Electrical Contractor
SITUATION
Nation’s largest electrical contractor needed help to integrate thirty-two operating companies into one organization with common platforms, processes and disciplines.
DRIVER GOAL
- Achieve a 5% run-rate for operating income by the end of the fiscal year.
- Provide a common methodology for management.
- Optimize the supply chain.
RESULT
- Identified over $50 million dollars of cost savings and implemented systems and processes to sustain the results.
Case Study
Implement Project Management Operating System
Issue
The nation’s largest electrical contractor, with over $1 billion in annual sales, engaged The Highland Group to integrate thirty-two operating companies into one cohesive organization with common platforms, processes and disciplines that would result in operating income of at least 5%.
Highland Approach
The Highland Group conducted a Discovery & Design on the operating companies and the current project management operating system to identify opportunities to improve and standardize processes, reduce costs and improve management skills. The resulting list served as a roadmap for targeted improvements.
Actions Taken
- Saved $24 million with the implementation of an aggressive program targeting margin erosion at the project level. Developed, trained and implemented a consistent methodology and process for managing projects from the recognition of an opportunity to the conclusion of the project work.
- Created, trained personnel on and implemented a consistent process for developing an estimate.
- Developed consistent practices to manage on-site change and trained field personnel to recognize the impact and costs associated with project change.
- Developed, trained personnel on and implemented a uniform process for “estimating completion” to safeguard against margin erosion.
- Developed, trained personnel on and implemented a consistent process to manage service work to improve margins and increase revenues of service work.
- Reduced supply chain expenditures by $20 million annually.
- Developed and implemented an organizational model to consolidate the companies by line of business rather than by region. Assisted in the consolidation of companies serving the same geographic area.
