Organization Design: Case Study 1

Change in operating model of large company spinning of two major business units.

Client

Global Telecommunications Company

Business Challenge

How should a corporate staff group of 5,700 people be restructured after the spin-off of three large business units leaving only two large business divisions?

• What activities, roles and responsibilities remain at a corporate level?
• What functions should be transitioned to the remaining business units?
• Is there a need for a shared services group going forward?
• What does the transition path look like?

The Solution

• Evaluated corporate staff and shared services functions on a activity by activity basis to assess the impact of spin-offs on work volume, headcount needs, complexity, expertise required going forward.
• Worked with business units that would be remaining to assess the value of shared services in relation to the value of each building their own staff organizations.
• Worked with client to create an activity based cost analysis of each function, highlighting areas of opportunity for savings.
• Assessed impact of outsourcing, transitioning to BU or establishing shared service for each key activity group.
• Engaged all key stakeholders in interviews and meetings to engender buy in to recommendations.
  

Results

• Shifted most shared services to remaining business units and reduced corporate staff to a small core team.
• Achieved 6 percent in-year cost reduction, with ongoing annualized savings.
• Reduced complexity.
• Eliminated shadow organizations.
• Improved efficiency.
• All recommended changes implemented in planned time horizon.

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