Proposal for Organizational Restructuring (Big 4) (PowerPoint PPTX)

The document attached covers a detailed proposal shared by a worldclass consulting firm around organisational restructuring of a large chemical company in China.

Project Objectives

Improve sales capabilities to secure wins in business such as redecoration
Adapt Key Account management methodology to grow Project business
Expand sales coverage to 2nd tier and 3rd tier cities and attract more mid-class customers
Integrate distribution networks to reduce inefficiency
Align internal organization to support future growth

Proposal Coverage

Diagnose current "AS-IS" sales channel and organization structure
Benchmark industry intelligence and best practice
Identify gaps for improvement
Hold workshop with leadership to confirm preliminary analysis
Derive optimal sales channel structure
Integrate distributor network
Align internal organization to support new sales channel
Develop implementation plan

About the Client

CHEMICALS COMPANY A supplies a full range of interior and exterior decoration and protection products for both the professional and do-it-yourself (DIY) markets in China, including paints, lacquers and varnishes, as well as products for surface preparation (pre-deco products) In China, only BRAND and BRAND are identified as the front-line paints brands

Issues at hand:

External Sales Channel Structure
•  Overloaded to distribution.
•  Right now 80% of the sales are generated through distribution, 20% by Projects.
•  The current capability can not support when the Project % rise to 40% ~ 50% as the management planned
•  More than 4,000 distributors are very difficult to manage with current manpower
•  Missing capabilities to win in traditional and emerging markets such as redecoration & mass market

Internal Organization Set-up
•  Lack of synchronization with other functions such as Supply Chain Management, Marketing, etc.
•  Slow response to market requirements and competitions due to internal inefficiency
•  Centralized organization disenfranchises staff in the regional offices , created motivation issues

Consulting firms preliminary analysis:
•  Where's the next growth area? Service? E-commerce?
•  What are the business grow initiatives?
•  What's the optimal product portfolio?
•  How to make sure the culture fit between China and global?

External Sales Structures:
•  How to profitably win in the traditional market, yet explore new channels such as modern trade and e-commerce?
•  How to expend coverage to 2nd and 3rd tier cities?
•  What's the right balance between Channel vs. Project, Key Account vs. Key Project, etc.?
•  How to set up key account management team to grow Project business?
•  How to integrate distribution network to be more efficient and cope with rapid growing # of distributors?
•  How to improve distribution network to work cross different channel?

Internal organization Competencies:
•  How to realign internal organization structure to support sales channel and regional? Key functions to consider include Sales, Marketing, SCM, and other supports.
•  Centralized or Decentralized management? How to balance Central vs. Regional?
•  What competencies does Sales organization need to have? Does CHEMICALS COMPANY A provide sufficient training?
•  Can the current distribution sales force support Project? How many resources needed to support future growth model?