Cost Savings Achieved Through "Right" Behaviors
The Situation
In order to achieve an increase in cost savings, two business units at a Fortune 10 oil company needed to improve the operating efficiency of its furnaces that heat crude oil. The company also identified a need to change its culture, implement a new organizational structure, and build leadership capabilities.
The Solution
The refinery engaged CLG to assist in the following business imperatives:
- Achieve meaningful cost-management gains by reducing fuel gas consumption, which represented 50–60% of each business unit’s operating expenses
- Develop and implement a new individual furnace efficiency metric, based on the behaviors of furnace operators
- Align the behaviors of key performers at all levels across the organization, ensuring consistent thinking and operating
CLG used its Performance Catalyst® process—a rigorously focused leadership methodology for rapidly aligning entire organizations to execute strategic change and achieve operational excellence. It is based on the fundamental principles of Applied Behavioral Science (ABS).
The Performance Catalyst® process enables leaders to use Performance-Based LeadershipSM, another CLG technique grounded in ABS, to systematically reinforce High-Impact BehaviorsSM—those vital few actions needed from key performers to achieve results.
The Results
By focusing on behavioral changes keyed to performance metrics—the refinery’s business units:
- Increased the desired behaviors in furnace tuning from 70% to 100%
- Increased dialogue among operations, engineering, and maintenance
- Based on feedback to operators, raised awareness about individual furnace performance, prompting operators to take action sooner on poorly performing furnaces
- Achieved a combined $2.4 million in energy cost savings over a one-year period and improved the operating efficiency of furnaces heating crude oil
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