Transformation and governance: how a world leader in wines and spirits rethought its operating model

Category:

Strategy

Context

Faced with a silo-based organization limiting cross-functional collaboration and hampering decision-making, a world leader in wines and spirits undertook a complete overhaul of its operating model.

This transformation took place against a backdrop where a lack of alignment with strategic decisions was hampering overall performance, while insufficient use of data and performance indicators was reducing the ability to analyze and anticipate.

In addition, the company wanted to strengthen the autonomy and accountability of its managers by giving them clear mandates and real decision-making power.

Approach and methodology

  • Assessment of existing situation: Carrying out an in-depth diagnosis via interviews with stakeholders to identify the main points of friction, while highlighting the strengths of the current organization.
  • Design of the target operating model: Developed in close collaboration with a Core Team of key stakeholders, around five major axes:
    • Governance
    • Performance management system
    • Processes
    • Skills (technical expertise) and Change-Management (cultural evolution)
    • Tools & Data (e.g. dashboards)

Objective

  • Defining the target operating model: Accelerating data-driven decision-making and strengthening cross-functional collaboration.
  • Transformation deployment: Support teams in integrating new processes and operating modes.

Results Achieved

Support for teams over four quarterly business cycles:

  • Reinforced collaboration and improved information flow between functions – no more decisions taken on the side.
  • More structured approach to decision-making, based on data and facts.
  • Fluid, interconnected functional processes – every manager knows his or her role and the stakeholders to be involved.
  • Major strategic decisions taken throughout the deployment, based on the agility offered by the new governance model.