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

BENEFITS OF DOCUMENT

1. Provides a world class framework for pitching organisational restructuring proposals.
2. Specifically provides a methodology for organisational restructuring on the Sales function in a chemical plant.
3. Provide a world class format to follow when sharing proposals with clients.

DESCRIPTION

This product (Proposal for Organizational Restructuring [Big 4]) is a 68-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

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?

Source: Best Practices in Strategic Plan Example, Business Strategy Example, Strategy Development Example, Strategy Report Example PowerPoint Slides: Proposal for Organizational Restructuring (Big 4) PowerPoint (PPTX) Presentation Slide Deck, Shaleen Sinha

PPT SLIDE DEEP DIVES

Framework for Analyzing Chemicals Company A's Challenges

This PPT slide presents a structured framework aimed at addressing the challenges faced by Chemicals Company A. It is divided into 3 main sections: Framework, Key Questions, and Implications, each contributing to a comprehensive analysis of the company's strategic direction.

The Framework section outlines strategic business initiatives, focusing on critical areas such as channel mix, sales model, and distribution network management. This indicates a holistic approach to understanding how various components of the business interact and can be optimized.

Key Questions delve into the specifics of the company's growth strategies. Questions such as identifying the next growth area, exploring new sales channels, and balancing different sales approaches highlight the need for a thorough exploration of both traditional and modern market dynamics. The emphasis on understanding the cultural fit between operations in China and global strategies suggests a nuanced approach to international business.

The Implications section translates these inquiries into actionable insights. Aligning internal thinking and obtaining consensus within the organization emerges as a priority, indicating that cohesive internal communication is essential for effective strategy execution. The need to derive an optimal sales channel structure points to a focus on efficiency and adaptability in sales operations. Lastly, the call to re-invent the internal organization to support future growth reflects a forward-thinking mindset, emphasizing the importance of evolving organizational capabilities to meet changing market demands.

Overall, this slide encapsulates a strategic framework that not only identifies key challenges, but also proposes a structured approach to addressing them, making it a valuable resource for decision-makers.

Distributor Pricing Strategy for Performance Incentives

This PPT slide presents a pricing strategy aimed at motivating distributors through a structured approach. It highlights the relationship between unit price and sales volume, indicating how pricing adjustments can incentivize performance. The graph illustrates 2 key time frames for large distributor sales, marked at 4 and 6 months, with unit prices plotted against varying sales volumes.

The green line represents the base pricing, while the dotted red lines indicate potential adjustments of -3% and -6% for different sales volumes. This visual representation suggests that as sales volume increases, there are opportunities to reward top-performing distributors with more favorable pricing. The terms "small volume prices" and "KAM pricing" are noted, indicating specific pricing tiers designed for different distributor performance levels.

On the right side, several pricing issues are outlined for consideration. These include evaluating competitor pricing, preventing conflicts between key account and distributor pricing, and providing incentives for growth. The emphasis on simplicity in the pricing structure is notable, suggesting that a straightforward three-tier pricing system could be effective.

Overall, this slide serves as a strategic tool for organizations looking to enhance distributor engagement and performance through targeted pricing mechanisms. It emphasizes the importance of aligning pricing strategies with distributor metrics, ensuring that top performers are adequately rewarded while maintaining competitive positioning in the market.

Evaluating Centralized vs. Decentralized Management Models

This PPT slide presents an analysis of centralized versus decentralized management structures, highlighting their limitations in addressing various strategic demands. It is organized into 4 main categories: Customer Responsiveness, Growth Imperative, Performance & Motivation, and Internal Efficiency, with subcategories for each management model—Functional, Product, Geographic/Market, and Hybrid.

Under Customer Responsiveness, centralized structures are critiqued for insulating functional units from market dynamics, which can lead to a disconnect with customer needs. In contrast, decentralized models emphasize decision-making closer to the customer, enhancing responsiveness, but potentially complicating coordination.

The Growth Imperative section points out that central decision-making may stifle growth by limiting responsiveness. Decentralized approaches allow for regional development,, but they risk creating conflicts in prioritization.

Performance & Motivation illustrates that while centralized models foster functional excellence, they struggle with alignment to broader strategic goals. Decentralized models promote clear accountability, but may lead to resource misallocation, affecting overall performance.

The slide also addresses Strengthening Competence and Learning and Innovation. Centralized structures support functional expertise, while decentralized models face challenges in standardization and information sharing, which can hinder innovation. The Hybrid model aims for flexibility, but may introduce complexity in management.

Overall, this slide serves as a critical evaluation of organizational models, emphasizing that neither centralized nor decentralized approaches fully meet the demands of modern strategic environments. It suggests a need for a nuanced understanding of these models to optimize organizational effectiveness.

Framework for In-House vs. Outsourcing Decisions

This PPT slide presents a framework for evaluating the decision to keep functions in-house versus outsourcing them, utilizing a capability mapping approach commonly employed by consulting firms. It categorizes various business functions and activities based on 2 key dimensions: economies of scale and strategic importance.

On the vertical axis, "Economies of Scale" ranges from low to high, indicating the potential cost benefits associated with scale in delivering specific functions. The horizontal axis represents "Strategic Importance," also ranging from low to high, which assesses how critical a function is to the organization’s core strategy and operations.

The slide identifies several general functions, including IT systems, facilities management, and HR, alongside quality and technical functions such as regulatory affairs and project management. These functions are positioned within the activity matrix, suggesting that functions with high strategic importance and high economies of scale may be better suited for in-house management. Conversely, those with lower importance and scale may be considered for outsourcing.

Specific activities are highlighted, such as "Consider Outsourcing or Discontinue," which suggests a proactive approach to evaluating less critical functions like canteen services and facility management. The framework also emphasizes the need for individual consideration in decision-making, particularly for functions that may not fit neatly into the matrix.

This structured approach aids organizations in making informed decisions about resource allocation, ultimately enhancing operational efficiency and aligning capabilities with strategic goals. The illustrative nature of the slide indicates that it serves as a guide rather than a definitive answer, encouraging further analysis tailored to the specific context of the organization.

Framework for Enhancing Key Account Management

This PPT slide outlines a structured framework for improving key account management (KAM) capabilities specifically tailored for Chemicals Company A. It is divided into 3 main sections: Plan, Execute, and Measure, each detailing critical components necessary for effective KAM.

In the "Plan" section, the focus is on understanding the strategies and business imperatives of key accounts. It emphasizes the importance of mapping service offerings to identified needs and developing actionable plans to capitalize on revenue opportunities. A three-year view of potential revenue is suggested, along with the creation of client relationship maps to enhance connections at the account level. This foundational step is crucial for aligning internal resources with market demands.

The "Execute" section highlights the importance of sharing insights and fostering relationships. It outlines processes for identifying and pursuing opportunities, as well as the need for pipeline reporting to enhance predictability in business operations. Resourcing teams effectively is also mentioned, ensuring that account opportunities are met with the right capabilities. The emphasis on embedding quality across all account execution elements suggests a commitment to delivering superior client experiences.

Finally, the "Measure" section focuses on performance metrics. It details how the KAM manager will be evaluated based on revenue outcomes, relationship quality, and activity alignment with client plans. The return on investment in account resources is also a key metric, alongside tracking new wins and pipeline expansion. This structured approach ensures that Chemicals Company A can systematically enhance its KAM capabilities, ultimately driving better business results.

Strategic Framework for Change Management Implementation

This PPT slide outlines a comprehensive change management strategy tailored for CHEMICALS COMPANY A, focusing on facilitating a smooth transition. The structure is divided into 4 key components: Communication, Team Building, Transition to New Processes/Organization, and Success Tracking of the Project.

Under Communication, the emphasis is on delivering direct, fact-based information to all stakeholders. This involves utilizing various media types to ensure that the message reaches everyone effectively. The goal here is to foster cultural change through well-structured communication tools.

Team Building is highlighted as a critical element, integrating team-building activities into all workshops. This approach aims to coach essential resources, ensuring that team dynamics are strengthened throughout the transition process.

The Transition to New Processes/Organization section outlines the necessity for structured training. This training will cover making new processes sustainable, establishing new organizational structures, and adapting IT systems. Workshops will also focus on clarifying new responsibilities associated with organizational interfaces, which is crucial for aligning roles and expectations.

Finally, the Success Tracking of the Project component stresses the importance of monitoring the implementation of new processes. This involves identifying and eliminating critical milestones that may hinder progress. The overall strategy is designed to ensure systematic positive branding of the project while addressing multiple cultural changes within the organization.

This slide serves as a roadmap for stakeholders, illustrating a clear plan for managing change effectively. It highlights the importance of communication, teamwork, training, and monitoring, which are essential for achieving successful organizational transitions.

Optimizing Sales Channels for Diverse Market Segments

This PPT slide presents a strategic overview of the sales channel structure for a chemicals company, focusing on how to effectively sell into various value segments. The primary visual is a two-dimensional matrix plotting customer concentration against market size, with products positioned within this framework.

Products are categorized into 3 distinct areas: "Developers and Institution," "Distributor," and "Non-Focus." The positioning of products indicates their relevance and potential sales strategy. For instance, products in the "Distributor" quadrant suggest a reliance on traditional sales channels, while those in "Developers and Institution" may require a more tailored approach, likely involving key account management and direct sales efforts.

The accompanying bullet points provide insights into market trends impacting sales strategies. A notable shift is anticipated as the reliance on traditional trade diminishes, with a projected increase in project-based sales. This indicates a need for the company to adapt its sales model, emphasizing key account management as a likely future trend.

Additionally, the slide highlights the impact of rising labor costs on sales dynamics, particularly noting that DIY consumer sales may increase, while HID customer sales could decline. The mention of e-commerce suggests an emerging channel that could attract specific customer segments, albeit with some limitations.

Lastly, the slide points out that sales from smaller cities are expected to grow, which will necessitate an expansion of the distributor network. This comprehensive analysis underscores the need for a strategic realignment of sales channels to optimize market opportunities and address evolving customer needs.

Strategic Focus on Mid-Tier Customer Segments

This PPT slide presents a strategic overview of CHEMICALS COMPANY A's sales approach, emphasizing the importance of mid-tier customers. It categorizes cities into 3 tiers based on population and GDP metrics. Tier 1 cities, labeled as "Big Bosses," consist of only 3 cities with populations exceeding 6 million and a per capita GDP over $6,000. This tier represents the most affluent market segment.

Moving to Tier 2, which is subdivided into 3 categories: "High Flyers," "Rich Cousins," and "Modest Neighbors." The "High Flyers" are larger Tier 2 cities, while "Rich Cousins" are relatively affluent, but smaller Tier 2 cities. "Modest Neighbors" represent other Tier 2 cities, suggesting a broader market potential. Each of these categories is accompanied by a list of cities, although specific names are omitted in this version.

The slide highlights the vast Tier 3 category, which encompasses around 600 cities. These cities have populations under 1.5 million and a per capita GDP below $2,000. This tier is labeled "Poor Relatives," indicating a lower economic status compared to the other tiers. The emphasis on Tier 3 suggests a strategic pivot towards capturing a mass market, which is crucial for CHEMICALS COMPANY A to attract customers from the mid-tier segments.

Overall, the content suggests a need for CHEMICALS COMPANY A to aggressively pursue growth in these mid-tier markets, indicating a shift in focus from traditional high-end markets to a more inclusive strategy that targets a broader customer base.

Strategic Questions for Optimizing Sales Channel Mix

This PPT slide presents a framework for improving the sales channel mix for CHEMICALS COMPANY A. It categorizes the sales channels into 5 distinct areas: E-commerce, Services, Projects, Modern Trade, and Traditional. Each category represents a potential avenue for revenue generation and requires careful consideration to enhance overall performance.

On the right side, a series of key questions are outlined, aimed at guiding strategic thinking around the sales channels. These questions focus on identifying target customers, assessing future market impacts, and defining the company's unique value proposition. Such inquiries are critical for understanding where to direct resources and efforts.

The slide emphasizes the importance of evaluating growth areas and capabilities needed to sustain that growth. It suggests a need for a balanced approach between various sales channels, particularly between Key Accounts, Direct sales, and Project-based engagements. This balance is crucial for optimizing profitability and ensuring that the company can effectively manage its partners and dealers.

Additionally, the slide highlights specific market considerations, such as the DIY market in China and the implications of major retailers like Home Depot withdrawing from that market. Understanding these dynamics can inform CHEMICALS COMPANY A's retail outlet development strategy.

Finally, the questions prompt a deeper analysis of channel allocation and profitability strategies. This comprehensive approach ensures that all aspects of the sales channel mix are scrutinized, allowing for informed decision-making that aligns with the company's growth objectives.

Action Plans and Responsibilities for Organizational Restructuring

This PPT slide presents a structured overview of detailed action plans essential for implementing organizational restructuring within a chemical company. It outlines various action plans, including the "Training of Implementation Team," which is the focal point of the slide. Each action plan is associated with specific tasks, responsible individuals, and a timeline spanning eight weeks.

The first section lists the action plans, indicating a systematic approach to restructuring. The "Training of Implementation Team" is highlighted, suggesting it is a critical step in ensuring that the team is prepared for the changes ahead. The slide emphasizes the importance of clearly defined roles and responsibilities, as seen in the activity column where tasks like "Nomination of team members" and "Preparation and distribution of invitations" are specified.

The responsible individuals for these tasks are identified, which includes Mr. X and Mrs. Y, along with team coaches. This clarity in accountability is vital for effective execution. The support column indicates that the HR department will assist, reinforcing the collaborative nature of the initiative.

The timeline is visually represented, showing the distribution of tasks over the weeks. This allows for tracking progress and ensuring that all activities are completed on schedule. The overall structure of the slide conveys a methodical and organized approach to the restructuring process, highlighting the importance of planning and coordination in achieving successful outcomes.

Clarifying Key Account Management Alignment Challenges

This PPT slide addresses the complexities surrounding alignment in key account management (KAM) from the perspective of a specific client, referred to as COMPANY A. It highlights 3 critical areas of ambiguity that need clarification to optimize sales strategies.

Firstly, the section on "Customer – Channel Alignment" raises questions about the roles of Key Account (KA) and Key Partner (KP) sales teams. It emphasizes the need for a clear definition of customer coverage by either KA or KP. The slide prompts consideration of the implications for sales personnel when customers transition between these 2 categories, suggesting that such shifts could significantly impact sales dynamics.

Next, the "Offering – Channel Alignment" section discusses the role of KA as a customer access channel. It points out that while KA serves as a means to reach customers, it may not always function as a channel for fulfilling sales. The slide questions which channel would be most effective for delivering various offerings, indicating a need for strategic alignment between sales channels and product offerings.

Lastly, the "Channel – Function Alignment" area focuses on the support structure for KA managers. It calls for an examination of the account team’s structure and the roles and responsibilities (R&Rs) at each stage of the sales process. This suggests that clarity in team roles is essential for effective sales execution.

Overall, the slide underscores the necessity for COMPANY A to address these ambiguities to enhance its sales effectiveness and align internal structures with strategic objectives. Each point raises critical considerations for refining sales processes and ensuring that teams are equipped to meet customer needs effectively.

Tailoring Sales Models for Chemicals Company A

This PPT slide presents a framework for designing a sales model tailored to the specific needs of Chemicals Company A. It emphasizes 3 critical dimensions: Product, Region, and Customer. Each dimension plays a vital role in shaping the sales strategy.

The Product dimension highlights that the complexity and maturity of a product dictate the level of focus required. New brands, for instance, demand substantial product emphasis to successfully enter the market. Similarly, products with high technical complexity necessitate significant support during the R&D phase and subsequent launch. This suggests that the sales model must be adaptable to the product's lifecycle stage and technical demands.

The Region dimension underscores the importance of regional differentiation. In markets where socioeconomic and political conditions are uniform, a generalized approach may suffice. However, in larger, more diverse countries, a regionally-focused strategy becomes essential. This indicates that the sales model must account for regional variances to effectively meet market demands.

The Customer dimension points to the necessity of understanding the purchasing power and specific needs of different customer segments. Organizations that rely heavily on channel-driven strategies must cater to the unique requirements of their customers, which may vary significantly by industry or key account. This reinforces the idea that a one-size-fits-all approach is inadequate.

Overall, the slide serves as a guide for Chemicals Company A to consider how these 3 dimensions interact and influence the design of their sales model. It encourages a tailored approach that aligns with the company's specific market conditions and product characteristics.

Internal Assessment Framework for Market Positioning

This PPT slide outlines a strategic approach for conducting an internal assessment aimed at understanding the current market positioning within a specific value segment. It emphasizes the importance of analyzing product portfolios and channel strategies, suggesting a comprehensive evaluation of both internal capabilities and market dynamics.

The central graphic appears to depict a framework or model that visually represents various components related to market positioning. This likely includes elements such as customer segments, product offerings, and distribution channels, all interconnected to illustrate how they influence overall strategy. The use of circles and arrows indicates relationships and flows between these elements, which could be crucial for identifying gaps or opportunities.

On the right side, there are sections labeled "Process Activities," "Subject Areas," and "Calculating the Impact," which likely detail specific tasks and methodologies to be employed during the assessment. These sections suggest a structured approach, where each activity is aligned with the overarching goal of enhancing market understanding.

The slide's illustrative nature implies that it serves as a guide for stakeholders to visualize the assessment process. It also indicates that the findings will inform strategic decisions, potentially leading to improved alignment of product offerings and distribution strategies with market needs. This assessment is critical for organizations looking to refine their positioning and drive growth in a competitive environment.

Growth and Market Positioning of Chemicals Company A

This PPT slide presents a comprehensive overview of CHEMICALS COMPANY A's growth and market positioning in China since its entry into the market. The left section highlights key financial metrics, showcasing a significant increase in revenue, which rose from €687 million in 2007 to €1,249 million in 2010, reflecting a compound annual growth rate (CAGR) of 22.05%. This growth trajectory indicates a robust demand for the company's offerings in the Chinese market. The employee count also shows a steady increase, from 5,100 in 2007 to 6,700 in 2010, with a CAGR of 9.52%. This suggests that the company is not only expanding its operational capacity, but also investing in human resources to support its growth.

The middle section provides context about CHEMICALS COMPANY A's establishment in China. As of 2011, the company owned 29 manufacturing facilities and had invested significantly in infrastructure, including a €275 million multi-site facility and an innovation center. The presence of a nationwide sales network with 7,400 personnel illustrates the company's commitment to maintaining a strong market presence.

The right section focuses on market share, indicating that CHEMICALS COMPANY A holds a substantial position in the paints market, with 11.9% of the market share in 2011. The pie chart visually conveys that the company competes effectively against other brands, with a notable 15% share attributed to other paint products. The company is recognized for supplying a diverse range of products, catering to both professional and DIY markets, which positions it favorably in the competitive landscape. Overall, the slide underscores the company's strategic growth and solid foundation in the Chinese market.

Distributor Management: Tiered Engagement Strategy

This PPT slide outlines a systematic approach to categorizing distributors based on their importance and performance, dividing them into 4 distinct tiers. This tier system is crucial for optimizing management strategies tailored to each distributor's specific needs and contributions.

The vertical axis represents "Strategic Importance," while the horizontal axis indicates "Relationship Value." Distributors are plotted within this matrix, allowing for a clear visual representation of their positioning. The slide highlights 2 primary categories: Strategic Distributors and Preferred Distributors.

Strategic Distributors are managed through a "1 to 1" process, which emphasizes personalized engagement. This involves a comprehensive relationship analysis, setting clear objectives and strategies, and ensuring active distributor engagement. The process culminates in joint commitment and review, followed by implementation, ensuring that both parties are aligned and accountable.

On the other hand, Preferred Distributors are handled through a "1 to Many" management approach. This method allows for broader engagement strategies, focusing on goal setting and readiness, community engagement, and opportunity evaluation. The roadmap and planning phase is crucial here, as it lays out the path for collective growth and success, followed by joint implementation to ensure that strategies are executed effectively.

Understanding this tier system enables organizations to allocate resources efficiently, fostering stronger relationships with key distributors while maximizing overall performance. The visual representation simplifies complex data, making it easier for decision-makers to grasp the strategic implications of distributor management. This slide serves as a foundational element for companies looking to refine their distributor relationships and drive better outcomes.