Nordea Bank has emerged as the largest financial group in the Nordic area. As part of their consolidated approach, Nordea top management has made the tactical decision to outsource several the peripheral actions of the company's, for example cleaning, security and catering, in order to focus more on the core business, banking. In Denmark, Finland and Sweden, the peripheral actions have been outsourced to one of the leading players in the facility management (FM) marketplace, the global service provider ISS. On delivering of facility services, the relationship between ISS and Nordea has a very long history, but a brand new contract was successfully concluded by the end of 2010. Thus, ISS was picked as Nordea's FM associate and also would always be supplying Nordea with a range of supportive services across 20 locations in the Nordic area.
From 2010 and onwards, an important substitution was made to an outcome-based focus in the contract, where it was the quality of the delivered services which were specified rather than how to accomplish this degree of quality, i.e. the input signal. The change into an end product based contract was considered a brand new start of the relationship that necessitated significant changes on both sides in governance structures, organization of work, terms of mentality and, not least, adjustments of anticipations. Both the perspective of the customer (Nordea) as well as the provider (ISS) are presented and contrasted in the case. The case examines the organizational, financial and managerial challenges matched by a global company outsourcing peripheral activities to a worldwide facility supplier. A lot of the tensions associated with the various objects of the two businesses and also the cooperation are exemplified in the instance, and so is the shared learning and building of trust in the relationship.
PUBLICATION DATE: March 28, 2012 PRODUCT #: W12890-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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