Trimming a top-heavy finance organization

This medical technology company had a top-heavy finance organization. Bain assessed its spans and layers, redesigned the organization and helped with a restructuring, resulting in approximately $3 million in savings.

MedCo wanted to triple its revenue in 10 years and had a goal of decreasing finance spend by 40-50% in 18-24 months. The finance organization was management heavy, with 40 percent of FTEs holding management titles versus the benchmark of 20 percent. The average span was 3.5 versus the benchmark of 6.2. Correcting the management inflation carried challenges, including obstacles around cultural norms regarding titles and promotions, as well as general resistance to change.

Next Approach

Assess spans and layers: