After several major divestments, British Petroleum’s Procurement and Supply Chain Management (PSCM) that was supporting the US Fuels business faced the task of re-sizing their group and lowering operating costs to match the new environment while improving the delivery of value to the organization. The newly appointed Procurement Director also wanted to build stronger relationships with the operational stakeholders and more closely align the team’s activity with the corporate strategies and targets. The Director found a highly experienced and motivated team that was looking for more focus and stability.
Initially, ShiftGear worked with the Director and his team during their quarterly leadership meetings to understand the work in new ways and to learn new approaches to improvement. Later, ShiftGear began to take what they learned and applied it to the procurement work at the refinery sites. ShiftGear used a “light touch” approach, starting with the leadership and a few people at the sites. As their skills grew, they expanded the efforts naturally. Today, Dynamic Work Design, Visual Management, and Continuous Improvement are key elements of the way BP Procurement does their work.
The ShiftGear Impact
ShiftGear’s intervention returned dramatic results:
- Operating Cost reduced by more than a third.
- Delivered the financial targets a year earlier than plan.
- Staff retention rate of 98% over a two-year period.
- Delivering consistent and predictable performance.
- Number of initiatives reduced and aligned with the goals and targets.