PENTACLE HELPS CADBURY SCHWEPPES INTEGRATE AND INNOVATE
|Biggest had also to
be best when Cadbury Schweppes became the world's largest confectionery company with the
acquisition of Adams from Pfizer in 2003. City and investor confidence had to be
maintained as the deal had cost £2.7 billion and had to show returns in terms of cost
savings from consolidation, market share gains, increased profit and shareholder value.
The company took the opportunity to make wide ranging changes in management and operational structure in a 4 year programme aimed at exploiting synergies and driving growth.
Chris Bones, Group Organisational Effectiveness and Development Director, led the organisation and change aspects of this programme.The company aimed at delivering cost cutting, reinvestment and targeted growth in sales, profit and shareholder value. The targets were tough: net growth in sales value of 3-5% per annum and gross savings of c£400m in costs over a three year period.
Chris pointed out, "To make it happen we
all had to resist the urge to apply traditional thinking and find different and more
effective ways of managing the new enlarged company.
Eddie Obeng of Pentacle was the catalyst of choice for Cadbury Schweppes. He had worked with the company two years previously on a behavioural change programme which had been fully and successfully implemented prior to the acquisitions of 2002-3. He knew the company culture and had experience of customising his own project management delivery techniques to it. He had worked with small groups of key managers in structured workshops where he helped them identify where to consolidate, where to innovate, where to focus resources for growth and how to implement the changes effectively.
The tools and techniques which evolved from this process were immediately put into practice and worked. Pentacle got a very positive reception and the project generated a high level of interest, reflected in, for example, a huge amount of email discussion.
|The process of changing
the thinking about strategic change is still underway, but it has got off to a good start
with key programme managers being supported in developing their approaches and plans to
improve the chances of meeting or beating their targets.
It is supporting the business change where ten business units have been rationalised to a leaner, more effective 5 operating regions, supported by 6 staff functions and new global leadership headed by a team of eleven key executives reporting to the new CEO.
In 2003 the company announced better than expected results. Margins are growing on target. The integration process is producing savings which are being fed back into support of key brands.
For the new Cadbury Schweppes the change is working.