Arthur D. LittleArthur D. Little

Publications / Case Studies

Global Fast Moving Consumer Goods Company Restructures R&D

Challenge

Arthur D. Little helped redesign and restructure the R&D resources for one of the world’s leading global Fast Moving Consumer Goods companies. The company employed over 3,000 people in its R&D organization spread across a fragmented network of over 60 locations.  In light of increasing competition in food innovation, the company wished to restructure and realign its R&D resources in order to increase innovation performance and to optimize its cost base. The company was particularly interested in incorporating scientific knowledge in its product development efforts that would lead to breakthroughs in the functional food area. To achieve such success, they needed key competencies in several critical areas throughout the company.

Approach

Initially Arthur D. Little worked closely with a core team from the client to identify the business priorities and competences required for the future.  We then mapped the current R&D resources, defined a set of criteria to evaluate alternative organizational designs, and worked with the client to select the option that would best align with their business needs.  Ultimately, we developed a detailed implementation plan for their business.

Value

The new organization has now been successfully implemented. In Europe, output capability increased while the headcount was reduced by 17%.  R&D investments in BRIC growth markets were also increased.

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