Background and Challenge

L.E.K. Consulting’s client, an $8B global medical device company, faced stalled revenue growth due largely to organizational dysfunction. The company partnered with us to diagnose, design and implement an organizational transformation focused on sales and marketing and critical supporting functions (e.g., finance).

Approach and Recommendations

We worked closely with management to diagnose the root causes of underperformance. Issues such as poor linkages between global and local units were identified as important hurdles to revenue growth. With senior leaders, we designed a new organizational structure that reaped the benefits of global sales and marketing coordination while reinforcing local accountability. Leveraging its worldwide staff, we ran an integrated program management office (PMO) to activate this strategy across more than 100 countries. A new governance model was established with clear responsibilities, cascading decision rights, international coordination and standardized metrics and reporting. Cultural change was managed and reinforced using incentive design and employee training.

Results

The reorganized and reenergized organization has achieved unprecedented collaboration and effectiveness. The company conservatively estimates the incremental revenue benefits to be ~$200M during the first three to five years.

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