Restructuring – Integrating six independent divisions into a 600 mio $ business
Company:
Avery Dennison, Graphic Reflective Products Division
Painesville, Ohio
Information:
Graphics Reflective Products Division
Period:
2006 – 2007
Role:
- Vice President
- General Manager
Responsibility:
$600M global sales, with 5 U.S./5 international plants, and 1,500+ employees
Situation:
- Six divisions with sales over 600 Mio $ had to be merged into one division.
- The integration plan had been worked out by the Group VP and external consultants.
- I was selected to execute the merger.
Challenge:
- Balance the preconceived plan with business reality.
- Get buy-in from the organization.
- Weigh delayering of management structures against impact on customers and organization.
- Execute within eighteen months versus the original plan of twentyfour.
Execution:
- Based on an analysis of BCG, we mapped out how to move from a regional, independent VP/GM structure to a global functional organization.
- With the executive team and consultants, I worked out the details of the new organization and reduction of middle management.
- We prepared communication packages and I lead multiple meetings to explain to the organization the need to change and the goals of reorganization.
- With key players, I had one-on-one meetings to engage them and to have their buy-in and support.
- As the reorganization was under way, I found that business conditions required to adjust the preconceived plan.
- With help of BCG, the reorganization was realigned and the strategy for the next years set.
Result:
- Met the time lines.
- Executed 4.5 mio $ cost savings in management structure.
- Delivered 125% of Net Income plan.
- Launched 30 mio $ additional EBIT opportunities
- Established a multi-year strategic plan – that was subsequently executed
