We've helped our clients create value
for customers and shareholders through more effective Operations,
Technology and Service Delivery
a success of Post-Merger Cost Reduction & Rationalisation
How we helped turnaround losses of over
£100 million per annum, following the merger & integration of
multiple dispersed business operations, to profitability within a year.
An international insurance
business had made a series of large-scale acquisitions in the
UK insurance market and was struggling to integrate the businesses
successfully to create a single, integrated profitable business.
Integrating large-scale businesses each with their own financial
systems, processes and IT infrastructure is a substantial challenge.
The absence of a single, integrated financial system can make financial
control difficult due to lack of transparency with financial data and a
dependence on cost allocations which may severely distort your
measurement of profitability and business effectiveness by market,
channel and customer.
The complexity of merged business
operations can drive operating costs to an uncompetitive level.
In service businesses, process complexity frequently translates itself
into higher operating costs. With numerous IT systems, operating
processes and procedures it can be extremely difficult to put effective
cost reduction programmes in place.
We started with creating a clear
understanding of where value was being created and destroyed across the
business. By creating a financial and activity based process
model with a customer & channel profitability assessment we
could begin to help the leadership team understand where they had
promising growth businesses, channels and customers, where there were
value destroying markets, channels & customers which would be
extremely difficult to turnaround and finally those business areas
where a turnaround could possibly be achieved.
We helped reduce management
expenses so that new business could be priced competitively.
Competitive markets punish financial institutions severely whenever an
attempt is made to operate unsustainable pricing. As business volumes
are placed under pressure, it becomes harder to support your underlying
cost structure with thinner business volumes. The only way out is to
get "match fit" again, get management expenses under control and place
pricing back again within a sustainable level within the "pricing/
value corridor" for your service offer.
The final result was to move a
business that was losing over £100 million per annum to profitability
with a year.
the promised benefits of Shared Service Optimisation
How we helped reduce IT operating costs by
25% following deployment of a shared services business model.
A European financial institution
had decided to create a shared services organisation within the UK
based on the IT systems, infrastructure & operations of three
UK-based businesses with combined IT spend of £150+ million.
The challenge was to
significantly reduce overall IT spend by at least 20% whilst
improving IT service delivery and customer service provided to the 3 UK
The original cost reduction
strategy and plan fell substantially short of the savings target and
was based on high-risk complex integration projects. The UK
business units were skeptical that the shared service organisation
could deliver on the complex strategy which itself fell someway short
of what was needed in terms of cost reduction and service improvements.
We formed a joint team with
secondees from the UK businesses to develop a more ambitious savings
target which came with a substantially reduced execution risk.
Significant savings were delivered from procurement and operational
efficiency improvements which were relatively straightforward to
The end result was an integrated
cost reduction and service improvement program which reduced IT
operating costs by 25% (£38 million) whilst delivering improved service
and capabilities for the 3 UK businesses.
you can maximise your RoI from Project Portfolio Optimisation?
How our project optimization framework
helped reduce the overall cost of new project developments by 25%
whilst accelerating the delivery of strategic IT projects.
A UK financial institution had an
overloaded project portfolio of over 100 projects with a projected
budget spend of over £45 million per annum. There were too
many projects causing critical resource bottle necks and overwhelming
scarce management & business capability holding back the
delivery of strategic projects required to deliver their business
We enabled our client to gain a
clearer understanding value impact and risk assessment of portfolio of
100+ projects using our project portfolio optimization and
modelling process. Projects were assessed according to their value
impact, resource demands and risk status. The portfolio approach
identified both strategic projects which could be accelerated and
candidate projects for elimination from the portfolio.
Rationalising the project
portfolio delivered immediate cost reductions. More
importantly resources could then be reallocated to more pressing
strategic projects allowing their delivery to be accelerated.
The final result was that key
strategic projects were prioritized enabling accelerated delivery, the
optimized portfolio provided cost savings of £12 million on a £45
million annual budget for new projects, whilst the IT
organisation benefited from greater executive confidence in arising
from greater transparency and results delivery.
Productivity in Offshored Service Centres
This case study covers how we helped to
improve significantly the efficiency of Offshored back office
operations. Many firms turn to offshore back office and call centres to
reduce their operating costs (effectively through applying labour rate
arbitrage) however firms frequently overlook the opportunity for
further gains through increasing the efficiency of the offshored
Key back office operations and IT
support areas for both internal & client operations had been
moved offshore to Bangalore. The initial labour cost savings
were welcome and initial quality issues had been overcome by improved
process management and training investments.
However, disappointing back
office productivity was creating the demand for continuous heavy
recruitment campaigns as more operations were moved offshore
whilst competition from attractive global & fast growing Indian
firms were driving up wage rates and employee churn rates.
Poor management disciplines meant
that tracking of utilisation & productivity was poor
(originally put in place by a local outsourcer who had set up the
We worked with onshore &
offshore management teams to put in place robust utilization
& productivity measurement systems and management control. We
helped these teams determine the root causes of poor productivity and
deliver 30/ 90 day rapid action plan programmes to eliminate these
The end result was to increase
the relative productivity of Indian staff from below 30% of onshore
staff to over 90% within 90 days.
Customer Satisfaction in Offshore Call Centre Operations
How we helped eliminate the customer
service experience deficit following moving customer facing call centre
Our client had moved substantial
customer facing call centre operations offshore and had reduced its
labour costs by over 65%. However the customer experience had worsened
dramatically. Our client uses the “Net Promoter Index”
concept to track and manage the quality of the “customer experience” it
delivers. Essentially the “Net Promoter Index” measures your customer
experience quality by taking the percentage of people who loved the
experience of dealing with you (scoring 9 or 10 out of 10) and
subtracting the % of people who didn’t enjoy your service experience
(scores 0 to 5 out of 10). Middle scores are ignored as analysis has
shown they are not predictive of future purchasing or customer loyalty
We worked with the client to
determine the primary root causes of low “customer experience scores”.
The primary root causes were found to be poor telephone call quality
due to technical problems with its IP telephony infrastructure and poor
language & communications skills from many call agents.
We helped our client implement
short-term and longer improvements to its telephony infrastructure and
addressed the poor language skills through more effective
communications training. We helped the client drive rapid
performance improvements by breaking down the customer experience
scores by call centre, team and call type. This allowed our client to
identify troublesome call types which needed to be addressed and poorly
performing supervisors and coaches.
The end result was that the
client’s customer experience scores of its offshore call centres
improved dramatically (from a “Net Promoter Index score below -30 to
Positive within 120 days) whilst retaining the 65% cost advantages of
Risk for accelerated delivery of complex IT initiatives
How more effective risk management
accelerated the delivery of complex IT capabilities &
infrastructure to help deliver more effective customer service with
A major IT infrastructure project
had to be delivered “drop dead” delivery rate to enable critical
business initiative to be launched on time. The European
Telecoms and network infrastructure was one integrated “cloud”, in
principle this should have led to reduced operating costs and the
ability to introduce new products and services faster. Paradoxically,
costs were higher as there were limited bidders able to provide
services for the complete integrated European network and the
complexity of operating across multiple countries made upgrades and new
business developments inherently difficult to manage and deliver.
Project complexity increased due
to adoption of innovative new technology infrastructure and need to
coordinate seven international teams. The new business
service offerings were dependent on delivering new capabilities and
processes exploiting an advanced technology platform. To make this work
for even one country required co-ordination of 7 international teams
each with their own local priorities and business demands to support.
We supplied both an interim
Project Manager and specialist resources to build capability in terms
of risk assessment, IT planning and implementation disciplines and
business subject matter experts. An integrated international
programme put in place to manage and coordinate seven teams based
across Europe and US. More structured approaches were introduced for
project planning and execution, risk management, implementation and
Go/No Go decision making.
The final result was that the new
Technology infrastructure was implemented on time without disrupting
business-as-usual operations. Improved network &
telephony purchasing terms and higher back office productivity paid for
the €12 million investment. The Marketing department was able to launch
their new products & services on time without having to worry
about the Technology infrastructure.
Programme, Risk & Service Management expertise
Replacing IT Core Processing
Infrastructure & Systems without jeopardising customer service
through applying rigorous programme, risk & service management
The core IT systems of the
domestic operations of a UK bank were struggling to keep up with the
demands of product & service innovation. The bank
determined that it needed to replace the core processing systems of
this major consumer facing operating business with a system capable of
launching new products & services and manage its customer base
more effectively to maintain & grow its profitability.
A major systems integrator was
hired to develop and install the new IT systems &
infrastructure. The challenge lay in implementing a new IT
infrastructure and over 10,000 applications and transferring millions
of customers and their accounts to the new systems & databases
without disrupting its day-to-day business operations.
We helped the bank put in place
robust service management and operational acceptance disciplines
to ensure that IT systems upgrades and customer database conversions
were executed flawlessly.
The end result was the
implementation of a new IT applications and technical infrastructure
which allowed much more sophisticated customer value management
techniques to be deployed (helping create over £100 million of
increased income over 3 years).