Our client, the Spanish Business Unit of a global player in the utilities industry, had seen its EBIT decrease in the past few years. In a context of political challenges, rising pressure to be more competitive and increased shareholders’ expectations, the company was faced with the need to optimize its cost structure in order to improve results.
The project aimed at achieving a substantial structural cost reduction both in PEX and OPEX throughout the organization and ensuring the sustainability of such gains through changing its ways of working and its culture to create “positive tension”.
From the get-go, we knew that overcoming barriers to change was going to be our biggest challenge. Thus, it was crucial to ensure engagement from Top management and that we helped set a very ambitious goal, which would kick-start the project with full force, mobilize the rest of the organization and ensure the project kept momentum. In order to do so, we built a cost baseline and identified efficiency and improvement opportunities with key stakeholders.
TwinPikes’ role was to be a change catalyst, creating “can do” attitude throughout the organization and ensuring alignment around a common vision of ambitious growth. We facilitated the implementation by establishing a PMO (Project Management Office) which thoroughly tracked progress and benefits with clear KPIs to measure short and long term success. Finally, our client successfully reached the overall savings target within the established time-frame.