Faced with significant shifts in market competition, a $3B global materials supplier made several bold strategic choices to strengthen its position and support sustainable profitability. Realizing that strategy, however, required new capabilities, a more competitive cost structure, and meaningful changes across the global organization.
In a previous engagement, I partnered with the company’s global management team and extended design teams through a comprehensive organization design process. Together, we translated the company’s strategic aspiration into a clear understanding of the capabilities and organizational changes required to achieve it.
From there, the teams developed and evaluated multiple design options before making the choices necessary to align the organization with the new strategy and extend the company’s market leadership.
Key Results
- A more competitive cost structure
The company adapted its functions, markets, and operations to build the capabilities required by its new strategy while operating with a more competitive cost structure.
- Improved earnings
The company increased its earnings as a result of the transformation.
- Greater coordination across the business
The organization strengthened the management processes and decision-making practices that coordinate the supply and demand sides of the business.
- Successful implementation despite initial skepticism
A collaborative approach that engaged and supported key stakeholders throughout the process helped the organization overcome skepticism and successfully implement the changes.
Key Takeaway
Successful strategic transformation requires more than a well-defined strategy. It also depends on comprehensive organizational alignment, strong alignment among leaders, and an engaging approach that builds momentum and activates change throughout the business.
This piece was written by Brandon Curry, HR Executive Consultant for Lodestone and founder of Work Arts. He is an organization design and transformation expert who collaborates with Lodestone on select client engagements. He helps leadership teams translate strategy into capabilities, structures, processes, and ways of working required to deliver results. Facing a strategic shift or organizational transformation? Visit us here.
