A multinational Retail company corporatized its regional business to enhance control, generate efficiencies, and accelerate local operations
Background and identified issues
Retail company had a significant performance gap between its headquarter operation and the rest of the operations in the region
The current management structure was based on a Country Manager who managed their own P&L
The challenge was to accelerate the development of the countries in the region by leveraging the learning curve of its main operation
Main actions
The process began with the definition of the end-game corporate structure
Organizational (governance, roles and responsibilities, and incentives) and management model (tools, systems and processes) enablers were developed
Transition structures were defined that allowed moving towards a phased corporate structure
Impact of the project
The company successfully progressed in corporatizing, implementing the learnings from the headquarters operation into its local operations
Along the way, headcount efficiencies of USD 8 MM were captured; and a roadmap was established to capture USD +25 MM in commercial value