At a Glance
- A Philippine construction enterprise partnered with Renoir Consulting to enhance management control systems during organisational growth, achieving a remarkable 347% increase in port project productivity.
- The project focused on process improvement and organizational development through enhanced KPIs, dashboards, and productivity measures, resulting in significant ROI, reduced overtime, and a new shared services function.
- Renoir trained a dedicated client taskforce to implement revised management systems, delivering substantial cost savings and improved employee morale through better performance management tools.
Key Results
- Port project productivity increased by 347%
- High-rise & housing project productivity each improved more than 100%
- ROI of 4.1:1 delivered against the original commitment of 2.5:1
- Substantial savings by reducing overtime from 62% to 35%
- 10% reduction in cost per cubic meter of concrete
- Delivery fleet reduced by 10 vehicles
Background
The client has a significant history in construction sector, paving a multimillion-peso industry construction enterprise with a workforce of over 3000. In Philippines construction industry is a major driver of economic growth, with recent growth rates showing resilience and adaptability, especially during economic challenges. In addition to that, this sector is a major source of employment, providing jobs for both skilled and unskilled workers. It employs millions of Filipinos, with figures reaching over 4.76 million in November 2024, accounting for nearly 10% of the labour force.
A major and growing industry often implies a competitive landscape. To maintain and improve their position, companies like our client need to focus on productivity and cost-effectiveness. As a result of this growth, the need for more robust management control systems and improved productivity became apparent, and this is when Renoir was brought in.
Analysis
Client experiencing significant growth and expansion, recognised an opportunity to enhance productivity through the implementation of more robust management control system. Despite their success, their leadership believed that improved management practices could unlock further efficiencies and cost reductions across their diverse operations while scaling their business. Existing systems were insufficient to support their growth trajectory and strategic objectives.
The analysis process involved Renoir conducting an initial one-week assessment. This initial assessment aimed to identify areas where productivity could be improved and where systemic or process-related issues existed. This analysis indicated improvements in areas that would lead to cost reductions for the divisions of the enterprise. The findings of this analysis led to client engaging Renoir to develop its structure, management controls, and KPIs.
This initial assessment validated client’s concerns and provided a clear rationale for proceeding with a comprehensive engagement with Renoir.
“The new reports and dashboards are great for boosting morale and acknowledging people.”
– Operations Manager
Project Approach
Renoir adopted a structured and collaborative approach, working closely with client to deliver sustainable improvements. The project was organised into two main work streams:
End-to-End Process Improvement: This stream focused on enhancing productivity and operational performance throughout client’s various operations. This involved multiple construction projects (spanning housing, high-rise, and port developments), and the manufacturing department (steel and carpentry).
Renoir’s approach included:Â
- Initial mapping and critiquing of existing management control systems to identify systemic and process issues.
- Training and coaching team leaders, supervisors, and managers in supervision and the revised management control systems.
- Reviewing and consolidating the entire standards library.
- Establishing base performance metrics to serve as benchmarks for measuring improvements.
- Implementing improved weekly planning and daily follow-up reviews involving project leaders and operations managers.
- Utilising performance data to populate management dashboards designed under the other work stream, enabling daily monitoring of individual team performance.
- Instituting coaching for teams not achieving desired results to ensure performance improvement.
Organisational Development and Performance Management:
This stream concentrated on improving the organisational structure, developing relevant KPIs, and implementing insightful dashboards.
Renoir’s activities in this area included:Â
- Developing a revised organisational structure for the Group in collaboration with the executive team, providing a roadmap for future growth and efficiency.
- Forming a shared services group, consolidating key functions such as Human Resources, Finance and Admin, Supply Chain, MIS, Asset Management, Legal, and Marketing to serve the entire Group.
- Designing and producing management dashboards for various levels within the organisation, from executives to operational management.
- Providing training on effective meetings and managing change to facilitate the transition to the new structure and systems
“We are impressed with how the Taskforce has developed and wish to recognise them for the results that have been achieved.”
– Board of Directors
Implementation
The implementation was driven by a Taskforce of client’s staff with management potential, who were trained and coached by Renoir consultants in their methodologies, including behavioural change techniques.
Renoir provided ongoing oversight to ensure the committed deliverables were achieved.
A strong governance structure was in place, with weekly Management Action Team (MAT) meetings involving the joint team to review results and progress.
Furthermore, a fortnightly executive steering committee, comprising MAT Chairpersons and the Board of Directors, provided strategic direction, made key decisions, and ensured the program stayed on track.
Results
The collaboration between Renoir Consulting and the client led to significant, measurable improvements across operations, financial performance, and organisational capability:
Productivity Gains
- Over 100% improvement in productivity for housing and high-rise construction projects
- 347% increase in port project productivity
- Gains achieved through enhanced management control systems, structured daily follow-ups, and performance coaching
Cost Savings & Efficiency Improvements
- Overtime reduced from 62% to 35%, supported by:
- Strict planning protocols
- Deployment of a new online overtime approval system
- This initiative contributed to ~25% of total project benefits
Fleet efficiency improvements, including:
- Reduction of 10 delivery vehicles
- Better deployment of fleet monitoring software
- Logistics optimisation contributed to 15% of overall benefits.
Performance Management System
- Developed and deployed dashboards and KPIs for all management levels:
- From executive leadership to site-level supervisors
Enabled:
- Real-time performance monitoring
- Greater transparency and accountability
- Data-driven decision-making across departments
Behavioural & Cultural Shift
- Installed weekly planning and daily review routines at all operational sites
- Provided coaching to underperforming teams to drive improvement
- Embedded a performance-focused culture supporting sustainable growth
Want to drive productivity, reduce costs, and build a performance culture that lasts?
