Almasy Consulting: Case Experience
Reengineering

















The following case descriptions provide details of key questions, issues and challenges that faced our clients. The level of the sponsoring client is indicated. Specific outcomes are provided where possible and when not in conflict with client confidentiality.

Telco – EVP, Local Telephone Operations
Could the sixth largest telephone company in North America rationalize operations and systems across its 19-state jurisdiction? How could the critical telephone company functions (defined as: service creating, network capacity provisioning, service activation, revenue securing, and service assuring) be improved and brought to world-class standards? How could the organization be convinced that major changes are important and necessary? Outcome: 22-month, multi-project team effort resulted in $250 million of annual cost savings and $100 million of new revenue opportunities. Change management process created organizational alignment and accelerated implementation of newly-designed processes.

Telecommunications Equipment Company – CFO
How does one of the largest suppliers of cable and satellite equipment redesign its returns systems and procedures to reduce losses and raise customer satisfaction? How could returns and credit policies be used as an offensive competitive weapon? Outcome: A completely reengineered credit and returns process was designed and tested with very positive results. Credit process time was reduced from 65 days to 5 days. Outstanding returns inventory was reduced from $85 million to $10 million. Customer satisfaction levels increased substantially.

Telco – VP, Sales
How could the local telephone service provider for a northwestern state dramatically increase its sales and customer service levels so that it doesn’t lose major customer accounts to new competitors? What customer segments were most at risk? What specific value-added service do they require? Outcome: A new process was developed together with a database and customer relationship interface. The system was tested with two pilots and rolled out successfully.

Global Conglomerate – Division CEO, Major Appliances Group
Could the world’s largest maker of major appliances improve its retail presence and profitability? How important were parts, service, and service contract revenue? What could be done to improve service productivity? Outcome: The project discovered that parts and services accounted for 25% of the operating profit of this $3 billion business unit. In addition, the company was unable to take advantage of the service contract business which represented only 8% of its units (as against 65% of Sears’ volume). Finally, the productivity and profitability of residential service calls was frozen because of unrealistic standards and performance measures. Programs and plans were developed for each of these challenges.

Oil Company – EVP, Refining and Marketing
How could a fully-integrated oil company reduce excessive distribution costs that were restricting profits? How did the firm’s Fifty State market coverage and distribution strategy (i.e. erect signs and stations in all 50 states and sell the product coast-to-coast) affect its marketing and distribution costs? Could some geographic markets and channels be abandoned to improve profitability? What was the value of geographic market share? Outcome: The Task Force developed and began the implementation of recommendations across products, distribution, and regions. As a result, the company repositioned its product mix from low margin bulk crude to high margin Jet A aircraft fuel and home heating oil; invested in short haul specialty pipelines and divested two refineries; and shut down retail operations in 18 states. The Refining and Marketing operation saw its profitability grow by over 35%.

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