Delivering $200million annual efficiency savings

Enabling annual efficiency savings of $200m through managing change and building company-wide change capability

SBM Offshore is the global market leader in the design, construction and operation of floating production and mooring systems used to extract and store deep-sea oil. After two decades of rapid growth, expanding from 6,000 to 11,000 staff, and multiple locations spread over five continents, SBM decided to make substantial changes to improve productivity and profitability.  SBM also wanted to develop and foster a new organisational way of working, so the dispersed operations and diverse business areas would ‘work as one’.  The environment was challenging: existing communications channels reached less than 50% staff; change fatigue had already set in; there was reluctance to engage in the change and significant resistance; and they had to overcome the legacy of a previous failed project.  Given these challenges, SBM decided they needed specialist support to deliver this ambitious transformation programme and called on CMC to provide change management advice and expertise.  

CMC designed and built the programme’s change management strategy, then deployed a team of specialists to deliver the strategy.  We set up and managed the Change Management Office (CMO), integrating change management with inhouse programme and project management methodologies.  The CMO co-ordinated all change activities, acting as liaison between project & programme managers and the business.  We assessed readiness for the change across the entire enterprise, and produced a time-based heatmap for each project and audience to understand the impact and minimise change saturation.  We undertook extensive skills transfer and trained SBM employees in the Prosci® change management method, developing inhouse capability and competency to embed and reinforce the changes.  Our consultants provided business change expertise across the globe, establishing and maintaining an enterprise-wide change agent network, developing programme communications and helping all middle managers to lead change.  We also provided programme and project management advice and resources.  

The programme delivered a measurable efficiency saving of 5% per annum - equivalent to a recurring $200m per annum cost saving.  This was during a period when the oil and gas industry weathered the impact of the oil price falling from $125/barrel at the start of the programme to $57/barrel at the conclusion of the programme.  As well as helping to embed ambitious and challenging people changes into a complex business, CMC also left SBM with a greatly strengthened capability and toolset for managing future business changes and significantly more competitive in its industry.

"I have nothing but the greatest admiration for your team. The people that have been working here with SBM were all top professionals, and on top very pleasant people to work with. From all the consultancy firms working in the OD24 program, CMC outranked them all (by a large distance)."

Wim Janse, Deputy Program Director, SBM Offshore