Our client, a global provider of oil field services, needed to urgently drive cost down and increase expected revenue in response to a 70% drop in oil prices. To support the implementation of the cost-out programme, PIP was hired to develop a lean yet sustainable organisational structure and define the organisational interfaces that had to be put in place to make the new organisation work and deliver the expected cost and revenue results.
- US$70m cost reduction programme designed and execution started in six weeks through 34% reduction in employees and permanent contractors
- Clear plans to take cost out quickly with little / no disruption to operations
- Developed detailed view of the new organisation structure with ‘names in boxes’ with no information leakage about the future of individuals
- Redesigned business interfaces, e.g. sales and production, business units with internal service providers, to ensure operations would be sustainable even with reduced headcount
- Developed detailed and comprehensive ‘area restructuring starter kits’ for 13 areas of the business including:
- Clear view on core processes, roles / responsibilities, key performance indicators (KPIs), and interfaces with other areas of the business
- Area transformation and communication plans, in line with overall transformation plan of the business