An organization that understands what competitors in their industry or different industries are doing to improve on their competitive practices and functions, can better assess and prioritize improvement opportunities. The network alliance of professionals at Entity Consulting Inc., have deep experience in best practice implementations that can reduce your operating costs, improve quality and services, and safety results. A few examples of best practice areas in the utility industry are listed below.
A Strategic Alliance is an agreement between two companies to share resources in undertaking a mutually beneficial project or service. In this business model, executives from each company agree to mutual scorecard metrics, to ensure that each party in the alliance is delivering on their end of a bargain that will save on costs and improve quality of work for all parties.
Forming Strategic Alliances with a few services contractors is a best practice alternative to a traditional model of contracting services that has an approved list of contractors and awarding each project to the lowest bidder. A Strategic Alliance business model not only provides your organization with the greatest volume discounted costs, but also allows you to align and execute your company goals (services, quality, safety) through your contractor. It can also provide a mechanism to identify win-win initiatives that reduce inefficiencies in both organizations, thus allowing overheads and contractor costs to continually decrease.
Moving your organization away from a rigid functional business model, whose employees and departments are based on common job functions (e.g. sales, customer service, construction) can also unlock significant benefits. The major disadvantage of a traditional functional business model is that there is conflict and inefficiencies across different department that may be overly focused on their department versus organizational success.
In a matrix business model, there is dual reporting of employees to both the Functional Organization and Process Organization. Employees would typically report to their functional organization, but also belong to and understand the core end-to-end business process that delivers on the overall success of the organizations. The advantage of this model is that there is a more balanced decision making to optimize both the specialized functional departments and end-to-end processes. While this business model may seem to have more complexity, it eliminates organizational inefficiencies when implemented in a simple and practical fashion.
There are additional models for an organization, and spectrums in between, including geographic models, centralized/decentralized models, or Asset Management centric models. Entity Consulting Inc. can help you to decide which of these organizational models will help you succeed in implementing your strategic plan.