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  "documentTitle": "GCP Applied Technologies (GCP)",
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      "kind": "callout",
      "text": "We believe the Company’s SG&A structure may benefit from greater decentralization.",
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      "text": "Based on interviews with former employees, we believe the Company has been slow to push decision making and accountability to business unit leadership, which drives inefficiencies in cost structure and decision making. We believe the Company could benefit from studying how its competitors, Sika and St. Gobain, have benefitted from prioritizing decentralization in recent years.",
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      "text": "We believe there needs to be greater decentralization of business unit functions to create greater accountability and drive further SG&A efficiencies.",
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      "text": "We believe the “nimbleness” of Sika’s organization is a feature of its unique culture that has been enhanced under the tenure of CEO Jan Jenisch, who decentralized the organizational structure, introduced P&L responsibility at the country level one step away from the customer, and implemented a new incentive scheme and performance management system. We think Sika’s new freedom will only serve to improve the company’s reactiveness, making it even less sensitive to cycles.",
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      "text": "In this section...we highlight the new geographical based structure...The Group’s previous structure relied on a matrix-based system with three sectors of activity (Innovative Materials, Construction Products and Building Distribution) while the new structure aims to facilitate more rapid decision-making while eliminating several approval levels for most decisions.",
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