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Organizational design and right-sizing

Organizational design and right-sizing

Organizational alignment that pays off

North America | 2019

Program NPV in excess of $30M

Payback period of less than two years

Over 2,000 roles aligned and mapped

Role-reduction opportunity of 15%-25%

Challenges

Market pressure pushing commodity prices down to historically low levels, affecting overall profitability and business resiliency.

Solutions

  • Hatch deployed subject matter experts across the client’s operating and shared service departments.
  • The entire organization, from the C-suite to the equipment operators were mapped and compared against industry best-practice staffing levels and compared using optimal organizational charts or “white sheets.”
  • Reduction opportunities were prioritized based on capital, risk, and time required to implement.

Highlights

  • A rigorous, bottom-up process was followed and identified a 15-25% role-reduction opportunity across operating and shared services divisions.
  • Leadership alignment was achieved for a portion of the role reductions thereby limiting executive decision mandates and fostering change ownership.
  • Cumulative project reductions estimated to have an NPV in excess of $30M with a payback period of less than two years.

Project numbers

2,000 roles mapped
15%-20% role-reduction opportunity
Project NPV in excess of $30M
14 Hatch subject matter experts deployed

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