Design of an efficient organizational structure for a cosmetics multinational to reduce personnel cost, without negative impacts on the business
"The efficient reorientation of the organizational structure reduced costs and optimized key processes without harming business indicators."
Challenge
Direct sales, which represented 98% of the Company's sales, were undergoing contraction in favour of increasingly competitive and uncontrollable "alternative" channels (retail and digital), forcing the Company to reduce costs and reinvest them in the areas with the greatest growth potential.
Solution
To address this issue, we executed the following steps:
- Obtaining a global vision of the current Company structure to detect potential areas of efficiency.
- With regard to the efficiency areas with the greatest potential, analysis of their spans & layers, the actual and potential saturations of each profile, and the review of the main macroprocess.
- Offer recommendations with the proposed efficiencies by area and priority, as well as illustrative examples of the proposed final organization charts.
Benefits to the Organization
The benefits of an efficient organizational structure include reducing personnel costs, either by reducing resources or changing their seniority, without affecting the main business KPIs.
This is achieved by means of the simplification of key processes , the empowerment of decision-making profiles and the elimination of task duplicities.
This is achieved by means of the simplification of key processes , the empowerment of decision-making profiles and the elimination of task duplicities.