Situation

  • The client was a $10B oil and gas company, spanning nine product lines and seven regions
  • A matrix organization had fluctuated in intensity from products to regions and back to products
  • The resulting confusion led to low standardization of roles or organizational structure
  • This limited visibility to career paths, the hindered skill set development, and caused extreme variation in performance
  • Financial and operational performance metrics had been deteriorating over the past 6 months and the management team identified a need for greater standardization within the organization

Bespoke Solutions

  • SLKone was engaged to review and assess key product line, regional, and functional organizations
  • Initial assessments indicated the existence of more than 1,500 unique roles across the business as well as numerous gaps in key positions
  • Lacking guidance, groups developed poorly defined roles and inefficient organizations with excessive layers and low spans of control
  • Collaborating with the leaders of both product lines and regions, the team established guiding principles for delineating activities across organizations
  • Standardized role guidance was developed with some adaptation points across the organization

Leading With Results

  • Implemented standardized roles and organization structures across the global organization within 5 months, including role definitions, FAQs, and communication plans
  • Achieved annual organization savings of $24M by consolidating layers and eliminating organizational design inefficiencies
  • Provided clear career paths, a dynamic organization structure, removed redundant activities, and identified key resource gaps