Organizational Structure of Walgreens Essay
Organizational Structure of Walgreens
This week’s learning team assignment focused on the organizational structure and design. Team C will examine the organizational chart of Walgreens and restructure it to make it more efficient and beneficial for the company. The students have decided the CEO of the organization is overwhelmed with departments reporting to him. Therefore, some departments will be consolidated and moved to more specialized officers under the CEO for a more productive company. The officers to receiver these additional departments will be Chief Financial Officer (CFO), Chief Strategy Officer (CSO) and Chief Informational Officer (CIO). This paper will discuss structural changes, the work to be completed and how this work can be done effectively.
Currently, the Administration and the Human Resources departments report directly to the Chief Executive Officer. We have proposed a change to the chain of command with Human Resources being combined with the Administration department and have that new, combined department report directly the Chief Financial Officer (CFO). Human Capital Management (Human Resources) directly affects the bottom line of an organization through the workforce, benefits costs, training and development and finally employee engagement. The Administration department manages the overall direction of Walgreens. Since the management of the workforce is one of the main driving factors that directly relate to the financial success of an organization, it will be efficient and cost effective to reorganize and combine these departments under the CFO. To accomplish this reorganization, we will use cross-functional teams to address each department’s work specializations, strengths and weaknesses. And then outlay an effective plan of action. The CFO’s financial expertise will be used to analyze the underlying financial implications of the reorganization as well as the daily cost of business operations.
Strategy and Community Management Reorganization
The Chief Strategy Officer (CSO) will continue to report to the CEO. To be more efficient in work specialization, we have decided to move the following departments and make them branches under Strategy: Customer Experience, Customer Experience and Daily Living and Community Management. As Walgreens embraces today’s consumer, creating a unique customer experience is apart of the strategy to build their trusted brand and set them apart from the competition. Moving these departments will be beneficial because the leaders in each department can collaborate on strategies and plans that are customer focused. In addition to reporting to the CSO now, the Community Management department will also receive new responsibilities. Currently Facilities Development and Store Operations report to them. In order to create a more efficient department they will now oversee two additional departments; Well Experience and Operations Community.
The Community Manager will have Store Operations and Operation Community work as a specialized team focused on lowering operational cost for the company. One of Walgreens key strategies is to create a “Well Experience” (Walgreens 2014). The Well Experience “starts with leading-edge store design, new layouts, enhanced product assortments and state-of –the-art pharmacies, including bringing the pharmacist from behind the counter for a greater interaction with patients (Walgreens 2014). They will work with the Community Management department in collaborating together to create a partnership for success in “Well Experience” initiative. Once the pharmacist is engaged with the customers in their community it creates transparency and trust not only in them but also in the Walgreens’ brand.
Information Technology Reorganization
The eCommerce and Design departments will be moved under the direct supervision of the Chief Information Officer (CIO) to reduce the direct reports of the CEO. Consolidating these two departments under the CIO will help turn Walgreens into a technology-driven company that has consistent creative across all platforms. These two departments will also benefit from the CIO’s more specialized technical skills. The Chief Information Officer already oversees the enterprise technology that supports Walgreens operations, including security software. For eCommerce, security is a major concern for Walgreens’ customers. The CIO’s specialization in the information technology will help him better implement the eCommerce tools and keep those tools secure.
The Design department produces the creative that is used to promote the Walgreens’ brand. As Walgreens expands its digital presence with an enhanced web experience and new mobile app (Walgreens, 2014), it is important that creative remain consistent and functional across all platforms. Having the Design department working hand-in-hand with Information Technology and eCommerce will produce consistent creative that is technology-focused across all marketing channels. The CIO’s technical skills will allow him to lead the Design department in an every-growing online world.
The team decided to restructure the organizational chart of Walgreens. Ultimately, taking responsibilities off the CEO and moving those departments to more specialized officers. In doing so, this will allow the CEO to be more productive because his or her workload is more manageable. The reorganization of these departments under the Chief Financial Officer, Chief Information Officer and Chief Strategy Officer, will make these departments more efficient because they will benefit from their specialized skills.
Robbins, Stephen, & Coulter, Mary (2012). Management, 11th ed. Upper Saddle River, NJ: Pearson Press. 978-013253894-7 The Official Board (2014). 2014 organizational chart of Walgreens Co. Retrieved from http://www.theofficialboard.com/org-chart/walgreen Walgreens Co. (2014). 2013 annual report of Walgreens. Retrieved from http://files.shareholder.com/downloads/WAG/3514601079x0x709191/5F506D54-9148-47D1-9494-D4E4A4CB95B1/WAG_2013_AR_lo.pdf