Launching a Value Program in a Global Engineering Company

摘要

Engineering consulting has always been a competitive business. Oil and gas companies demanded even more during the deep slide in commodity prices from 2014 to 2016. There was unrelenting pressure to cut fees, else we risked losing out on new projects to other firms. We believed we were doing good work, but we were not very good at proving it to ourselves or, more importantly, to our clients. How could we defend our rates? How could we prove that we were, in fact, delivering good value to our clients? So, our objective was simple: start recording and reporting the value we create for clients. One small challenge, though: we only had a budget of 150 hours and 12 weeks. This paper describes our approach in developing a value program that would work for our company, highlight our learnings thus far, and contemplate where we are along the value methodology maturity level. In the two years since the launch in January 2017, our Value Management program has identified nearly $840 million in client savings.