Organization and governance

"The purpose of an organization is to enable ordinary men to do extraordinary things."

Peter Drucker

Effective organization and resource management allows the ability to address new challenges or recurring pain points in order to deliver impact:

Which challenges do you have to face ?

Adaptation to market evolution (e.g. reduction or ramp-up of activities, adaptation to new stakes…)
Optimization of team efficiency (e.g. new manager, important staff rotation…)
New context (e.g. strategy, regulations, digitalization…)
Globalization (e.g. optimization of international footprint…)

Which pain points do you have to address ?

Optimization of costs and profitability (e.g. important fixed costs)
Social & HR Context (e.g. burnouts, tensions, workload alerts)
Non fact-based resource budgeting (e.g. recurring requests, lively debates regarding resources and budget)

CYLAD approach is composed of elementary methodology bricks that are actionable depending on your needs

This framework is applicable for a company’s function, department, project, or programme

Main expected impacts

The major impacts and results we see by experience during our projects are the following: (This is a non-exhaustive list)

Improved efficiency
- Correct sizing
- Layer simplification
Increased effectiveness
- Fast decision making
- Lean organization
Neutral discussions
- Objectivation
- Fact-based rationales for organization size and budget
Engagement
- Well-being at work
- Team motivation

Client feedback

« CYLAD’s accurate business sense and solid technical understanding combined with proven methodologies enable us in providing robustly objective to recommendations and decisions.»

Head of Automotive OEM Division

CLIENT CASES

Definition of Zero-Based Organization in the aerospace industry

Definition of a minimum viable size of roles to perform a 46% growth in revenue

Support new Engineering organization within a railway company

Organization of support and purchasing functions to promote transversality and synergies between the business lines

CONTEXT

Due to Covid-19 crisis, aircraft manufacturers had to reduce production rates and thus adapt organization size.
Previous projects highlighted the need for increased cross-functional efficiency and organization simplification to streamline end-to-end important processes.
In this objective, a Zero-Based Organization approach has been launched to adapt organization size and design to new constraints and challenges.

PROJECT APPROACH

Define and align on top-down assumptions for ZBO sizing
Perform bottom-up design & sizing of organization using ZBO approach:
- Define workload drivers and size resources (internal / external), along specific scenarii
- Identify levers for efficiency improvement
- Fine tune with potential specific adjustments

Define roadmap and provide inputs for HR workforce adaptation process:
- Define roadmap for efficiency levers implementation
- Compare to “as-is” organization
- Provide inputs for HR to define employee movements

RESULTS / FINDINGS

ZBO sizing in line with top-down targets (-15%)
Buy-in of heads of departments on the new organization, sizing and internal transfers
Transversal workstreams identified and framed

CONTEXT

Following internal reorganization, resources had to be optimized to absorb expected growth while increasing productivity
Revenue growth had been outmatching resource investment for some years
Project was undertaken with the objective of sizing resources, role per role, according to specific activity drivers and high-level activity hypothesis

PROJECT APPROACH

List all roles required to perform the activity. Create transparency with “as-is” sizing of each role performing operations
Define specific drivers for each role and identify the sizing rule of each role
Design ‘ZBO’ organization based on defined sizing rule and activity assumptions (incl. mitigation of ‘team inflation’ risk)
Perform gap analysis between “as-is” and ‘ZBO’ sizing, and identify optimization levers
Frame recommendations for lever implementation and impact assessment

RESULTS / FINDINGS

Identification of 5 roles currently under pressure, with negative impact on productivity
Identification of ‘minimum viable team’ per role (~200 FTEs ) needed to achieve operational targets and ensure financial results: 46% revenue growth in 3 years
Identification of cost reduction opportunities with 50% of required additional personnel staffed from offshore countries

CONTEXT

Very long and complex order backlog due to strong growth in recent years
A previous engineering assessment highlighted the need to make engineering stronger, especially with enhanced empowerment and stability within 4 workstreams:
- Engineering Footprint & Governance: Develop collective experience effect
- Technical Methods & Tools: Make engineer ready to work
- Project Efficiency & Organization: Foster empowerment and accelerate chain of command on projects
- Product Development Plan: Accelerate detection of problems and timely responses to issues

PROJECT APPROACH

Definition of a new engineering footprint, strict product-based project allocation rules & engineering sizing accordingly
Set-up of a transverse M&T (Method & Tools) program organization, structuring actions to address main pain points raised by sites & quick wins dynamics launched for short-time support sites
Definition of a new project organization (from Métier to PBS – Product Breakdown Structure orientation), associated technical perimeters & WBS (Work Breakdown Structure)
Implementation of a “control body” (gates control) & “Flying Engineers” (ad’hoc support) for critical projects

RESULTS / FINDINGS

Enablement of sites to fulfill their roles via competences development plan
Improved empowerment of individual sites (no more loss through handover between sites, smoother transition with tender / project)
Better empowerment & clearer chain of commandment (technical decisions) within each project
Quick-wins impact in less than 3 months

CONTEXT

Tripling of turnover and doubling of workforce planned in 5 years
Multibrands – Multiproducts Group
Wish to anticipate the change of scale, adapt its organization to capture the synergies of the group while keeping a spirit of entrepreneurship

PROJECT APPROACH

Organization of support functions:
- Diagnosis: COMEX, and N-1 interviews and definition of key organizational principles
- Definition of the target organization by function: mission/commitment to the business lines/KPIs, organization, sizing of the workforce, governance with the business lines
Organization of the purchasing function:
- Diagnosis: COMEX and N-1 interviews, current organization, purchase data and potential gains (family, suppliers, commitments)
- Identification of 7 projects and corresponding roadmap

RESULTS / FINDINGS

Efficient organization of support functions: -10% (support workforce / group workforce)
Purchase gains estimated at 80M€

Contacts

Laurence Massat

Partner / France

Toulouse

Patrick Sage

Partner / France

Toulouse

Cécilia Combey

Principal

Toulouse

Marion Delas

Manager

Toulouse

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Last publications

Point of view

From Capex to Opex – The Art of Recurring Revenue Business Models in Industrial B2B