British Petroleum, one of the world's largest oil companies, contacted ADR to support the merger of its oil and Chemicals' purchasing teams, to assess the purchasing performance and processes used within its Grangemouth refinery site. The project formed part of the clients "One Team" change programme.
The main aim was to guarantee a successful merger between the client’s purchasing teams and to ensure that the teams operated cohesively to maximum effect.
ADR evaluated the quality and effectiveness of BP’s business processes using the PRISM® baseline methodology and, subsequently, supported the implementation of the recommendations within the programme. A significant element of this work involved the critiquing of existing business processes and performing a capability assessment of purchasing staff and teams.
To assess individual capability, ADR designed a series of half-day development centre's, reflecting three different levels of required capability, and ran these for circa 50 people, conducting structured interviews, scenario discussions and case studies.
The output from this process was a tailored development plan for each person, reflecting the capability development required for that person to perform a future role, i.e. in the merged organisation.
As one of the steering group's, key requirements from ADR’s intervention were for sustainable capability improvement and skills transfer. A "Development Team" comprising ADR and selected client managers to lead the development activity was formed. ADR "trained the trainers" prior to the development initiative commencing.
The development approach designed was a small group coaching followed by action learning. This typically involved 4-6 delegates for focused workshops of 2-4 hours duration. ADR designed the development materials including tutor guides for running the sessions and model answers for case studies.
Action learning followed the formal coaching sessions, comprising groups of between 4-6 delegates. A category of spend owned by one or more of the delegates was used to apply the learning from small group coaching to real life situations, e.g. in performing cost analysis or in planning for a negotiation.
The real success of the development initiative could be measured by the changes in behaviour of purchasing staff within the sourcing-to-pay process. Additionally, measurable cost savings exceeded £12m (10%) during the 18-month programme.
|Objectives||Merge purchasing teams and reduce costs|
|Outcome||Cost savings of over £12 million (10%) within 18 months|