Diageo Reviews Operating Model; Executives Depart
The regional variation in the pace of economic growth has created significant change and new opportunities for Diageo as a global business. As a result, Paul Walsh, chief executive officer, announced that Diageo has begun a review of its operating model across the business to ensure that all resources are deployed closer to the market and in those areas where the potential for growth is greatest.
"This review will encompass changes to our regional structure and to the way we organise our central functions. Yesterday we announced an employee consultation process on significant changes which are proposed to our organisation in Europe. Today we have announced a change to the current configuration of our International region and from 1 July 2011 we will have two autonomous regions; Diageo Latin America and Caribbean and Diageo Africa. The significant contribution which the Diageo International organisation has made to the development of these two regions has created the platform from which this change can be made," reported Walsh.
Stuart Fletcher as President of Diageo International led the success of the region and has shaped the changes announced. With this accomplished, Fletcher has decided that this is the right time to leave Diageo.
Walsh continues, "As part of the change in how we organise our functions I have decided to put our central sales and commercial organisations within our in market companies. As Chief Customer Officer, Ron Anderson has built Diageo’s strong capability in this area and these skills are now embedded. Ron has also decided to leave Diageo. Diageo is indebted to Ron for the impact he has had on the business over many years and we are sorry to see him go. Both Stuart and Ron will remain with Diageo until the transition process has been completed."
Over the next few months, Diageo will consult with employees on further changes to the operating model and expects to make an announcement in August as to the full extent of these changes. The main driver of these changes will be to focus on growth and create a more cost effective organisation.
"This review will encompass changes to our regional structure and to the way we organise our central functions. Yesterday we announced an employee consultation process on significant changes which are proposed to our organisation in Europe. Today we have announced a change to the current configuration of our International region and from 1 July 2011 we will have two autonomous regions; Diageo Latin America and Caribbean and Diageo Africa. The significant contribution which the Diageo International organisation has made to the development of these two regions has created the platform from which this change can be made," reported Walsh.
Stuart Fletcher as President of Diageo International led the success of the region and has shaped the changes announced. With this accomplished, Fletcher has decided that this is the right time to leave Diageo.
Walsh continues, "As part of the change in how we organise our functions I have decided to put our central sales and commercial organisations within our in market companies. As Chief Customer Officer, Ron Anderson has built Diageo’s strong capability in this area and these skills are now embedded. Ron has also decided to leave Diageo. Diageo is indebted to Ron for the impact he has had on the business over many years and we are sorry to see him go. Both Stuart and Ron will remain with Diageo until the transition process has been completed."
Over the next few months, Diageo will consult with employees on further changes to the operating model and expects to make an announcement in August as to the full extent of these changes. The main driver of these changes will be to focus on growth and create a more cost effective organisation.