Paper Convertor
SITUATION
Increased foreign competition and intense cost pressures set the stage for reorganization at an international converter of paper and plastics.
DRIVER GOAL
- Achieve a 12% operating margin with a 20% ROI.
- Reorganize the company into strategic business units.
- Create a more responsive management organization.
RESULT
- Achieved a 12+% operating margin.
- Improved ROI from 14% to 22%.
- Realized more than $13.7 million in annualized savings from direct labor and support services.
Case Study
Optimize Performance & Improve Profitability
Issue
Increased foreign competition and intense cost pressures set the stage for reorganization at an international converter of paper and plastics. To position itself for future growth and meet the financial market’s expectation of operating margin and return on investment, the company sought external resources to accelerate its reorganization efforts.
Highland Approach
The Highland Group’s seasoned professionals worked with client leadership to clearly define and communicate the Driver Goals of the reorganization. A subsequent analysis served to validate the attainability of these goals and produced a business case against which progress could be tracked. A series of visual maps created interactively with client personnel rallied the organization to make sweeping but necessary structural changes.
Actions Taken
- Developed defined strategic business units to increase accountability for business results.
- Developed an organizational structure to support the business units.
- Developed and executed a transition plan to the new organizational structure.
- Redefined roles, responsibilities and accountabilities at all levels or the company.
- Conducted goal roll-down sessions with all executives and their direct reports.
- Aligned all communications and meeting flows with each key operating department.
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