Roadmap for growth transformation
Aerospace & defense

Building a new operating model, while decreasing indirect headcount and redesigning the organization structure of a world-class aerospace supplier.


Challenge

Despite the company experiencing strong growth over a five- to 10-year period and winning several new contracts and clients, evolutions in cost levels and complexity were unfavorable and EBIT decreased drastically, in particular due to surging indirect headcount. A complete turnaround was needed.

Approach

The approach was structured around three core modules:

  • Introduce flow thinking and prepare the go-live of the first new operating unit
  • Identify optimal operations models and define the industrial vision for the entire company
  • Define a lean global organization to reduce indirect headcount in the short term and insure long term competitiveness by structurally transforming the organization

Value

  • All 15 departments and 9 operating units in 4 geographies were successfully transformed
  • First operating unit launched with 100% on-time delivery (OTD)
  • Headcount reduction realized: 
    • 10% first year
    • 8% second year
    • new structure in place

We particularly valued the good relationship with and high-quality deliverables provided by the Arthur D. Little team. They are very experienced in my industry and better than the competition. - Chief Operating Officer