The client is a major regional electric utility operating as a subsidiary of a multi-billion utility holding company. The utility was facing considerable external pressures, including loss of market share to the gas industry, increasing service complaints, and cost increases. It was also confronted with internal pressures, including the need to create a more market-driven culture, rationalize processes, and redesign the business.
SPG’s Consulting Assignment
SPG was asked to conduct an assessment of the client’s business, including key markets, to identity and capture new strategic opportunities, and change the culture of the organization to support the total business redesign efforts.
SPG - Business Analysis Findings
The SPG Business Analysis efforts revealed significant opportunities to:
Streamline the organization structure and business processes, eliminating multiple layers.
Eliminate redundant, no value processes.
Improve customer service skills to enhance service quality and satisfaction ratios.
Re-orient the organization’s culture from an internal focus to a market and customer focus.
Develop and implement a strategic plan to identify and capture new market opportunities.
Results and Quantitative Benefits
Through their work on organizational redesign, strategic market planning, and core business processes, SPG’s consultants and client employees partnered to achieve sustainable benefits. These included:
$15 million annual increase in revenues and significant increase in market share through focused efforts to capture new market opportunities.
$5 million annual savings from business process rationalization and work elimination.
$10 million annual savings from organizational redesign with new roles and responsibilities.
20% reduction in customer service response time.
30% reduction in consumer complaints over base.
20% - 30% cycle time compression of major service processes through re-engineering work processes.
Additionally, a management culture focused on customer needs was developed as a foundation for continuous improvement. This included the development and implementation of the following:
Long-term customer service vision.
Strategic market planning processes.
Marketing and service strategies and tactics.
Organization key roles and responsibilities and interface agreements.
Internal and external communications plans.
Organizational realignment and structural alignment alternatives for future.Transforming an Internally-Driven CompanyInto a Market-Driven Competitor