Consumer goods company had an organizational structure that was not agile, after having a sustained growth without questioning the real need for personnel increase
Context
Multinational consumer goods company had an organizational structure that was not agile after sustaining growth without questioning the need to increase staff. Its staffing was above comparable benchmarks in the industry, and it had a bureaucratic structure with an excess of reporting layers.
Opportunities detected
In a project that lasted about six months, the gaps and opportunities raised by the Matrix team were multiple. The most critical problems occurred for three main reasons:
Its planning and staffing processes in the production lines were not aligned to the actual requirements, without considering changes in the demand
Its operations were manual, non-standardized, and with little accountability, generating rework and inefficiencies
Organization in silos, with little coordination between areas to maximize profit at the company level
Proposed actions
To address the organizational restructuring and promote greater agility, three fronts were defined: operational staff optimization, non-operational team optimization, and processes efficiency.
Regarding the first work stream, an efficiency potential of ~26% in plants was identified, achieving greater alignment with demand and an increase in the effective use of production lines. Furthermore, regarding the reduction in non-operational personnel, the bureaucratic layers were reduced, consolidating functions and integrating subareas.
Finally, greater efficiency was achieved in critical processes, proposing adjustments to enable greater organizational efficiency in the medium and long term.
Impact
Simple, orderly, and balanced organizational structure, generating ~20% staffing efficiencies and ~17% lower payroll expenses.
