Organization Design: Case Study 7

Merge two large companies and reduce cost of field operations by $100MM.

Client

Acquirer of two large telecommunications companies needed assistance merging them into one new organization and achieving significant improvements in effectiveness and cost reduction.

Business Challenge

Merge two of the largest consumer broadband service providers in the nation while:

• Improving EBITDA by achieving scale opportunities.
• Reducing layers between corporate and front line employees, while consolidating field locations, to achieve $100 million cost reduction without compromising customer service.
• Shifting resources to customer-facing activities.

The Solution

• Build the new organization design and provide change management support.
• Rethink the structure of the entire field organization (45,000 employees), develop a plan for structuring the 1,100 franchises into 22 major markets, and design the organizational template for major markets of different sizes.
• Build resource allocation models by function; compare this with existing resources and structures and build specific migration and change plans for each major market.
• Assist with implementation to ensure results achieved.
  

Results

• A new organization structure delivering annual cost savings of $100 million implemented without any reduction in customer service levels.
• The restructured organization went on to lead the industry in revenue generating unit (RGU) growth rates in new advanced products.

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