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REV: SEPTEMBER 22, 2005

DAVID THOMAS
BORIS GROYSBERG
CATE REAVIS

Sonoco Products Company (A): Building a WorldClass HR Organization
Your business is only going to be as good as the people you’ve got. You can have the best strategy in the world, but if you don’t have effective execution by people, it’s going to fail.
— Harris DeLoach, Sonoco CEO
In order to make progress, we had to somehow decide what things were going to be the same across the company and what things could be or needed to be different to support the businesses. There was a balance that we needed to figure out.
— Cindy Hartley, Senior VP, Human Resources
It was late August 2000. Cindy Hartley, senior vice president of human resources (HR) at Sonoco, a 100-year-old global provider of industrial and consumer packaging and related services, was meeting with five members of her reorganization task force comprising the heads of employee relations and organizational development, the company’s chief labor attorney, and two key divisional
HR directors. Looking to cut costs across the company, the company’s newly appointed CEO had asked Hartley to come up with at least two potential new HR structures that would reduce the function’s costs by 20%, or $2.8 million.
But there were other equally pressing reasons for the reorganization. Number one was to ensure top-level accountability for talent management and upgrading. The second reason was to provide for a more even distribution of HR talent and support, particularly to the company’s smaller growth divisions. Finally, HR needed to lead the way in supporting the company’s new growth strategy, which often meant working across division lines to market and sell “solutions” to a single large customer. Since her arrival in 1995, Hartley had helped transform Sonoco’s HR organization by

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