
Niklas Häger
Selected engagements
06. Moving Business from Denmark to Sweden
Scope and size of the project:
50 FTE
Revenue approximately EUR 20 million
Challenge
The assignment started with an ongoing relocation of production from Denmark to Sweden. A supply structure had already been established, including a mix of local production and distribution to serve Danish customers.
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The underlying assumptions had not been fully tested. As the work progressed, it became clear that the business case was incomplete. The required investments were higher than expected, and the operational setup did not support the intended performance.
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There were significant differences between the two operations. Product portfolio, service levels, and company culture were not aligned. Profitability had been overestimated, and the complexity of running the combined structure had been underestimated.
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The response required immediate action. The organisation was reduced to a more sustainable level. Leadership alignment was prioritised, with a focus on creating understanding across the two environments. As the structure was simplified and clarity increased, losses were reduced.
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Despite these efforts, the project could not be justified. European management chose to discontinue the initiative, and the operation was closed.
Lesson
Due diligence determines the outcome before execution begins.
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A relocation or expansion decision must be based on a complete and tested understanding of cost, capacity, demand, and operational constraints. Missing details at this stage become structural problems later.
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There is a point where continuation is no longer the right decision. Recognising it requires discipline. Ending a project after time and resources have been invested is difficult, but necessary when the underlying conditions are not in place.
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Clear communication with owners and stakeholders is essential in these situations. The viability of the project must be described as it is, including what would be required to make it work.
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Execution includes the ability to stop.
Final reflection
Not every project should be completed.
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Knowing when to withdraw is part of maintaining control over the business.
50 FTE
​Scope of project
EUR 20 MILLION
Revenue
3 MONTHS
Project Duration
MOVING BUSINESS
Project Type
