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DIY retailer

The client were entering the third year of their three-year plan developed alongside a new Operating Model with Q5 in 2021. The client saw an opportunity to update their plan based on business needs in the current market landscape and internal developments over the previous 3 years.

DIY retailer – Op model review & benchmarking
Client DIY retailer
Region UK
Sector Retail and Consumer Goods
Offering Organisational analytics
Benchmarking Data analysis Operating model

The Challenge

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

Our Approach

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.

Key Outcomes

  • Detailed reporting on the client's organisational structure, measuring internal evolution alongside external comparisons, across a range of organisational and financial metrics.
  • Identified key approaches to change governance and ways of working to enable greater integration of the new operation model, including tangible opportunities for immediate action.
  • Recommended six key areas of focus to position for growth in 2024.
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