Describe the organizational transformation that’s taken place at Newell over the past year.
RT: We deployed the new operating model and consolidated 32 business units to 16 divisions. We designed and repopulated those divisions, the global brand development function and the U.S. sales organization, and shifted resources to growth. We took into scope and changed 3,500 roles, which resulted in a 17 percent smaller organization. We also reshaped the organization’s cost pyramid, reducing higher-salaried positions by 40 percent, while simultaneously adding 200 entry-level positions in several key functions, including trade marketing, sales, brand development and e-commerce.
How does the management of those 16 divisions work at the enterprise level?
RT: We are managing the business very differently than in the past, in that there is a small group of people who focus and allocate resources dynamically. In a short period of time, we reallocated $100 million of costs, pulling resources out of certain businesses and investing in our Win Bigger and Develop for Growth businesses, to drive accelerated growth. What this means is that money never gets trapped within the P&L of any one division – it is moved to drive enterprise-wide company performance and maximize opportunities.
What expectations regarding culture have you communicated to employees of the combined company?
FL: The key message is that we are one company with one strategy. We are building a distinct culture for Newell Brands that is aligned with what we call the DNA of our Growth Game Plan. We see ourselves as transformative value creators who are growth-led, consumer-centric, entrepreneurial, action-oriented, and always striving to be better, with a passion to win. The work we do together will be shaped by this lens.
How are you aligning the company’s culture and workforce with its strategy?
FL: The value proposition for our employees is that when we grow, they grow. We’re doing more to deliver on that promise in 2017. Ongoing assessment of our culture is a priority, and we’re making that happen through interviews, focus groups and an employee survey. We’re also rebooting our formal learning and development offerings for employees at all levels. Our goal is to attract people who want to work on amazing brands and ultimately grow into business leaders.
What’s next in the company’s transformation journey?
RT: Looking out over the next five to ten years, we are steadily progressing toward having seven or eight big anchor categories that we scale and develop globally. As we scale our presence in attractive and growing categories, we’ll become one of the preeminent household goods companies in the world. That’s the future we’re working toward.
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