Case Details
Home / Case Details
Otter Tail Power and Electric Case Study
Using Strategic Organization™ concepts and methodologies, one of the top regional utilities in the U.S. generates new success
Situation
In order to deal with industry-wide changes demanded by federal regulatory agencies and increasing competition from energy generation providers, a “local government-protected,” highly profitable regional electric utility needed to reduce expenses by 20%, while improving performance by 25-30%.
This required both a “top-down” and “bottoms-up” systematic and scientific approach to designing more efficient (and accountable) structures and processes, more capable and creative employees, and more effective and accountable leaders.
A major obstacle was the prevailing culture that resisted any change that “was not invented here” and asserted that “if it ain’t broke, don’t fix it!” The existing workflows and functions were highly “siloed” and each function had accumulated excessive managerial layers over the past several decades. The strong local unions had negotiated excessively high (and non-competitive) salaries and limited work flexibility rules.
Solution
Using time-tested Strategic Organization™ concepts and methodologies, we undertook a multi-faceted approach.
- In the first phase, we trained managers at each organizational level about the concepts, tools, and Accountability Leadership practices necessary to successfully drive and own the initiative.
- From collected role data, we then worked with the management team to model alternative structures in relation to the company’s strategy (short-, mid-, and long-term). We then helped the management team decide on its ideal long-term structure and migration path, including the implementation strategy.
- Finally, we assessed the current-and-future capabilities and demonstrated effectiveness of existing talent, used that data to drive optimal role-filling decisions, and put together the preliminary stages of a comprehensive people development system.
Value Provided
Using time-tested Strategic Organization™ concepts and methodologies, we undertook a multi-faceted approach.
- In the first phase, we trained managers at each organizational level about the concepts, tools, and Accountability Leadership practices necessary to successfully drive and own the initiative.
- From collected role data, we then worked with the management team to model alternative structures in relation to the company’s strategy (short-, mid-, and long-term). We then helped the management team decide on its ideal long-term structure and migration path, including the implementation strategy.
- Finally, we assessed the current-and-future capabilities and demonstrated effectiveness of existing talent, used that data to drive optimal role-filling decisions, and put together the preliminary stages of a comprehensive people development system.