Case Studies

Organizational Analysis and Design

Category: Project Assessments

Industry: Energy

Client Type: Utility

Service Provided: Assessment

The Issue:

Modus consultants assisted one of the largest electric utility holding companies in North America with a post-merger organizational re-design. The project consisted of two phases: the first phase developed a set of common organizational functions and activities and quantified the three utilities’ headcount and expenditures including pension costs, materials and supplies, and procurements; the second phase benchmarked the three organizations against other electric utility models and identified opportunities to reduce cost and standardize the organization model across the holding company’s merged utilities.

The Solution:

The end result of this engagement was an organizational structure that provides significantly more alignment as well as a reduction in organizational layers, larger spans of control, improved communications and accountability, and an increased ability to drive continuous improvement across the merged utilities. In addition, the holding company was able to identify common activities, standardize processes and procedures, and more accurately track expenses across the holding company. In total, the engagement identified more than $25 M in annual savings opportunities excluding capital expenditures.