Organizational Assessment for Travel Client
The Challenge
The client, a Fortune 500 travel company, had heavily cut their labor spend at the outset of the pandemic, but did not have a plan in place to ramp up headcount once demand returned. Their executive team wanted to understand where the original cuts during the pandemic could be maintained and where they should reinvest in additional roles.
The Solution
Reid benchmarked their headcount and labor spend against the market and analyzed their existing organizational designs and metrics to uncover opportunities for cost savings or reinvestment.
The assessment uncovered three major initiatives. The first deepened the client’s cost savings by expanding the scope of their existing shared services center to additional back-office processes and headcount. The second created a new organizational design for their procurement function to drive greater accountability, and ultimately optimize spend, for critical cost categories. The third expanded the client’s sales force where demand was returning the fastest and created a new, dedicated sales team to focus on new product categories.
The Bottom Line
By broadening the footprint of their global shared services center, redesigning their procurement function, and reinvesting in their sales teams, the client realized $10M in annual cost savings and over $250M in annual incremental revenue.