Learn how we worked with a gas delivery organization of a large utility to assess existing practices and identify opportunities for improvement.

In this case study, we examine the gas delivery organization of a large utility that recently changed management, leading to a redefinition of their gas delivery services. As such, the organization, wanting to move forward in a clear way, was seeking experienced consultants that would establish what the gas delivery system should look like: they wanted to develop a clear roadmap for the future. The client needed a plan to improve operations and customer services, ensure regulatory compliance, reduce costs, and enable clear communication with the enterprise. ScottMadden performed a comprehensive assessment of the organization and its practices to identify opportunities for improvement.

The Challenge

Like other energy companies, the client was facing increasing challenges, such as cost control pressure, uncertain growth potential, heightened competition, and required infrastructure upgrades. Executive management wanted to identify opportunities to improve its gas delivery services in this challenging environment. The organization had several key hurdles to overcome, including a lack of strategic focus, unclear roles and responsibilities for some key functions, misaligned performance metrics, and an ineffective planning process.

How We Helped

ScottMadden conducted an assessment that focused on seven key elements required for any organization to effectively operate and succeed.

Figure 1: Management System Key Elements

For each element, the assessment addressed its maturity, employee understanding and engagement, and improvement opportunities. Areas of focus included:

• Work activities and volumes
• Process flows
• Performance metrics
• Perceived satisfaction levels
• Staff roles/responsibilities

The engagement scope covered all key functions of the gas delivery organization, including operations, maintenance, construction, engineering, planning/modeling, marketing, measurement, and business management.

Our consultants conducted the assessment by gathering and synthesizing information from a variety of sources, including existing documentation (e.g., business plans, management reports, policies/processes, and job descriptions), interviews, and leading practices.

Interviews with management and key staff of the gas delivery organization provided context and greater understanding of work performed, business drivers, key issues, and potential improvement opportunities. ScottMadden developed a comprehensive current state analysis that included a summary assessment for each management element along with key findings, recommendations, and supporting documentation. Our project methodology, insight, and experience provided a holistic view of performance and determined the most significant improvement opportunities for the client.

The next step involved prioritizing the recommendations from the current state assessment. ScottMadden worked with the client team to validate key findings, rank recommendations by benefit and level of effort, and determine the resulting improvement initiatives.

Figure 2: Prioritized List of Improvement Initiatives

These initiatives formed the basis of a future state plan to implement the recommendations. ScottMadden’s collaborative approach helped build consensus regarding the current state findings and improvements required to reach the desired future state.

Results

This assessment enabled the client to understand the overall status and maturity of the gas delivery organization. Also, the client has a clear roadmap to help identify where to best focus management time and attention. ScottMadden was able to identify and prioritize improvement initiatives that address significant issues and close key gaps with leading practices. These improvements will increase the organization’s effectiveness and efficiency, strengthen its compliance, and reinforce its partnership with internal stakeholders and external customers.