Background 

Heidelberg Materials, with five main business lines, faced a persistent issue: improving the relationship between its Asphalt and Contracting divisions. While successful and interdependent, the two teams operated with conflicting goals: Asphalt prioritising high margins and Contracting seeking low costs. This silo mentality led to inefficiencies and missed opportunities despite attempts over a decade to resolve the tension. A fresh approach was needed to foster collaboration and maximise opportunities.

Approach 

Heidelberg first interviewed regional directors to identify key challenges. The senior leadership team then realigned key performance indicators (KPIs) to drive collaboration, focusing on shared objectives rather than competition.

Next, Heidelberg organised regional gatherings across four key areas: the North, Midlands, South East and South West. These events brought together 100 employees, including people from both divisions. The sessions began with workshops focused on understanding the current state of interdepartmental relationships. These were followed by evening events designed to build personal connections.

“Heidelberg Materials improved collaboration between business lines, leading to a £2 million profit boost and a significant cultural shift toward teamwork”

The second day featured playful yet focused activities aimed at fostering a ‘one team’ mentality. Teams then developed action plans for improving collaboration, with the leadership team’s role shifting to supporting these ground-up initiatives. The difference in this project was clear: the actions and ideas came from employees, not management directives.

Outcome

The programme had a profound impact on Heidelberg’s internal culture. The relationship between the two business lines improved dramatically. Language shifted from negative generalisations to more collaborative discussions, with individuals now recognising the challenges each department faced. Joint success stories were shared across the business, fostering a sense of unity.

Operational efficiencies improved significantly. For example, Asphalt plants are busiest and most profitable in the mornings. Contracting now schedules work to avoid peak times, using production capacity during quieter periods. This simple but impactful change had previously gone unnoticed. Additionally, communication has improved, reducing misunderstandings and conflicts. Employee engagement rose by 14%, with teams reporting a stronger sense of camaraderie and satisfaction.

Financially the project contributed to an estimated £2 million increase in profits, thanks to fewer errors and improved productivity. The effectiveness of the relationship between the two divisions, which was initially rated at 5.1, rose to 7.8, with aspirations to reach a 9. This shift towards a more collaborative culture has resulted in record profits for both business lines and has laid the foundation for continued success.