At a Glance
The Full Story
An energy company’s costs had been outpacing inflation for the previous decade when it partnered with us on the largest transformation in the company’s history. We supported a complexity-reduction program that shifted EnergyCo* to a simplified operating model and new leadership behaviors. The result over 18 months was a 66% stock price increase, a 76% increase in total shareholder return and 60% less time in governance meetings.
A critical first step was a series of Leadership workshops to help EnergyCo’s leaders better operate as a team. Interviews and data-driven analysis identified the root causes of problems and the risks inherent in potential solutions. We then deployed Co-creation during a four-month diagnostic that analyzed EnergyCo’s complex cost challenges and created a program of change. Bain’s Co-creation approach secured the buy-in of key stakeholders. Through a series of workshops specific to functions and business units, we helped the client team build a value-creation plan that it could believe in and deliver.
We then implemented a series of core improvement initiatives in operations, supply chain and functions. To help deliver the value, we set up a Results Delivery® Office that helped leaders track the program by improving cooperation, establishing clear lines of accountability and maintaining the momentum of various change initiatives.
Ultimately, EnergyCo’s complexity-reduction program reduced the number of corporate committees from 24 to 9. When coupled with several performance improvement initiatives, the transformation contributed to a positive shift in mindsets throughout the company as well as the surge in shareholder value.