Redefinition of the operating model to improve the harmony between headquarters and operations

We help improve the interaction between headquarters and the operations of a global company, as well as its capabilities and results, based on the redefinition of the corporate role and the way of operating.

Breaking the manual: what corporate model does your organization need?

In terms of organizational governance, there is no single manual. There are different corporate models and each company has to identify the one that best suits its purpose and objectives. In particular, the model of a global corporate group should facilitate interaction between the central government and the governments of the business units, both to maximize the group's strategy and to add value to each of its operations.

The problem to solve:

The lack of clarity in the corporate role of an Asian company had significantly affected the link between the central administration and the operations of 14 countries. Among other pain points, the decision-making was not aligned, but was resolved in each operation; the network did not have standardized structures and processes and gaps had been generated in the capacities of the different markets; and there was no environment that promoted synergy and cooperation between countries.

What we did:

  1. Diagnosis: we evaluated the situation and analyzed the potential strategic opportunity to address a future organizational model agreement that would redefine the relationship between corporate headquarters and operations.
  2. Benchmark: we took as a reference other players in the market to survey corporate and organizational models that adapted to the client’s transformation.
  3. New role: the benchmark allowed us to understand there was an opportunity to focus the corporate model on strategic control and we redefined it.
  4. Capabilities: we mapped the key capabilities needed to operate and identified the best way to configure the interaction between corporate and operations to develop them.
  5. COEs: based on the mapping, we designed different centers of excellence (COEs) that, from corporate headquarters or from one of the most advanced operations, would guide the development of market capabilities.

What was the impact:

  • A new Corporate Governance structure was agreed, based on strategic priorities.
  • Centers of excellence were developed to enhance the way of operating in the 14 countries.
  • The structures and the way of operating were harmonized.
  • Agility in operating decisions increased by 14%.
  • 49% of the decisions related to capacity development were centralized to generate synergies and efficiencies.

 

The redefinition of the operating model represented only the first stage of an ambitious project to transform the company. Then, we continued working on the redesign of the organizational structure, on the optimization of the management model with a focus on the agility of interactions, and on the design of a deployment plan.