Reckitt sharpens its focus to accelerate growth
In 2024, Reckitt set out to transform three parts of its global business at once—all while maintaining day-to-day performance across more than 70 markets. The consumer goods company aimed to refocus its portfolio, separate non-core businesses, and redesign its operating model to become simpler and more agile, better positioning itself for growth.
Working with McKinsey, Reckitt narrowed its focus to 11 core brands and began separating businesses outside that portfolio. At the same time, it reduced management layers from five to three, giving local markets greater authority to make decisions. Changes to manufacturing and supply chain operations further streamlined the business, helping teams work more efficiently.
In the first year, Reckitt delivered more than 8 percent operating profit growth while sustaining positive like-for-like revenue growth. The company is also on a path toward approximately 250 basis points of margin improvement, with a simpler operating model designed to support long-term performance.
Reckitt’s transformation: Three moves, one strategic reset
Reckitt didn’t sequence change. It did three moves at once: transforming its core, separating noncore businesses, and resetting its operating model. That decisive reset cut business complexity, accelerated decisions, and repositioned the company for stronger growth, higher margins, and sustained performance.
This blog post was edited by Adam Swiderski, an associate editor in McKinsey’s New York office.
