Charting a New Course for Vectura: Strengthened Profitability with Interim CEO

When Vectura reached a crossroads, the board and owners made an unconventional decision: to hire an interim CEO. One year later, the results are clear: Interim leader Ken Ove Nyhus has successfully led an organizational transformation, making Vectura more efficient and profitable.

Wanted to Try Something New

During his ten years as chairman of the board, Peter Nilsson had overseen three CEOs. When the previous chief executive chose to seek new challenges, the board and owners took the opportunity to make significant and important changes to improve efficiency and profitability:

"We wanted to try something new. Interim leaders have greater freedom to make necessary changes for the benefit of the company and don't need to worry about popularity. However, we got the best of both worlds, as our interim leader also became very well-liked," says Peter Nilsson, chairman of the board at Vectura.

Impressed by the Quality of Candidates

The brief given to Peter Mollatt, partner at Interimleder AS, was to find an interim CEO who had experience working closely with trade unions, knew the regulations, excelled in production and efficiency, and could balance between being a boss and a leader.

"I was impressed by the process and how quickly they mapped out our competency needs and found candidates. In one day, we interviewed six individuals, all of whom were extremely competent and could start the next day. But one stood out," says Nilsson.

Profitability Improvement Without Increased Top Line

The man he is referring to is Ken Ove Nyhus, who was named Interim Leader of the Year 2023 at the Grand Hotel in Oslo, Norway, precisely for his contributions at Vectura. When the assignment appeared in his inbox in March 2023, he had just completed another assignment.

From the first conversation with Peter Mollatt at Interimleder to the assignment being confirmed and his initial meetings with the outgoing CEO at Vectura, it took just over a month. On June 1st, he was on site at Vectura's offices in Gjelleråsen, Oslo.

"My task was to achieve profitability improvement without increasing the top line, which involved increasing efficiency and productivity, implementing several planned changes, and collaborating with various trade unions," says Nyhus.

Smooth Transition Between Old and New CEO

One of the advantages of interim leadership is the ability to have an overlap between the outgoing and incoming leaders, notes chairman Peter Nilsson.

This rarely happens with permanent hires, where a new leader often comes in just as the former executive leaves, and sometimes even later, he believes. In this case, the overlap was three months. Additionally, Nilsson, who lives in southern Sweden, was present at the Norwegian headquarters every third week for the first four months, something he believes is crucial for a successful onboarding:

"I think the close dialogue we've had was important to ensure a smooth transition. As chairman, I probably work more closely with the CEO than most, but I firmly believe that it is the best form of collaboration," he says.

Leadership by Walking Around

The excitement is palpable when a new boss arrives at the workplace, both for the leader and the employees. Nyhus is a visible leader who spent a lot of time talking and getting to know everyone working on the line. Today, employees are accustomed to seeing him walking around the warehouse or participating in morning operations meetings.

"As a leader, I am someone who gives trust, sets demands, and communicates clearly. I believe people become motivated and engaged when they see the big goal clearly in front of them, so I spend a lot of time clarifying that for them. I am also fortunate to have an incredibly skilled leadership team, which makes my job much easier," he says.

Strengthened Bottom Line, Fewer Injuries, and More Efficient Meetings

Chairman Peter Nilsson is pleased with the results achieved after Nyhus's entry into the company:

"We are starting to get control of the big things. Now it's about fine-tuning the details. We strengthened the bottom line by NOK 15.7 million in 2023, although we still have a slightly negative operating result. We also expect significant productivity improvements this year, up to thirty percent, which will again impact the results. We are not there yet, but we are making progress every day," says Nilsson.

In addition to contributing to the strengthening of the operating result, Nyhus has implemented the group's minimum safety requirements:

"The first thing I put on when I arrive in the morning is safety shoes and high-visibility clothing. We are very strict about HSE (Health, Safety, and Environment) and have greatly improved it throughout 2023. We now have fewer injuries than ever before," says Nyhus.

He also highlights that the daily stand-up meetings have become extremely effective:

"We have achieved incredibly high quality and execution in the stand-up meeting. Here we discuss what went well or poorly the day before, what we can learn, and what has been done to correct things. We do this first in the main operation and then in the departments. This ensures that everyone is updated on what is happening and has full status on the last 24 hours and the next 24 hours every morning."

Interim Leadership is Worth the Money

Hiring an interim leader costs more than a permanent employee, but the chairman has no doubt that they made a good investment:

"I believe it's worth the money. If you bring in 'good guys and girls' who can make significant changes in a short time, it should be expensive. The less you pay, the less quality you get. That's just how it is," says Nilsson, and continues:

"Ken Ove is a skilled leader who is confident in himself, creates security in the organization, and knows operations inside and out. As a seasoned professional in his sixties, he has seen and solved similar problems before," he concludes.

After Nyhus's contract ended, the board decided to offer him a permanent position.

An Interim Leader Must Have High Stamina

Although the assignment for Vectura is Ken Ove Nyhus's first pure interim role, he has long been an interim leader in spirit and mindset:

"I have turned around several companies, and when things are going well, I tend to get a bit bored, so I move on. That's how it's been in recent years," he says, and continues:

"If you aspire to be an interim leader, you must have high stamina and the ability to see things through with strong adaptability and flexibility. Having been through tough times before helps. In a large organization like Vectura, it's important to keep a cool head and stay calm," he says.

Many Contenders

Partner and advisor Peter Mollatt emphasizes that many were vying to get through the needle's eye when they advertised the assignment for Vectura:

"Once again, we received an excellent response when we searched for an interim leader, and we are constantly reminded of how many great candidates we have in our database of over 3,000 leaders," he says, and continues:

"We received such a good response because, after thorough discussions with Vectura, we had developed a deep understanding of the type of person who would fit well in this company. I have had the pleasure of following the project from start to finish and, together with my colleagues at Interimleder AS, contributed to delivering according to the agreement and objectives," concludes Mollatt.

About Vectura:

• Vectura was established in 1995 and is Norway's leading distributor of beverages.
• The company has its headquarters and warehouse in Gjelleråsen, Oslo and employs around 200 people.
• The company reports on contribution margin, which in 2022 corresponded to a turnover of NOK 369,074 million, with a negative operating result of NOK 38,294 million.

Situation and challenge:

• Vectura needed to improve profitability without increasing revenue, focusing on productivity and efficiency.
• They sought an experienced and confident CEO who could manage operations, drive efficiency, and collaborate well with the trade unions.

Solution:

• Hiring an experienced interim CEO with expertise in operations, efficiency, and collaboration with trade unions.
• Close cooperation between outgoing and incoming leadership for a smooth transition.
• Clear leadership with a focus on trust and communication.

Results:

• Increased bottom line by NOK 15.7 million in 2023.
• Reduced injury-related absences.
• Improved meeting structures and execution.
• Transition to permanent employment after a successful interim leadership assignment.