Network optimisation

To make a branch network function well, it must be clear whether head office or the branch will have the final say on: managing employees; payroll and operating costs; pricing; processes and systems; procurement and inventory; terms and conditions for trading and trading policies. Otherwise, confusion will reign and mistakes will cost money.

In our experience, it is best for most businesses to default to a model that we call ‘loose/tight’. In contrast to other more centralised structures, it emphasises wide accountability for profit by managers carefully selected for their entrepreneurial qualities. In short, get the right person and give them as much responsibility as they can reasonably and responsibly handle.

Our expertise in this area is based on working for several clients whose business depends on effectively managing the performance of people in a far-flung branch network.

For a large vehicle hire business in the UK, we reorganised 12 regional companies into six similar-sized units and drew up a new blueprint covering operations, staffing and capabilities, which helped to overcome variations in customer service. Our work transformed the group, making it more unified, efficient and responsive to customers, and less costly to run.