Case Study
Global Speciality Chemicals Company
Enterprise Operating Model & Cultural Transformation
Problem Statement
$4Bn Global Specialty Chemicals (Distribution, CPG, Construction & Energy) Company. CEO of the publicly traded company was recently promoted to change the trajectory of the company from a low performing culture (entitled), P&L driven structure holding company / BU structure, and bloated cost structure. Business Operating Model was confusing, complex in particular regarding roles, responsibilities and financial structure between the BU’s, Corporate Ops and Shared Services. Business Units were expanding redundant, “shadow costs” relative to Corporate and Shared Services. Stock price was in decline given the Street’s in ability to see how the sum of the parts exceeded the whole.
Engagement
We leveraged our Operating Model design frameworks to work, starting with understanding the ‘Truth About Today” relative to analyzing and transforming a the Enterprise as well as the $1Bn Global Services organization’s Operating Model including functional capabilities ( F&A, HR, IT, Sourcing, Consulting, Engineering and Facilities Management) from a process, service management, and governance vantage point. Our work included assessing current state Core Processes and capabilities against leading practices, and Voice of Customer data and future-state Global Services processes.
Results
Achieved the following impact on behalf of the Enterprise and Global Services Operating Models:
• Defined the major end-to-end Core Processes including Governance, key Roles / Responsibilities, KPIs, and Organizational Structure
• Redefined the SLT’s Operating Principles and Rules of Engagement relative to the Enterprise, Global Services and BU’s
• Reduced Enterprise G&A over 20% of the $400mm across its Core Processes (18) months
• Made minor adjustments to the organizational structure
• Reduced facilities, centralized service hubs, leveraging elements of Six Sigma techniques