Creating and implementing a roadmap for change, led to increased margins for a steel fabrication and construction organization


Context and Challenge

  • As oil and gas activity slowed in recent years, a steel fabrication company saw the drastic impact that had on their revenue, and they realized they had to adapt to the market changes

  • The facility’s infrastructure, organizational structure, and spending did not adjust to market conditions, culminating in significant margins and cash management pressures

  • Growth in the business over the year’s had spawned new service lines and numerous ancillary projects, distracting front-line management from key business drivers

  • The organization lacked formal management systems, discipline,  and continuous improvement capability to adapt to the new market realities



  • Executed a revenue enhancement and cost optimization foundation, in conjunction with the executive leadership team,  that spanned the entire value chain (sales, bidding, estimating, project execution, and project management)

  • Assessed all business functions and departments to determine top organizational issues (Leadership, Clear Accountability, and Communication) and process issues (Project Planning/Estimating, Business Development, and Project Execution)

  • Identified potential financial opportunities in three areas:

    • Increase incremental revenue by $20MM

    • Reduce variable costs by $2.7MM

    • Reduce fixed costs by $4.8MM

  • Developed a comprehensive implementation framework across four themes: Leadership and Performance Management, Front End Optimization, Project Execution, and Cost Management

  • Formed strong coaching relationship with new CEO, helping him redesign org structure, develop KPI’s for the new leadership team, and identify quick wins

The program provided a framework that enabled us to understand key issues and to confront them.
— Onshore Manager