Excellence Model

Our Excellence Model – the Cornerstone of E3’s Architecture

Our excellence model provides a structural and procedural framework in our quest for continuous improvement, and helps develop a common language between E3 (as the investor) and its group companies (i.e. the investees).

With E3 Group on a continuous pursuit of excellence, its operating framework is based on the tried-and-tested House of Excellence model. This model has two components: the “house” – the normative framework – on the one hand, and the rolling core process, which governs all other processes and activities, on the other.

Our excellence model provides a structural and procedural framework in our quest for continuous improvement, and helps develop a common language between E3 (as the investor) and its group companies (i.e. the investees). Even if the sub-elements of the “house” and the core process differ from investee to investee, they will follow the model’s basic structure.

The excellence model ensures continuous improvement.

House of Excellence

We have chosen the House of Excellence model to help us collect, define and design all structural and value-determining elements of a company. Every “room” in the house has its own fundamental task and requires a minimum standard for interaction, to mark the starting point for a journey of continuous improvement. Leaving out one “room” would lead to considerable dysfunctionality.

The House of Excellence is divided into three basic segments:

  • Strategic framework
  • Core value creation and support processes
  • Enablement

The House of Excellence with its rooms and contents

Basic architecture & core processes

Framework
Support
E3 strategy
Vision, mission, positioning, business model, depth of internal value creation, digital transformation, sustainability, development steps, etc.
Governance & organisation
Compliance rules, confidentiality, decision-making bodies, values, organisational & procedural structures
Strategic portfolio management

Core process
Opportunities
Development
Acquisition
Scoping, deal sourcing, M&A process (analysis/evaluation, due diligence, execution/closing)
Integration
Start, governance, leadership, structures, reporting/KPIs, enablement
Performance management
Sales offering, after-sales cooperation)
Sale
Sales offering, after-sales cooperation)

Enablement
Technology
Data, applications, integration/platforms, systems, infrastructure
Resources
Skills / allocation of resources, collaboration, culture, capital, …

Strategic framework

The strategic framework with its three rooms “E3 strategy”, “Governance & organisation” and “Strategic portfolio management” essentially defines:

  • E3 Group’s purpose and desired positioning, derived from the Group’s business concept;
  • the normative framework and organisational structure, responsibilities and authorities, but also the Group’s values, guiding principles and commitments to be followed by all employees and executives; all this, in turn, forms the operating framework for the creation and development of a corporate ethos and culture.
  • Strategic portfolio management focuses on foresighting, business development and providing strategic direction to the Group or parts of it.

Strategic portfolio management unites E3 Holding’s entire core process, both in terms of substance and value.

E3 Group has made good progress in specifying its strategic framework. E3 Holding’s strategy, comprising its three verticals, is set. Clear guidelines on organisation and governance have been drawn up. Entrepreneurial action is guided by values such as sustainability, the promotion of women and diversity, and enhancing employer attractiveness. Our framework will be refined with each new investment made.

Enablement

The foundation of the house serves to enable the entire organisation and ensure the company’s future viability. A company’s collective capabilities and opportunities are a crucial asset and the basis of its future performance. The “pursuit of excellence” is a long-term concept, which primarily aims at establishing differentiating or unique structures, including core expertise, the availability and use of state-of-the-art technology, functioning infrastructure, financial stability, and an open corporate culture based on mutual trust and respect. Achieving these goals requires systematic and continuous investments in infrastructure, future technologies, skills, and corporate culture; short-term thinking is out of place.

Core value creation and support processes

Core value creation forms the crucial middle part of the House of Excellence. In E3 Holding’s case, core value creation consists of four main processes on the first, and of 13 sub-processes on the second level, and covers all key performance drivers:

  • Acquisition in a broader sense, including scoping, deal sourcing and the entire M&A process
  • Integration
  • Performance management
  • Sale

E3 Holding core value creation process – levels 1 and 2, deliverables level 3

Industrial holding excellence
End-to-end buy/build/sell process
Acquisition phase
Integration phase
Performance management phase
Sale phase
Scoping
Deal sourcing
M&A process
Target areas for strategic investment
Sales offerings

For further details on an individual process step, please select the respective tile.

The key process steps recur in a cycle and are based on the PDCA (Plan – Do – Check – Act/Adjust) method – a method used in lean management, i.e. an iterative approach for the continuous improvement of products, people and services.

The first step in the core process is scoping, i.e. selecting a potential investment. After a successful acquisition, the investment goes through all the steps of the core process. The process steps improve with each cycle, and the pursuit for excellence becomes more defined. As the core process matures, the company operates more and more effectively, whilst consuming fewer resources.

E3 Holding has come a good way towards defining the core process, and deliverables (level 3) have been defined along the core value creation process. When completed, the results will be documented in a process manual, followed by continuous updates and improvements.