Turnaround Case Study: Turnaround of an Indian EPC Company’s Offshore Division
Revitalising Operations and Driving Business Recovery
An Indian Engineering, Procurement, and Construction (EPC) company was facing severe operational delays, financial distress, and leadership challenges in its offshore division. The division’s projects were significantly behind schedule, causing contractual penalties, cash flow constraints, and declining client confidence. X-PM was engaged to provide interim leadership, restructure operations, and restore financial stability.
Situation
Key Challenges Faced by the EPC Company
1. Project Delays & Cost Overruns
● Offshore projects were severely behind schedule due to inefficiencies in project execution and supply chain disruptions.
● Rising operational costs and lack of financial oversight were leading to budget overruns.
● The company was facing contractual disputes with key stakeholders due to delays.
2. Financial Instability & Cash Flow Constraints
● Weak financial controls and cash flow mismanagement were affecting day-to-day operations.
● The offshore division was struggling to secure new contracts due to deteriorating reputation.
● Existing financial commitments placed additional strain on resources and project execution.
3. Leadership & Workforce Management Issues
● Lack of strong executive leadership led to misaligned project priorities and inefficiencies.
● High attrition rates among key technical personnel and project managers.
● Ineffective stakeholder communication was creating operational bottlenecks.
Solution
X-PM’s Strategic Approach to the Turnaround
1. Immediate Stabilisation & Crisis Management
● Deployed an interim COO with extensive EPC sector experience to take charge of operations.
● Conducted a comprehensive risk assessment to identify priority areas for stabilisation.
● Engaged with clients and key stakeholders to rebuild trust and mitigate contractual penalties.
2. Operational & Financial Restructuring
● Implemented cost optimisation measures, reducing overhead expenses by 15% within six months.
● Established new project management frameworks to enhance efficiency and ensure milestone completion.
● Strengthened financial governance by introducing better cash flow management strategies.
3. Talent Retention & Organisational Strengthening
● Addressed employee morale issues by implementing new incentive-based retention programs.
● Recruited highly skilled interim project managers to streamline operations.
● Improved interdepartmental coordination, reducing project delays significantly.
Results
Results Achieved
● Project Delivery Acceleration: Offshore projects were brought back on track, with key milestones met ahead of revised schedules.
● Financial Recovery: Cost-cutting measures and improved financial planning led to a 20% increase in cash flow stability.
● Rebuilt Client Confidence: Strategic engagement with stakeholders led to renegotiated contracts and new project acquisitions.
● Operational Efficiency: Enhanced workforce management and leadership intervention reduced inefficiencies and improved productivity.
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