The Challenge

Although the global operations of a leading Engineering Services Group run profitably, their activity in a major region was facing challenges which led to a negative EBIT for several consecutive years.

Challenges resulted from a poor integration of acquired competitors, commoditization, price pressure, a disperse organization and a lack of control and missing leadership.

Our Breakthrough

Oliver Wyman assessed the restructuring program set up by the management team to verify the feasibility of the savings plan.

To assess the viability of the defined levers, we built a financial model to analyse the gap between a baseline and the required EBIT targets for the next three years and reflected the impact of already existing levers to close the gap.

The project team checked existing levers on risk and feasibility, identified additional levers, evaluated and described these levers.

In addition, we assessed the culture of the company and needed change to manifest a proper implementation of the levers. The findings were summarized in a report, stating the company’s situation, the levers and the proposed plan forward.

Our Impact

Oliver Wyman validated levers allowing to close the EBIT gap of EUR 20M over three years after deductions for risk mitigation, and identified new levers accounting for an additional 20M€ of EBIT gain.

Given the magnitude of the impact, buy-in from Management Team was achieved to start implementation.

Company was also convinced to support cultural change.