Evaluating the Viability and Uncovering Financial Opportunities For a Steel Fabrication and Construction Organization
Context and Challenge
As oil and gas activity slowed in recent years, a steel fabrication company saw the drastic impact that had on their revenue, and they realized they had to adapt to the market changes.
The facility’s infrastructure, organization, and spending did not adjust to the new market conditions, culminating in monthly financial losses and cash management pressures.
Growth in the business over the years had spawned new service lines, satellite locations, and numerous ancillary projects that distracted front-line management from their focus on their core business.
The organization lacked formal management systems, discipline, and continuous improvement capability to adapt to the new realities.
The parent company replaced 80% of the executive leadership team in 2 months, culminating in the hiring of a new CEO.
Approach
Executed a revenue enhancement and cost optimization foundation, in conjunction with the executive leadership team, that spanned the entire value chain (sales, bidding, estimating, project execution, and project management), that included quick wins to “stop the bleeding”.
Assessed all business functions and departments to determine top organizational issues (Leadership, Clear Accountability, and Communication) and process issues (Business Development, Bidding, Project Planning & Estimating, and Project Execution).
Identified potential financial opportunities across three areas:
Incremental revenue
Variable costs
Fixed costs
Developed a comprehensive implementation framework across 4 themes: Leadership and Performance Management, Front End Optimization, Project Execution, and Cost Management.
Onboarded the new CEO, forming a strong coaching relationship and working on redesigning the org structure, developing KPI’s for the new leadership team, and implementing quick wins.
“Evolve have demonstrated that consultants with the right skills and approach can really teach us something, and leave behind real long-term value.”