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Cost Reduction for an Integrated Utility

At a Glance

Process Improvement

Co-conceived and drove major process improvement and re-engineering efforts with the C-Suite of an $11 billion integrated energy company

Labor Savings

Harvested labor cost savings of more than $200 million

Oversight and Support

Served as the primary strategic advisor and led the establishment and operation of the PMO, providing support, coordination, and oversight of the effort


A multibillion-dollar integrated energy company needed to address a trend of increasing costs for human capital and related spending. ScottMadden was engaged to help set targets and identify cost-reduction opportunities across the enterprise. The client needed help to establish and operate a program management organization (PMO) for the enterprise-wide effort that could provide support, coordination, and oversight across all work streams. Efforts focused on reducing work drivers, improving organizational efficiency, eliminating waste and unnecessary costs, and strategic sourcing, all of which supported the long-term vision of the company.


  • Identified the key executives that would create urgency, motivate action, and provide a baseline of support for the PMO that would be broad enough to integrate efforts, prevent conflicts, and resolve issues
  • Defined the program objectives to provide a clear, specific, and measurable definition of success that focused on results
  • Documented, along with key stakeholders, the objectives aligned with the program, defined the scope of accountabilities (both in and out), and put a high-level work plan in place
  • Put a program structure in place that was appropriately resourced and supported the chartered accountabilities with roles described, authority and reporting relationships clarified, and participants selected


  • Established PMO and steering committee, set targets, and identified $200 million of cost-reduction opportunities
  • Developed an implementation plan and supporting organization, provided support, and advised on strategies to achieve savings in targeted areas

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