19% of employees redeployed, excess contractors eliminated
$42 million in new profit contributions
Strategic Intent
Move significant amounts of outside contractor work in-house to achieve significant and sustainable increases in company-wide productivity
Situation
- Fourth largest U.S. gas and electric energy provider
- Lingering effects of deregulation and failed nuclear project lead to severe budget/spending reductions
- Budget cuts affect system maintenance and upgrades
- Customer service, customer satisfaction, employee morale and company image are deteriorating
- CEO is concerned about Public Service Commission (PSC) pressures
Issues and Barriers
- Lack of executive consensus and employee accountability
- High supervisory spans-of-control and cost-to-manage
- Poor teamwork and cross-departmental cooperation
- Internal systems fail to manage resource utilization
- Core processes include excessive non-value-added content
- Poorly focused employee goals and rewards contribute to the detriment of customer service
Key Implementations
- Executive alignment and organization-wide goal translation
- Redefinition of roles and responsibilities
- Comprehensive redesign of core processes
- Develop and install new management and metric systems
- Realignment of employee reward and recognition systems
Results
New Profit Contributions Reach $42 Million
As a direct result of this year-long initiative, which achieved 127% of its targeted financial goals, the CEO realized $42 million in new profit contributions, while “getting the PSC off his back!”
- Redeployed 19% of all employees to eliminate excess contractors, while upgrading infrastructure
- Power interruption time reduced by 21%
- Supervisory spans-of-control increased by 36%
- 33% of all management levels eliminated
- Overall cost-to-manage reduced by $5.2 million
- Customer complaints reduced by one-third
Client Perspective
As a result of our work with Brooks, we are better serving our customers at a much lower cost than we were a year ago and I am confident our service will be even better and our costs still lower a year from now.
— President & CEO
