A European infrastructure group operating through a network of agencies in several countries, with a project-based approach and sometimes low margins.

Margin calculation methodologies varied between countries, consolidation was manual, and group management lacked visibility into the true sources of profit and loss. The ability to prioritize development was limited.

Before implementing any tools, a clarification of the target management model and harmonization of methodologies across countries were necessary.

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The fundamental challenge was harmonizing margin calculation methodologies across countries: how could the profitability of agencies operating in different contexts be compared when each country applied its own calculation conventions, making any consolidation misleading?

Without harmonization, group management could not identify the true sources of profit and loss, nor objectively compare the performance of entities to guide development or divestment decisions.

The objective was to build a system that would:

• define and deploy margin calculation methodologies common to all countries,

• calculate comparable margins by agency, by country, by project, and by activity,

• automate multi-level consolidation with a reliable view of group profitability.

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The project required both diplomatic and technical work: each country was convinced that its margin calculation methodology was correct, and that other countries were "cheating" by presenting incomparable results. We organized workshops bringing together the Finance Directors of each country to collaboratively develop common rules.

Our support focused on:

• defining a group margin calculation methodology, documented and accepted by all countries, with clear rules on the treatment of indirect costs;

• supporting local teams in adapting their processes to the new rules, with a transition period to measure the impacts;

• building a multi-level consolidation providing a reliable view of profitability at each level (agency, country, region, group).

Group management now has a factual basis for managing performance and guiding its development or divestment decisions.

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