Flat revenues and high overhead
Brainstorm and validate cost-reduction ideas
Reduce both corporate and business unit overhead
Over $200M in savings

Targeted streamlining reduces costs over 20%
Problem:
Without trimming its ponderous overhead costs, GasLightCo could not perform up to the authorized rate of return.

GasLightCo is one of the largest electric and gas utilities in the United States. The company's profitability was significantly underperforming the government-authorized rate of return.

With limited opportunity for other revenue enhancement, GasLightCo was burdened by increases in directly managed expenses, such as overhead. The shortfall was expected to widen further, depending on whether or not the utility commission increased prices.

Bain had already been working with GasLightCo on a larger scale, integrated cost reduction program in order to help the company better earn its authorized rate of return and to position it for competitive success in the rapidly deregulating environment.

The CFO of GasLightCo hired Bain to conduct a comprehensive diagnostic to identify overhead cost reduction opportunities throughout the operating business units and especially in their support departments.