A corporate staff slims down for faster, better decisions
The corporate staff at HomeCorp, a large building-supply manufacturer, was three times that of competitors, yet the company had few new product breakthroughs. We worked with our client to design a new corporate structure that pushed more decisions to the division level, improving the effectiveness of those decisions and reducing corporate headcount by 70 percent.
A building-supply manufacturer needed to update and rationalize the role of its corporate center.
- HomeCorp was a large industrial company whose corporate structure had sprawled over 30 years into 9 divisions, 83 departments and centralized finance, technology, IT and administration departments.
- HomeCorp's corporate staff was three times larger than those of its competitors. Decision-making was cumbersome. Everyone was involved but nobody was accountable, so HomeCorp had fewer new product breakthroughs and longer lead times.
- HomeCorp asked Bain to help it devise a new, more effective corporate structure.
Bain devised a set of criteria to determine what practical actions HomeCorp should take in each department.
We recommended that HomeCorp change its corporate organization so that it focused on four critical processes.
HomeCorp's restructuring allowed the organization to push more decisions to the division level, improving the speed and effectiveness of decision-making and allowing HomeCorp to reduce corporate-level headcount by almost 70 percent.
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