Case Study: Strategic Organizational Renewal

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Client Description

European Packaging Company supplying CPG, Pharma, Consumer Electronics sectors.

Background

  • The client had a country structure, with logistics, finance, sales and marketing all organized in a country structure
  • The client was under constant cost price pressure from all customers across all sectors and needed to cut costs
  • Major Customers had become pan-European, with several key accounts emerging and requiring a pan-European service from the client
  • There was a lack of clarity/ownership for the broad area of customer service, resulting in high cost/waste and poor customer service

Objectives

The objective was to design a Pan-European organization to better align to the needs of the market, while reducing headcount cost significantly and enhancing customer service and competitive advantage.

TPG Approach

TPG managed a multi-functional, multi-national team from the client to design and implement the new European organization.

  • Corporate Strategic Plan (OGSM) to define where and how the business would win in the market
  • Detailed process design to define the pan-European ways of working, removing complexities of different countries
  • New European/central functional structure for marketing, innovation, technical, finance, sales
  • New European Key Accounts team, Local Field Sales teams and central Telesales team serving multiple markets, with customer segmentation defining resource allocation by Customer
  • New European Customer Service/Returns organization
  • Implementation program to launch the new organization (all functions and teams) & processes and to build capabilities in the new ways of working – including culture change program

Impact/Results

  • €10m headcount reduction
  • Maintained business growth, despite major change program and headcount reduction of 20% in some functions
  • Grew customer base and volume from smaller customers through the Telesales organization
  • Fewer, bigger innovations
  • Significant improvement in customer service scores
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