As the business had progressed, elements of that plan had diverged, particularly those based on financial predictions. In some areas, there were additions to the plan, and in other areas, changes had not progressed to the level desired, such as cost savings realised through the automation of roles.
Q5 were engaged to undertake a quantitative and qualitative review of the operating model implementation, as well as providing benchmarks to comparable organisations
We reviewed the operating model implementation progress, analysing the evolution of headcount by grade against planned changes. Overlaid on this were financial metrics including cost to sales, and organisation metrics including spans and compressions. Detailed spans and layers analysis were produced for each function for a more granular assessment against best practice recommendations. Examining the evolution of spans and layers surfaced questions for leadership to address as they continue to implement their strategic plans.
We benchmarked against 5 retailers from Q5’s database, ranging from £0.5bn revenue up to £10bn revenue, as well as two Kingfisher brands. This showed the ‘art of the possible’ for metrics such as head office percentage of the cost for sales, as well as allowing the client to understand how their head office compares to equivalent organisations.
