Collinson Grant reduced complexity in the managerial structure, refined R&D processes and improved cooperation with customers.
Caterpillar ACSD directly employs 6,663 FTEs (of whom 3,936 were in scope) and generates revenue of $4.2bn a year. We interviewed managers and analysed managerial and financial data. As a result, we found many working functions in a complex organisational model:
- Duplication of effort between business units, functions, and integrated project teams (IPTs) Discrete spans of control
- A deep structure with too many layers
- Too many interfaces.
We ran workshops for the senior team to work out ideas:
- to build on the concepts presented
- to challenge 'rules and norms'
- to specify initiatives for improvement.
Caterpillar ACSD quickly adopted a new organisation, resulting in:
- better direction and control, with fewer senior Directors and Vice-Presidents
- redefined research and development processes and organisation at lower costs, saving $50m
- faster, cheaper, and better cooperation with the customer.