A Renowned International Construction Machinery Organization based in Saudi Arabia approached Origin Consultants to lead an HR Consulting for Construction Machinery Project involving Organization Structure Design & Implementation of an Effective and Efficient Operating Model.
Organization Structure Design & Implementation by the Origin HR Consulting For Construction Machinery Team led to improved business processes, achieved new efficiencies, adopted new digital capabilities, reduced labor costs, and improved service levels of the organization.
HR Challenges at Construction Machinery Organization
This Construction Machinery Company which was based in Saudi Arabia had been suffering from poor employee performance, heavy labor costs and the 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 the Organization Restructure Design & Implementation of an effective and efficient operating model for the Accounts & Finance Division.
The Desired Objectives
- Improve Business Processes and Operations Efficiency for the following Accounts & Finance departments:
- Heavy Machinery Rental & Leasing Department
- Credit Control & Billing Department
- Collection & Recovery Departments of the Finance Department
- Right size the department and optimize the People Costs
- Improve Service Delivery Levels and Customer Service.
- Resolve and propose a lasting solution for the Talent Quality Issues of the Domestic Market.
- Design and implement an Operating model that will be 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 issues was done. Origin Consultants worked closely with the company’s leadership to understand the 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 center due to inefficient processes.
- The Finance Division supporting Construction Machinery Sales Business through Invoicing & Credit Control was also over staffed and was a major cost center due to poor productivity.
- There was a lack of qualified, experienced, 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 Departments.
Origin 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 Organization. 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 HR Consulting For Construction Machinery Organization
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 labor costs and automated over 30% of the department’s activity.
As this Organization continues to implement our recommendations, our work will help them save costs while embracing new digital capabilities and improving service quality for both internal and external customers.
Summary of the Overall Impact on The Organization
New effective and efficient Operating Model Implemented
- Managed Service Partner on-boarded
- Business & Accounting Support Processes Streamlined
- Culture of High Pace, Energy and Performance in the department achieved
- Labor Costs of the Finance Support Departments (Billing, Collections, Invoicing & Credit Control) reduced by 50%
- Talent Acquisition & Talent Pipeline Management Process set up
Contact Origin Consultants HR Consulting for Construction Machinery Team to streamline processes and set up a High Pace, Energy and Performance Culture for your organization that delivers reduced people costs, enhanced efficiencies, improved customer service and profits.