Organisation Design
Our client, a leading UK high street retailer had adopted an aggressive growth strategy, targeting increased productivity, margin and trading space. This had led to a more than 30% rise in central costs over two years. As the market began to soften, other retailers were systematically reducing costs and our client asked for support in identifying where they could remove costs without impacting the growth plans.
We used our proprietary cost benchmarking database to conduct competitor benchmarking alongside internal benchmarking. We conducted stakeholder interviews, analysed grade distribution, spans of control, staff turnover,and career development information and we conducted a reward and performance management process review. Drawing upon both our extensive research into Head Office of the Future trends and our knowledge of best practice comparisons, we conducted an organisational structure review which was informed by this on-site analysis.
Through a combination of restructuring, lean process improvement and improved programme management and governance processes, we identified a cost reduction opportunity of £10m+.
