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Efficiency Improvement/Cost Reduction for a Transmission Company The Vermont Electric Power Company (VELCO), the first ever transmission only company in the United States, provides transmission services to the entire State of Vermont. The overall objective of the work was to study, design, and implement a program to achieve efficiencies through implementation of best practices, and to help minimize electric utility costs within the State of Vermont while maintaining reliability and quality of service. WCG's work objectives and scope included optimizing synergies and efficiencies within VELCO, between VELCO and the distribution utilities, and among the 22 member distribution companies. A number of substantial savings/cost reduction opportunities were identified.
Business Strategy Development For an unregulated subsidiary formed to participate profitably in capital intensive energy-related markets using new technology, we thoroughly examined the market, gathered facts and insights from all market participants (i.e., competitors, suppliers, customers, etc.), and explored international experience, some of which are more advanced than in the U.S. Our analysis identified a number of important and needed directional changes in business strategy, and developed a complete understanding of market opportunities and constraints faced by the client.
Marketing and Customer Service Analysis Conducted an analysis of the marketing, strategic planning, and customer service functions of the company. Evaluated the mission, strategy, and objectives of the various functions, and facilitated senior management in development of new directions for the company based on customer needs and competition.
Chief Executive Officer Search & Compensation Working with the Executive Committee of the Board of Directors of an industry association, we conducted a comprehensive search for a new Chief Executive Officer. Extensive sourcing and screening of possible candidates resulted in an initial list of seven qualified individuals. Of these, three finalists were presented for personal interview along with a complete dossier of their life, career, and psychological profile. Following selection, we conducted the compensation and benefits negotiations between the Board committee and the selected individual to the satisfaction of all concerned.
Pricing Strategy An unregulated subsidiary of a major energy-based company had excess capacity and needed to revitalize and accelerate its sales success. We prepared a pricing strategy and detailed pricing game plan for a variety of market segments and sub-segments we determined to be the best targets. The game plan ensured profitability, was very attractive to target segments, did not interfere with pricing commitments made to existing customers, and achieved all goals within two months.
Corporate Merger Played the key role in consolidating four Washington, D.C.-based industry associations into a single organization to represent the industry. We developed the entire organization from scratch, including: mission, goals, governance, by-laws, dues structure, organization structure, staffing, compensation, and key management processes.
Corporate Restructuring Working with key senior executives, we provided viable alternatives on how to best restructure a major Strategic Business Unit of the company. Issues dealt with encompassed legal structure alternatives, potential mergers/strategic alliances, governmental/ regulatory barriers, strategic strengths and weaknesses of each alternative, management organization, governance arrangements, and key executive staffing requirements.
Merger Integration Reviewed the merger partners' entire organizations to optimize the use of employee resources through improvements in organization structure, management processes, and staff allocations. Provided assistance in determining the appropriate number of customer service centers, appropriate use of construction and maintenance resources, and realigned administrative functions.
Change Management For the Plant General Manager, we conducted a review of the effectiveness of information flow and cultural barriers to management effectiveness at a complex processing plant with about 4,000 employees. This review addressed maintenance, work control, operations, and production support functions, and assessed communications channels and flows between and among senior managers through to first level supervisors. Subsequent results showed great improvement.
Change Management, Organizational Design, Technology Commercialization, Cost Reduction Beginning in 1995 shortly after this uranium enrichment company was formed, we conducted a series of projects aimed at positioning the client's operations for privatization. Our first project reorganized each of its two gaseous diffusion plants from a traditional cost-plus contractor arrangement into a modern, private sector organization structure. Existing functions were streamlined, and needed but absent functions were identified and provided for. Subsequent reviews focused on improving effectiveness and efficiency in the two plants, technology transfer, and cost reduction. The technology transfer project determined the steps, organization, staffing, and timing needed to bring a new AVLIS technology from the laboratory to full field production. This project helped the client to reach an eventual cancellation decision on AVLIS. More recently we assisted this client in cost reduction projects, aimed at lowering product costs in a competitive world market.
Benchmarking For one of the largest companies in the United States, we reviewed work control, maintenance, and system engineering functions at multiple facilities. During the review, we benchmarked these functions against other companies in its industry, and with NASA, Saturn, airlines, and oil refineries considered leaders in these functional areas. We produced detailed recommendations and implementation plans leading to improved effectiveness.
Organizational Effectiveness and Restructuring Through a joint client/consultant team effort, we conducted a complete review of a client's organization seeking to improve its effectiveness and credibility with its customers. Issues encountered were lack of focus and accountability, unclear expectations, and unnecessary layers of management. The recommendations included a revised organization structure, more meaningful titles for the senior executives, revised focus on the resolution of issues, and a clearer mission statement.
Holding Company Organizational Improvements Over time, the holding company of this Fortune 200 company had evolved into a hybrid organization that was inefficient and not properly balanced to best serve corporate needs. We reviewed the business strategies, operating issues, and interface arrangements for all major organizational units and determined that a number of holding company functions could be transferred to the operating companies, either in whole or by consolidating them with existing units. We also redefined the mission of the principal operating company to ensure it fulfilled its proper role in the enterprise. The end result was a substantially streamlined and more effective holding company organization.
Governance, Programmatic, and Operational Review Working with a group of 12 Directors of a natural gas industry association, we led a complete overhaul of the association. Issues addressed and modified as a result of our work ranged from mission, governance, and association programs to organization, staffing, and customer service. Substantial improvements resulted as a result of our review.
Joint Venture Partner Agreement Facilitation The non-operating co-owners of this joint venture had great difficulty clearly communicating their administrative, financial, and oversight requirements to the owner-operator. Working with the non-operating co-owners of this complex, capital intensive operation, we facilitated the multiple discussions necessary to clearly communicate and understand the specific administrative and financials requirements of each co-owner. Those requirements were then succinctly presented with significant improvements in understanding and working relationships.

 

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