W.K. Kellogg Foundation Organizational Realignment to New Strategy By teaming with Accenture to align its organization to its strategy, the W.K. Kellogg Foundation has been able to focus on its programming efforts while decreasing the size and complexity of the organization. Summary A renewed articulation of the W.K. Kellogg Foundation’s (WKKF) mission and strategy led the organization to reshape and align its organization and staff to its new strategic framework. Accenture facilitated the design and implementation of a streamlined organizational structure by working with WKKF to translate the foundation’s strategic framework into goals, approaches and projects for each department. Accenture helped build a talent framework including specific elements such as a streamlined governance structure, guiding principles for employee compensation, job families, career levels, salary grades and a competency model. By teaming with Accenture to align its organization to its strategy, WKKF has enhanced its programming by decreasing organizational size and complexity. Business Challenge From modest beginnings in 1930 with programs that served the health and education needs of youth in south-central Michigan, WKKF has grown into one of the world’s largest private, nonprofit foundations. In recent years, WKKF’s programming interests have expanded into a vast portfolio, creating correspondingly complex organizational structures and processes. Leaders decided to clarify the foundation’s unique mission and vision and subsequently adopted a new mission statement and strategic framework. In so doing, WKKF needed to reshape and align the organization and its staff to the new strategies. Once aligned, WKKF sought to establish talent management processes that would allow them to operate effectively, at a lower cost, by developing its staff and providing incentives that would both retain existing staff and attract skilled new employees. How Accenture Helped WKKF’s leaders began the organizational realignment by designing and implementing a voluntary retirement incentive program to reduce the size of the organization. Leadership also embarked on an effort to simplify the organizational structure by streamlining the number of organizational units and clarifying the responsibilities of certain key roles. While organizational leaders were clear on their goals, they recognized the need for specialized skills to fully implement the organizational changes they envisioned. So they turned to Accenture. Accenture helped transition departing staff in a way that was respectful, effective and consistent with WKKF’s core values. Accenture also worked with leaders to design and implement a streamlined organizational structure translating the organization’s strategic framework into departmental strategies, approaches and projects. Based on this information, WKKF and Accenture worked together to clarify the number and type of staff required in each department, form new teams, develop plans for transitioning employees into the new teams and then manage the plans. WKKF’s initial goal was to be staffed appropriately with positions that align to the approaches. After the voluntary programs and reorganization were completed, WKKF turned its attention to the next goal of filling positions with the right skill sets for current needs. For this effort, Accenture helped build an overall talent framework and specific elements including a streamlined governance structure, guiding principles, job families, career levels, salary grades and a competency model. Accenture and WKKF then used these elements to redesign and implement key talent management processes. Specific efforts included providing tools for leaders to cascade goals from organizational, to departmental and individual levels; provide meaningful feedback to employees; measure performance on an annual cycle; adjust employee benefits programs and processes; and deliver on their commitment to pay for performance and alignment. Regarding employee benefits, over the years WKKF’s benefits plans had become bloated and complex. In order to attract and retain the best talent for achieving its mission, Accenture helped it rationalize all its benefits programs, aligning them to WKKF’s core values and streamlining the number of vendors it interacted with. In this way, WKKF can achieve an optimal balance between its costs to provide and administer benefits, and the value its employees receive from the various options it is able to offer. After updating its talent management processes, WKKF was ready to focus on talent development, turning its attention to developing a curriculum that aligned with its mission. To this end, Accenture helped with a gap analysis in order to understand the organization’s current state and what learning it needed to develop for its new mission-driven environment. Relevant training would help energize WKKF’s staff, refocus them on the mission and provide them with the tools and skills to perform their jobs at the highest standard. High Performance Delivered By teaming with Accenture to align its organization to its strategy, the W.K. Kellogg Foundation has been able to focus on enhancing its programming execution while decreasing the size and complexity of the organization. • Organizational leaders have greater insight into their workforce allowing them to plan ahead for known vacancies and needs, proactively develop employees based on their current skills and interests, and manage movement and interactions among teams. The organization delivered on its philosophy of linking pay to performance by providing performance-based Copyright © 2012 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. pay to around 98 percent of employees. Supervisors have access to information and tools when giving performance feedback, documenting development plans, providing career guidance and giving on-the-job support to their employees. In the most recent fiscal year, supervisors discussed and reviewed the performance of all employees below CEO in comparative peer group review meetings. • Employees have additional and consistent information regarding their role, how it fits into the overall talent framework and future opportunities within the organization. In the most recent fiscal year, employees had the opportunity to document selfinput as part of the performance management process, and about 95 percent of employees did so. • HR team members are involved in fewer one-off, individualized requests and decisions which allows them to increase the level of support they are able to provide to leaders and supervisors. • WKKF’s new training curriculum allows all employees to view the overall development plan for the organization and its leaders, helping illustrate the courses available and how they contribute to the mission. • The new mission-aligned, streamlined benefits package enables WKKF to attract the talent they need and retain them by being market-relevant—all at less effort and cost than before. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com. About Accenture Nonprofit Beyond our commitment to our clients is our dedication to improving the way the world works and lives. To learn more about how Accenture can help your nonprofit organization connect its vision to its practice to improve outcomes and lives, contact nonprofitgroup@accenture.com or visit www.accenture.com/ nonprofit.