Strategic Cost Reduction
Strategic Cost Reduction
Enterprise Fitness: Efficiency, Flexibility and Agility for Post-Recession Success
Which of your assets are truly strategic? Which components of the organisation are ‘core’ to enabling them? Does your organisation currently support performance in core business, with a ruthless focus on professionalism, efficiency and savings from non-core business?
Other Solutions
- Accelerated Analysis and Design
- Business Transformation®
- Customer Care and Intelligence (BPO)
- Finance and Accounting (BPO)
- Growth and Innovation
- Knowledge Process Outsourcing (BPO)
- Lean Transformation
- Management Assurance Services (BPO)
- Multi-process/Multi Tower (BPO)
- Organisational Design and Effectiveness
- Post-merger Integration
- Process Redesign
- Procurement (BPO)
- Shared Services
- Strategic and Business Planning
- Sustainable Business Change
- Transformation Programme Design and Governance
- Success Stories
Through the current economic downturn, most enterprises will pursue operational cost reduction to deliver near-term savings. However, wise organisations will seize the opportunity to trim not only for the downturn but for life afterwards by taking stock of strategic assets and tightening up the focus of the enterprise and its people.
Our Enterprise Fitness approach can identify both short-term and long-term activities capable of returning the greatest benefit with the least disruption to the organisation. We can help you assess how ‘fit’ your enterprise is to survive and succeed in the post-downturn market.
This section includes:
Benefits of Enterprise Fitness
Organisations can expect to see multiple benefits from Enterprise Fitness, including:
- A 25%-40% reduction in costs across the enterprise
- Improved organisational agility
- Transparency of capability gaps for investment and improvement
- Clear accountability
- Improved staff morale
Capgemini’s approach
Our straightforward approach is underpinned by hard analysis, leadership choices and fast decision making. It is broken into several phases:
- Accelerated identification of value potential and quick wins based on various pre-defined scenarios (6 weeks)
- Establishment of an organisation, process and technical architecture
- Targeting of improvement areas capable of providing the greatest benefits and least disruption across the organisation
- Design of an implementation plan
The pre-defined scenarios form the basis of models built by our team of experts with clients to establish likely outcomes and accelerate the identification of quick wins. These scenarios include:
- Planning a new service: Planning any new service requires consideration of a number of alternative approaches. We consider the drivers of the outcome we are trying to achieve and what methodology should be used to evaluate options based on these drivers.
- Making a market: Industry bodies are commonly concerned with the question of how a market might work effectively. We can build models to examine whether the market for this product is working effectively and producing acceptable levels of revenue for industry players. Or we can look at how behaviour and outcomes would change if the market were defined in a different way.
- Performing in a market: Markets often evolve at rates and in directions that are difficult to predict. This leaves businesses asking what are the trends, how far will they go and how can they focus product development to take advantage of these?
Throughout the approach, we engage with clients and their leadership team to drive strategy-based analysis and design. We also work with our key subject-matter experts in areas of strategic focus and operational improvement as well as the client’s HR capability for implementation of organisational choices.
Capgemini capability
Capgemini has a unique business architecture approach to the initial six weeks of analysis and design. We have the end-to-end capabilities to deal with client organisations as a single entity and can draw on the resources and skills of 600 consultants whose expertise cover all functional areas of a business.
Success stories
A Leading Pharmaceutical Firm
Based on the merger of two departments, the client had identified potential to reduce headcount by 200-250 people from the 900 staff. This has already been communicated to the Union and employees. In 8 weeks, Capgemini worked with the client to agree organisation design principles, create the high-level and detailed organisation design and outline the implementation approach. This was underpinned by assessing the future customer demand and impacts to ensure the proposed model was robust to deal with market changes. The end result was that annual financial budgets could be drawn on the back of the new design and £27 million in annual benefits were identified.
Government Department
The client was engaged on a £300 million programme of work which was found to be lacking clarity around business benefits, suffering from a scattered understanding of the functions and capabilities required for success and overlapping accountabilities around projects, functions, delivery and benefits realisation. Capgemini worked with the client to develop an agreed operating model across the programme and business units through a six week Health Check on control, benefits, dependencies, business problems, projects, functions and strategic alignment. This resulted in cross-business unit findings and recommendations with business benefits and delivery dependencies consistently identified for all projects within the programme. This provided directors the information and structure needed to make informed investment decisions.
Leading Financial Services and Lending Institution
The client began a significant business transformation programme to replace their core banking platform. As a result of this change, the client identified the need to define the target operating model to guide process and organisation re-designs as well as acting as a bridge between strategy and implementation. We worked with the client to define the target operating model based on independent service domains, identified clear separation of responsibilities across domains, designed governance and control mechanisms and defined service levels. The gave the client the ability to launch new current account products across channels and enable greater margin and fee-income management on the existing back book.
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