Defence Contractor Saves $100 Million After Acquisition

Dec 19 2016 0 Comments


In 1997, Hughes Missile Systems was acquired by Raytheon which is a large, diversified defense contractor in the US that also has a presence in Australia. Subsequent to that acquisition, Raytheon Missile Systems (RMS) sought a solution from Arbinger that would end the internal battles that existed within its structure. The RMS management evaluated almost 40 consulting firms, and chose Arbinger because of its unique approach. 

While all of the other consulting firms said that they would solve the RMS’s problems, Arbinger proposed to provide RMS with the guidance and tools that would allow the division to solve the issues on its own by enabling each individual to see his or her contribution to the division’s problems and devise ways to hold themselves accountable and work collaboratively to solve those problems.

Arbinger began its work with RMS’s Leadership Team, and the results were quick and dramatic. For example, shortly after the work began, the division was forced to show a $100 million expense reduction within two months. Before Arbinger began its work with management on this issue, the Leadership Team thought that they would have to lay off 200 employees to achieve $20 million of these savings. As a result of the work with Arbinger, they sought alternative ways to cut costs, and succeeded in finding $7 million in savings on the first day of the project alone. Using this same Arbinger-based process over the next two months, the Leadership Team successfully met its target of cutting expenses by $100 million, without having to lay off a single employee. The president of RMS said that “it was like magic.”

Access and read the full case study here.


← Older Posts Newer Posts →


Leave a Comment

Please note: comments must be approved before they are published

  • american express
  • apple pay
  • master
  • paypal
  • shopify pay
  • visa

This website is still in development

Try viewing this website on a larger screen