Lumo Grocery

Consumer

An operating model for a grocery start-up

A fast-growing grocer had outgrown its founding structure. We designed the operating model for the next three years.

A fast-growing grocer had outgrown its founding structure. We designed the operating model for the next three years.

A long open office with rows of desks under exposed ceilings

9 → 4

Layers between customer and CEO

6 wks

Faster category decisions

Duration

16 weeks

Year

2023

The situation

A fast-growing grocer had outgrown its founding structure. We designed the operating model for the next three years. Leadership had good instincts and too many competing numbers; what was missing was a single, shared view of where value was created and lost.

What we did

We spent the first three weeks inside the business: in sales reviews, with finance, and on calls with customers. From that we built one model of the economics that every team could read, and used it to test a small number of clear options.

Each option came with its cost, its risks and the conversation it would require with customers. Leadership chose; we helped them carry it through, including the first ninety days of rollout.

The result

9 → 4 layers between customer and ceo, with 6 wks faster category decisions. Just as important, the team now runs the model itself. We left behind the tools and the habits, not a dependency on us.

Laptops on a long shared desk, in black and white

We came out with fewer meetings and a plan everyone could explain.

Kristian Moe, COO, Lumo Grocery

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