Faced with these challenges, CEO Andrea Jung and her executive team launched a fundamental restructuring of the organization in January 2006. Some of the larger changes announced included:
• Moving from a Regional to a Matrix Structure: Geographic regions that had operated with significant latitude were now matrixed with global business functions, including Marketing and Supply Chain.
• Delayering: A systematic, six-month process was started to take the organization from fifteen layers of management to eight, including a compensation and benefit reduction of up to 25 percent.
• Significant Investment in Executive Talent: Of the CEO’s fourteen direct reports, six key roles were replaced externally from 2004 to 2006, including ...