Aligning Organisation to the Strategy for a Diversified Heavy Engineering Company
The client was a heavy engineering company. Based on the strategy defined by UC in 2006 coupled with robust growth in the heavy engineering space in India, client witnessed a phenomenal growth in turnover in all its industry vertical. However the number of organisational issues as mentioned below impacted the sustainable growth rate:
- Multiple diversified divisions under one umbrella, making it difficult to manage with high future growth anticipated in each vertical
- Ageing workforce, succession planning, talent crunch and employees not geared to adapt to high growth environment
- Virtually nonexistent performance management system leading to attrition, lack of motivation etc.
- Disparities in compensation structure
The top management requested UC to address the same these issues.
To align organisation to the strategy, UC adopted the following approach:
- Conducted an in-depth analysis of inter-divisional linkages across different divisions, market dynamics, readiness of each business division, management style, global and local case studies of diversified conglomerates etc.
- Based on the detailed analysis, recommended strategic business unit (SBU) structure to provide quick decision making and profitability accountability at business level and to achieve this objective recommended clustering of businesses
- Defined divisional structure: evaluated and suggested the need for different functions and roles for each of the divisions. Also defined job descriptions and job profiles for all the functions and levels
- Defined a performance management system - defined the philosophy, process (including defining of performance metrics for each function and level) and the outcome i.e. linking the process to variable pay, career progression, increments, training needs etc.
- Recommended a compensation structure - examined internal and external gaps in the compensation structure, benchmarked against the industry and recommended the structure
- Also recommended grade rationalisation to facilitate compensation according to new structure
The organisation was aligned to the long term strategy of the company.