Page 2: Organisational structure
Organisational structure refers to the way that jobs, responsibilities and power are organised within a business. The organisational structure of KBR reflects the market opportunities the business is seeking to maximise all over the world. By dividing up the organisation, each business unit can specialise in its own area of expertise, bringing efficiency benefits.
KBR serves its customers through six business units:
- Upstream offers engineering, construction, purchasing and related services for energy projects
- Downstream- serves business clients in the petrochemical, refining and coal gasification markets
- KBR Servicesprovides construction and maintenance services
- KBR Technology protects the technological property rights of the business. With over 80 years of experience in high-tech research and development in specialist markets, KBR Technology helps the business to maintain a technological competitive advantage
- KBR Venturesoffers financial investment and management services for companies owning assets of KBR projects
- Government and Infrastructure (G&I) offers construction, engineering, programme management and services contracting for public and private sector businesses all over the world.
Aspire Defence Services Limited is one such business and is the focus of this case study. KBR's Government and Infrastructure (G&I) business unit operates in a global market, with a substantial operational base in the UK. This Group supports the government's Ministry of Defence in a diverse range of projects. Some of these relate to logistical support for the British Army in Afghanistan and Iraq. Among other things, KBR's G&I Group in the UK has built and deployed temporary accommodation for troops on active service and managed catering and transport services for the military.
A major UK project for G&I is Project Allenby/Connaught, the largest infrastructure project ever to be awarded by the Ministry of Defence to the private sector. This project is aimed at improving the living and working environments for British soldiers at garrisons in Aldershot and across Salisbury Plain. The scope of this work is to provide modern, high quality, fully serviced, purpose-built living and working accommodation to nearly 19,000 soldiers (20% of the British Army).
To deliver Project Allenby/Connaught KBR joined forces with another company, Carillion, to form a joint venture organisation called Aspire Defence. The £12 billion, 35-year contract began in 2006 and as well as delivering new and refurbished accommodation, it also includes the provision of quality shops, cafÃ©s, bars, dining areas and sports facilities. All of this is supported by a broad range of services from technical stores management to tailoring of uniforms, from the provision of transport to catering. In fact, just about everything needed to run a military garrison other than the physical security and guarding.
Aspire Defence has three arms of the business:
- Aspire Defence Limited (ADL) oversees and manages the contract, reporting directly to the Ministry of Defence
- Aspire Defence Capital Works (ADCW) delivers the construction
- Aspire Defence Services Limited (ADSL) delivers the facilities and services management for the project.