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Domestic economic turndown, intensifying competition, geopolitical instability, digital transformation, fluctuating oil prices – these have been strong headwinds buffeting global as well as Korea’s Engineering, Procurement, and Construction market for over a decade.
Especially, the company’s existing business strategy and operational management were increasingly exposed as competition began to bite into ever-diminishing returns. The suffering was exacerbated by an impractical expansion strategy, inflexible organizational structure and complete dependence on human manpower for processes that should long have been automated.
But with such a large and complex industrial giant, where do you start? When the scale of the problem is so overwhelming and the external pressures so great, how do you step away to review the options?
How EY-Parthenon can help
Because of the sheer scale of this challenge, EY-Parthenon teams’ first role was to help the client define the scope of the project. There were three distinct requirements: a new business strategy; a new operational model; and the execution of company-wide transformation.
To create a new business strategy, the EY-Parthenon teams undertook a wide gap analysis of the market, setting up a new vision for the business. But the client’s board and stakeholders didn’t just want a well-argued strategy: they also wanted this strategy to be executed involving every key discipline from HR to IT. Working with colleagues across the EY organization, the EY-Parthenon teams established a Project Management Office to put everything into action.
The credibility of the approach had to convince not just the company’s leading executive team, but also working-level managers necessary to back its implementation. the EY-Parthenon teams were to support the company in presenting to get full endorsement from its holding company for this transformation plan.
By establishing an operational framework, the EY-Parthenon teams tackled every business process, identifying weaknesses, suggesting synergies and streamlining processes. Supported by the skills and capabilities of different service lines within the EY organization as well as deep sector experience, this mega-project was provided quickly and seamlessly to the client. Tight communication between the many fast-moving parts of the project helped the client to be always informed of progress.
Innovation was the igniting catalyst for this project and it led the way. But an innovative idea without execution remains theoretical. It’s not too difficult to see that environmental concerns present enormous opportunities for large EPC players. The differentiator is being able to translate that vision into a workable solution that ripples into every department, every team and every individual in the business. the EY-Parthenon teams were able to complete a huge whole-company transformation project that set the client on a secure footing for the future – and all without incurring a single job loss.
How EY-Parthenon can help
Collaboration both within EY-Parthenon and EY teams, and with industry professiaonls , fund managers and the company’s leaders, was key to success. A project on this scale is by definition a team effort, but in this case, integrating skills and experience from a wide number of sources while keeping everyone informed, was a differentiating success factor.
As Joonyoung Byeon, EY-Parthenon Asia-Pacific Strategy Leader, says, “With socioeconomic and technological disruptions, the business transformation cycle has been accelerating faster than ever. Industrial horizons have disappeared, and limitless trans-industrial competition has begun. In such a business environment, conglomerates have to invest in bold business innovation.”
This transformation project helped a major conglomerate overcome possible difficulties, but it did much more than that. Through its unique ability to both strategize and execute across every area of the business, the EY-Parthenon teams established a path forward for other large EPC players. This project has shown how big industrial conglomerates, in Korea and beyond, can reform to compete globally even with market uncertainties and continuing disruptions.
