Business Restructure – SME Client in the Technology Distribution Sector

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Case Study

Business Restructure – SME Client in the Technology Distribution Sector

Despite regular returns, stakeholders often want businesses to revitalise themselves and deliver accelerated growth more in keeping with their expectations and ambitions. In this case, the stakeholders were keen on setting the business on the path of rapid growth both locally as well as into the region.

Problem Definition Solution Description Results

Our Client is a growing distribution business that sought to set a platform to drive growth to the next level. After discussions we agreed to conduct a detailed diagnosis across the business to assess capability and competence, structure, and resource allocation & utilization. The Client also wanted an assessment of the compensation levels across the competitor landscape, and the creation of an HR Policy & Procedures manual. The mandate was clear – restructure, reduce costs, eliminate waste, improve efficiency and ultimately accelerate growth and profitability.

As a first step, we leveraged our expertise in business transformation to complete a detailed study of the business including product and brand performance over a 4-year period with data collected from across the business. We also conducted an in-depth research to understand how competitors had structured similar businesses and collected information on compensation structures and benefit practices across levels.

Armed with category and business understanding, we initiated a review of the internal structure, resource capability & utilization, and business processes within the Client and then arrived at specific recommendations on the restructuring and reengineered processes for the Client to deliver growth and eliminate waste, thus achieving cost reduction. To codify the new structures and policies, we drafted a customized HR Policy Manual, Performance Management System, and a Rewards & Recognition program in line with talent & business strategy.

The organization was restructured to address critical risk and control aspects identified in the original structure with the cost reduction from the de-layering and redundancies resulting in improving the bottom line by more than 25%. Key senior resources were re-allocated to enable focus on expansion in key growth markets. A comprehensive Human Resources Policy Manual was delivered to the Client customised to the organization to serve as a guide to future planning and operational excellence. The revised compensation and benefits structure was implemented to deliver internal and external alignment, and strengthen links between business priorities and outcomes to performance related payments, particularly to the sales teams.

  • Regional Businesses; Family Owned Groups;
  • Talent Management, Cost Reduction, Human Capital Solutions, Growth & Transformation
  • M K Moorthi, Leon Mendonsa, Hari Sutha Raj
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