OPTIMISING OVERHEAD COSTS FOR UTILITY COMPANIES
To finance the energy transition and to maintain competitiveness, utility companies urgently need to identify and realise potential savings in overhead costs.
According to KfW, 535 billion euros must be invested in Germany’s heating, electricity and gas distribution networks over the next 20 years in order to bring about the energy transition. However, this figure is confronted with a funding shortfall of 346 billion euros, with the majority of the investments required in the next ten years. This poses major financial challenges for utility companies. Simultaneously, utility companies need to identify and realise potential savings in order to maintain competitiveness. One key area to address this is the overhead costs that have built up over time.
Overhead costs, also known as indirect or administrative costs, are those that cannot be attributed directly to a single product or service: administration, IT, human resources, finance, and legal. At utility companies, they have grown alongside the organisation for decades without the structures behind them being systematically reviewed.
What's Inside?
- Analysis of the historically grown overhead costs
- Approaches to optimising overhead costs by department
- Approach and sample view of an industry benchmarking
- Process and structural optimisations and an outlook on cultural change
DOWNLOAD THE WHITEPAPER
Download the full paper, including an analysis of why organisational structures are often no longer optimally designed and specific approaches to optimising overhead costs using industry benchmarking.
ABOUT HASELHORST ASSOCIATES
Haselhorst Associates is one of the leading restructuring consultancies in Germany and part of the growing H&Z Group. The team of around 35 internationally experienced consultants and partners develops tailor-made solutions for their clients: from analysis through project planning to implementation. In addition, Haselhorst Associates supports municipalities, utilities, and companies in their strategic positioning as well as operational implementation around urban transformation.
