The Future Organization of a Global Retailer

Ben Heigert May 13, 2019 5 MINUTE READ

Another interesting topic in a fascinating industry: A globally operating market leader in retail was setting sails for the next era of its already very successful growth story. Here are the basic facts:

‘Turn customers into fans’ – with this claim the new CEO started almost all his presentations, townhalls and interviews. And this was also the ‘reason-why’ to re-define the existing organizational setup and to think about the right steps to get the headquarter organization and the interplay between HQ and local entities in shape for the challenges of the future. In a nutshell the board’s expectations and key tasks about this project can be described like this:

  • Design a new organizational setup for the HQ and the local entities to support the ambitious growth targets and upcoming global expansion plans
  • Modernize core processes and clarify the interplay between HQ and local entities
  • Carefully balance new central guidance and frameworks with historically established local freedom to act as entrepreneurs in the markets
  • Bring HQ and local entities closer together, increase interaction and team-spirit

Project Approach:
Organizational Development with a Focus on Humans

In the months before the new CEO took over, the company was shaken a bit due to some harsh HQ decisions and disappointments with the implementation of large corporate transformations. The decision to choose BBH for this task was therefore not only content-driven but at the same time motivated by our general credo to always focus on the people, also when a re-definition of structures, processes and mandates is about to take place. The selected approach clearly reflects this attitude from the very beginning: Define the to-be organization by understanding the characteristics and specifics, by working closely with the people affected and by finding a good balance of HQ expectations and reality of the local business.

Results of the Change Management by BBH

The project could be completed fully in time – thanks to highly engaged people working with us and since all board members where 100% committed and supportive in solving issues escalated and in coming to decisions when needed. Within 8 months the following outcome could be delivered:

  • Clarity achieved on ‘Who-Does-What?’ for the best future organizational setup
  • Global organizational framework successfully described and established
  • Demarcation topics identified, addressed and jointly solved
  • Optimal balancing of specific central and local interests in the concept phase and for the implementation process
  • High acceptance in the local entities regarding the new organizational
    model and blueprints
  • Close the gap: Management team working much closer together, distance between local entities and HQ noticeably reduced

For us as experts on organizational change with a permanent view on people, mood and mindset of the different stakeholders, this project was surely remarkable – not only due to the challenge, but especially regarding the people we met and the topics we could jointly solve.