Government & SOEsOrganisational Design

Organisational Restructuring of a State-Owned Enterprise

9 → 5

Management Layers

+54%

Service Delivery

R180M

Cost Savings

16 Months

Duration

Anonymised under strict NDA — no client identities disclosed

The Challenge

Understanding the Problem

A major state-owned enterprise with over 8,000 employees was suffering from an bloated organisational structure with 9 layers of management, unclear accountability, and declining service delivery performance. Political pressures and union dynamics added complexity to any restructuring effort. The entity needed to modernise its operating model while managing the human impact of change.

Our Approach

How We Tackled It

01

Conducted a comprehensive organisational diagnostic including structure, processes, and culture assessment

02

Benchmarked the operating model against comparable entities in South Africa and internationally

03

Designed a streamlined organisational structure reducing management layers from 9 to 5

04

Developed a change management programme with extensive stakeholder engagement including unions

05

Implemented a new performance management framework aligned to service delivery mandates

The Solution

What We Delivered

SAAC led a 16-month organisational transformation programme that fundamentally redesigned the entity's operating model. The restructuring reduced management layers from 9 to 5, clarified accountability across all business units, and introduced a modern performance management framework directly linked to service delivery mandates. A comprehensive change management programme ensured buy-in from unions and employees, with no forced retrenchments through a combination of natural attrition, redeployment, and voluntary separation packages.

Key Outcomes

Management layers reduced from 9 to 5, improving decision-making speed

54% improvement in service delivery metrics within 18 months

R180M in annual cost savings through operational efficiencies

Zero forced retrenchments — all transitions managed through voluntary processes

New performance management framework adopted across all 8,000+ employees

Employee engagement scores improved by 31% post-transformation

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