Kraft Foods implemented the “Organizing for Growth” (OFG) initiative, a strategy aimed at decentralizing its structure and empowering business units. Are you eager to discover more about how Kraft Foods restructured for growth? FOODS.EDU.VN is your reliable source for in-depth insights into corporate strategies and organizational transformations. You will gain a thorough understanding of Kraft Foods’ organizational transformation, its impact, and how other businesses can apply similar strategies.
1. What Is Kraft Foods’ Approach to Organizational Decentralization?
Kraft Foods adopted a decentralized model that shifted decision-making authority and resource allocation to its business units (BUs). According to an article in strategy+business, Kraft Foods dismantled its existing organizational matrix and replaced it with a decentralized structure, granting more direct responsibility to its reorganized business units. This involved changing reporting lines, structures, and operating units as part of a larger change initiative. By doing so, Kraft aimed to enhance responsiveness, accountability, and overall business performance.
1.1. The Shift from Centralization to Decentralization
Kraft Foods, like many large corporations, had evolved into a highly centralized structure over time. This centralization was initially beneficial for cost reduction and infrastructure rationalization following various acquisitions, as noted by Dave Brearton, Executive Vice President of Operations and Business Services at Kraft Foods. However, it eventually led to slower growth, decreased earnings, and a reduced ability to respond swiftly to market changes. The decision to decentralize was a strategic move to reverse these trends.
1.2. Identifying the Need for Change
Several factors prompted the shift toward decentralization. Karen May, Executive Vice President of Global Human Resources, observed that Kraft had become too focused on internal functions, losing sight of business results. Rick Searer, Executive Vice President and President of Kraft Foods North America, noted that business units felt disempowered, leading to a slowed-down, thickening sense of process. These issues highlighted the necessity for a more agile and responsive organizational structure.
1.3. The “Organizing for Growth” (OFG) Initiative
The “Organizing for Growth” (OFG) initiative was Kraft Foods’ comprehensive plan to decentralize its operations. Announced in April 2007 by then-CEO Irene Rosenfeld, OFG aimed to rewire headquarters by allowing line-of-business managers to make more decisions, redeploy resources, and enhance overall effectiveness. This initiative involved eight key issues, each tackled by dedicated teams and sponsored by members of the Kraft Executive Team (KET).
1.4. Defining Accountable Business Units (BUs)
A core element of OFG was the creation of more accountable business units (BUs). Gary Conte, Vice President of Human Resources, Corporate Functions, and Employee Services, explained that this approach pushed decision-making down the hierarchy, deployed resources where needed, and gave leaders more freedom to act. This meant raising the stakes for managers and providing them with greater autonomy.
1.5. Hybrid Approaches and Corporate Oversight
While decentralization was the primary focus, Kraft Foods recognized the need for a hybrid approach in certain functions. Some control remained at the corporate level for governance and other high-priority areas. Additionally, corporate functional experts and coordinating mechanisms were established to leverage the company’s scale and disseminate best practices across business units.
1.6. Adapting to Different Markets
Kraft Foods understood that a one-size-fits-all approach would not work across its diverse markets. Sanjay Khosla, Executive Vice President and President of Kraft Foods International, noted that historically, what was good for one market was seen as being good for every market, which was not true. As a result, the company implemented different models in North America, Europe, and developing markets to best suit local conditions and consumer needs.
2. What Key Elements Enabled Kraft Foods to Successfully Reorganize?
Several key elements contributed to the success of Kraft Foods’ reorganization, including clear strategic alignment, comprehensive changes beyond structure, tailored approaches for different situations, thorough planning, strong leadership involvement, and a phased implementation. These strategies allowed Kraft to adapt effectively to market dynamics and achieve sustainable growth.
2.1. Strategic Alignment
The success of Kraft Foods’ reorganization was rooted in its alignment with the company’s overarching business strategy. According to the strategy+business team, the new organizational model should primarily enable and catalyze the strategic direction of the company. Without a clear strategy, the organization cannot align behind it. In Kraft’s case, the need to move decision making closer to consumers and markets was a clear strategic shift that prompted other changes and discussions.
2.2. Comprehensive Changes Beyond Structure
Kraft Foods went beyond mere structural changes, addressing work-flow processes, decision rights, metrics, career paths, corporate policies, incentives, and talent development. This holistic approach ensured that all aspects of the organization were aligned with the new decentralized model. Executives at Kraft credited this deeper execution for many of the benefits their change initiative produced.
2.3. Tailored Approaches for Different Situations
Kraft Foods recognized that a one-size-fits-all approach would not work across its diverse markets and functions. While decentralization was the overarching theme, there were instances where centralization served customers and the company better. As such, the company made exceptions where necessary, such as in its North American sales operation, to leverage its scale effectively.
2.4. Thorough Planning
Before launching the reorganization, Kraft Foods engaged in thorough planning discussions to address potential concerns and establish guiding principles. This detailed planning process, though initially frustrating, built a sense of collective ownership and allowed the company to move more decisively in the long run. The discussions also led to a road map that outlined the steps necessary for a successful transformation.
2.5. Strong Leadership Involvement
The transformation efforts at Kraft Foods were driven by strong leadership involvement at all levels. The company’s executive team and an expanded group of senior managers were actively involved in hammering out the details of the new model and keeping it moving forward. This level of engagement ensured that the reorganization remained a top priority and that any obstacles were addressed promptly.
2.6. Phased Implementation
Kraft Foods adopted a phased approach to its reorganization, recognizing that even the best-planned initiatives require course corrections. The company began by decentralizing decision-making on matters such as product development and manufacturing, and then focused on other aspects of the new model, such as implementing shared services. This phased implementation allowed Kraft Foods to adapt to changing circumstances and fine-tune its approach as needed.
Irene Rosenfeld at Kraft Foods Executive Meeting
3. How Did Kraft Foods Handle Resistance and Cultural Shifts During the Reorganization?
Kraft Foods addressed resistance and cultural shifts by fostering open communication, involving key stakeholders, and adapting incentive structures. By openly communicating the rationale behind the changes, involving employees in the planning process, and aligning incentives with the new organizational goals, Kraft fostered a culture of collaboration and accountability that facilitated the successful implementation of the reorganization. This inclusive approach helped to minimize resistance and promote a shared sense of ownership.
3.1. Open Communication
Irene Rosenfeld emphasized the importance of open communication throughout the reorganization process. She held numerous meetings with various teams to discuss the pros and cons of the decentralization plan and encouraged employees to voice their concerns and opinions. This transparency helped to build trust and ensure that everyone understood the rationale behind the changes.
3.2. Involving Key Stakeholders
To foster a sense of ownership, Kraft Foods involved key stakeholders in the planning and implementation of the reorganization. Teams were assigned to tackle the most important issues, and each team had at least two KET sponsors. This ensured that the solutions being developed were consistent with the new model and that the perspectives of different departments and business units were taken into account.
3.3. Adapting Incentive Structures
Kraft Foods recognized that incentive structures needed to be aligned with the new decentralized model. The company changed the way it aggregated data on individual businesses and evaluated their performance, focusing on metrics that aligned with shareholder value, such as organic revenue growth, operating income growth, and cash flow. Additionally, the compensation of unit managers was linked more directly to their individual performance, encouraging them to take ownership of their business unit’s results.
3.4. Addressing Functional Leaders’ Concerns
Functional leaders were at different stages of acceptance regarding the decentralization plan. To address their concerns, Irene Rosenfeld deliberately went around the room at a KET meeting and asked each member for their support. This allowed individuals to express their reservations and ensured that everyone was committed to executing the decision, even if they did not fully support it.
3.5. Creating a Collaborative Environment
Kraft Foods implemented several mechanisms to promote collaboration across the enterprise, such as category executive teams and collaborative networks. These initiatives facilitated the sharing of best practices and innovations across different business units, ensuring that the company continued to leverage its scale and expertise despite the decentralized structure.
3.6. Empowering Business Unit Leaders
The reorganization empowered business unit leaders by giving them more autonomy and control over their operations. Mark Clouse, Vice President and Managing Director of Kraft Foods Brazil, noted that as a business unit leader, his ability to engage his organization had been greatly aided by the fact that they were setting more of the direction. This sense of empowerment motivated business unit leaders to take greater ownership of their results and drive improvements in their respective areas.
4. What Metrics Did Kraft Foods Use to Measure the Success of Its Reorganization?
Kraft Foods measured the success of its reorganization using key performance indicators (KPIs) aligned with shareholder value, including organic revenue growth, operating income growth, and cash flow. By focusing on these metrics, Kraft Foods ensured that the reorganization was driving tangible improvements in the company’s financial performance and creating value for its shareholders.
4.1. Scorecards for Performance Evaluation
Kraft Foods implemented scorecards to distill what was important to any given business’s performance and present it in a format that could be understood at a glance. These scorecards used green highlighting to show areas where a business was performing as expected, yellow to pinpoint emerging problems, and red to flag areas requiring immediate attention. The three main measures on the scorecard—which were picked for their alignment with shareholder value—were organic revenue growth, operating income growth, and cash flow.
4.2. Alignment with Shareholder Value
The metrics used by Kraft Foods were specifically chosen for their alignment with shareholder value. Organic revenue growth, operating income growth, and cash flow are all key drivers of shareholder returns, and by focusing on these metrics, Kraft Foods ensured that the reorganization was contributing to the company’s overall financial success. This alignment helped to create a shared sense of purpose and ensure that everyone was working towards the same goals.
4.3. Transparency and Accountability
The scorecards and other performance metrics provided transparency and accountability throughout the organization. Business unit managers knew what was expected of them and were able to track their progress against their goals. This transparency also made it easier to identify and address any problems that arose, allowing the company to make course corrections as needed.
4.4. Internal Cash-Flow Targets
In 2008, Kraft Foods gave its business units an internal cash-flow target, further incentivizing them to improve their financial performance. With all the P&L and balance sheet levers now at their disposal, the business units exceeded the target handsomely. This demonstrated the effectiveness of the decentralized model in empowering business units to take control of their financial results.
4.5. Accurate Cost Allocation
The reorganization also forced Kraft Foods to allocate costs more accurately. By peeling out everything that people do and listing their services and what they really cost, it became clear that certain business units were being charged disproportionately. This transparency helped to ensure that costs were allocated fairly and that resources were being used efficiently.
4.6. Improved Decision-Making
The metrics used by Kraft Foods also helped to improve decision-making throughout the organization. By having access to timely and accurate data, managers were able to make more informed decisions about how to allocate resources and manage their operations. This improved decision-making contributed to the company’s overall success and helped it to achieve its strategic goals.
5. How Did Kraft Foods Balance Decentralization with Maintaining Corporate Standards?
Kraft Foods balanced decentralization with maintaining corporate standards through hybrid approaches, corporate functional experts, and strategic platforms. This multifaceted strategy allowed Kraft to empower its business units while preserving the integrity and consistency of its overall operations.
5.1. Hybrid Approaches
Kraft Foods adopted a hybrid approach, retaining some control at the corporate level for governance and other high-priority areas. This allowed the company to maintain oversight of critical functions while still empowering business units to make decisions that were relevant to their specific markets and operations.
5.2. Corporate Functional Experts
Kraft Foods established corporate functional experts to build capabilities and disseminate best practices across business units. These experts worked across the businesses to ensure that consistent standards were being applied and that best practices were being shared. This helped to maintain a level of consistency and quality across the organization, even as decision-making was decentralized.
5.3. Strategic Platforms
Kraft Foods used strategic platforms to pursue market opportunities that cut across business units or categories. These platforms were identified at the corporate level and then addressed by business units in their own strategic plans. Health and wellness, for example, started as a strategic platform in corporate and is now important across the company’s portfolio.
5.4. Decision Rights and Policies
Kraft Foods also maintained corporate standards through its decision rights and policies. The company eliminated many old policies, updated others, and put all of them in a consistent format, making them easy to search for on Kraft’s intranet. This ensured that managers had access to the information they needed to make informed decisions and that they were operating within the boundaries established by corporate policy.
5.5. Shared Services Model
Kraft Foods adopted a shared-services model, where each function defines its services and costs, and business units, within guardrails, get to choose the level of service they need or, in the extreme, to opt in or out completely. This model allowed business units to exercise control over their costs while still benefiting from the expertise and resources of the corporate center.
5.6. Metrics and Performance Evaluation
Kraft Foods maintained corporate standards through its metrics and performance evaluation processes. The company used scorecards to track the performance of business units and ensure that they were aligned with corporate goals. These scorecards provided transparency and accountability, helping to drive consistent performance across the organization.
6. What Were Some Challenges Encountered by Kraft Foods During Its Reorganization Process?
Kraft Foods faced challenges such as functions becoming too hands-off, ensuring collaboration across the enterprise, information systems not fully supporting the new structure, and adopting the shared-services model. These challenges underscore the complexity of large-scale organizational transformations and the need for ongoing adaptation and refinement.
6.1. Functions Becoming Too Hands-Off
Irene Rosenfeld noted that some of the functions had actually become, in effect, too hands-off. This meant that while the business units had gained more autonomy, the corporate center was not always providing the support and guidance that they needed. To address this challenge, Kraft Foods worked to strike a better balance between decentralization and corporate oversight.
6.2. Ensuring Collaboration Across the Enterprise
Jean Spence, Executive Vice President of Research, Development, and Quality, identified the challenge of ensuring that the company continued to benefit from collaboration across the enterprise. In the past, when the top R&D people in the business units reported to her, she could easily share new technologies and innovations across different parts of the company. With the decentralized structure, it was more difficult to ensure that this knowledge sharing was happening. To address this challenge, Kraft Foods reinforced the ethic of collaboration and implemented mechanisms such as category executive teams and collaborative networks.
6.3. Information Systems Not Fully Supporting the New Structure
Nick Meriggioli, President of Kraft Foods’ Oscar Mayer business unit, noted that the company’s information systems were built to provide information to the business units, but not to the categories that make up those units. This made it difficult for people who oversaw subcategories within the business units to get the data they needed to manage their operations effectively. To address this challenge, Kraft Foods implemented a new version of SAP that provided more granular data to the business units.
6.4. Adopting the Shared-Services Model
Karen May, Executive Vice President of Global Human Resources, noted that Kraft Foods was still working out how to adopt more of the shared-services model. The idea behind this model is that each function defines its services and costs, and the business units, within guardrails, get to choose the level of service they need or, in the extreme, to opt in or out completely. However, the process for calculating costs using shared services was not as clear as the company would have liked it to be.
6.5. Resistance to Change
As with any major organizational transformation, Kraft Foods faced some resistance to change. Some employees were comfortable with the old centralized structure and were hesitant to embrace the new decentralized model. To address this challenge, Kraft Foods communicated the benefits of the reorganization clearly and involved employees in the planning and implementation process.
6.6. Maintaining Corporate Standards
Another challenge faced by Kraft Foods was maintaining corporate standards across the decentralized organization. With business units having more autonomy, it was important to ensure that they were still adhering to corporate policies and procedures. To address this challenge, Kraft Foods implemented a system of decision rights and policies that provided clear guidance to the business units.
7. How Has Kraft Foods Evolved Its Organizational Structure Since the Initial Reorganization?
Kraft Foods has continued to evolve its organizational structure by refining its shared-services model, focusing on high-performing teams, and adapting to changing market conditions. This ongoing evolution demonstrates Kraft Foods’ commitment to continuous improvement and its ability to adapt to the ever-changing business landscape.
7.1. Refining the Shared-Services Model
Kraft Foods has continued to refine its shared-services model to ensure that it is meeting the needs of the business units. The company is working to make the process for calculating costs using shared services clearer and more transparent. It is also giving business units more flexibility in choosing the level of service they need.
7.2. Focusing on High-Performing Teams
Now that the new organization structure is in place, Kraft Foods is shifting its attention from rewiring the organization to building high-performing teams. The company is investing in training and development programs to help employees work together more effectively and achieve their goals. It is also creating a culture of collaboration and innovation to encourage employees to share ideas and best practices.
7.3. Adapting to Changing Market Conditions
Kraft Foods is constantly adapting its organizational structure to respond to changing market conditions. The company is monitoring trends in the food industry and adjusting its strategies accordingly. It is also investing in new technologies and capabilities to stay ahead of the competition.
7.4. Empowering Employees
Kraft Foods has continued to empower employees by giving them more autonomy and control over their work. The company has created a culture of ownership and accountability, where employees are encouraged to take responsibility for their results. It has also provided employees with the resources and support they need to succeed.
7.5. Improving Communication
Kraft Foods has also worked to improve communication throughout the organization. The company has implemented new communication tools and processes to ensure that employees are informed about what is happening in the company and that they have the information they need to do their jobs effectively. It has also encouraged employees to communicate openly and honestly with each other.
7.6. Embracing Diversity and Inclusion
Kraft Foods has embraced diversity and inclusion as a core value. The company is committed to creating a workplace where everyone feels welcome and respected. It has also implemented programs to promote diversity and inclusion throughout the organization.
8. What Lessons Can Other Companies Learn from Kraft Foods’ Reorganization Experience?
Other companies can learn valuable lessons from Kraft Foods’ reorganization experience, including the importance of aligning organizational structure with business strategy, making comprehensive changes beyond structure, tailoring approaches for different situations, engaging in thorough planning, involving strong leadership, and embracing a phased implementation approach.
8.1. Align Organizational Structure with Business Strategy
One of the key lessons from Kraft Foods’ reorganization is the importance of aligning organizational structure with business strategy. The new organizational model should enable and catalyze the strategic direction of the company. If the strategy isn’t clear, the organization cannot align behind it. In Kraft’s case, the need to move decision making closer to consumers and markets was a clear strategic shift that prompted other changes and discussions.
8.2. Make Comprehensive Changes Beyond Structure
Another important lesson is that successful reorganizations require more than just changes to the organizational chart. Kraft Foods went further, addressing work-flow processes, decision rights, metrics, career paths, corporate policies, incentives, and talent development. Executives credit this deeper execution for many of the benefits their change initiative has produced.
8.3. Tailor Approaches for Different Situations
Companies should also recognize that one size does not fit all. Any robust organizational model will apply in different ways in different situations. Decentralization of the business units was Kraft’s theme. But there were also functions, and markets, where centralization served customers—and the company—better, because Kraft was able to leverage its scale. Where this was true, as in its North American sales operation, Kraft didn’t hesitate to make exceptions.
8.4. Engage in Thorough Planning
Thorough planning is also essential for a successful reorganization. Major change initiatives work best when key stakeholders have had a chance to articulate their concerns—and when the team involved in the decision has had the time to think through the implications of the new model and establish some guiding principles. The detailed quality of these discussions can engender some initial frustration, but at Kraft they built a sense of collective ownership. The discussions also led to a road map that allowed the corporation, in the long run, to move more decisively.
8.5. Involve Strong Leadership
Transformation efforts that don’t have the support of senior leadership often fail in spectacular fashion. But Kraft required much more of its leaders than verbal support, asking its nine-person executive team, and then an expanded group of 120 senior managers, to hammer out the details of the new model and keep it moving forward. Kraft executives were involved in all major proposed changes—critiquing the changes, keeping them on track, and talking them through with other Kraft executives who might be affected.
8.6. Embrace a Phased Implementation Approach
Finally, companies should expect a multiyear journey. Even the best-planned change initiative requires some course corrections—or ends up working best when done in phases. Kraft began by moving decision making about such matters as product development and manufacturing to lower levels in the hierarchy—thus taking aim at one of the biggest perceived problems in the company, its general managers’ lack of control over key P&L levers. In 2009, Kraft is focusing on some other aspects of the new model, such as how to implement shared services. And now that the new organization structure is in place, the company is shifting its attention from rewiring the organization to building high-performing teams.
9. How Did Kraft Foods’ Reorganization Impact Employee Roles and Responsibilities?
Kraft Foods’ reorganization significantly impacted employee roles and responsibilities, shifting the focus from functional expertise to general management and empowering business unit leaders. This transformation required employees to adapt to new ways of working and take on greater ownership of their results.
9.1. Shift from Functional Expertise to General Management
The reorganization required a shift from functional expertise to general management. The people running the businesses could no longer principally be marketers; they needed to become general managers. And the functional executives had to move to being functional leaders, capability builders, managers of careers, and sharers of best practices. This meant that employees had to develop new skills and competencies to succeed in their new roles.
9.2. Empowering Business Unit Leaders
The reorganization empowered business unit leaders by giving them more autonomy and control over their operations. As a business unit leader, Mark Clouse found that his ability to engage his organization had been greatly aided by the fact that they were setting more of the direction. This sense of empowerment motivated business unit leaders to take greater ownership of their results and drive improvements in their respective areas.
9.3. New Responsibilities for Functional Leaders
Functional leaders also took on new responsibilities as a result of the reorganization. Previously, those in the KET had big portfolios and might have had responsibility for a large number of factories, or for the customer service group worldwide, or in marketing for consumer insights worldwide. Suddenly they were influencing decisions, providing tool kits, or managing talent, but they weren’t actually running a day-to-day operation. This required functional leaders to develop new skills in coaching, mentoring, and influencing.
9.4. Greater Accountability
The reorganization also led to greater accountability throughout the organization. With business units having more autonomy, they were also held more accountable for their results. This meant that employees had to take greater ownership of their work and be more responsible for their performance.
9.5. Increased Collaboration
The reorganization also required increased collaboration across different parts of the organization. With business units having more autonomy, it was important to ensure that they were still working together effectively. This required employees to develop new skills in communication, teamwork, and conflict resolution.
9.6. Adaptability and Flexibility
Finally, the reorganization required employees to be adaptable and flexible. The new organizational structure was constantly evolving, and employees had to be able to adapt to changing circumstances. This required employees to be open to new ideas, willing to learn new skills, and able to work effectively in a dynamic environment.
10. How Did Kraft Foods Use Technology to Support Its Reorganization?
Kraft Foods used technology to support its reorganization by implementing new information systems and communication tools, as well as by leveraging data analytics to improve decision-making. These technological advancements enabled Kraft Foods to streamline its operations, enhance collaboration, and drive better business outcomes.
10.1. Implementing New Information Systems
Kraft Foods implemented new information systems to provide business units with the data they needed to manage their operations effectively. Nick Meriggioli noted that the company’s information systems were built to provide information to the business units, but not to the categories that make up those units. To address this challenge, Kraft Foods implemented a new version of SAP that provided more granular data to the business units.
10.2. Improving Communication Tools
Kraft Foods also implemented new communication tools to improve communication throughout the organization. These tools made it easier for employees to share information, collaborate on projects, and stay informed about what was happening in the company. The company also encouraged employees to use social media and other online platforms to connect with each other.
10.3. Leveraging Data Analytics
Kraft Foods leveraged data analytics to improve decision-making throughout the organization. The company collected data from a variety of sources, including sales, marketing, and operations, and used this data to identify trends, patterns, and insights. This information was then used to make better decisions about product development, marketing, and operations.
10.4. Automating Processes
Kraft Foods also automated many of its processes to improve efficiency and reduce costs. This included automating tasks such as order processing, inventory management, and financial reporting. By automating these tasks, the company was able to free up employees to focus on more strategic activities.
10.5. Mobile Technology
Kraft Foods also used mobile technology to support its reorganization. The company provided employees with mobile devices and apps that allowed them to access information, communicate with each other, and perform their jobs more effectively. This was particularly helpful for employees who were working in the field or traveling.
10.6. Cloud Computing
Finally, Kraft Foods used cloud computing to support its reorganization. The company moved many of its applications and data to the cloud, which allowed it to scale its operations more easily and reduce its IT costs. This also made it easier for employees to access the information they needed from anywhere in the world.
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FAQ about Kraft Foods and Organizational Restructuring
1. What was the main goal of Kraft Foods’ “Organizing for Growth” initiative?
The primary goal was to decentralize the organizational structure, empowering business units to make more decisions and improving responsiveness to market dynamics. This approach aimed to drive sustainable, long-term growth.
2. How did Kraft Foods define its accountable business units (BUs)?
Accountable BUs were defined as units with the authority to make decisions, allocate resources, and act independently. This structure aimed to push decision-making down the hierarchy and give leaders more freedom to operate effectively.
3. What challenges did Kraft Foods face during its reorganization?
Challenges included functions becoming too hands-off, ensuring collaboration across the enterprise, information systems not fully supporting the new structure, and adopting the shared-services model.
4. How did Kraft Foods address resistance to change during the reorganization?
Kraft Foods addressed resistance by fostering open communication, involving key stakeholders in the planning process, and adapting incentive structures to align with the new organizational goals.
5. What metrics did Kraft Foods use to measure the success of its reorganization?
Key metrics included organic revenue growth, operating income growth, and cash flow, all aligned with shareholder value. Scorecards were used to track performance and identify areas needing attention.
6. How did Kraft Foods balance decentralization with maintaining corporate standards?
Kraft Foods used hybrid approaches, retained corporate functional experts, and implemented strategic platforms to ensure that corporate standards were maintained while empowering business units.
7. What role did leadership play in Kraft Foods’ reorganization?
Strong leadership involvement was critical. The executive team and senior managers were actively involved in planning and implementing the changes, ensuring that the reorganization remained a top priority.
8. How did Kraft Foods adapt its organizational structure to different markets?
Kraft Foods recognized that a one-size-fits-all approach would not work. The company implemented different models in North America, Europe, and developing markets to best suit local conditions and consumer needs.
9. What key lessons can other companies learn from Kraft Foods’ reorganization experience?
Key lessons include aligning organizational structure with business strategy, making comprehensive changes beyond structure, tailoring approaches for different situations, engaging in thorough planning, involving strong leadership, and embracing a phased implementation approach.
10. How did Kraft Foods use technology to support its reorganization?
Kraft Foods implemented new information systems, improved communication tools, leveraged data analytics, automated processes, and utilized mobile and cloud computing technologies to support the reorganization.
