How much money did Chevron spend for Bcg and others to tell them how to cut costs? seems like without them it could save dozens of jobs! What a waste. what do we pay upper management for if they can't make decisions?
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It's The Chevron Way
Bcg has to come in because the big bosses won't make the hard decisions as they continue to play favorites and political games. How do you think we got so fat? Etc is massive compared to pre2008 levels. Ahh yes, the etc bubble...
Shouldn't need a consultant to tell you what you already know. Waste of money. Maybe we should all go work for BCG! Are they hiring?
That is, unless you get deemed as the fat and get laid off...
I'm in ETC and there is plenty of fat. Whatever the bcg cost... It will be worth it. Thank God!
Reasons to bring in consultant: Fresh set of eyes may be neede since it might be hard for managers who were responsible for the current excess staff to be objective in cutting it back. Outsider helps overcome tendency to defend turf regardless of company needs. Consultant provides cover to management for a hard, unpopular decision. I leave it to others to decide if they think these are good reasons or not. Also, even if BCG cost estimate is reasonable, it is dwarfed by cost savings from staff reductions. If they get 20% from ETC, say 250 people at a company total cost of $400,000 (may be low with social security tax, benefits, and other non-salary costs) per employee, that's $100 million per year.
What I'm getting as the point of this posting is that upper management should be farsighted enough to have not made Chevron so fat. Using BCG is a waste when you consider other companies that budget appropriately and keep a few insiders on hand who are experts already in doing what BCG does. It's not all a matter of making money, especially with a company that tries to keep a good reputation. It's about MONEY MANAGEMENT.
Thank you, AceofSpades. Very intelligent guess and some food for thought.
My educated guess doing simple math is BCG is costing Chevron about $7-8 million per month.
A = $5,000 - Average day rate per consultant
B= 65 - Approximate number of consultants rumored to be working on Project Alpha
C = 21 - average work days per month
A x B x C = $6,825,000
Now add travel costs which I estimate to be $2,500 per consultant per week and you get to about $7,500,000 per month total BCG costs.
I totally agree what you(108812) are saying.
Blah blah blah does anyone have an approximate dollar value for Bcg for curious minds?
Spot on. The fact that bcg is brought in right off the bat shows just how little our leaders understand exactly how we are executing our business.
That said, the fact that we got so incredibly fat is a poor reflection upon management and corporate leadership/oversight. I find it sad that I trust the ability of an external party more that internal leaders whenbit comes to making the necessary hard decisions
We're not in the business of preserving jobs, we're in the business of producing oil! (as profitably as possible). If management feels that bcg is able to provide incremental value in excess of their cost, then bring them in. The ideal number of employees/layoffs should have nothing to do with the cost of bcg. It should/will (hopefully) be rooted in business need and the relative productivity (vs cost) of each individual/function