HR Challenges at Construction Machinery Organization
This Construction Machinery Company which was based in Saudi Arabia had been suffering from poor employee performance, heavy labour costs and support departments were over staffed. Critical business processes were lagging in delivery and thus service levels were affected badly.
The Board asked Origin Consultants to advise and spearhead in the Organization Re-Structure Design & Implementation of an effective and efficient operating model assignment.
The Desired Objectives
To Improve Business Processes and
Bring Down Labour Costs of the Equipment Rental, Leasing, Credit, Control, Billing & Collection Departments of the Finance Department.
Improve Service Delivery Levels and Customer Service.
Solution for the Talent Quality Issues of the Domestic Market.
Design and implement an Operating model that will be more flexible, modern and efficient.
Discovery during HR Consulting for Construction Machinery at The Study Stage:
As the foremost step, a thorough diagnostic study of the organizational was done. Origin Consultants worked closely with the company's leadership to understand the stated challenges of the organization and the findings were:
Quality of workforce was inadequate and lacked enthusiasm.
The Finance Division supporting Construction Machinery Leasing Business with Rental Billing & Collection was over staffed and was a major cost centre due to huge labour costs.
The Finance Division supporting Construction Machinery Sales Business through Invoicing & Credit Control was also over staffed and was a major cost centre due to huge labour costs.
There was a lack of relevant and suitable talent in the domestic market due to visa and other regulations in the country.
Business Processes in the Accounting Support Function department had redundancies and were unnecessarily complex.
Service Delivery Levels of departments was unsatisfactory and were leading to huge lags and business losses.
A culture lacking energy and stimulation existed in the Department.
Origin’s HR Consulting Approach & Delivery:
As a global construction machinery company embarked on a journey to transform its business services organization, we helped them design and implement a new operating model.
We suggested a Shared Service Model that would address all the current challenges of talent availability, manpower costs, service levels and delivery. The Board immediately accepted this decision and asked us to initiate the search for a Managed Service Provider.
Through an accelerated but meticulous RFP, Evaluation & Selection Process for a managed services provider (MSP), we guided the Client Organisation. This involved evaluating the business cases for all the complex organizational redesign required to integrate a new Shared Service Provider. Eventually a leading Managed Service Provider in India was selected for the services.
We then helped them implement its new shared services blueprint, which transformed the accounting support function services. A new shared service model that integrated corporate functions and new service deliveries was designed.
We supported the company during the entire transition of services to onshore and offshore locations with programs sequenced to accelerate value delivery.
The Results Delivered by Origin’s HR Consulting for Construction Machinery Organisation:
The result was a new shared services organization with suitable workforce, improved service levels, reduced costs drastically, embraced new digital capabilities and became a more efficient growth engine for the Company.
Together these ideas revolutionized their way of doing business, reduced in-scope operating costs by nearly half and created an organization and operating model that was more flexible, modern and efficient.
The new operating model significantly lowered their annual labour costs, automated 15% to 20% of the department’s activity.
As this Organization continues to implement our recommendations, our work will help them increase internal NPS- Net Promoter Scores and save nearly $00 million while embracing new digital capabilities and improving service quality for both internal and external customers.
Summary of overall Impact on the Organization:
New effective and efficient Operating Model Implemented
Managed Service Partner onboarded
Business & Accounting Support Processes Streamlined
Culture of High Pace, Energy and Performance in the department achieved
Labour Costs of the Finance Support Departments (Billing, Collections, Invoicing & Credit Control) reduced by 50%
Talent Acquisition & Talent Pipeline Management
Contact Origin’s HR Consulting for Construction Machinery Team to streamline processes and set up High Pace, Energy and Performance culture for your Construction Equipment organization that delivers reduced people costs, enhanced efficiencies, improved customer service and profits.