Case study

Making an organization Fit For Growth

Burning silos to become flexible

Business challenge

Our client, a former public-sector company acquired by a Private Equity company, needed to make a step change and build a flexible organization ready for future growth

Process

It was quickly clear that there were a number of factors that prevented employees to make the step change to become a successful commercial organization able to deliver to expectations and targets:

  • Continuous improvement, cost control and performance tracking were not shared common practice
  • Cultural differences and suspicion within departments (some of which were spread across several locations) hindered internal cooperation and knowledge sharing
  • Previous improvement programs had negatively impacted employee motivation and had not delivered the anticipated results
  • The organization had no formal vision and strategy, there was uncertainty regarding KPIs, targets and relevant reporting structures

Asset Lifecycle Management

Asset cost was reduced and budgets were appropriated and utilized more efficiently, resulting in improved effectiveness and efficiency of the end-to-end maintenance processes which in turn produced an increase in revenue generation potential due to improved plant reliability and uptime. This reduction was achieved both in internal and external (i.e. contractor) assets.

Organizational Transformation

The organizational model required to become (and remain) Fit For Growth was designed. It was built based on the business imperatives and performance targets (including changing regulatory requirements) that the new organization would have to deliver on. A core element was installing a centralized Shared Services Center to improve the efficiency of the end-to-end support functions of the group regardless of location.

Program and Performance Management

To ensure uniform Performance Management against clearly defined targets Accelerant consultants worked with the client to design a robust performance management system (PMS), including all relevant and real-time KPIs on which the success of the program relied.

Program Management was built on systems with clear roles and responsibilities, enabling management to address behavioral issues that were hindering improved performance in real time.

A levels of the organization were coached on how to successfully implement systems with clear roles and responsibilities. Information sharing and broadcasting a sense of achievement to keep stakeholders informed and engaged was achieved by regularly communicating scope and progress.

Results

€ 65M

Total business benefit

15%

Improved organizational design led to labor cost reduction

€ 3,9M

Maintenance cost reduced (target was € 1,7M)

34%

Productivity increase in maintenance

50%

Productivity increase in work preparation

€ 230K

Inventory reduction due to better planning

50%

Top result

Waste Management