Professional services company WorleyParsons is reorganising its business as part of an in-depth review of operations. Chief Executive Officer Andrew Wood said the review was aimed at better positioning the company for future earnings growth by improving delivery and offering a more competitive value proposition for customers. “With the reorganisation we are aligning the business to market conditions. It will simplify the corporate structure, reduce overhead costs and enable our staff to deliver greater customer satisfaction. The reorganisation is expected to improve major project performance, deliver sustainable growth in earnings and enhance returns to shareholders. “We are refocusing the business on what we have been known for in the past – an intense focus on our customers and project delivery, and enhancing value for our shareholders.“The reorganisation is not only a structural change, it is also about cultural change to improve the way we do business and allow our staff to support our customers in being successful,” Wood said.
WorleyParsons will reorganize into three business lines – Services, Major Projects, and Improve – to provide better customer focus and delivery. It will also reduce the level of corporate overheads to establish a more competitive cost structure for business lines.
Under the changed structure, Services will continue to provide a high quality service offering, including consulting, delivery and Improve, with local offices focused on winning and delivering services to local customers and the local operations of our regional and global customers. Services represents approximately 70% of current aggregated revenue.
Major Projects and Improve will each address the specialist needs of their customers, with appropriate delivery and support models.
Major Projects will be responsible for winning and leading the execution of large or complex projects wherever they are in the world supported by dedicated major project execution centres.
Improve will be responsible for the leadership and execution of nominated long term operational and asset management contracts, as well as winning new contracts. All other operational and asset management contracts will be managed by Services.
Each business line will have full accountability and responsibility for customer satisfaction, generating sustainable earnings and providing a satisfactory level of return on capital invested. In addition, each business line will be responsible for providing and sourcing the optimal level of operational support required.
With the majority of support now provided in the individual business lines, our group functions at the corporate level will be streamlined. This will result in a lean corporate office, with responsibility for strategy and improved capital allocation, in addition to usual governance activities.
The company will continue to nurture new business ventures, deliver on merger and acquisition opportunities and better manage investments and improvements within the business lines through the new Development group.
