Our team were invited to review the client’s total costs and prepare a transformational programme to deliver sustainable change that would deliver the required savings.
Our client was operating with an annual turnover of £630million. To ensure their competitive advantage the client was required to deliver a savings plan totalling £125 million over a 5 year period. The client’s previous experience of savings plans was based round delivering short term cost reduction schemes.
Complete savings plan delivered, totalling £125 million over 5 years.
Detailed plan in place to deliver first £25 million in year 1 (representing a programme ROI of 1:120).
Newly established internal delivery support team of 8 members in place, with direct links to delivery projects.
Detail project master schedules created for all 78 projects in years 1 & 2.
Initial programme delivery support provided, ensuring delivery of £8.2 Million of savings in the first 4 months (representing a cashable ROI of 1:34).
- Complete review of all costs undertaken, using internal finance data.
- Benchmarking activity carried out to provide appropriate comparisons.
- Staff engagement, visioning events carried out to identify all potential projects.
- All potential projects mapped against delivery complexity and savings potential to support project prioritisation over the 5 year plan.
- Complete stake holder analysis completed to ensure all parties aligned in delivery of projects.
- Line by line review held with the client of the KM&T Opportunity data base to identify potential new projects.
- High level workstreams identified to enable wider efficiency projects.
- Programme Overview Documents (PODs) created for all high level programmes.
- All individual projects, totalling 78, worked up into detailed Master Schedules, detailing all stages of project delivery.
- Governance structure established to ensure alignment across the organisation and to maintain delivery pace.
- System developed to track the status of all projects and sub projects (420 in total for year 1).
- Detailed savings plans developed over the complete 5 year programme;
Years 1 & 2 in detail, with delivery schedules - Year 3, 4 & 5 in outline
- Established and up-and-running delivery framework for all projects.
- Weekly programme review meetings held around the Programme Management Office “wall”, to review delivery status, measure results and escalate concerns.
- Progress and delivery of “quick win” projects to establish the Transformation Programme and support engagement.
- Delivery phase support with on-track financial savings of £8.2 million in the first