Expert on the Operational Model of a Management Company

Expert consultation on the operational model of a management company in the chemical industry

✅ Background: A consulting company is implementing a project for a chemical industry company. The project involves developing a concept for the target operating model of a management company.

The goal of engaging experts is to conduct benchmarking and understand how similar tasks are solved by industry leaders: how centralized the management model is, how the management company is structured, which functions are concentrated in the management company, which remain at the asset level, and how shared service centers (SSCs) are organized.

Benchmarking Parameters:

• What role does the management company play: strategic, operational, or mixed?
• What is the level of centralization of functions within the management company and SSCs?
• Which functions are represented in the management company and to what extent are they centralized?
• How are responsibilities and authorities distributed between the management company and operating assets?
• What is the structure and staffing of the management company?
• What key performance indicator (KPI) system is used in the management company?
• How are SSCs organized: which functions are transferred, what model is used, what is the coverage of the service center?

Functional Perimeter:

• Production and Maintenance, Repair, and Operations (MRO)
• Human Resources Management
• Finance and Economics
• Accounting and Taxes
• Investments
• Commerce: Procurement, Sales, Logistics
• Information Technologies (IT)
• Occupational Health and Industrial Safety (OHIS)
• Internal Audit, Risks, and Internal Control

For functional areas, it is important to discuss:

Production

• how the production function is organized: centralized, decentralized, or hybrid model
• which production management functions are concentrated at the management company level
• which functions remain at the enterprise level
• how authority is distributed between the management company and enterprises
• how production planning, standards, efficiency improvement, and best practice sharing are organized
• what KPIs are used and what effect centralization or standardization of production functions has yielded

MRO

• how the MRO function is organized
• which MRO functions are in the management company and which remain at the enterprises
• is there a unified MRO function or competence center
• how MRO strategy, maintenance planning, contractor management, spare parts procurement, and equipment reliability management are organized
• what KPIs are used to assess MRO efficiency
• which functions are fundamentally not centralized

Human Resources Management

• how the HR function is organized between the management company and enterprises
• which HR processes are outsourced to SSCs
• is there a single HR function head or company competence center
• which processes are centralized: recruitment, training, personnel administration, compensation and benefits, performance appraisal, talent pool, corporate culture, HR analytics
• how the remuneration system, grading, KPIs, and motivation of enterprise managers are organized
• what effect has been achieved from centralizing the HR function

Finance and Economics

• how the financial and economic function is organized
• which functions are concentrated in the management company: financial planning, budgeting, management accounting, treasury, controlling, economic analysis, liquidity management, investment analysis
• which functions remain at the enterprises
• are there SSCs for transactional financial operations
• how are powers distributed between the CFO of the management company and the CFOs of the enterprises
• how budgeting, management reporting, treasury, and liquidity management are organized
• what KPIs are used and what effect centralization of the financial function has yielded

Accounting and Taxes

• how accounting and tax functions are organized
• which functions are concentrated in the management company, which remain at the enterprises, and what is transferred to SSCs
• is there a single chief accountant in the company or a unified methodological center
• how unified are the accounting policy, accounting processes, and accounting systems
• how the tax function is centralized
• who is responsible for tax planning, tax risks, and tax audits
• what KPIs are used and what effect centralization of accounting and tax functions has yielded

Investments

• how investment management is organized
• is there a unified investment function or investment block in the management company
• how are powers for making investment decisions distributed
• which projects enterprises can approve independently, and which require management company approval
• how the company's investment program is formed
• how the efficiency of investment projects is assessed
• how post-investment analysis, project prioritization, and KPIs of the investment function are organized

Procurement

• what procurement model is used: centralized, hybrid, or decentralized
• which procurement functions are concentrated in the corporate center
• which functions remain at the enterprise level
• are there procurement functions outsourced to SSCs
• how are powers distributed between the corporate center and enterprises
• is category management used
• how is supplier relationship management organized
• what KPIs are applied and what economic effect has centralization yielded

Sales

• how the commercial function is organized
• how sales functions are distributed between the management company and enterprises
• which functions are concentrated in the management company: commercial strategy, pricing, key account management, export, marketing, and others
• who is responsible for the company's key clients
• is there a unified customer base and a unified pricing policy
• how are decisions made regarding discounts and special conditions
• what KPIs are used and what effect centralization of sales has yielded

Logistics

• how the logistics function is organized
• which logistics functions are concentrated at the management company level
• which types of logistics are centralized: rail, road, sea transport, port operations, warehouse logistics, freight forwarding
• how are relationships with carriers, freight forwarders, and logistics providers organized
• is there a unified system for transport planning and dispatch
• what KPIs are used and what effect centralization of logistics has yielded

OHIS

• how the OHIS function is organized
• which functions are concentrated in the management company and which remain at the enterprises
• is there a unified OHIS competence center
• how are powers distributed between the management company and enterprises
• what policies and standards are established at the company level
• how are control, internal audits, incident investigation, risk management, training, and certification organized
• what KPIs are used and how is the effect of centralized OHIS management assessed

• Experience at the level of Head of Department or higher in one of the target companies
• Practical understanding of the operational model and principles of organizing a management company in your company: centralization, delegation of authority, SSCs
• Willingness to provide substantive answers to questions on benchmarking within the defined functional perimeter

Interested in experience from:

• PhosAgro
• Uralchem
• Acron
• EuroChem

✅ Position Levels for Participation:

• Head of Department / Function
• Department Director
• Deputy General Director
• Board Member or higher

Format: online consultation