so they up front can set the right board and management team to execute the strategic and operational tasks as defined for the ownership period. Or they turn from comparing oneself with the nearest competitors to world class benchmarking, and long democratic decision making processes are replaced by short fact based decision making processes. Last but not least, their ability to handle large amounts of complexity under very tight deadlines.
With the right competencies on the board team, it is also natural and moreover fruitful, that boards engage more closely in management sparring and business development projects - of course with due regard to the principles and recommendations for good corporate governance.
However, I have also noted that the market place naturally has led to a continuous flow of creative business models, where companies build on profit based network activities and board educations.
Competition is strong with no shortage of cold canvassing with varying quality and different price offers for the same product from the same provider – some even offer education with a guaranteed board seat upon completion. I am not saying that the market lacks quality educations and networks, but transparency is yet low as to quality and price, and thus value for money.
Pressrelease June 29, 2012
Mads Middelboe joins as of today Kohberg Bakery Group A/S as Chairman of the Board and supersedes the founder of the KOFF Group Preben Fogtmann. The new chairmanship is part of a gradual generational handover, which during recent years has transferred the KOFF Group to Preben Fogtmann’s two sons Jesper and Per Fogtmann.
Kohberg Bakery Group is the mother company for Kohberg Brød A/S, Kohberg Foodservice A/S og H.C. Andersen Bagergården A/S, and Mads Middelboe enters as chairman for these companies as well.
Mads Middelboe is 52 years old and has served 8 years as CEO for TDC Mobile Nordic and Group Management Board Member at TDC. Previously, he had a 15 years long fast moving consumer goods career with SCA Hygiene Products AB, where he before joining TDC was responsible for European Customer Management.
