Challenge:
Company has recently failed to effectively implement innovative product ideas on time. Only 3 out of 12 initiatives were implemented on time, and only 4 out 12 met profit and share expectations.
As a result, company results were only a 4% growth vs expected 15%, and also below the 10% growth achieved through initiatives in the past two years
Marketing claims their Brand Management system works, agencies deliver, but there are delays in Manufacturing and Sales execution.
Methodology:
SageFlow did an analysis of the Marketing Organisation and their relationship with other functions: R&D, Sales (including Merchant Center of Excellence), F&A, Procurement, and Manufacturing. SageFlow analysed all 15 elements of our Assessment Guide. With focus on cross-functional areas.
Diagnostic:
- Lack of clear OGSM’s, and not well ‘shared’ across functions
- Under Responsibility and Accountability: Brand Manager was not empowered to be the P/L owner. As such, a lot of critical decisions, which impacted profitability, were taken without the Brand manager’s consent.
- Lack of an Integrated Organisational Structure, especially behind initiatives. Each function, although aware of the importance of initiatives, took independent decisions based on their own needs, and not with a holistic view of the brand.
- No clear Procedures and Performance Standards, especially regarding the launch of new products.
Actions:
SageFlow organised a series of workshops with the Management Committee, and their Directors, designed the ideal future in each area, and also defined the ideal organisation, together with Core Principles and Procedures. The dream stage was defined as The Agile Company. However, it was decided to fix the basic areas now, see how it works for a year, then implement the Agile Stage. So, for the first year, these were the actions:
- OGSM’s were reviewed as a group, including the CEO, and communicated to each function, down to the employee level. Quarterly revisions of performance vis a vis OGSM’s is now done across the company.
- Under the new Organisation structure, the Brand manager is fully empowered to be the owner of the P/L of his or her brand, and to lead all functions in the implementation of new initiatives.
- A ‘Current Best Approach’ program, with a list of key actions to take to assure success behind initiatives, was defined and implemented across all brands and functions.
- For the future ideal Agile stage, it was decided to hire an Agile change agent for each function, and to redefine the skill set for Marketing and Sales, including agile characteristics. The HR Director in partnership with Head of Sales, Marketing, and the CEO will define those skill sets.
Results:
Although the changes were implemented in February 2019, the two initiatives that have been launched over that period have exceeded expectations. Too soon to read actual profit and share gains.
