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James
O. Rollans
President
and
Chief Executive Officer
Fluor Signature Services
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Fiscal
1999 marked the creation of a shared services organization
within Fluor Corporation. A major component of Fluor’s
strategic direction, Fluor Signature Services is a new
and distinct business enterprise with profit-and-loss
accountability. Its primary charter is to deliver business
administrative and support services to multiple operating
units within Fluor Corporation, with the additional objective
to expand marketing of its services to external clients.
By
establishing Fluor Signature Services, the corporation
has moved forward in the strategic direction it set
to reduce costs, streamline operations, improve quality
standards, and identify and measure the value created
by the services provided.
This
new enterprise brings a new approach to doing business.
By assuming responsibility for the delivery of business
and support services, Fluor Signature Services will
allow the operating units to focus on their core businesses.
Business leaders will define and choose to purchase
services needed to achieve peak performance in their
organizations. Consolidating business services in one
organization should reduce costs and improve quality
standards.
Fluor
Signature Services is dedicated to delivering business
effectiveness and creating value for Fluor. The organization
leverages Fluor’s investment in people, processes
and technology to improve its delivery of business services.
It is organized into individual lines of business services
in the areas of finance, information technology, safety,
human resources, office services and performance solutions.
Accomplishments
for FY1999 include:
- A
successful transition was achieved from an overhead
administrative structure, largely integrated with
operating entities, to a separate organization accountable
for profit and loss. Establishing this enterprise
in terms of structure, services and business infrastructure
in eight months required a great deal of effort. Fluor
Signature Services’ members are to be congratulated
for its successful beginning.
- Customer
needs and expectations were met with no service interruption
during the transition period.
- Cost-reduction
efforts in FY1999 resulted in a significant savings.
Cost effectiveness will be an ongoing effort while
providing customers with the level of service required.
Fluor
Signature Services has a unique opportunity to provide
its customers with a distinct competitive advantage
by providing and managing business and administrative
services on their behalf. Priorities for FY2000 will
result in substantial reductions in costs and assets
employed while improving satisfaction in those areas
most important to customers.
Objectives
for FY2000 include:
- Achieving
the goal of operating as a self-sustaining organization
with break-even performance for the first year of
operation.
- Improving
customer satisfaction and exceeding their expectations.
Customer satisfaction measures will be implemented
including a quarterly monitoring process.
- Delivering
services more cost effectively and developing new
ways to deliver services more efficiently.
- Improving
the financial returns on the corporation’s real
estate and information systems assets and certain
investments. Real estate, a major asset area, will
be addressed with the objective of obtaining a higher
rate of return. Fluor’s real estate investment
has a book value of $270 million and a current return
on those assets well below our cost of capital. Reducing
ownership of real estate holdings and defining and
meeting the long-term real estate needs of the corporation
is a key objective.
- Piloting
the deployment of the Enterprise Resource Management
system, and championing its use in customer organizations.
- Providing
training and development opportunities to build the
skill base of the people.
The
organization’s goal is to become an efficient,
innovative and customer-centric team which creates value
for all of the enterprises and the shareholders of Fluor
Corporation. As a growing and successful professional
organization, it will create new and expanded career
opportunities for its members.
The
company’s transition to a shared services concept
in providing business services is a major change for
Fluor Corporation. Fluor Signature Services will have
the opportunity to redefine itself and demonstrate areas
in which it excels and provides measurable added value.
The organization is very appreciative of its customers’
support during the transition period. Through the building
of an effective customer/supplier relationship, Fluor
Corporation and Fluor Signature Services’ members
and customers will benefit from the shared objective
of improving costs, quality and responsiveness.
Fluor
Signature Services is looking forward to an exciting,
rewarding year and creating a measurable and positive
impact on Fluor Corporation’s performance.
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