Pharmaceutical and Consumer Brand Corporation
The client is global market leader in skin and hair-care products and part of a Fortune 100 pharmaceutical and consumer brand corporation. In business for over 70 years, it’s known for its innovative products and superior brand integrity.
Denisoff Consulting Group (DCG) was brought in to the help the client increase innovation as related to new product development and improve its overall operational effectiveness and responsiveness. Recent growth and new market demands had an adverse effect on product innovation that resulted in lower sales and a smaller market share for the client. Very talented employees weren’t being utilized effectively, which led to a high level of frustration and a traditionally low turnover to increase. There seemed to be a short-circuit in the product development process and an ineffectiveness in the overall structure of the product development and marketing teams. DCG was approached to get things on track, as we are known for our innovative approaches and our ability to maximize talent and produce real results.
As the presenting problem is not always the core problem, DCG determined the first step was to provide a proper assessment and evaluation of the entire system. This evaluation was done through one-on-one interviews with key constituents, employee focus groups, and by value-stream mapping core processes in product development.
The results of the evaluation found a lack of collaboration between functions, a culture that had become critical and punishing instead of encouraging, and a structure that could no longer meet current demands.
Once the assessment was complete, DCG worked with the client team to redesign the structure and systems, and to clearly identify the desired results. We used a combination of best practices and an out-of-the box thinking process to create a new way of developing products, which tapped into the latent intelligence of the company in a way that had not been occurring. The approach was holistic in nature, as it considered:
- Core processes
- And a clear change management plan to ensure proper implementation
Through the collaboration with DCG and the client team, the client adopted a completely novel approach to operating the business internally. In the past, the eight existing product categories were managed as a conglomeration with little regard to the difference in positioning, seasonal cycles and customer insights. In their new structure, the category teams were not only more conducive to creating innovative products, but also to better managing each product category.
Additionally, the category teams became cross functional in nature with members from multiple departments such as research and development, packaging, project management, sales and quality control, each led by a marketing manager.
To support this monumental change, a methodology and road map was developed to facilitate the transition. This methodology included training, process building, facilitation and coaching.
DCG led the initiative that resulted in the establishment of eight strong product category teams. This new approach allowed for more thoughtful consideration of each product category through a deeper analysis of consumer insights, better alignment with seasonal cycles, and a more focused approach. Consequently, the cross-functional nature of the approach has led to:
- Better products getting to market quicker
- Increased level of innovation and synergy between functions
- Stronger and more differentiated categories within the brand at shelf level
- A sustainable process to ensure this for the future.
The new structure and new culture of innovation resulted in increased sales and market share in every product category within six months of its implementation.