MINING & CONSTRUCTION COMPANY

Case Study

Wins are measured by tangible change that exists when Behaviors are Owned.

The Problem

The client was the premier provider of mining and heavy construction, industrial, piling and pipeline services in Western Canada. As a major player in the Canadian oil sands, they needed to improve operational performance for an IPO.

Business Challenge

  • Having formed a partnership with almost every large oil company in the region, sales continued to steadily increase. But tough operating conditions and eroded internal processes meant improvements were needed in operational monitoring, management reporting and financial transparency.
  • They also needed to build a performance focused culture.
  • These became even more critical as the company prepared for an impending IPO.

You recognized that measurement and sustainability are keys to success and brought us the experience, the measurement, the reporting tools and the people skills to deliver results.

Vice President

The Solution

  • A comprehensive program called COBRA (Changing Organizational Behaviors, Results and Attitudes) was implemented that put the client firmly back on track and laid the foundations for a successful IPO.
  • The challenge was to effect a successful operational transition to support the future demands of increased competition and operation under the scrutiny of being a public company.
  • The team established a clear set of goals for the program, driven by improved equipment utilization at construction sites, higher labor productivity, and reduced maintenance and rental expenditure.
  • This included effective work order and tracking systems for maintenance, a clearly defined vision and business imperatives to drive a commercially-focused culture, and the standardized implementation of a company-wide management system.

RESULTS

  • $32 million annualized cost savings versus a base business case of $22.5 million
  • Improved productivity through a reduction in unit costs
  • Improved productivity in shop labor
  • Overall project ROI of 4:1