A large French food processing company with a presence in more than 100 countries was facing the challenge of a historically decentralized structure, with heterogeneous processes and siloed organization of the business units. The separated systems were to be combined in a common enterprise resource planning (ERP) application, but for the time being the client was still experiencing inefficiencies due to delays in decision-support tools and data, and ineffectiveness in leveraging best-in-class processes. We were asked to provide support in transforming the company and redesigning the target operating model across all business units.
Our Approach
We used a highly collaborative approach combining our best industry and capability expertise to support 10 client teams and the executive committee to design and implement a massive change in their operating model.Hanna Moukanas, Partner, France Market Leader
Our approach started with a 5-month “frame” phase, in which we defined the macro-vision of the target operating model and built the business case. A 10-month detailed design phase followed, in which we described the new processes up to level 4, the new organizational setup, the new tools needed.
The foundation of our approach was close collaboration with the client organization: more than 150 employees were engaged directly from the client in formulating the new target operating model. Simultaneously, we provided additional industry knowledge by involving experts from multiple practices as well as Mercer representatives.
Our Impact
The process led to the development of a more efficient and effective operating model, covering vision and mandate, processes, organizational design, systems and tools, as well as talent and human resources. The new target operating model was accompanied by detailed descriptions of processes across all functions, including associated key performance indicators, a responsibility assignment matrix, governance, tools requirements, and an IT implementation roadmap. In order to drive excellence on key processes, centers of excellence were introduced.
Not only did the new operating model result in an increased level of maturity across all functions but also, as a result of the project, it established a more harmonized and collaborative way of working across the group, which identified a potential €100 million of earnings before interest and taxes (EBIT).