Scalable Organization Reduces Indirect Costs

Results Achieved

Reduction of management
layers across markets

Projected reduction in
indirect costs

Reduction in the number of unique construction management roles

In annual
benefits

Client Challenge

The Wireless Division of a large national infrastructure construction company used a regional market structure to deliver local construction services as part of a national contract. Each market had a different approach to construction project management with inconsistent organizational structures & labor costs. The client wanted to reduce indirect costs and standardize the construction support organization structure across all markets. To accomplish this, the client needed a scalable organization structure with standard roles and responsibilities that could be used to size each market organization to meet the workload at the expected indirect cost level.

Key Solutions Implemented

  • Aligned the client’s leadership team around a clear set of organizational goals and design criteria
  • Assembled a Design Team of high-performing leaders representing key markets and functions to develop a common organizational template
  • Developed a staffing model based on operational metrics to size and consistently apply the new organizational template across markets
  • Aligned the organizational implementation with the operational changes driven by new project management software and process changes
  • Paced labor reductions to balance cost target attainment with enabling process improvements