COST

Case Study

Cost

 Energy Client; Midland, TX

 

Client Question

“We are dealing with inexperienced managers who are struggling with controlling their maintenance and expendable costs. What does Andrew Coaching provide to help bring these managers up to speed fast?”

 

AC Response

Andrew Coaching excels at helping front line managers assimilate the essential tools of leadership and management to translate to immediate bottom line results.

 

THE OPPORTUNITY

Inexperienced Front Line Managers weren’t controlling costs and continually missing net profit targets in the largest market segment for the company. Andrew Coaching was asked to implement Principled Leadership coaching with these managers and their supervisors to operate within budget targets to achieve profit goals.

 

THE SOLUTION

Andrew Coaching engaged Superintendents with Principled Leadership coaching to address cost overruns in repair and maintenance expenses. By implementing and executing SMART Action Plans to manage costs, Rig Managers began to control spending. The consistent follow up and use of accountability structures by Superintendents with Rig Managers created a sustainable process that resulted in cost savings of $11.1 million. It is of note that this change impacted an EBITDA increase of 50%, raising this region from last place to being a leader in net profits.

 

“Through the first two quarters of this year, our daily repair and maintenance cost was reduced by 11% compared to last year’s year-to-date cost. This reduction in expenses has resulted in a savings of $11.1 million and significantly contributed to a 50% boost in quarterly EBITDA for our region."

 

 - Regional Vice President, Energy Client; Midland, TX

 

11% improvement in Cost

50% improvement in EBITDA

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