Restructuring a large company’s central functions

CONTEXT

• A US$ 10bn global company needs to rebound & find new growth vehicles, following a failed merger
• Growth needs to be funded by streamlining the central functions, which represent €700m in costs

OBJECTIVES

• To reduce corporate and central function costs by at least 20%
• To reinvest 1/3 of the savings in new growth opportunities, to be validated

TASKS

• Clarification / sanitization of roles and responsibilities within the current organization
• Identification of productivity gains on key functions & ongoing projects: R&D, Manufacturing & Marketing, etc.
• Identification of key levers and opportunities for growth
• Preparation for the impact of employment measures (headcount re-allocations & reductions )

OUTCOME

• Target achieved: US$ 150m along with specific productivity plans to reduce costs for all central functions
• Additional US$ 300m sales potential identified
• Processes in place to monitor the execution of plans, including in particular local growth in numerous countries