Alcoa Revamps Operating Model

Alcoa Revamps Operating Model

Pittsburgh aluminium pioneer Alcoa Corporation announced the implementation of a radical new operating model on Monday that the firm believes will make it more agile and responsive to customers’ needs.

Beginning November 1, Alcoa will do away with its business unit structure and transition to a model that combines sales, procurement, and other commercial capabilities at an enterprise level. In addition, the Alcoa executive team will be reduced from one dozen to 7, all of whom report directly to the firm’s CEO, Roy Harvey.

Alcoa says the move is expected to result in lower overhead, increase operational and commercial excellence, increase connectivity throughout the firm, enhance safe operations, and ensure sustainable profitability.

Alcoa’s CEO Roy Harvey said the move is the logical next step following the company’s spin-off of Arconic three years ago.

“These changes to our operating model build on the important progress we’ve made since our 2016 Separation to reduce complexity, drive returns and strengthen the balance sheet, all with the goal of creating a stronger Alcoa. Most importantly, this new organizational structure reinforces that our operations are the heart of Alcoa. Among other benefits, it will promote stronger connectivity between our plants and executive leadership and swift decision-making.”

As of November 1, Alcoa’s executive team will be:

  • Executive Vice President and Chief Human Resources Officer Leigh Ann Fisher
  • Executive Vice President, General Counsel and Secretary Jeffrey Heeter
  • Executive Vice President and Chief Innovation Officer Benjamin Kahrs
  • Executive Vice President and Chief External Affairs Officer Michelle O’Neill
  • Executive Vice President and Chief Financial Officer William F. Oplinger
  • Executive Vice President and Chief Commercial Officer Timothy Reyes
  • Executive Vice President and Chief Operations Officer John Slaven

Transitioning out will be Executive Vice President and President, Alumina Michael Parker and Executive Vice President and President, Bauxite Garret Dixon.

“Michael and Garret are incredible business leaders and strong operators who have significantly contributed to the growth and success of our Company,” said Harvey. They are the very best of professionals and I thank them for their outstanding leadership and support.”

Alcoa says this is the first of several planned organizational changes, but it will continue to report separate financial reports for its three segments, namely Bauxite, Alumina, and Aluminium.