Saskatchewan Gaming Corporation: Organizational Structure Review (2013)
SaskGaming operates two casinos in Saskatchewan (Casino Regina and Casino Moose Jaw). HLT was retained to value these assets as if purchased by the private sector under various revenue sharing models. A critical element of scope involved modeling likely operational changes that a private-sector operator would implement (e.g., labour reductions). Specifically, HLT was asked to develop an implementation-ready organizational model based on key principles: alignment of structure to strategy; customer centricity, reduction of hierarchy levels, and organizational simplification (activities and reporting structures – “one gaming floor, two locations”). In developing a restructuring plan for SaskGaming we looked at the “future state” including moving from a decentralized to a centralized operating model, an increased focus on customer satisfaction, and reduction of expenses without comprising operational integrity. Implementation of the strategy resulted in:
- A reduction of 55 full-time, non-unionized staff out of total of 237 (23%)
- Annual savings of over $4 million (25% of non-unionized payroll)
- A reduction of the executive leadership team from seven down to four (all seven executive team members were actively involved in the creation of the strategy with HLT)
- Re-focussed departments – CEO office, Operations, Finance & Administration, and Marketing
- Relocation of executive offices to the casino (“bring management closer to the floor”).
The restructuring was implemented in October 2013 with minimal negative repercussions to government. SaskGaming continues to deliver the same customer service levels and has not compromised any elements of its operation. The restructuring also aligned job functionality in terms of a greater customer focus and has improved employee morale.