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A food and beverage company grows sales by 19% with new organisation design

April 24, 2022 | Operational Excellence

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Over the decades, this food and beverage company grew from a small retail shop selling sweets to a company with multiple factories, retail outlets and one of the largest sales and distribution networks in India.  

Key results

19%

Sales growth

20%

Increase in retail visits and productivity

20%

increase in SKU attainment

The challenge

Despite its long history, the company had gaps in its organisation design that prevented it from thriving and operating efficiently in a marketplace with increasing competition:  

  • Many key positions, such as head of operations, sales and marketing and human resources, were vacant. This increased the management bandwidth for directors.  
  • Due to a lack of strategy and analytics function, the company is limited in its ability to identify new opportunities and improve its top and bottom-line performance.  
  • The company’s lack of research and development team placed it in danger of falling behind more innovative competitors that can come up with new products faster. 
  • There was also no supply chain function and sales team that is responsible for handling corporate customers. This increased costs and resulted in a low volume of sales from corporate customers.   
  • There was no system to effectively measure the performance of employees across the organisation. This did not promote a proactive or performance-oriented culture. 

This meant that there was a serious need to recruit new talent. However, recruitment efforts were hamstrung by a lack of a proper recruitment system, which led to high lead times. 

An organisation’s structure is the “glue” that brings business processes, systems and culture to life and can give it a competitive advantage. However, the company’s inefficient structure was putting it at risk of falling behind their more future-ready competitors. 

What we did 

The goal of the transformation programme was to enhance the company’s capabilities and create a leaner organisational structure that enables transparency and efficiency.   

We started by understanding the status quo in the company and then identifying the company’s vision for the next five years. We then translated it into a roadmap to drive the vision: 

Designed a new organisation structure 

We identified key design drivers for the organisation, and then evaluated several structures using a framework based on parameters covering revenue, quality and partners. The finalised functional structure was selected to optimally satisfy the company’s future needs. 

Created clarity in job roles 

Around 86 job descriptions were prepared after a detailed analysis and interviews with key personnel. This provided clarity on roles across the organisation and ensured accountability.  

Installed performance measures 

To ensure that the organisation is future ready, we identified KPIs by using a balanced scorecard format to measure and improve performance. 

Installed recruitment processes and systems 

Systems and processes were developed and installed for recruitment, leading to improved lead times. 

Recruited for the right skillsets and talent 

A recruitment drive was initiated to fill gaps in the organisation structure. This included managerial, strategic and leadership roles. 

Results 

With the new key personnel, organisation structure and performance-oriented culture, the company is now operating more professionally, is more productive and better prepared to meet the future challenges of a demanding business environment.  

What the client said 

“Human Resources is the backbone for the growth of any company. Renoir Consulting has helped us not only to design a future-ready structure but has also installed the systems and process for recruitment and hired the key personnel who could drive the organisation to greater heights.” 

— Managing Director 

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