Developing A Pan-European Operating Model For A Multi-Brand Retailer
Aligning All Aspects Of The Value Chain To Drive Performance
What was the challenge?
The 2008 financial crisis motivated a pan European retailer to take proactive action to restructure its business. There was an immediate need to remove cost, however the longer-term objective was to maximise the profitability of the sales channels through process efficiency, service excellence and by improving the product portfolio.
We were asked to undertake a feasibility study to establish the order of magnitude of the potential opportunity and to build and implement a multi-phased change programme to transform the business and release the benefits.
What was the approach?
Before starting the development of the new operating model, we worked with the executive team to confirm the vision and objectives for the business. In the context of this we were able to examine the operations to differentiate those elements of the business that were core and value adding from the of a more transactional nature. We used a heat-map approach to take immediate actions to reduce costs in areas where the strategic impact was low. In parallel to this the design team focussed on how to strengthen the go to market facets of the business. We introduced better targeting and matching of customer needs, a more effective product lifecycle and an improved multi-channel customer experience. The supporting services were also simplified through improved process definition, removal of duplication and outsourcing.
Having architected the new operating model, the team set about developing the right environment for a successful transformation. The emphasis was on establishing ownership for the plan from the wider business teams. Joint workstreams were held to flesh out the details and develop the final implementation approach. We then led the programme office through implementation to successful completion.
How did we help?
Our retail expertise in the design and execution of this programme secured the long-term success of the client business through the last global recession and beyond. The operating model was streamlined and focused on the core customer needs, providing better propositions to more customers in a more cost-effective manner. Our hands-on, flexible approach enabled us to work hand-in-glove with the client teams driving year on year top line growth as well as a 10% reduction in operating costs.