At a Glance
A leading European container terminal operator wanted to grow its EBIT compared to the previous year’s performance by overhauling its operational and governance structures.
Renoir’s analysis uncovered potential improvements regarding governance, balancing workloads and optimising resource allocation, to improve operational efficiencies.
By using robust systems to identify and evaluate underperforming areas of the operation, the 96 change initiatives that were selected and managed by the transformation program delivered 82% EBIT growth.
Key results
100%
programme initiatives are quantified, prioritised, owned and actively managed using a comprehensive governance model
75%
initiatives deemed viable and taken forward
82% increase in EBIT
Established effective performance management from COO to ground level
Background
Our client is a leading European container terminal operator known for its advanced infrastructure and large-scale operations. They have significant rail, barge, and truck container infrastructure.
They reached out to Renoir because they had set a target of more than doubling its EBIT (earnings before interest and tax) compared to the previous year. To achieve this ambitious goal, they required support in establishing strong governance and resource allocation for their port operations.
Analysis
We conducted a comprehensive analysis to identify opportunities for improvement and cost savings. The analysis covered several key areas:
Assessment of the current programme: We assessed the strengths and weaknesses of the company’s existing port programme to identify areas for improvement.
Revised governance model: A new governance framework, known as the Results Management Office (RMO), was designed to promote accountability and transparency in the implementation of programme initiatives and the management of results.
In addition to strengthening governance, we identified specific opportunities for cost savings, including:
- Opportunities to balance workload and resource deployment with a focus on planning and scheduling functions
- Insourcing opportunities from incumbent suppliers for some functions
- Rebalancing an apparent imbalance between Corrective (too much) and Preventive (too little) maintenance across the business
- Improve / refine / define key maintenance strategies
- Reviewing capital versus operational expenditure to investigate further opportunities for EBIT growth
- Launching a project to strengthen the relationship between the client and its suppliers under the with a view to working together to improve cost efficiency.
- Amending the existing Delegation of Authority to better protect the savings expected to be delivered from the established initiative.
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Project Approach
Renoir’s project approach involved several key steps and strategies, focusing on establishing a robust framework for managing initiatives and driving financial improvements for client:
Stakeholder Engagement: Renoir identified 18 key stakeholders within the organisation, including the CEO, Management Board, and departmental leads (GMs) across all functions. They aligned with this group to gather details about each known initiative and validate their business cases.
Results Management Office (RMO): Renoir designed and implemented a new governance model called the RMO. This office served as the single source of truth, providing robust planning, promoting two-way communication, ensuring schedule attainment, and creating transparency and accountability.
Workstream Creation: Workstreams were organised around RMO & Finance, Operations (including planning and scheduling), and Maintenance, plus support functions.
Operating Rhythm: A structured operating rhythm was established, setting both strategic and operational meetings across all levels in the company, monthly, weekly and daily.
“Renoir has supported us well in realizing the initiated cost savings program by arranging a clear track & trace structure where all stakeholders stayed aligned and focused.”
– Chief Financial Officer
Implementation
Renoir worked closely with the Finance department to connect financial objectives with budget owners and decision-makers, ensuring a clear understanding of how initiatives would impact the bottom line. In partnership with the client’s senior management team, the following measures were created and installed:
- Action Management: The RMO coordinated robust planning, action management, and results management. This included actively managing initiatives through the governance model.
- Benefits Tracking: A system for tracking benefits was implemented to monitor the progress and success of initiatives.
- Funnel Approach: A funnel approach and ‘quantifiers’ were used to evaluate and prioritize initiatives.
During this period, we focused on providing plans for the development of 3 key business areas, in parallel with establishing and ensuring the sustainability of the RMO.
These areas included:
- Improving operational performance at selected quays by increasing performance management capability and effectiveness, with a focus on productivity and meeting customer Service Level Agreements (SLAs).
- Implementing a programme of change across the maintenance function, which was structured into 4 distinct workstreams:
- Asset strategy and management
- Equipment availability
- Work management process
- Supply chain management
- Heightening the focus on data-driven performance management at the highest level of operational management, through the introduction of COO level performance management and the development of the operational support function.
“Renoir has provided us with structures and active coaching in the field of performance management and improvement. This has made an important contribution to the further development of our organisation”
– Lead Consultant
Results
Renoir helped establish robust project governance, including a steering coalition, while also providing mentorship. The newly implemented Results Management Office (RMO) tracked 96 change initiatives, enabling improved accountability, planning, and benefit tracking. The system achieved 82% EBIT growth. This established effective performance management from COO to ground level, alongside a comprehensive maintenance development plan with clear timelines and metrics.
*Client-specific details have been intentionally omitted to maintain strict discretion.
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