A large commercial tenant improvement contractor, our client realized the need to develop a functional organizational structure in order to maximize efficiency and employee productivity. Although a very loyal employee group with many years of service, promotions were based predominately on tenure rather than pre-established metrics or job function requirements. Most all financial, sales and operational decisions landed on ownership’s desk; there was limited delegation of responsibility.
In a collaborative effort with our client, we undertook a management-led effort that involved employees from key functions throughout the company to re-define responsibilities and organizational structure in order to ensure the company could continue to grow and maintain profit levels even in tough economic times.
The business strategy consultant conducted internal sessions to identify key employee placements based on past performance, potential performance, synergy with ownership’s vision and overall desire to succeed.
The most capable candidates from within were re-assigned to their proper job function. Enhancements to divisional responsibilities were tested and implemented, including moving all financial functions from “office management” to the “accounting department.” This initiative also included new internal training and corporate-wide business education and new leadership competencies.
With the implementation of the new organizational structure, performance enhancements, new reporting and budgeting systems, projected first year cost savings totaled over $500,000 and ownership has more free time to work on new company initiatives.