Framing, boosting and materializing transformation: the core business of STEP consulting.
transformation PROGRAMS
Zero Based Budget to transform a global network of subsidiaries
Context and Objectives
The new CEO of a major player in aerospace wants to challenge its international industrial network. This network represents 29 subsidiaries, 35% of revenues and 26% of company’s staff.
A Zero Based Budget approach is deployed with the following objectives:
- Define an international network for each activity (helicopters, spare parts, maintenance…)
- Maintain or improve the service level
- Maintain revenue and improve profitability
- Define a new governance and a new business model by activity
Results
Future international footprint defined in 2 month:
- Customer Centers (subsidiaries) rationalization
- x0M€ expected savings
- Governance change to reinforce the role of central business line
Recommendations validated in EXCOM, transformation plan agreed:
- 1 governance implementation project
- 9 central projects per business line
- 12 regional projects
- 3 years implementation plan depending on Offset obligations
Turnarounds and developments within an international network of subsidiaries
Context and Objectives
Several challenges are faced by this group, leading to strong decrease of its operating margin, despite a stable turnover:
- Lack of growth in European market
- Excess of capacity
- Increase of competitive pressure
A transformation program made of turnaround and growth projects is launched. The purpose is:
- Reach competitive Operating Profits with profitable customers and products as well as cost reduced to strict minimum
- Reduce Working Capital
Results
The turnaround program is in place at EXCOM level:
- More than 1 000 people impacted
- 10 modules launched
- Weekly governance at CODIR level
For each module, comprehensive diagnosis and implementation
Savings of several millions € of Operating Margin within 1 Year
- Profit margin improved
- Raw material, manufacturing & logistic costs reduced
- Maintenance cost optimized
- Capacity capped / resized
- Sales force optimized
- Stock optimized and payment terms reviewed
European program is extended globally with support of STEP Consulting
Transformation of a large aircraft manufacturer's design office
Context and objectives
The Engineering division of an aerospace industrial leader had to concurrently face several change factors: internal organization change, new business model, evolution of the products towards more complex systems in a more complex industrial environment, cost reduction plan at company level. This situation was leading to several emerging local initiatives with un-coordinated reporting lines and decision processes.
On request of an executive board member, STEP Consulting helped this customer to set-up a change platform that could steer in a consistent way all its actions towards four objectives:
- Make the new organization work efficiently
- Adapt to the new company model
- Improve the performance
- Innovate and prepare the future
Our experience on this type of program allowed us to perform the framing in 3 months, by federating in a single platform local projects in each Centre of Competence and transverse projects at engineering level. The governance rules of the platform and projects have been defined and fully deployed as part of our assistance.
In a second step, we supported the different projects until concrete achievements, from a financial & operational stand point.
Results
The platform is set-up and running, with strong visibility and involvement from top-management
Cost savings targets are secured:
- 7% of savings achieved the first year
- 15% headcounts reduction 3 years plan secured
- ~30% indirect headcounts reduction
Transverse projects deliver practical results from the first year
- 20% savings on methods and tools costs
- Set-up of a new monthly steering organization for 10 Centres of Competencies
- Reengineering of a major development program WBS and practices on ~300 work packages
- Rationalization of R&T program on ~20 strategic axes
Transformation of customer services division of a large aircraft manufacturer
Context and Objectives
A services transformation program was launched in the defense sector; with 4 objectives to reach:
- Secure entry into service of new programs
- Deliver support at the level of quality expected by customers
- Develop significantly services revenue through organic growth opportunities, in consistency with external growth initiatives
- Improve EBIT from services
Results
A robust transformation structure was implemented
- About 1 000 people impacted (incl S/C)
- 8 clusters / 30 projects running
- 30 Decision boards done (every 2 weeks)
- About 60 FTE (180 people) on projects
First significant results obtained in 1 year
- 90% of AoG (Aircraft on Ground) issues solved in 48h
- 85% of repairs delivered
- Repair TAT divided by 2
- 80% of D1 (top 60) suppliers
- 85% technical queries answered on-time
- 95% on-time delivery for maintenance events
