Alcoa announces new operating model

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Alcoa Corporation has announced the implementation of a leaner, more integrated, operator-centric organization, effective 1 November 2019. The company will eliminate its business unit structure and consolidate sales, procurement and other commercial capabilities at an enterprise level. Under the new operating model, the Alcoa Executive Team will also be streamlined from twelve to seven direct reports to CEO Roy Harvey. The new structure will reduce overhead, promote operational and commercial excellence, increase connectivity between the company’s plants and leadership, ensure a continued focus on safety and position Alcoa for sustainable profitability.

“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,” said Harvey. He  announced the following individuals as members of his Executive Team, effective from 1 November 2019:

Leigh Ann Fisher, currently chief administrative officer, has been named chief human resources officer. Fisher will focus exclusively on people, including: talent management and recruitment; compensation and benefits; training and development; and industrial relations.

Jeffrey Heeter, general counsel and secretary, will continue to be accountable for legal, corporate secretary, ethics and compliance, and global security functions.

Benjamin Kahrs has been named chief innovation officer. He will focus on implementing the new operating model and transforming manufacturing capabilities critical for future success, including through Alcoa Business Systems. He will also continue to have responsibility for the Alcoa Technical Centre.

Michelle O’Neill has been named chief external affairs officer.

William F. Oplinger, chief financial officer, will continue to be responsible for finance functions and transformation assets, with added responsibility for corporate development.

Timothy Reyes, president, Aluminium, has been named chief commercial officer for the bauxite, alumina, aluminium and energy markets; for business development focused on new areas of growth; for strategic analysis and planning; for supply chain management and customer service.

John Slaven has been named chief operations officer.

With the elimination of the business unit structure, Michael Parker, president, Alumina, and Garret Dixon, president, Bauxite, will depart Alcoa after assisting with the transition to the new operating model.

Alcoa says that additional organizational changes to reduce overhead are planned. The restructuring is anticipated to be complete by the end of the first quarter 2020.

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