Delivering A Multi-Brand Operating Model
Sharing Capabilities to Drive Performance
What was the challenge?
A joint venture partnership had formed a European consumer electronics retailer with operations across nine territories and eleven independent business units. The organisation had very few shared services and the cost base was very high. The cultural differences in each territory meant that the proposition and go to market expertise needed to remain in market, however the client wanted to reduce costs and improve operations by creating a unified set of back office functions.
We were asked to design and implement a multi-brand, multi territory operating model that centralised support services and transactional activities in one place whilst giving autonomy to each market for its customer offer.
What was the approach?
We first established a set of critical design principles which were agreed by the executive team and the local markets. These principles set the guide rails within which the design could be established. We then applied our deep understanding of this retail segment to develop a standard model for the end to end value chain. This model was compared to each market and brand in order to understand the nuances and variations of each. From this we quickly established which customer centric activities were essential to each market and which could be centralised under common functions.
We worked with functional heads and market owners to draw clear and simple lines of accountability with a single point of decision making for all decisions. Transactional activities were centralised and duplication of effort was eliminated however local variation was harnessed when it was identified that true value could be gained. A comprehensive organisational RACI was defined to ensure clarity of ownership and delivery.
Once the outline operating model had been agreed, we worked with HR partners and the business area owners to map out the process changes, define the organisational design and to create the people and communications plans. We then established the revised functional and departmental budgets to ensure benefits realisation and supported the implementation and tracking through a programme office function.
How did we help?
We delivered a 20% reduction in back office headcount whilst maintaining customer service and the unique identity of each individual territory. Open communication ensured that staff satisfaction levels remained high throughout the transition and the organisation continued to deliver extraordinary benefits for its customers.