Visionary CEO realizes double-digit rate of revenue growth.
25% reduction in port costs and 16% decrease in worldwide headcount
Strategic Intent
Restructure a historically hierarchical organization in support of a significant change from traditional shipping company to global provider of logistical solutions
Situation
- Global leader in roll-on/roll-off transport of vehicles
- Multiple port locations in Europe, United States and Asia
- CEO has vision to improve competitiveness in rapidly changing business environment
- Strategic change requires reorganization from functional/regional mindset to global process orientation
- Internal efforts fail at restructuring and change processes
- CEO sees major cost-reduction opportunity
Issues and Barriers
- Executive team resistant to change (“Why now?”) following recent growth production of record profits
- Silo management culture reflected in lack of teamwork and cross-functional processes
- Excessive port costs
- Ship-scheduling systems inadequate for new strategy
- New Asian competition dictates accelerated change
- Recent strategic acquisitions not yet merged into base business or corporate culture
Key Implementations
- Conduct CEO-sponsored executive team building to lead the way
- New global process organization structure
- New process controls and port operating policies & procedures complementing new business strategy
- Translation of fresh CEO goals, expectations and priorities to entire global organization
- Attain ship captains’ buy-in to new processes
- Major overhaul of information systems
Results
Primary Financial Benefits
This 52-week initiative continued the company’s success, now coupled with a new global-solutions strategy. The company attracted a shareholder-desired merger partner to form the world’s largest roll-on/roll-off transportation company. Visionary CEO became chairman of the newly formed enterprise; asks Brooks International to assist with selective aspects of post-merger integration process.
Results contribute to:
- Port costs reduced by 25%
- Worldwide headcount decreased by 16%
- Revenues increased at double-digit rate in spite of increased competition
- Project financial benefits goal exceeded by 25%
