Performance Improvement of Multi-National Controls Company
A controls systems and technology company had recently been through a restructuring and certain leadership changes. The company sells controls systems and technologies, as well as other products and solutions, to the oil and gas and renewable energy industries. The company retained Carnrite Group to improve performance by helping to streamline the portfolio, reduce overhead costs, optimize the supply chain, activate sales growth in core product lines, and build a lean, high-performing organization.
Approach
Working in partnership with the company’s leadership and key stakeholders, we designed and implemented a Program Management Office and took a series of actions to improve performance:
- Assessed the company’s portfolio – customers, geographies, products, and technologies
- Evaluated facilities globally and consolidated sites, where needed
- Analyzed transaction-level spend and contract data
- Conducted a deep-dive assessment of the supply chain
- Developed organization structure options to reduce costs
- Identified opportunities to reduce non-headcount overhead
- Identified opportunities to activate sales growth
- Provided financial reporting support to the company
New and existing leadership embraced the changes and demonstrated exceptional leadership throughout the process, driving improvements, preserving and creating value for the company’s private equity owners, and building upon the company’s sound culture and history in the energy industry. These actions were despite a distressed and challenging time in the energy industry.
Key Results & Outcomes
The lean organization structure resulted in a $10 million reduction to headcount-related G&A. In parallel, we identified opportunities to reduce non-headcount G&A by >30%. A workstream dedicated to improving supply chain efficiency resulted in savings of ~$2 million. We consolidated facilities in Europe, the Middle East, and Asia, reducing rent expense. We developed a strategy to move manufacturing to lower cost facilities and built strategic plans to grow the business for core products, technologies, and regions. The company continues to operate as a provider of choice to customers in its target industries.