Case Study
The organizational structure and lack of vision hindered performance for one of our global consumer products clients. Regional business units were pitted against one another and there was no coordination across them. Bain helped align the organization to a new vision by focusing on leadership, decision making and measures and incentives.
ConsumerCo* is a global company that operates in over 140 countries. The company had strong historical performance, but over time was losing share to a major global competitor.
Autonomous regional business units were pitted against each other and leadership behaviors had created an atmosphere of warring tribes. There was no mechanism for co-ordination across business units, no central planning function and performance was 100% focused on the local market.
ConsumerCo's new CEO was determined to develop a global brand and leverage scale more effectively, whilst retaining the power of decentralized decision making.
We took a three-phased approach to organizational transformation.
The new leadership articulated a new strategic direction and values. They developed a clear vision of "becoming the #1 player against common enemy CompetitorCo" and with Bain's help, the new CEO successfully realigned the business.
ConsumerCo enlarged its global management team, which consisted of change champions and the success of the changes were reflected in a substantial improvement in the company's stock price.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.