Executive Summary
This case study examines the challenges and lessons learned from transitioning regional team structures into cohesive national teams within a division of Amcor, one of Australia’s largest manufacturing companies.
The objective was to create a centralised National Customer Service team which would reduce costs, improve efficiency, and deliver a unified customer experience.
However, a rushed implementation exposed several pitfalls, underscoring the importance of structured change management and stakeholder engagement.
Despite initial setbacks, a revised approach two years later successfully met the project’s goals.
Introduction
Historically, Amcor divisions operated under a decentralised regional structure led by General Managers.
Customer Service teams, consisting of 75 employees nationwide, were fragmented across six locations: Brisbane, Sydney, Melbourne, Adelaide, Perth, and Launceston. Reporting lines were localized, with five Regional Customer Service Managers reporting to their respective Regional Sales Managers.
The project sought to centralise these teams into a National Customer Service structure, focusing on:
- Standard processes and systems
- Modern technology (like Kiraa)
- Operational efficiency
The desired outcome was headcount reduction with no disruption to customer service.
While the goals were clear, the transition revealed several critical challenges, leading to an initial failure before a subsequent successful implementation.
Challenges and Impacts
| Challenge | Details | Impact |
|---|---|---|
| Process Standardisation | Unique processes for similar activities across states | Confusion and inconsistency in service delivery, impacting both employees and customers |
| System Modernisation | Disparate telephone systems and lack of unified task-sharing platforms | Manual inefficiencies and reduced visibility hindered operational success at a national scale |
| Business Engagement | Significant changes to reporting lines without sufficient buy-in | Resistance from management risked undermining the project’s success |
| Employee Engagement | Role changes without robust training or change management programs | Poor employee morale, resistance to change, and diminished customer satisfaction |
| Timing | Insufficient engagement and preparation before implementation | Employees lacked confidence and understanding, leading to service disruption |
Outcome
Initial Rollout: A Cautionary Tale
The rushed implementation of the National Customer Service team led to several adverse outcomes:
- Disruption in customer service as employees struggled to adapt.
- Low employee morale due to insufficient training and unclear processes.
- Customer dissatisfaction, ultimately prompting the company to revert to state-based structures.
Second Attempt: A Successful Transition
Two years later, with lessons learned, the company revisited the initiative with a more structured approach. Key changes included:
- Technology Modernisation: Introduction of a unified telephone system and Salesforce Service Cloud.
- Process Standardisation: Clear, documented, and trained processes were implemented nationwide.
- Employee Engagement: Comprehensive training and communication strategies improved morale and readiness.
This time, the transition succeeded, achieving the following:
- Reduction in resources from 75 employees to fewer than 40.
- Assignment of dedicated customer support personnel for national accounts.
- Streamlined processes and improved operational efficiency.
- Enhanced customer satisfaction and service consistency.
Lessons Learned
The company’s experience highlights the complexities of large-scale structural changes.
Key insights include:
- Secure Senior Management Support: Leadership commitment builds confidence and ensures alignment.
- Develop Comprehensive Change Management Programs: Engage employees by demonstrating clear benefits and providing robust support during transitions.
- Design Processes: Standardisation ensures consistency and reduces ambiguity for employees and customers.
- Implement Changes Gradually: Incremental implementation prevents overwhelming staff and minimises disruptions.
- Communicate with Customers: Clear, proactive communication builds trust and ensures customers understand the benefits of change.
Conclusion
This case underscores the importance of aligning strategy, systems, processes, and people in achieving successful structural transitions.
While the initial rollout faced significant challenges, the company’s eventual success demonstrates the value of thoughtful planning, robust change management, and a phased approach to implementation.
By embracing these principles, organizations can navigate complex transformations and achieve sustainable long-term outcomes.
