Efficiency improvements in the operating model for a group operator’s Network department

A European group operator requested Northstream’s support to analyze their operating model within Networks department (scope: group function and a number of operating countries) with the objective to identify efficiency improvements that would deliver cost savings.

The project was led by Northstream’s team and executed in two phases:

  • As-is assessment – we gathered relevant information and mapped the current responsibility split between the group Network function and the countries’ respective organizations. We conducted workshops in each entity to gather insights on their experienced pain points in the current operating model and suggestions for improvements. The as-is assessment was structured according to our operating model framework.
  • Efficiency program definition – Northstream conducted internal analysis to a) synthesize the pain-points/areas for improvement that were cause of inefficiency, and b) design an efficiency improvement program.

Northstream recommended an adjustment in the responsibility split between the group function and operating countries, and delivered an efficiency improvement program containing a number of key initiatives with the aim to deliver significant cost savings. The benefits would be both short-term: more efficient operations and better planning that allow to operate at lower headcount, as well as long-term –  improved decision making leading to improved CAPEX efficiency.