Structuring Resource Services Business for the Future

“Organizational structures of today demand too much from a few, and not much at all from everyone else.” - Gary Hamel

Client Context 

• Oceania Resource and Technical Engineering Services Business; 

• 100+ person team across Australia and NZ; 

• Telos engaged by CEO.  

Presenting issue  

Telos was initially approached by the CEO to discuss the current overall sub-optimal performance of the business.  There had been several recent significant changes in the market that were beginning to have an impact on operations, and were expected to result in even larger impacts in the future. The CEO was therefore focused on using these market changes as an opportunity for the organization to review its current state and prioritize strategic activities.  Telos engaged in a series of discussions with the Leadership Team before agreeing that the initial focus should be on Organizational Structure and Design, with particular attention placed on role clarity and accountability. 

Our Approach

Using Telos’ standard partnering philosophy, and to ensure the accurate identification of the most significant issues, a series of structured interviews with a cross-section of team members were conducted.  The specific methodology utilized in our approach is outlined below: 

Data Gathering & Sense Making 

1. Telos conducted a series of 1:1 structured interviews covering topics such as Strategy, Business Issues and Challenges, Organizational Culture, Departmental roles, Work Prioritization and Progress, Internal Communication, Structure and Role Clarity, Business Processes and Metrics, and Leadership; 

2. Qualitative data from these sessions were explored and analyzed to establish key themes and issues; 

3. A small leadership group and Telos met over several occasions to add different perspectives to the data, and agree on focus areas; 

4. This small team also clarified and defined a new Operating Model for the business which would be used as a basis for Organizational Design, clear accountabilities and role clarity. 

Feedback, Clarification and Next Steps 

1. All data was presented back to the full Leadership Team over two days, and discussions commenced to understand and agree on key points, ideas, focus areas, and potential actions;   

2. The draft new Operating Model was discussed, refined and confirmed; 

3. A new draft Organisational Structure was presented for further discussion and clarification of each Department’s key accountabilities, processes, KPIs and metrics;  

4. A new Purpose Statement for the organisation was also drafted to ensure a common understanding of and commitment to the future of the business; 

5. An agreement was made on next steps to lead to successful implementation and review.  

Implementation and Review 

1. Each Departmental leader formulated and finalised the key elements of their area of accountability;  

2. A communication plan containing both company-wide and individual messaging was developed and executed for those directly impacted by change; 

3. Further work was then conducted with the Leadership Team to improve monthly meetings and reporting to give greater focus and accountability to metrics, performance monitoring, information sharing and accountability; 

4. A process to review the success of this implementation was planned and scheduled for future.  

Outcome 

By taking a methodical and partnering approach to mutually gather and make sense of data, explore and agree on insights and focus areas, and then formulate action plans and reviews, the organization has seen great benefits.  These benefits include: 

• Far greater role clarity for each Department, team and leader including improved metrics, performance monitoring and reporting; 

• A clearer picture of the macro-operating model of the business which enables better understanding of key business processes and how to improve them; 

• Enhanced functioning of the Leadership Team; 

• Application of an ‘outside-in’ view helped to go back to the fundamentals and broaden thinking levels in devising solutions improved business functioning and outcomes. 

This project was a critical element in having this busy Leadership Team pause and reflect on how they are performing, why they exist and how they can improve functioning and outcomes.  Through partnering with Telos, they were able to better understand and define their issues, and more creatively and collaboratively formulate and implement actions plans that were committed to, resulting in ongoing improved revenue and profit increases.