|
|
Private Sector Experience
|
 |
Integrated Energy - Exploration and Production
Challenge:
The operating culture and organization model was deeply rooted in business processes more than a decade old. The organization focused on “control of business transactions”. The information systems were a quilt of computer applications developed for different organizations in multiple locations, each segment functionally based.
Solution:
Partnered with a big six firm to implement enterprise-wide financial systems with SAP. Our consultants ensured change management alignment by redesigning business processes, organizational structure, decision-making, and people selection process for seven support and two core business processes.
Results:
Operating performance improved from 4th quartile to 1st quartile due to reengineering efforts. Project won the Smithsonian Award for its application of a strong change management program and very successful system implementation.
Integrated Energy - Deepwater Drilling
Challenge:
Improve safety and performance culture on board a newly commissioned deepwater drill ship rated as the poorest performing drill ship in the Gulf. Problems included 50% downtime, 22% turnover of personnel, 7 day safety time out due to lost time accidents, high recordable incidents, and double the AFE (approval for expenditure). In addition, the drill ship faced a new, harsher ultra deepwater drilling environment, changing rig technologies, and new well construction techniques placing a strain on old, traditional organizational systems.
Solution:
Organizational and cultural changes were made to the structure, processes, procedures, practices, roles, decision making, knowledge sharing, performance management, and reward systems. A shift in focus from managing transactional activities to stronger strategic focus on a safety, learning and performance improvement culture was also implemented.
Results:
The transformation from “the dog house to the penthouse” detailed how The “Drill Ship” went from the poorest performing drilling ship to the best in terms of safety (lost time, safety incidents, improvement ideas), % downtime, cycle-time drilling, and delivering under AFE. The “Drill Ship” became the worldwide benchmark, and was involved in the discovery of the largest deep water oil and gas reserve in the last three years.
Semiconductor
Challenge:
In early 2002, product development resources were spread geographically across Europe, the Americas and India, with multiple business units each having resources at each of the seven design facilities on these three continents. Weak project management, ad hoc team organization, and a lack of a defined product development process typified projects. There were no process targets, time to market or product development productivity were not measured or managed. The result was no significant new products in the last four years. The company’s dwindling revenue was dependent on its aging legacy products.
Solution:
Together with the newly appointed Sr. Vice President of Systems Development the requirements for defining the foundation of the Product Development process were outlined. The process needed to be easily understood, take the organization to the next level of performance and be actually used by product design teams consisting of marketing and engineering personnel. Four critical components of the process were (1) clarify the results required of both the overall process and each phase of the process (2) define the work to be performed to achieve the desired results (3) describe the key deliverables for each phase of the process (4) clarify roles and responsibilities for participants in the process and for each key deliverable. A core process design team was formed from various disciplines to analyze and validate each step of the process and come up with recommendations to be implemented. Nearly the entire Systems Development organization was involved in some way in this global change process.
Results:
The benefits are very visible and tangible. In the first year of implementation, cycle time was reduced by 40% followed by an additional 40% cycle time reduction in the second year. More new products were launched in this time frame than in the previous ten years. In addition more than 300 new part types have been released, derived from these new chips. Consistency is the norm rather than the exception and schedules are better managed. The organization is better aligned and focused, business processes are defined, competitive work is highlighted, and knowledge is being discovered and diffused globally.
National Semiconductor
Challenge:
In 1991, National Semiconductor showed a record $161 M loss, the worst in its thirty-year history. The aggregate loss since the beginning of the downslide in the mid-eighties was nearly half a billion dollars. The stock was at $3 7/8. With 40 days cash flow, the company was close to bankruptcy. The culture was cynical, defeatist, stove piped, and accountability averse.
Solution:
With a business culture deeply rooted in antiquated organizational strategy, technology, and business processes, we teamed with the new CEO to create a new strategy and implementation capability. Executives and management were engaged on a world-wide basis to accelerate ownership and execution. In parallel, each of the organizational major core processes “strategy development”, “product development”, “demand creation”, and “supply chain” were reengineered along with their enabling Human Resource and IT processes on an international basis. Goals, structures, and systems were aligned to the strategy throughout the organization. Each of the five fabrication sites were designed to maximize National’s strategy. Ultimately, all 25,000 employees participated in the global change process.
Results:
Within 10 quarters of the change process (1993), revenues grew by 30%, profits improved by 17%, shareholder equity doubled, stock price tripled, and National was named Turnaround Company of the Year. In 1994, National reported the highest earnings in its history—$264 M on $2.3 B in sales. In 1995, the company was nearly debt free. In 1996, National reestablished its position as the leader in the analog market sector. The stock rose to $28 1/8.
|
|
|