Business results and profit suffer as organization drag accumulates in the form of bureaucracy, managerial bloat, low productivity, and misallocation of resources and talent. Many businesses go through a ritual every couple of years of restructuring or cost transformation only to have scar tissue pile up in the process and never really unlock the full potential of their organization.
One of the reasons companies find themselves in an unproductive “restructuring loop” is the false hope that optimizing managerial span of controls (“spans”) and reducing organizational layers (“layers”) to be more in line with peer benchmarks will fix their execution problems. It won’t!
We approach restructuring and cost reduction initiatives with a highly data-driven approach that seeks to gain a deeper understanding of cost drivers relative to benchmarks. Our highly experienced team then deploys our suite of tools to identify hot spots in the organization for which restructuring can deliver cost savings without eroding critical capabilities. We also work collaboratively with executives to redesign the organization in a way that contains cost and unlocks value.