Organisational changes

During the first 6 months of 2013, the operational and organisational model of the Engineering & Construction Business Unit was reviewed to align the governance model with evolving business requirements and the Company’s strategic drivers. In addition, in the second half of the year, the E&C Business Unit was integrated with the Drilling Business Unit under the control of the Chief Operating Officer.
The principles driving the business reorganisation were:

  • a focus on each product line’s core capabilities;
  • cross-product synergies and commercial opportunities;
  • simplification of the structure of the business, clarifying role and responsibilities;
  • empowerment of key local and central managers balancing globalisation and decentralisation.

The new organisational set up, which aims to allow the Company to effectively capture market opportunities and increase its performance and profitability, has the following characteristics: the Onshore, Offshore, Drilling and Floaters businesses are responsible for developing different product areas and for defining and implementing worldwide strategies and business plans; Regional Managers represent Saipem in their assigned geographical area and are responsible for business development and integrated promotion and for the optimisation and consolidation of local entities and competencies; Central Functions (‘Commercial’, ‘Tendering’, ‘Engineering, Technologies and Commissioning’ and ‘Project Management’) have a central role in steering, coordinating and controlling the local entities and developing local activities/competencies on a worldwide scale.

The organisational solutions implemented also led to a significant rotation of Managers, both at central and local level, a reduction in complexity, the reduction of positions reporting to the Chief Operating Officer and the empowerment of Managers reporting to the COO, allowing a more shared decision making process. Moreover, the following functions and positions were assigned to report to the CEO: ‘Chief Financial and Compliance Officer’, to ensure the governance of the principal functions involved in the management of the compliance and governance system; ‘Integrated Risk Management’, responsible for the identification, analysis, monitoring and reporting of the Company’s main risks; ‘Quality’ and ‘Health, Security, Environment and Sustainability’, to ensure dissemination within the Company of a culture, processes and tools related to these areas; ‘Procurement, Contract and Industrial Risk Management’, with the aim of ensuring the integrated management of these business support functions, which make an important contribution in terms of project results; ‘Public Affairs and Communication’, with the aim of ensuring a focused, strategic approach to external communications, image management and public affairs; ‘Business Technology and Development’, with the aim of establishing an integrated approach to promotion of the Company’s capabilities and products and leveraging of its technology research and development effort.