Case Study

Oper­a­tional Excellence

A port oper­a­tions group stomps out fire­fight­ing and saves $10.3million

2021/09/29

Key results

$10.3 mil

Reduc­tion in annu­alised labour costs

100%

Achieve­ment of pro­posed finan­cial results and cost reduction

4.8:1

Return on investment

About the client

Our client is a com­pa­ny that man­ages the move­ment of car­go from ports in var­i­ous parts of the world.

The chal­lenge

The com­pa­ny was fac­ing increas­ing pres­sure from var­i­ous stake­hold­ers. Share­hold­ers, for one, were press­ing for results, cost reduc­tion, bet­ter com­mu­ni­ca­tion and trans­paren­cy. Com­pe­ti­tion was also expect­ed to increase due to over­ca­pac­i­ty . The organ­i­sa­tion need­ed to be more effi­cient and pro­duc­tive to sup­port these changes.

How­ev­er, the organ­i­sa­tion lacked readi­ness for sus­tain­able growth.

Inef­fec­tive organ­i­sa­tion­al structure

The company’s organ­i­sa­tion­al struc­ture and sup­port process­es were not designed for rapid response to vol­ume vari­a­tions. Fur­ther, unclear strate­gic align­ment across the organ­i­sa­tion and the lack of clar­i­ty in report­ing lines ham­pered the company’s growth as man­age­ment had dif­fi­cul­ties dri­ving strate­gic plans to low­er levels.

The com­pa­ny also had a top-heavy man­age­r­i­al structure. 

Lack of Man­age­ment Con­trol Sys­tems and stan­dard processes

The company’s sys­tems had grown organ­i­cal­ly over the years but were poor­ly aligned with the company’s strate­gic tar­gets. Although much data and infor­ma­tion exist­ed, few KPIs mea­sured pro­duc­tiv­i­ty and per­for­mance. The com­pa­ny lacked vis­i­bil­i­ty on com­pli­ance and exe­cu­tion per­for­mance lev­els and had dif­fi­cul­ty in iden­ti­fy­ing vari­ances and root caus­es of prob­lems, which caused unwant­ed events to recur.

Organ­i­sa­tion­al behav­iour that did not sup­port growth

Employ­ees were often fire­fight­ing prob­lems of the moment. Due to unclear roles and respon­si­bil­i­ties and a lack of account­abil­i­ty, there were mis­ori­ent­ed efforts and low lev­els of sus­tain­abil­i­ty of imple­ment­ed actions and initiatives. 

What we did

To cre­ate a more effec­tive organ­i­sa­tion, we had to address more than the struc­ture alone. Togeth­er with a task force from the com­pa­ny, we redesigned the company’s organ­i­sa­tion struc­ture, sys­tems and process­es to work togeth­er to stim­u­late “want­ed behav­iour” and ever-increasing performance.

Designed a new organ­i­sa­tion structure

The struc­ture was redesigned to improve align­ment to work process­es and new tools were cre­at­ed to con­trol or scale future labour requirements.

Opti­mised processes

Process­es were reviewed and doc­u­ment­ed with stan­dard oper­at­ing pro­ce­dures. We designed and imple­ment­ed process man­age­ment con­trol sys­tems in all areas togeth­er with the task force, as well as improved for­mal com­mu­ni­ca­tion, man­age­ment per­for­mance reviews and action plans for increased func­tion­al performance.

Adjust­ed organ­i­sa­tion­al behaviour

Job descrip­tions were rewrit­ten in accor­dance with new struc­ture func­tions, roles and respon­si­bil­i­ties. After the new organ­i­sa­tion­al design was imple­ment­ed, all affect­ed per­son­nel were trained in the new ways of working.

Renoir also trained “inter­nal con­sul­tants” with­in the com­pa­ny to iden­ti­fy and work on future areas of oppor­tu­ni­ty geared towards pre­ven­tion rather than cure.

Results

In addi­tion to the $10.3mil labour cost reduc­tion, the trans­for­ma­tion pro­gramme delivered: 

  • A struc­ture for the oper­a­tions, admin­is­tra­tion and sup­port functions
  • Key process­es and inter­faces aligned with oper­at­ing procedures
  • Improved com­mu­ni­ca­tion lev­els with­in the organisation
  • Trained man­agers  
  • An inter­nal group of qual­i­fied pro­fes­sion­als to lever­age the knowl­edge acquired

The com­pa­ny is now a more effi­cient, future-ready com­pa­ny, work­ing with­in stan­dard­ised process­es and man­age­ment con­trol systems.

* We take client con­fi­den­tial­i­ty seri­ous­ly. While we have kept the brand anony­mous, the results are real.

Share This Case Study

How We Can Help

Related Industry

Connect with us

Let us work with you to achieve exceptional results.

Share this case study

Other case studies

Oper­a­tional Excellence

Case Studies

2022/06/13
A heavy equip­ment deal­er changes com­pa­ny cul­ture, saves $6mil

Oper­a­tional Excellence

Case Studies

2022/01/06
Mine Plan­ning – Attain­ment and Adherence

Oper­a­tional Excellence

Case Studies

2021/04/19
An oil and gas com­pa­ny saves $75 mil­lion by build­ing a man­age­ment con­trol system

Case Studies

Imple­men­ta­tion

A util­i­ties com­pa­ny improves pro­duc­tiv­i­ty and saves costs
13 Jun 2022

Case Studies

Oper­a­tional Excellence

A coat­ings man­u­fac­tur­er boosts its com­pet­i­tive­ness with a new way of working
20 Dec 2021

Case Studies

Imple­men­ta­tion

A trac­tor man­u­fac­tur­er max­imis­es oppor­tu­ni­ties and grows profits
13 Jun 2022