Public Utilities Transformation
How can utilities equip themselves to prosper in an evolving industry? Where are the growth opportunities? What impact will new-generation, grid, and behind-the-meter technologies have on business performance? To succeed amid the uncertainties, utilities must stay alert to the evolution of earnings pools and ensure their organizations are flexible and responsive enough to capture opportunities as they emerge in new markets and along the value chain. We help clients execute large-scale change programs that engage people at all levels of the organization in finding ways to continually improve performance.
Designing and Delivering Transformational Change
We work with clients to shape a vision of the utility of the future, link targets to business outcomes, and create initiatives to strengthen performance, build skills, and modify mindsets and behaviors. We help leaders become role models, senior teams forge shared commitment and direction, and organizations develop their own capabilities for managing change so that the impact of a transformation lasts long after a project ends.
Strengthening Organizational Structure and Health
To tackle the challenges of future power markets, we help clients move from legacy organizations and functional silos to modern streamlined and flexible structures built around business priorities. By reducing management layers and pushing decision making down through the organization, utilities can energize the front line, connect with customers, and meet their business goals.
Driving Corporate-Center Effectiveness
We work with clients to build a fact base of corporate-center costs and performance, probe the reasons for shortfalls, explore where and how to make savings, and create coherent improvement initiatives. We help develop new lean implementation processes for managing soaring IT investments and support regulated utilities in articulating how corporate spend creates value for customers.
Examples of our Work
Our recent corporate transformation projects include the following:
- organizational health: using our proprietary Organizational Health Index to enable a utility identify $50 million in run-rate value and achieve top-quartile performance in less than four months
- purchasing and supply chain: conducting a diagnostic of a utility's procurement organization that enabled it to identify opportunities to save 16 percent of its overall spend and reduce unit purchases from two supplier categories by eighty percent
- information technology: helping a utility quantify sources of waste, build lean capabilities in applications development and maintenance, design and roll out a new IT organization, and achieve a twenty to thirty percent improvement in productivity
- finance: supporting a regulated utility under pressure after missing its earnings target with a transformation of its finance function, culminating in savings of ten percent and a move up to a top-quartile ranking for total returns to shareholders
We help companies create dynamic performance measurement with a focus on what really matters to the business. We build dashboards that serve as barometers of ongoing business performance and help companies devise tailored compensation systems that will reward actions and behaviors that advance the organization's goals and drive decision effectiveness. more