Case Study

Reorganization and change in corporate culture increase effectiveness, sales and talent retention

Client Profile

Baby Food Co.* is a large producer of baby foods and nutritional products. The company is operating in most major consumer markets, including Mainland China and Hong Kong.

The Challenge

The company had been enjoying success in the Hong Kong market for nearly 5 years. Yet their 18-month-old operations in Mainland China were clearly facing problems. Sales were down despite high customer satisfaction and success early on. Additionally, the employee turnover rate, from entry-level to upper management, had reached an unsustainable level. Baby Food Co. needed to identify the problem and how to solve it.

Our Approach

Our organization experts took a meticulous approach to identifying the problems with Baby Food Co.’s operations in Mainland China. We initially carried out an extensive review, including of internal communications, policies, and interviewing current and past employees—among other factors. Following our review, we delivered our conclusions and recommendations to the company leadership. We then supported the company through a root-and-branch change in organization and culture, both locally and in the head office’s approach to their local operations.

The Results

Working with Mersol & Luo, Baby Food Co. shifted away from a one-size-fits-all approach to its organizational management and corporate culture. With our guidance, it instituted a local management style and work culture that were better suited to Mainland China’s cultural context. Over nearly 2 years, this resulted in better integration, higher reported job satisfaction among local employees, 65% decrease in turnover rate, and steady increase in sales to the point of profitability.

Over nearly two years:

65%

Decrease in talent turnover rate

72%

Increase in reported employee satisfaction

32%

Increase in sales and return to profitability

*We protect the confidentiality of our clients. Although the name has been changed, the results are real.