Case Study: Revamping Success: A Rapid Organizational Transformation in the CPG Industry
The Challenge
During the pandemic, a Consumer Packaged Goods organization experienced an unprecedented boom. They struggled to keep up with demand, resulting in record revenue and profit. However, they allowed their costs to spiral out of control, paying huge bonuses and giving raises to everyone, assuming this new demand would be the new normal. Their administrative costs ballooned to match their manufacturing costs. By 2021, demand began to plummet, leaving the business unsustainable.
The Approach
We implemented a rapid intervention focusing on a Rapid Organizational Design to transition from a siloed organization to a matrix one. This involved:
Identifying both macro and micro designs to amalgamate positions and clarify roles.
Conducting executive coaching and alignment to foster an atmosphere of constructive conflict.
Engaging in difficult conversations with senior leaders about the state of their business to drive actionable change.
The Outcome
As a result of the rapid intervention, we:
Redesigned the organization to reduce the size of the administrative support.
Shifted focus towards sales and manufacturing.
Within three months, the organization began to turn a profit and established a strong foundation for future growth.
“I thought i was going to lose my job. I looked at my people and felt i failed them. I was afraid of conflict and knew i had to make dramatic changes but didn’t know where to begin. Tengu helped me put focus on what to do and they didn’t tell me what i wanted to hear. They were honest, approachable, professional, and no nonsense. It was exactly what I needed to turn this around and not close the company.”
