Centralized operating model to cut costs and execute faster
Case study:
Centralized operating model to cut costs and execute faster
- Situation
- Leading pan-European omnichannel retailer faced rising margin and growth pressure amid intensifying competition
- Implementation of a group-wide transformation program stalled due to fragmented and inconsistent governance across countries and channels
- The transformation program was to be funded by leveraging pan-European scale and removing duplication across countries and functions
- Actions
- Isolated the few structural constraints limiting execution speed, standardization and scale
- Reclustered countries by comparable market context and customer position
- Redesigned the operating model, clarifying decision rights and accountability across headquarters, clusters, countries and sales channels
- Anchored detailed decision rights and governance across customer experience, marketing, merchandising, services and supply chain
- Right-sized the organization to remove duplication and fund priority capabilities
- Translated the operating model reset into a board-backed business case and implementation sequence
- Results
- Implemented a new group operating model with clearer responsibilities across headquarters, business units and countries
- Identified and budgeted more than €70 million in annual cost savings
- The identified savings were realized after the new operating model was implemented