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Reducing Silos Increases Profit

Organizational Effectiveness

by Judy Johnson, Ph.D.

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Organization Roadmap Leads to Optimization Development

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September 20, 2018

Reducing Silos Increases Profit

The Challenge

The CEO of a crude oil company had lingering challenges in production, safety, and profits. The leadership team and their respective organizations had created entrenched silos that limited cooperation across the production, maintenance, and technical teams. The CEO needed these teams to improve cross-functional communication and coordination in order to get production running smoothly and efficiently.

The Solution

The team worked with the CEO and the organizational effectiveness manager to quickly assess the root cause of what was sustaining the siloed behaviors. Based on findings, the team developed a plan for reducing silos that included: changing expectations, building new ‘unifying’ incentives, redefining key roles, and creating new channels to drive cross-function dialogue and alignment on every shift. Progress was monitored monthly and the plan was adjusted as needed.

The Results

  • Broke down the silos across production, maintenance, and engineering.
  • Realized $41 million in savings through improved inspections and equipment reliability, and another $5 million by staying under the production budget.
  • Created new shift position that drives alignment between production, maintenance, and engineering.
  • Increased predictability and consistency of technical workload.
  • Improved maintenance efficiencies through more effectively planned downtime.
Judy Johnson, Ph.D.
Judy partners with executives and leadership teams to engage and inspire employees in a way that delivers sustainable strategic results. She brings deep expertise and creative ideas to solve organizational effectiveness issues and closely collaborates in a way that builds internal capabilities. Judy has spent over 25 years consulting in a variety of industries, bringing her expertise in behavior to a wide range of organizational issues including organizational behavior change, leadership, change management, culture and engagement.

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