Case Study

Oper­a­tional Excellence

A food and bev­er­age com­pa­ny grows sales by 19% with new organ­i­sa­tion design

April 24, 2022

Over the decades, this food and bev­er­age com­pa­ny grew from a small retail shop sell­ing sweets to a com­pa­ny with mul­ti­ple fac­to­ries, retail out­lets and one of the largest sales and dis­tri­b­u­tion net­works in India. 

Key results

19%

Sales growth

20%

Increase in retail vis­its and productivity

20%

increase in SKU attainment

The chal­lenge

Despite its long his­to­ry, the com­pa­ny had gaps in its organ­i­sa­tion design that pre­vent­ed it from thriv­ing and oper­at­ing effi­cient­ly in a mar­ket­place with increas­ing competition: 

  • Many key posi­tions, such as head of oper­a­tions, sales and mar­ket­ing and human resources, were vacant. This increased the man­age­ment band­width for directors. 
  • Due to a lack of strat­e­gy and ana­lyt­ics func­tion, the com­pa­ny is lim­it­ed in its abil­i­ty to iden­ti­fy new oppor­tu­ni­ties and improve its top and bottom-line performance. 
  • The company’s lack of research and devel­op­ment team placed it in dan­ger of falling behind more inno­v­a­tive com­peti­tors that can come up with new prod­ucts faster. 
  • There was also no sup­ply chain func­tion and sales team that is respon­si­ble for han­dling cor­po­rate cus­tomers. This increased costs and result­ed in a low vol­ume of sales from cor­po­rate customers. 
  • There was no sys­tem to effec­tive­ly mea­sure the per­for­mance of employ­ees across the organ­i­sa­tion. This did not pro­mote a proac­tive or performance-oriented culture. 

This meant that there was a seri­ous need to recruit new tal­ent. How­ev­er, recruit­ment efforts were ham­strung by a lack of a prop­er recruit­ment sys­tem, which led to high lead times. 

An organ­i­sa­tion’s struc­ture is the “glue” that brings busi­ness process­es, sys­tems and cul­ture to life and can give it a com­pet­i­tive advan­tage. How­ev­er, the com­pa­ny’s inef­fi­cient struc­ture was putting it at risk of falling behind their more future-ready competitors. 

What we did 

The goal of the trans­for­ma­tion pro­gramme was to enhance the com­pa­ny’s capa­bil­i­ties and cre­ate a lean­er organ­i­sa­tion­al struc­ture that enables trans­paren­cy and efficiency. 

We start­ed by under­stand­ing the sta­tus quo in the com­pa­ny and then iden­ti­fy­ing the company’s vision for the next five years. We then trans­lat­ed it into a roadmap to dri­ve the vision: 

Designed a new organ­i­sa­tion structure 

We iden­ti­fied key design dri­vers for the organ­i­sa­tion, and then eval­u­at­ed sev­er­al struc­tures using a frame­work based on para­me­ters cov­er­ing rev­enue, qual­i­ty and part­ners. The finalised func­tion­al struc­ture was select­ed to opti­mal­ly sat­is­fy the company’s future needs. 

Cre­at­ed clar­i­ty in job roles 

Around 86 job descrip­tions were pre­pared after a detailed analy­sis and inter­views with key per­son­nel. This pro­vid­ed clar­i­ty on roles across the organ­i­sa­tion and ensured accountability. 

Installed per­for­mance measures 

To ensure that the organ­i­sa­tion is future ready, we iden­ti­fied KPIs by using a bal­anced score­card for­mat to mea­sure and improve performance. 

Installed recruit­ment process­es and systems 

Sys­tems and process­es were devel­oped and installed for recruit­ment, lead­ing to improved lead times. 

Recruit­ed for the right skillsets and talent 

A recruit­ment dri­ve was ini­ti­at­ed to fill gaps in the organ­i­sa­tion struc­ture. This includ­ed man­age­r­i­al, strate­gic and lead­er­ship roles. 

Results 

With the new key per­son­nel, organ­i­sa­tion struc­ture and performance-oriented cul­ture, the com­pa­ny is now oper­at­ing more pro­fes­sion­al­ly, is more pro­duc­tive and bet­ter pre­pared to meet the future chal­lenges of a demand­ing busi­ness environment. 

What the client said 

“Human Resources is the back­bone for the growth of any com­pa­ny. Renoir Con­sult­ing has helped us not only to design a future-ready struc­ture but has also installed the sys­tems and process for recruit­ment and hired the key per­son­nel who could dri­ve the organ­i­sa­tion to greater heights.” 

— Man­ag­ing Director 

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