How to stand out from the crowd
Interview with the CEO: Franky Van Damme
(Beyond 4, September 2011)
The sky has been the limit for Ordina Belgium for many years. In 2008, the company was still scoring high as one of the Trends top achievers. However, in 2009 and 2010, in the midst of the economic crisis, the engine was starting to cough and splutter. The turnover was stagnating, and the profits got stuck on market average. No reason to panic, but still... The future was looking somewhat less secure than it used to. This is why Franky Van Damme started with an in-depth thinking exercise when he embarked upon his career as CEO at Ordina Belgium. Together with the management team, he looked into the company’s identity, its driving forces, its points for improvement and its objectives. The new strategy combines gut feeling with reason and can be summarised in one word: Connectivate.
Focus on the long term
Who is Franky Van Damme? “I am an industrial structural engineer and have also studied computer sciences at VUB”, he says. “Initially, I primarily worked in ICT service companies, both at national and international level. In 1997, I launched Business Architects International (BAI). This company designed software for financial institutions, for managing loans and large assets. The main differentiators were the operational and technical knowledge, the shareholders’ long-term vision, and the ability to listen to the customers. At the end of 2007, the company was achieving an annual turnover of 20 million euros with a 150-strong workforce, 85% of the turnover being generated abroad. I am still proud of what we achieved then.”
“In recent years, I have held directorships in various technology companies. I have also compiled a number of strategic studies. I am here to work with the Ordina team in order for us to achieve again in the long term.”
Lacking in pride
“I joined Ordina in February 2011, and I noticed lots of positive aspects,” comments Franky Van Damme. “Highly skilled professionals, strong technological competencies, well-organised business units, a deeply-rooted culture of entrepreneurship, a sharp focus on results, and a magnificent portfolio of customers who greatly appreciate the work supplied. However, I noticed a lack of pride in the people. There was only one explanation: a systematic lack of clarity. The question, “What does Ordina stand for?”, generated the most varied replies. There was simply no common goal. However, that is one of the main keys to success.”
“Ordina Belgium needed to clarify its position. In order to do that, we had to examine its strengths and weaknesses, and what the market has to offer.”
Working in partnership
“ICT is increasingly about creating value,” states Franky Van Damme. “Company strategy and ICT are closely interwoven. This is what changes customer demand. Business knowledge is becoming more important. At the same time, there is an increasing demand for low-cost standard solutions. Globalisation has brought about a rise in off-shoring and near-shoring.”
“Organisations are having to be much quicker at anticipating changing demands in their environment. Intelligent use of ICT has become a crucial factor for success and for organisations to achieve their business objectives. The war for talent is reaching a pinnacle. Specialisation is becoming more vital. Forward-looking ICT partners who do everything themselves, is sheer anachronism. If you aim to serve the market well, networking and partnerships should be your top priority.”
Answers to existential questions
“As an ICT company, you have to take those developments into consideration,” states Franky Van Damme. “Otherwise you end up in a downward spiral. This is why we and the entire middle management went in search for answers to existential questions. How can we give our customers added value? What exactly are the competencies, services and solutions with which Ordina can make all the difference? How can Ordina win the war for talent? And last but not least: How do we create clarity?”
“This thinking exercise has led to a group strategic plan up to the year 2014. It is aimed at services and solutions, focus sectors and adequate HR policy.”
Technological competencies
“For years now, the business units (BU) and their technological competencies have been the pillars of our success. This focus remains firmly in place. After all, you build intelligent customer applications with true experts in trend-setting technologies. However, there is still room for improvement. Until recently, the BU’s have been operating as mini-companies, with their own profit and loss accounts. Collaboration between the BU’s is now high on the agenda. This approach is already bearing fruit. By bundling our technological competencies, I can see new services being created that offer unique added value for our customers.”
Business knowledge of the sectors of industry
According to Franky Van Damme, “Building up business knowledge is yet another priority. Ordina Belgium will henceforth be aiming at very specific sectors: banks, authorities, pharmaceutical and biotech companies, utility companies, telecoms, media, trade and industry. Our aim is to approach them with specific business solutions. The basic software will be SAP, Microsoft or Quintiq, enriched with business knowledge. By working with business solutions, we can offer our customers lucrative benefits; we serve them quickly with great functionality, at no risk, and at a keen price. Our customers can rest assured that they have the support of ICT specialists who have knowledge of their business.”
Developing talent
“Ordina Belgium is therefore evolving towards a 2-component hybrid business model. One component offers a wide range of technological services. The other is aimed at specific business solutions for specific sectors of industry.”
“As a result of this new strategy, Ordina Belgium has become a place where members of staff can develop into becoming experts in several fields: technical, operational, as managers or as business specialists. The HR processes are now geared to that. In the long term, our customers will also benefit from our pro-active policy for developing talent.”
No big bang
“On 9 June, we introduced our entire Ordina workforce to this new strategy. We all have to head in the same direction. Some have been wondering whether the company is making a 45° turn. No, that is too hazardous. By doing that, you would be heading for a fall. What we are opting for is to gently adjust the course that we have set for ourselves. The focus of Ordina Belgium is gradually evolving from technology towards a combination including business solutions. Are we turning into a product-based company? Absolutely not. That is simply not in our genes. By 2014, we would however like the business solutions to generate 20-25% of our turnover.”
Regional player
Ordina employs an approximate 3100-strong workforce, 600 of whom are based in Belgium and Luxembourg. Ordina is one of the major regional players in the Benelux. Has internationalisation become a must? Not according to Franky Van Damme. “Many so-called international players are only profitable on their home-ground. Some are even shrinking back to their local market. I believe in making choices and to really go for them. Regional players do have their part to play.”
“Does Ordina not operate outside of the Benelux? Yes, it does. We assist quite a number of customers far beyond our national borders. We do this with our own personnel, or through collaboration agreements with major local players.”
Connectivate
“This brings me back to the essence of our new strategy”, concludes Franky Van Damme. “The world is in a constant state of flux and is globalising. To remain operational, companies and organisations have to become much faster at anticipating changes in their environment. Ordina aims to help organisations achieve their objectives with intelligent ICT applications and boundary-breaking collaboration.”
“Our marketeers have thought up a fantastic new word for this. Connectivate. To make connections and to set things in motion. To make our customers proud of how their ICT can get things moving, and to make our consultants proud of Ordina.”