7 pain points in holding companies and how to overcome them by automating processes
Clusters of companies did not arise by chance – behind them is a successful history of companies that expanded through organic growth or acquisitions. Their development often started from companies led by a charismatic founder or family, and over time they have grown into complex systems in which managers trained in a corporate environment increasingly take on a role. This makes them the drivers of the economy, but also brings new challenges: how to harmonize the different practices that have developed in each company individually. Behind the rapid growth – new companies, sectors and markets – often remains a network of disconnected processes, vast obligations and an “every man for himself” culture. This is where vulnerability arises: management has difficulty getting the whole picture, decisions are postponed, and risks accumulate.
Here are seven of the most common pain points – and how clusters can solve them through smart automation of business processes, while maintaining the freedom of their companies but with the necessary common backbone.
Fragmented processes
Each company does its own thing. The group loses overview and the ability to compare.
Automation ensures that once defined processes are actually implemented in practice. The tool through which the processes are modeled is also the one through which they are executed – which removes fragmentation and gives the group a single data language. This also addresses resistance to centralization: companies retain the freedom to shape their processes, while the headquarters gains the necessary overview and control. One backbone, many business practices.
Lack of group-level review
Top management has no insight into approvals, delays, open cases.
The lack of insight often stems from manual work and scattered reports: reporting is an additional effort, and data comes from different systems and is difficult to consolidate. When processes are managed through a single platform and automated, reporting becomes a byproduct of everyday work. Regardless of the differences in processes, the concept remains the same and allows for easy consolidation of data for the entire group. The result is complete visibility – from the strategic level to each individual task – which enables management to make faster and more confident decisions. From the group overview to the smallest detail.
Change of generations in ownership
Founders managed by intuition, successors seek transparency without rigid ERP rules.
Process automation allows the best practices of founders and early leaders to be transformed into systematic, implementable management models that transcend individual charisma or personal style. This way, the founders’ good practices are not lost, but become a tool for the entire organization. The second generation, who inherits the company’s leadership, relies on data instead of intuition – and automation makes it possible to have this data constantly available. Transparent data-driven management, without stifling culture.
Cross-company approvals
Approvals cross the boundaries of member companies, but systems do not.
One workflow for the entire group – decisions are made where they need to be, without administrative walls. Groups succeed because they realize at the right moment that members can share resources, good practices and services with each other. To make this work, cooperation is organized on economic principles: members provide services to each other and invoice them, which avoids monopoly and ensures market dynamics. Therefore, processes must go beyond individual companies and go beyond the mere exchange of data – the entire system should have clear points where processes pass from one member to another. One workflow across multiple companies.
Scattered processes and documents
Processes and documents are scattered, hard to find.
The process of implementing a process management system forces the group to analyze and systematize the different practices that exist in its members. During this work, insight is gained into the functioning of each organization, and then insight into the data that the different systems generate. This creates a basis for concentration and sharing of knowledge throughout the group. The result is that documents and information become easily accessible, regardless of the company in which they were created. Find any information in a second.
It's hard to take the first step
Even when there is awareness of the need for better processes, many groups are unsure where to start.
The best place to start is with simple but universal processes – general correspondence, incoming invoices and contracts. These are the so-called low-hanging fruit: frequent enough and important enough to deliver quick results, yet simple enough not to introduce too much complexity. When these are automated, the organization immediately feels the benefits: better control, faster approvals, clear records. And more importantly – people gradually get used to the process management platform, so it becomes natural to add more complex processes later. Small steps, big effects.
Regulatory and audit pressure
Different practices and incomplete documentation increase the risk of regulatory non-compliance.
Members of the same group often do not share the same regulations, because business operations go beyond the borders of a single legal jurisdiction. Sometimes there are different practices even within the same jurisdiction, so holding companies strive to standardize the way they work through joint legal departments and internal audits. It is crucial that the system enables compliance and common standards, but at the same time leaves room for flexibility for individual members. That is why OWIS does not offer pre-defined regulatory templates, but rather provides records, traceability and an audit trail that can be adapted to different regulations. Since most regulations share similar principles, it is possible to achieve compliance without forcing a specific norm. Auditors and regulators get a neat, transparent trail, while the group retains flexibility. Audit-ready business, adaptable to any regulation.
Conclusion: growth without chaos is possible
Successful groups know how to balance: freedom for the companies, overview for the group. Without this balance, growth means chaos. With it, growth means strength and resilience. We have seen all this through more than two decades of working with holding companies and groups, where it has been shown that this very approach is key to sustainable growth. That is why it is important that when choosing an automation tool, we methodically approach all the challenges and choose a solution and implementer that can address all the aforementioned pain points, ensuring sustainable growth and long-term value.