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Organizational Restructuring

The Situation

Stack’d was engaged by an oilfield services company to review its organizational structure and identify ways to reduce operational costs in response to depressed oil and gas prices. The leadership team had previously tried to reduce operational costs on two separate occasions and were at a loss on how to structure the organization differently to achieve desired cost savings.

Our Approach

To achieve the desired project objectives we completed the following activities:
  1. Established a cost baseline of the existing structure and complete benchmarking and comparator analysis.
  2. Confirmed the organization’s strategic direction and operating model, including the identification of key value adding roles and activities.
  3. Developed alternative organizational structures based on desired strategic direction and operating model.
  4. Performed financial scenario analysis on alternatives to determine recommended approach and preferred structure.
  5. Develop a phased implementation plan.

Value Received

In a ten-week period, the client was able to exceed cost saving objectives and position the organization for future growth in new geographies and service lines.

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