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Wood, Paper & Forestry-107
The Situation:
International converter of paper and plastics in a growing market wants to reorganize the company to position itself for future growth and meet the financial market’s expectation of operating margin and return on investment.
The Driver Goal:
- Achieve a 12% operating margin with a 20% ROI
- Reorganize the company into strategic business units with dedicated facilities
- Create a more focused and responsive management organization
- Position the business for future growth
Actions Taken:
- Defined strategic business units to increase accountability for business results
- Developed the organizational structure to support the business units
- Developed and executed a transition plan to the new organizational structure
The Results:
- Achieved a 12% operating margin
- Improved ROI from 14% to 22%
- Realized $14 million in annualized savings from direct labor and support services
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