Cost Reduction for an Integrated Utility

At a Glance

Challenge

A multibillion-dollar integrated energy company needed to address increasing costs for human capital and related spending. ScottMadden was engaged to help set targets and identify opportunities for utility cost savings across the enterprise. The client needed help establishing and operating a program management organization (PMO) for the enterprise-wide effort that could provide support, coordination, and oversight across all work streams. Utility cost reduction efforts focused on reducing work drivers, improving organizational efficiency, eliminating waste and unnecessary costs, and leveraging strategic utility procurement to support the company’s long-term vision.

Process

• Identified the key executives that would create urgency, motivate action, and provide a baseline of support for the PMO that would be broad enough to integrate efforts, prevent conflicts, and resolve issues.
• Defined the program objectives to provide a clear, specific, and measurable definition of success focused on results.
• Documented, along with key stakeholders, the objectives aligned with the program, defined the scope of accountabilities (both in and out),) and put a high-level work plan in place.
• Put a program structure in place that was appropriately resourced and supported the chartered accountabilities with roles described, authority and reporting relationships clarified, and participants selected.