Organizational design and right-sizing
Organizational alignment that pays off
North America
|
2019
Program NPV in excess of $30 million.
Payback period of less than two years.
Over 2,000 roles aligned and mapped.
Role-reduction opportunity of 15-25%.
Challenges
- The project was initiated in response to market pressure pushing commodity prices down to historically low levels, affecting overall profitability and business resiliency.
Solutions
- 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".
- Prioritized reduction opportunities based on capital, risk, and time required to implement.
Highlights
- Followed a rigorous, bottom-up process and identified a 15-25% role-reduction opportunity across operating and shared services divisions.
- Achieved leadership alignment 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 $30 million with a payback period of less than two years.
Project numbers
2,000 roles mapped15-20% role-reduction opportunity
+$30 million in project NPV
14 Hatch subject matter experts deployed