Case Study: Enterprise and Operating Unit Effectiveness
Global Specialty Retailer
Retailer had three distinct operating units: retail, catalog and ecommerce. Each operating unit had its own strategy, KPI’s and organization. The enterprise was not realizing scale nor synergies from the three operating units.
Reorganize the three operating units for collective efficiencies and synergies while retaining distinct organizations, if necessary, for effectiveness.
- TPG started with a comprehensive assessment reviewing the operating units’ strategies, target shoppers, portfolio, shared services, etc.
- TPG classified the work: unique/distinct, shared for efficiencies, shared for scale.
- TPG redesigned all of the work, regardless of classification to the level of best practices.
- TPG created one organization that managed aspects of all three businesses along with distinct organizations where appropriate.
- Finally, TPG helped bring the design to life through a thorough and well-orchestrated implementation.
- Significant reduction in overall organizational costs including the reallocation of resources.
- Improved collaboration and mobility among the three operating units.
- Significant overall growth in sales and profit.