Category Type: Insights

Energy Counsellor Seppo Ruohonen: Networks, experience, and expertise supporting VALOR’s growth

After retiring from a long career in the energy sector, Seppo Ruohonen decided to take on a new challenge and support VALOR Partners’ development and growth. At the end of June, he will retire for a second time, after thirteen years of valuable contribution.

In 2012, Seppo Ruohonen retired from his position as CEO of Helsingin Energia, now known as Helen Oy. In addition to this demanding role, he served on the boards of several major Finnish energy companies, and held advocacy positions, including Chair of the Finnish Energy (Energiateollisuus ry) and member of the Board of the Confederation of Finnish Industries (EK).

Over the course of his forty-year career, Seppo gained extensive experience in the energy sector and business management, serving in positions such as Executive Vice President of the transmission system operator Fingrid Oyj and CEO of the industrial energy group Teollisuuden Voimansiirto Oy. He also witnessed and led several major transitions in the energy industry. In recognition of his distinguished service, he was awarded the honorary title of Energy Counsellor by the President of the Republic of Finland.

Elevating the standard of consulting services

A year earlier (in 2011), Antti Halonen, Henrikki Palva, Matti Saarikoski and Raine Vammelvirta had founded VALOR Partners, a company focused on management consulting and investment banking. Their aim was to elevate the standard of consulting services in Finland. As experienced professionals, they wanted to offer clients practical, business-oriented advice taking into account the specific characteristics of each operating environment.

To achieve their goal, the founders decided to build a strong team at VALOR, bringing together professionals with varying backgrounds and experiences, united by an entrepreneurial mindset, a sense of purpose and a strong sense of responsibility.

“In addition to analytical talent, we wanted to include experts with hands-on leadership experience and deep industry knowledge,” Managing Partner Henrikki Palva explains. “In organisations, things are rarely as simple as numerical analysis alone would suggest.”

Effective collaboration rooted in trust and alignment

Seppo and Henrikki met through a mutual acquaintance, and their collaboration began quickly as they immediately connected on both a personal and professional level.

“The founding partners’ approach to consulting and investment banking seemed intriguing,” Seppo says, reflecting on the early days of the collaboration. “I was not ready to fully step away from working life, so I decided to support them in building their network and contribute deeper insight into the energy sector and leadership.”

The thirteen-year role as Senior Adviser has been meaningful for both Seppo and VALOR.

“The most rewarding part has been following how VALOR’s concept, strategy, and culture have evolved exactly in the direction the founders originally envisioned — and have consistently pursued with determination,” Seppo notes.

Building networks and expertise

Seppo’s key role has been to support project teams by bringing in expertise, providing context, and opening doors. His extensive network — ranging from political decision-makers to business leaders and investors — has offered VALOR valuable perspectives and access to important conversations.

Seppo has deepened VALOR’s understanding of the energy market and helped clarify the challenges of decision-making and leadership. According to him, a consulting assignment must always lead to concrete actions: what will be done next, and by whom, to ensure the results translate into real change.

“Analysis alone does not produce a solution,” he says. “An assessment of whether a line of thought is actually implementable, and what risks it involves, is necessary.”

Having already reached retirement age, Seppo has particularly enjoyed working with younger colleagues in a company whose approach to people and workplace culture differs significantly from the early days of his own career.

“In working life in the early 1970s, led by men who had been through the war, the leadership style was rather harsh,” he recalls. “Back then, employee well-being was not really a priority, unlike at VALOR.”

VALOR’s journey to becoming a trusted energy advisor

VALOR’s operations, industry expertise, and recognition have grown significantly since the early years. In 2024, the company reported a turnover of € 9.6 million with a team of nearly 50 professionals.

“We are a well-known player in the energy sector across Finland,” Henrikki says. “Seppo’s active involvement and deep understanding of the energy market have enabled us to take on more in-depth projects, which has been tremendously valuable for VALOR’s growth and development,” he adds appreciatively.

Henrikki continues that while VALOR brings deep industry expertise, many of the questions their clients face are fundamentally similar across sectors — whether it is refining strategy, improving operational efficiency, fostering sustainable growth, or managing mergers, acquisitions, and financing.

Retiring for a second time

At the end of June 2025, Seppo will retire for the second time. Having supported VALOR in building a strong position in the energy sector, he sees this as a natural next step.

“It has been a privilege to extend my career and apply my expertise and networks for VALOR’s benefit,” he reflects. “There is a certain paradox in working life: just when your experience is at its deepest, it is time to retire. At VALOR, I have been able to stay active without the burden of operational responsibility.”

He adds that his personal life has now reached a point where it is time to enjoy the days without tight schedules or deadlines.

“On behalf of all of VALOR Partners, I want to sincerely thank Seppo for his invaluable contribution and wish him a fulfilling and peaceful retirement,” Henrikki concludes.

Text: Catarina Stewen

VALOR recommends bold steps for wellbeing services counties – unit-based purchases will not solve systemic challenges

VALOR Partners’ recent industry reviews on the social and healthcare sector and wellbeing services counties show that many counties have implemented successful reforms, with results emerging over time. Simultaneously, short-sighted cost-saving measures have been taken by reducing outsourced services.

Management consulting company VALOR Partners has published a comprehensive annual review of the social and healthcare market and sector landscape for the past ten years. Each year, the reports also include current thematic topics accompanied by in-depth analyses. With the establishment of the wellbeing services counties, the report suite was expanded to include region-specific reviews comparing local solutions and operating models.

The key message of the May 2025 reports is that wellbeing services counties should proactively and open-mindedly pursue collaborative models that create added value for clients, as well as for the public, private, and third sectors.

This requires deep expertise in service organisation and procurement, to ensure that production methods and contractual models are economically and qualitatively sustainable, for both purchasers and service providers. At the same time, the private sector must demonstrate its ability to act as a long-term and responsible partner, not driven by short-term profit.

Elderly care service coverage is declining

Specialised healthcare and elderly enhanced residential care dominate the cost structures of wellbeing services counties. While demand for elderly 24/7 residential care is increasing, service coverage is declining.

“This issue is present in every wellbeing services county: despite an ageing population, coverage for elderly 24/7 residential care is being reduced,” says Tuomas Nenonen from VALOR Partners, who has extensive experience in social and healthcare consulting. “The private sector has significant capacity, but due to cost restraints, there has been a push to limit outsourced services.”

According to VALOR’s experience, outsourced elderly enhanced residential care services – when properly procured – are often more cost-effective and higher in quality than publicly provided services. However, in recent years, inflation and changes such as staffing requirements have created exceptional pressure to increase prices, prompting difficult negotiations between providers and purchasers. As a result, the use of outsourced services has been restricted in pursuit of cost savings.

Total costs may ultimately be higher

“In practice, a client may wait for a spot in a primary healthcare ward or end up using multiple other social and healthcare services, which can become far more expensive than 24/7 residential care,” Nenonen highlights. “When making decisions about service structures, total costs must be considered. Denying a placement does not necessarily result in zero cost for the county.”

Jussi Ailisto, head of social and healthcare clients at VALOR, suggests that a bold and innovative solution could involve outsourcing all elderly residential care services based on population responsibility, using long-term and well-structured contracts that create value for all involved.

“This kind of solution is neither easy nor straightforward to implement, but piloting such new approaches would certainly be valuable,” Ailisto says. “Moving beyond the traditional unit-based transaction model enables the private sector’s service development capabilities to be harnessed for the benefit of all stakeholders.”

Boosting efficiency in digital services

Primary healthcare has sought greater productivity through digital services such as symptom assessments, chat tools, and remote consultations. The goal has been to shift visits from physical premises to digital platforms and achieve cost savings.

“While several important initial steps have been taken in leveraging digitalisation, the full efficiency potential has yet to be realised,” Nenonen notes. “This calls for significant operational changes in care pathways, affecting the daily routines of both clients and professionals.”

Initially, the aim was to implement a nationwide Omaolo-platform, but in practice, wellbeing services counties have made independent decisions. According to VALOR’s research, several counties have implemented platforms developed by private providers such as Mehiläinen, Terveystalo, or others, while a few counties have yet to select a platform.

“Sharing best practices between counties and private operators would clearly create added value,” Nenonen says. “There is no need to reinvent the wheel.”

Ailisto adds, that private operators have spent years developing and investing in digital solutions and have built functional pathways around them. They are well positioned to support more efficient service delivery and cost savings.

Optimising total costs requires a comprehensive view

Wellbeing services counties form a fragmented landscape, with 21 regions facing different financial and structural challenges. A common denominator is weak financial performance. Solutions are being explored through larger operational units, which are expected to generate savings in the long-term.

According to VALOR’s experts, cutting outsourced services is a short-sighted tactic that may increase total costs unless broader impacts are considered. In their view, counties must significantly strengthen their strategic organising capabilities to fully leverage the strengths of the private sector within the publicly funded service system.

“The private sector makes a good servant but a poor master, as we have seen excesses, especially in pricing,” Ailisto says. “The counties procurement and service organising expertise is therefore absolutely critical. Long-term, goal-oriented contracts are needed. I don’t believe Finland’s social and healthcare system will make real progress as long as over 90% of outsourced services are performance-based.”

He emphasises that, in the difficult financial situation, counties should actively seek innovative, future-oriented, win-win-win solutions in collaboration with the private and third sectors, always keeping the overall regional budget in mind. At the same time, the private sector must commit to long-term cooperation and genuine partnership.

“VALOR Partners can support counties in understanding total costs, identifying value-creating solutions, developing organising strategies, and negotiating procurement and service contracts – this is our core expertise,” Ailisto concludes

VALOR Partners’ annual industry reviews on the social and healthcare sector and wellbeing services counties were published in May 2025. These highly regarded reviews are widely used by companies and organisations to support strategy work, onboarding, understanding the overall sector landscape, and as a source of development ideas at the regional level.

For more information, please contact: Jussi Ailisto, p 040 687 0743 or Tuomas Nenonen, 050 367 8308

Customer experiences of the industry reviews

“Provides an excellent overview of the market.”
CEO, healthcare service company

“The industry reports offer a solid framework and knowledge base for understanding the bigger picture.”
Director, association

“Social and healthcare insights into the business environment and potential background factors influencing decision-making.”
Director, biotechnology company

“The industry’s status and outlook in one comprehensive volume.”
Business Director, private equity firm

“Extremely useful, information is easy to find and clearly presented. Reliable.”
Director, association

Text: Catarina Stewen

Sustainability reporting creates value despite changes

According to recent communications, the requirements of EU’s Corporate Sustainability Reporting Directive (CSRD) are expected to be eased. However, no changes have yet been made to Finnish legislation. Moreover, the original need for sustainability-related information, and the benefits it provides, remain unaltered.

In recent years, Europe has seen significant regulatory changes concerning sustainability reporting. As of early 2024, the CSRD requirements were also implemented into Finnish legislation. Under the directive, all companies that meet the criteria for large enterprises are required to report, starting in 2025, on how sustainability matters are managed within the company, in accordance with the CSRD framework.

Unexpectedly, in spring 2025, the European Union proposed easing the regulation and postponing the reporting obligation for most unlisted large companies by two years. This has left many companies considering how best to proceed in this situation.

Information needs remain unchanged

Heikki Mäki, from VALOR Partners’ Investment Banking team, has been working with sustainability reporting since the adoption of CSRD. He emphasises the importance of actively monitoring regulatory developments while avoiding hasty decisions, at this stage.

“Even if the regulatory obligation to publish a sustainability report is temporarily lifted, the original purpose of the regulation remains the same,” Mäki highlights. “The goal was for companies to report on key issues in a comparable, reliable, and consistent manner across organisations.”

He adds that key stakeholders, such as banks, financiers, investors, and major customers, still require this information and will continue to request it in the future. It is also worth noting that for now, the Finnish legislation has remained unchanged, and the law, as it currently stands, still mandates reporting.

At the beginning of the year, voluntary reporting standards aimed at SMEs were also published. These are significantly more concise than the requirements set out in the directive.

“These standards are very clear and essentially focus on ten key topics that every company should be able to report on, regardless of size,” Mäki notes.

Voluntary reporting builds trust

Many companies have already made significant progress in preparing their reporting and are now questioning whether the effort was in vain. Mäki encourages them to utilise the collected data and proceed with publishing the report.

“Companies that voluntarily share their story, set sustainability targets, and monitor progress earn trust,” he says.

According to Mäki, this also reflects on the financial side with more favourable financing terms. Certain green finance instruments require that specific sustainability criteria are met.

“For example, in corporate transactions, emissions and social responsibility issues have long been considered as part of valuation and risk assessment. That is not going to change.”

The new voluntary standard for SMEs has been specifically designed to meet the information needs of the banking and financial sectors. Mäki believes that large companies may also scale down their reporting in this direction, at least until more detailed guidance from the EU becomes available.

Sustainability is part of quality in Finnish companies

In his work, Mäki has observed that sustainability practices in successful Finnish companies are typically of a high standard. They are closely tied to the quality of delivered products, the treatment of customers, subcontractors, and employees, as well as full compliance with applicable laws.

“The sustainability reporting requirement does not change the fact that these principles have been at the core of operations and strategies for many years,” Mäki says. “Reporting simply brings them to light.”

He points out that producing the data required by the reporting framework is not an overwhelming task. Most of the information is already available in companies, it simply needs to be structured and linked to measurable goals. However, support from an external expert is recommended at the start to ensure focus on issues that truly matter from a competitiveness and risk management perspective.

“Every company knows its own operations best, but identifying the most essential topics can still be challenging. The project easily becomes overly complex if you start tracking every detail and collecting an excessive amount of data,” Mäki explains.

“Clear guidelines and a joint reflection on what truly matter to the company, how it performs in these areas, what is communicated and how, and developing a structured process, enable the company to continue managing the sustainability reporting independently and efficiently in the future.”

Heikki Mäki, from VALOR Partners’ Investment Banking team, has been working with sustainability reporting since the adoption of CSRD.

Sustainability reporting is a strategic decision at KSS Energy Group

 
Heikki Mäki has supported KSS Energy Group in launching its sustainability reporting efforts and establishing its sustainability goals.

According to Tuulia Halmesarka, CFO at KSS Energy, the support from a partner with deep expertise in the field was extremely valuable in initiating the reporting process, as it ensured an efficient start to their work.

“Instead of an extensive orientation and research phase, the Group’s sustainability forum was able to focus its time on working with employees and stakeholders from the very beginning,” she says.

Halmesarka adds that, ultimately, sustainability work is about purposeful stakeholder collaboration and the ongoing flow of everyday actions and choices. That is where organisations should focus their resources.

Sustainability is significant in the energy sector

The recent changes regarding sustainability reporting have not affected practical measures, operational planning, target setting or decision-making at KSS Energy Group in advancing its sustainability goals. Sustainability and reporting remain particularly significant in the energy sector and are strongly aligned with the Group’s strategy. The investments toward carbon neutrality are substantial, and emission reduction targets guide operations, while representing one of the most important long-term objectives set by the owner.

“Sustainability strengthens our competitiveness in working with customers, employees, suppliers, financiers, and partners. Green financing is an opportunity we actively consider in our investments. These factors call for high-quality sustainability reporting, which can also be carried out in accordance with the voluntary VSME framework,” Halmesarka summarises.

text: Catarina Stewen

2024 Year in Brief: Another year of growth for VALOR

As we reflect on 2024, it has been another year of development and progress for VALOR Partners. Since the firm was established in 2011, growth has been steady, and in 2024, we saw an increase from €8.4M to €9.6M.

The beginning of 2024 started off slower than expected, but activity picked up in the second half, driven by major transformation projects and M&A advisory engagements. We welcomed new clients, saw an increase in inbound inquiries, and continued to strengthen our position in the market, with international engagements expanding our reach. Supporting our clients’ long-term success remains a key focus, as we work to build strong client relationships and focus on clients’ value creation.

One of the highlights of the year was the growth of our team across all levels. It has been rewarding to see new professionals join VALOR and contribute to our growth. The beginning of 2025 has been promising, setting a solid foundation for the year ahead.

Our commitment to delivering quality service is reflected in our NPS of 60, showing the trust and satisfaction of our clients. In addition to client work, we also focused on team culture, with various activities bringing us together — including a skiing trip for the whole VALOR team to Italy.

At VALOR, we believe that growth is a result of our long-term client cooperation. For our team, growth means that there is always room in the organization for those with the internal drive to develop their skills and take on more responsibilities. We invest in our people, expand our capabilities, and work to create a positive impact for our clients. By maintaining a strong and fair culture, recruiting and developing top talent, and focusing on delivering customer value, we believe that there is still a lot of room for growth in the coming years.

As we enter 2025, I want to thank our clients, partners, and team for their dedication and support. Looking forward to another year of successful cooperation and value creation.

Henrikki Palva
Managing Partner

VALOR’s popular industry reviews expand across the Nordics

For over a decade, VALOR Partners has published strategic industry reviews to support leaders and decision-makers, particularly in key areas such as telecom, energy, social and healthcare, insurance, housing and mobility. The popular business insight service is now expanding to other Nordic countries.  

The strategic industry review offers clear insights and analyses of sector development and future prospects. Compiled from multiple sources, it provides a comprehensive overview of industry trends and their impact on businesses. Alongside a detailed, fact-based environmental analysis, the review includes financial data on the sector’s companies, drawn from financial statements.

“At VALOR, we have from the very beginning focused on the best expertise, skills, and understanding in our core sectors: telecommunications, energy, and social and healthcare,” says Antti Halonen, partner and responsible for ICT clients. “Over the years, we have expanded our strengths to include also the insurance, housing, and mobility industries.”

“The starting point for our industry reviews was the realisation that many companies faced challenges in gaining a sufficiently broad overview of their industry and operating environment to conduct fact-based analyses for their strategic work,” Halonen continues. “Not all companies had the resources to invest in tailored services.”

In 2013, VALOR decided to consolidate its in-depth expertise and knowledge into a high-quality analysis designed to provide businesses with a stronger foundation for their strategic processes. Catering to a broader customer base, the review offers a more cost-efficient approach than tailored services.

An established information source to support decisions

Over the past decade, the industry reviews have become an established resource for supporting clients’ decision-making in strategic processes. They have also evolved into a standard tool for company leaders to access up-to-date information, particularly in VALOR’s core sectors.

“This enables companies to compare and evaluate their operations against peers, technological advancements, and current topics addressed in the analyses,” Halonen explains.

Halonen emphasises that customer feedback has been overwhelmingly positive. Concrete outcomes for clients have included pricing model adjustments, mergers and acquisitions, and identifying new partners.

“Real actions have been implemented based on our reviews,” he notes.

The strategic industry review, designed for the needs of senior management, is a high-quality business insight that takes a forward-looking approach and provides a comprehensive overview of a specific industry. Soon available also for the Swedish, Norwegian, and Danish markets.

Regular updates ensure accuracy and quality

Since information becomes outdated quickly, industry reviews are updated regularly—annually, quarterly, or continuously, such as district heating, and social and healthcare. This ensures that VALOR’s strategic understanding, industry-specific expertise, and market insights remain consistently up to date, guaranteeing high-quality services for clients.

“VALOR is a strongly customer-focused company,” Halonen highlights. “We aim to provide added value by staying close to our customers as a long-term advisor, rather than merely executing individual projects. This is why we invest heavily in maintaining our expertise and long-term skill development in all the industries where we have specialised knowledge and long-standing client relationships.”

Expansion into other Nordic countries

Until recently, VALOR has primarily focused on Finland and Finnish companies. However, rapid transformations across industries have necessitated expanding operations beyond national borders.

“Industry dynamics are continuously evolving,” Halonen explains. “For example, energy market connections between Finland and Sweden significantly impact prices, while international ownership in telecommunications has grown.”

VALOR aims to be a leading advisor across the Nordic region by leveraging its in-depth industry expertise.

“Our goal is to maintain a consistently high level of market understanding across all Nordic countries,” Halonen says. “Therefore, we have conducted thorough preparatory work and are now publishing in-depth industry reviews on the telecommunications, energy, and social and healthcare sectors for Sweden, Norway, and Denmark.”

He adds that this expertise will benefit both Finnish companies exploring international opportunities and international companies considering investments in the Nordic region.

The latest reviews are available at raportit.valor.fi.

For more information, please contact Antti Halonen, antti.halonen@valor.fi, tel. +358 505773180.

VALOR on Autoklinikka’s podcast: The transformation of the automotive industry affects car insurance and financing

In the latest episode of Autoklinikka’s podcast, finance and insurance expert Juha Viljakainen from VALOR Partners discusses the transformation of car sales and its impact on car insurance and financing.

The automotive industry is undergoing a significant transformation, with digitalisation and environmental concerns strongly influencing the mobility ecosystem. The Autoklinikka podcast provides insights from industry experts on future trends.

In episode #13, management consultant Juha Viljakainen from VALOR Partners, who has extensive experience in the finance and insurance industries and conducts in-depth research on the transformation of the car trade, discusses with Autoklinikka’s William Börman how new mobility services and the platform economy are affecting financial services related to the automotive industry.

According to Viljakainen, two major trends in the society are shaping the automotive and mobility services: digitalisation and sustainability. Additionally, electrification is becoming increasingly prominent within the automotive industry.

“From a business perspective, digitalisation means that every player must leverage the opportunities offered by technology, such as online services and mobile applications at the customer interface, or the implementation of artificial intelligence in internal processes,” Viljakainen explains.

Beyond these changes, digitalisation is also having a broader impact on service value chains. For instance, digital services are rapidly transforming service distribution.

“The platform economy plays a fundamental role, with digital marketplaces connecting various industries, such as car sales, financing, and insurance,” Viljakainen says.

“Traditionally, financial sector players have offered comprehensive services to both existing and new customers. Now, digital marketplaces are stepping between the customer and the financial company. The same trend is emerging in car sales.”

The purchasing process moves online

Twenty years ago, customers visited car dealerships to view and purchase cars. Today, the purchasing process takes place online or through mobile apps. In the automotive industry, Tesla has been a pioneer, while examples in other sectors include Amazon, Temu as a recent addition, and other Chinese e-commerce platforms.

“Physical stores now serve primarily as ‘fitting rooms’, where customers can see and touch the car, but the purchasing process is increasingly conducted digitally. This reflects the broader transformation occurring in commerce,” Viljakainen notes.

The platform economy has also changed mobility services. There are now options such as electric scooters, Uber ride-hailing, car-sharing services, and other subscription-based alternatives.

“All of these services have a strong link to digitalisation, as they rely on mobile applications, data tracking, and online-based processes.”

Although the concept of shared cars has not succeeded as well in Finland as elsewhere, other vehicle-sharing services, such as boat rentals through Skipperi or van rentals, have been more successful.

“In Finland, long distances and a smaller population make it more challenging to achieve scale,” Viljakainen reflects.

In the latest episode of Autoklinikka’s podcast, Juha Viljakainen from VALOR Partners discusses with William Börman how new mobility services and the platform economy are affecting financial services related to the automotive industry.

Environmental values favour electrification

City bikes, on the other hand, have been a success, and the business of employer-sponsored bikes has grown rapidly. Digitalisation and ease of distribution are converging with the rise of sustainability culture and environmental values.

Viljakainen believes that the electrification of the car fleet will continue strongly in new car sales, given the significant environmental pressures. Traditional car manufacturers are introducing models that offer alternatives to internal combustion engines, while the rise of new players, such as Chinese electric vehicle manufacturers, is also connected to international trade policies.

“However, the car trade has always been global,” he points out. “Most of the cars in Finland are manufactured abroad, even though retail has remained local.”

Changes are also visible in aftermarket services. For instance, the market for spare parts and maintenance services is consolidating. Additionally, foreign chains focusing on logistics have entered the market. At the same time, the electrification of the vehicle fleet is driving repair shops to invest in new technologies and develop new expertise.

Financial services sales channels are evolving

The transformation is also affecting vehicle financial services and where financing and insurance products are sold.

“When insurance is purchased on a digital marketplace alongside the car, how can an insurance company influence the decision on where the insurance is bought? For example, in subscription-based services, insurance is often handled by the leasing company, shifting the consumer market towards the B2B market,” Viljakainen highlights.

According to Viljakainen, insurance companies must be present across multiple distribution channels and develop their products in innovative ways, as the range of options has expanded significantly. Moreover, the shift toward electrification has increased the need for insurance companies to better understand the repair processes of electric vehicles, as repair costs have risen.

He adds that the transformation of car sales has emphasised the role of importers. Nordic importers are increasingly seeking partnerships across the region, which could mean that brand-specific insurance products may be offered by companies outside of Finland.

“This represents a clear strategic threat to the Finnish players,” Viljakainen warns. “With the added pressure of international competition and global financial industry players, it is clear that the need to stay in the game in new ways has grown significantly.”

Listen to the full episode (in Finnish) at:

Autoklinikka podcast episode 13: the impact of digitalisation on the transformation of mobility, car use and financial services, guest Juha Viljakainen, VALOR Partners.

Spotify

Text: Catarina Stewen

Data-driven management supports development work at Western Uusimaa wellbeing services county

In autumn 2023, VALOR implemented a new Business Intelligence dashboard for the group services of the Western Uusimaa wellbeing services county, enabling systematic and transparent monitoring of operational performance indicators and data-based decision-making.

The group services at the Western Uusimaa wellbeing services county encompass about twenty units, which previously lacked a unified method to monitor their operational performance indicators. For autumn 2023, the group services management set a goal to establish a transparent, uniform, and systematic monitoring mechanism and requested support from VALOR.

After discussions with experts and management from the group services units, suitable performance indicators were selected, the necessary source data were identified, and methodologies for accessing the data were developed.

VALOR’s consultant Jaro Mykkänen developed the dashboard in the county’s Microsoft PowerBI environment. With multiple years of experience in developing Business Intelligence dashboards across various platforms, Mykkänen’s previous roles at leading companies in the social and healthcare sector provided valuable insights.

Jaro Mykkänen has multiple years of experience in developing Business Intelligence dashboards across various platforms from his previous positions at leading companies in the social and healthcare sector.

A highly automated system facilitates updates

As a result, the management now has a clear overview, with the latest performance indicators updated transparently and almost fully automatically. This allows for monitoring the current situation without burdening the staff with extensive data requests and reduces operational rigidity.

Transparency has also fostered internal discussion within the organisation, as staff can easily track other units’ results.

Olli-Pekka Luukko, director of the shared group services at Western Uusimaa wellbeing services county, states that the need to rebuild the old municipal processes was clear from the beginning and that administrative support processes would be data-driven. Thus, specific processes required the establishment of target levels and metrics.

“Our vision, combined with VALOR’s expertise, produced an excellent result: we believe that the Western Uusimaa wellbeing services county is at the forefront of tracking the performance of support services in the Finnish healthcare sector,” Luukko says.

One shared truth creates trust

Mykkänen emphasises that decisions must be based on knowledge and facts. Moreover, these facts need to be transparent and readily available to lead operations efficiently.

“When management has access to a visual dashboard that is open to all, easy to understand, and transparent in its data sources, it fosters trust within the organisation. Everyone shares one common truth,” he notes.

Mykkänen adds that results from development actions are easier to evaluate when jointly agreed indicators are monitored over an extended period. Without a common and transparent follow-up, obtaining a general overview is challenging.

Development work can be launched immediately

The wellbeing services counties are still young organisations, consisting of previous municipalities with varying IT systems. Although the integration of these systems has not been fully completed at all levels, it does not prevent the launch of development work.

“It is essential to create the initial versions of management dashboards as quickly as possible, regardless of whether the data quality is perfect, or data storage projects are completed yet. First drafts are easy to develop further at a later stage. Additionally, they help to embed a data-driven management culture in the organisation,” Mykkänen highlights. 

“When organisations realise how useful the performance dashboards can be at their best, they proactively start to drive further development of the dashboards,” he continues.

The project progressed on schedule

VALOR is equipped to handle the technical aspects of data-driven management projects, in addition to traditional management consulting. This advantage enabled the wellbeing services county to complete the project quickly and smoothly, within the agreed budget.

Pia Fredriksson, project manager for the knowledge management unit at the Western Uusimaa wellbeing services county, emphasises that VALOR’s solid experience and broad perspectives on other organisations’ report development strengthened their project.

“VALOR brought viewpoints beneficial to our project and actively participated not only in constructing the report, but also in defining metrics, developing technical indicator calculation logic, and ensuring data availability. Collaboration with both the project team and the group services experts was active and encouraging, which ensured that the project progressed on schedule,” Fredriksson says.

the VALOR building
VALOR’s newly renovated office is located in the heart of Helsinki, at the corner of Eteläesplanadi and Erottaja.

Data is at the core of decision-making

Although Mykkänen’s background is primarily in the social and healthcare sector, he underlines that the value of data and data-driven management capabilities is essential across all business areas.

“Data-driven management is at the core of every organisation’s efficiency and competitiveness. The current stage of implementation varies between organisations. Nevertheless, it is crucial to create a management system that is simple, clear, and reliable,” Mykkänen says.

Equally important is ensuring that producing information does not increase the administrative workload. Simplicity and extensive automation support this effort.

“Everyone who grapples with the utilisation, availability, and management of data and information can benefit from our expertise,” Mykkänen notes.

“We can combine traditional management consulting, project management, and technical implementation. This adds value for the customer as other participants are not needed to implement the different phases of the project.”

Comments about VALOR’s support:

Olli-Pekka Luukko, director of the shared group services at Western Uusimaa wellbeing services county:

“Our vision, combined with VALOR’s expertise, produced an excellent result: we believe that the Western Uusimaa wellbeing services county is at the forefront of tracking the performance of support services in the Finnish healthcare sector. Now, our challenge is to respond to the issues highlighted by the metrics and to develop operations further. Additionally, the objectives and indicators require continuous development.”

Pia Fredriksson, project manager for the knowledge management unit at the Western Uusimaa wellbeing services county:

“As a result of the project, we achieved a more automated solution than we originally planned. VALOR’s continuous support during the project and in the final phase of developing the maintenance model for the report proved invaluable. Smooth cooperation and expertise not only accelerated the project but also supported the learning process and ensured its successful outcome. From here, we can continue to refine the monitoring dashboard created during the project.”

Text: Catarina Stewen

Sustainable boost in sales from the green transition

Markets are expecting sustainable alternatives, and forerunners can now positively differentiate themselves in the competition for customers, investors and employees. Companies are advised to leverage competitive advantages from their sustainability reporting data.

“The market is currently extremely receptive,” highlights Ville-Veikko Laukkanen from VALOR Partners. “Therefore, exploring how sustainable trade could boost sales is crucial for every company.”

Laukkanen has delved into the development of sustainability markets and their growing importance for over ten years in his previous roles.

According to him, many companies struggle with EU’s reporting requirements. However, the reporting work simultaneously creates a comprehensive set of data, which can be analysed through a competitive advantage lens.

“The matter is neither complex nor difficult. The world wants to become more transparently sustainable, which is ensured by requiring reports,” Laukkanen says.

By analysing the reporting data, companies can identify factors that distinguish them from their competitors in terms of sustainability. Additionally, the regulation eliminates free riders while rewarding pioneers.

Winners integrate sustainability into business operations

VALOR’s core competence lies in fact-based analysis, where reporting data is used to create models that support corporate decision-making.

“We help companies identify where sustainable sales originate and how competitive advantages can be transformed into strategic and operational goals. Anticipating the wave and considering how a company can truly stand out in the green competition are areas we want to support,” Laukkanen explains.

Laukkanen notes that the winners are companies that integrate sustainability into their business operations. He mentions a Finnish lock company as an example, which he assisted in his previous role as CEO of a technology start-up.

The lock company evaluated how it could achieve net zero emissions and discovered a clear competitive advantage over other players in the industry. The advantage was productised with a service built around it, which has been successful.

Kuva henkilöstä Ville-Veikko Laukkanen
Ville-Veikko Laukkanen has delved into the development of sustainability markets and their growing importance for over ten years.

Improved reliability and comparability

Under EU regulations, companies will gradually become subject to the sustainability reporting directive, which broadens the requirements for reporting sustainability information. With supply chains also included, reporting will encompass a broader group.

“The greenwashing directive will ensure that published information is accurate. The verification process becomes more precise and merges with financial reporting as part of the financial statements, thereby improving reliability and comparability,” Laukkanen notes.

He adds that high-quality reporting can already become a competitive advantage, as client companies need detailed information about the sustainability of the entire supply chain.

Laukkanen believes that the formalization of data will have a significant economic impact. In the future, considerable amounts of capital will be allocated accordingly. The rest of the world will follow the EU’s lead and join the directive’s sphere of influence through trade relationships. In the United States, the IRA legislation package also allocates significant incentives for clean energy and sustainability.

New insights with AI technologies

To use the collected data in corporate decision-making, it must first be analysed based on facts. Utilising AI technologies for classifying data, companies can gain new insights into procurement strategies, tendering, investments, and customer promises.

Risk analysis reveals the practical significance to business operations. The same factors are increasingly identified in the valuations and terms of corporate arrangements.

“The thematic concept is one of the most important I have seen in my career and will become significant in future strategic choices,” Laukkanen emphasises.

To ensure efficiency, clear choices regarding actions and non-actions must be made. Increasingly, the choices also need to be justified to stakeholders. Additionally, sustainability can become a catalyst for larger changes, such as an investment that has been considered for an extended period.

“Through increased sales, costs are significantly offset when action is taken early. It is crucial for companies to analyse the market as soon as possible and view this as an opportunity for growth. Active participation and an innovative approach to sustainability not only fulfil the directive’s requirements but also establish the foundation for long-term success,” Laukkanen underlines.