A major automotive supplier had been suffering ongoing losses, despite controlling a large share of the global product category.
Organizing to serve the customer
Our careful study revealed that the blame lay with a complicated organizational structure, which focused attention on inward organization when it should have been focused on customers. We suggested that the company reorganize into six business units geared to distinct customer segments and launch a performance system to track output and sales, clarify manager responsibilities, reveal problems, and highlight successes.
In addition, our team scrutinized the company's operations and identified multiple cost-reduction opportunities, which would involve consolidating plants, negotiating more favorable supplier contracts, and redesigning products for greater manufacturing efficiency.
Performance reward
Within 2 years, the company's losses reversed dramatically and net profits reached near-record levels.
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| | Case studies | |
 | Customers First for an Automotive Supplier | |
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