The stress-testing of hundreds of cost-cutting opportunities and the identification of the most promising options helped the company cut annual costs by more than $2 billion.
The detailed analysis and revamping of the cost-cutting effort was put on a fast track—five weeks from start to finish. The effort quickly zeroed in on 20 of the most promising initiatives from across the company, determining if the cost-saving estimates and the timeline were realistic. This included examining whether the business units responsible for each had the right teams in place to execute the project.
BCG also helped the company identify industry best practices related to efficiency—and share those across the organization. This included everything from the optimal way to manage transportation of employees to and from offshore platforms to insights on how to negotiate for more favorable terms for insurance coverage on company assets.
The firm ran a series of workshops—both for individual functions within the business units and for cross-functional teams—to peer review cost-reduction initiatives and conduct brainstorms to find new, previously overlooked opportunities. And BCG provided coaching and training for project managers and other cost-cutting champions, helping them identify and address red flags on projects to ensure effective execution.
The effort ultimately helped the company build a sustained and disciplined efficiency effort. This included billions of dollars in annual savings, as well as the selection of a handful of future, high-priority areas for each business unit that could drive additional cost improvements.