News & Research: Client Successes

Case Study: Engineering Organizational Design Review

ScottMadden worked with a large nuclear power generation company to restructure its corporate engineering organizational design. The project involved consolidating two regional corporate offices, centralizing key functions, and eliminating staff redundancies.

• uThe company had recently launched an initiative to consolidate all corporate organizations, which were geographically separated into two regional offices
• uThe organization wanted to assign clear accountabilities for each engineering function, improve operational efficiency, eliminate staff redundancies, and lower operating costs during the following year
• uAs the largest corporate organization, engineering provided the greatest opportunity for improvements and cost savings

• uDocumented the current states of both corporate and site engineering organizations
• uInterviewed key executives to gain insights into business drivers and design criteria for the future state organization
• uDeveloped a future-state engineering organizational design with explicitly assigned governance and other accountabilities for all functional responsibilities
• uBenchmarked the new organizational design against other industry leaders
• uCompleted a gap analysis and recommendations to transition to the future-state organization
• uIdentified mitigation of potential risks, opportunities, and timelines to achieve the future-state organization

• uRealized $8.5 million to $11 million in annual savings, with a potential  8 percent staff reduction across corporate and site engineering
• uConsolidated corporate engineering into one organization headquartered in one primary location
• uCentralized an additional 11 engineering functions into the corporate organization
• uAssigned clear accountability for governance, oversight, support, and execution of all engineering functions