Realizing sustainable +100 MNOK operation improvement for Statoil retail

2005/6

Our mission

  • As Mckinsey Project Leader; design of the operational improvement program
  • As independent consultant (since aug 2005); implement the program, install a local and EU organization that can carry continuous improvement forward autonomously, install a new operational culture in the whole network

End Results

  • Overall program designed + piloted in Dk
  • Program implemented in 8 countries being Dk, Swe, Nor, Pol, Lat, Lith, Est, Rus:
    • – > 700 stations, > 5000 employees
    • – Cost saving > 100 MNOK realized / out of 2008 target cost saving of +/- 110 MNOK
  • Organization to drive autonomously continuous improvement was installed and coached by us and worked futher in autonomous way
  • Strong demand from other departments for similar programs

The group CEO of that company testified:

“The Lean implementation program you brought to us, is the best run project ever at …”

Approach

  • The program was designed applying Lean manufacturing principles to station operations by a Mck team (2 consultants + WDF) working together with a client team of 5.
  • The implementation was based on intense coaching of local teams by CSI and the EU team (that CSI set up and coached as well) going through:
    • a diagnostic phase, identifying key issues and estimating the potential
    • a pilot phase, adapting tools, designing new ones, implementing and tuning them in pilot stations.
    • a roll out phase – bringing all tools and coaching to the individual stations
    • a continuous communication effort creating and maintaining interest and a positive atmosphere around Lean
  • Continuous sustainable improvement was installed through strict performance follow up (KPI tool + Store evaluation tool designed by CSI), local and EU permanent “Lean” staff, and the creation of an internal “Lean” Network leveraging best practices

Main challenges

  • Dealing with people aspect of change on all levels (management, local teams, employees in the field) was the main challenge:
    • Coaching and skill building
    • Overcoming resistance to change
    • Ensuring continued motivation throughout the organization
    • Changing behavior
    • Dealing with cultural diversity of 8 countries
    • Ensuring project management rigor and perseverance

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