Benchmarking Organizational Structures:
Support to Japanese Automotive Expansion
The case study demonstrates delivering strategic insights through comprehensive benchmarking studies in the automotive industry. By providing a detailed analysis of organizational structures and efficiency indicators, PRODENSA enabled the client to make informed decisions that would support their successful expansion into new markets.
Overview
A leading Japanese automotive manufacturer sought to expand its operations into Northern America and needed a comprehensive understanding of the organizational structures employed by global automotive companies in Mexico. The CLIENT aimed to identify key efficiency characteristics, including revenue and size indicators, company footprint, HR indicators, and organizational structure, to design an optimal structure for their future expansion. PRODENSA was engaged to conduct an in‑depth benchmark study over five months to provide actionable insights that would guide the CLIENT’s strategic planning.
Project Stages
CLIENT Needs Analysis
PRODENSA began by thoroughly analyzing the CLIENT’s specific needs, focusing on the metrics and indicators most relevant to the CLIENT’s expansion goals. This stage involved understanding the CLIENT’s objectives and defining the scope of the benchmark study.
Survey Design & Companies Identification
A tailored survey was designed to gather detailed information from selected automotive companies in Mexico. PRODENSA identified key companies for benchmarking based on their relevance and size in the automotive industry, ensuring that the data collected would be highly applicable to the CLIENT’s needs.
Benchmarking & Data Gathering
PRODENSA conducted the benchmarking process by engaging with high‑level executives in the automotive industry. Given the sensitivity of the data, PRODENSA provided upfront NDA contracts to secure the trust and cooperation of these executives, leveraging their strong relationships within the industry to gather quality information.
Data Processing & Analysis
The data collected from the benchmarking study was processed and analyzed to identify key trends and efficiency indicators. This analysis focused on organizational charts, chains of command, organizational philosophy, and efficiency metrics such as turnover, revenue, and the ratio of managers and directors to total headcount per department.
Report Elaboration & Presentation
Finally, PRODENSA compiled the findings into a comprehensive report, presenting the results to the CLIENT. The report included detailed recommendations for designing an organizational structure that would support the CLIENT’s expansion into Northern America, based on the best practices identified through the benchmark study.
Challenges & Solutions
- Obtaining Quality Information: Gathering high‑quality, sensitive information from senior executives in the automotive industry was a significant challenge.
- Solution: PRODENSA overcame this by securing NDAs and leveraging our strong industry relationships, ensuring that the executives were comfortable sharing critical data.
Project Outcome
The benchmark study provided the CLIENT with a detailed analysis of organizational structures across major automotive companies in Mexico. The insights gained included an understanding of the chain of command, organizational philosophy, and key efficiency indicators such as turnover, revenue, and the ratio of managers and directors to total headcount per department. These insights were crucial in helping the CLIENT design a future organizational structure tailored to their expansion needs in Northern America.
