Case Study
Global Class & Tech Service Company
Enterprise Operating Model Transformation And Digital Strategy Design
Problem Statement
$1Bn Global Class Society and Technology Company. Client required a significant pivot from its traditional “vertical” Operating Model structure (silo’d) due to its intense competitive pressures on pricing, cycle time and marketshare, as well as address the economic decline and impact of the overall Shipping Industry. The current Operating Model was overly complex, suffered from lack of clarity in key roles and shrinking operating margins. And a focus on customer tonnage, not outcomes.
Engagement
We leveraged our Strategy and Operating Model design frameworks to work with a “strike force” team made up of key role players across the globe to drive the required change and pivot of the client’s Enterprise Operating Model. In addition, we leveraged the work completed by the Operating Model redesign team, in parallel, to design a Enterprise Digital Strategy leveraging our digital competencies and thought leadership.
Results
Achieved the following impact on behalf of the Shared Services organization:
• Redesigned the vertical / Functional to a more horizontal / Core Process driven Operating Model with CoE’s
• Reduced Enterprise G&A by $50m – $75m across its Core Processes (12) within 8-10 months
• Delayed the organizational structure (reduces layers of management) and reduction in reporting / operating units
• Reduced facilities, centralized service hubs, and office locations to achieve a 10% increase in operating margin
• Established Digital Strategy and newly designed (Outside-In Product Innovation) Core Process