We identified cost-saving opportunities of 30% for the UK operations of this multinational business, and were asked to roll out the same transformation programme in the US
Helping a large corporation identify cost savings and supporting the transformation of enterprise voice services
A large multinational enterprise was seeking to identify cost saving opportunities in its UK operations. Its fixed voice services were considered expensive with limited transformation in recent years, so Mason Advisory was engaged to identify cost savings, advise on strategic decisions moving forward, and assess the impact of current and future transformation activities on the cost profile.Solution
We started by identifying gaps and weaknesses in the current way of working, using relevant tools and techniques such as cross-team and stakeholder interviews, SCIPAB for root cause analysis and remedial actions, and SIPOC to clearly map out core processes.
We then worked with the IT leadership – and, importantly, the employees on the ground – to define a new operating model to address the gaps and provide a better platform for the business.
To support the work, we established and chaired an internal IT transition team (known as the IT Hub) which met weekly to formalise the functional areas within IT. The team was assigned clear responsibilities for IT using a ‘plan, design, build, run and manage’ model. We baselined the current state and introduced key performance indicators (KPIs) to support ongoing monitoring and improvement. The gap in capacity and capability was monitored and managed using a cross-team skills matrix, personal development plans, and recruitment where required.
Working with the business, our consultants then developed new processes and tested them in scenario workshops, allowing us to make any adaptations to the operating model as testing progressed.
Having identified 200 high-level improvement areas, we grouped and prioritised them, and then chose the top six areas on which to focus with the business, producing action plans for each. Over this transition period, the IT Hub met to review progress, and to plan the following week’s activities, while also providing an input to the senior IT leadership team which provided oversight and helped to resolve any blockers.
In addition to designing and deploying the new IT operating model, Mason Advisory supported the Head of Enterprise Architecture in the creation and introduction of the Enterprise Architecture (EA) function. Acting in a technical architect role, we helped to develop the IT strategy, improve governance by aiding the introduction of an Architecture Review Board, improve standards by initiating an IT standards register with the ‘run’ team, and improve agility by introducing Kanban management into areas of delivery.
Working closely with the client team, we collated the relevant data to develop a holistic view of voice service costs including invoices, telecoms expense management outputs, contracts, and service management costs. We also undertook a review of communication and collaboration transformation activities such as the transition to a new open-plan work environment and extensive use of Skype for Business globally. Our team undertook an analysis of costs and performed high-level benchmarking of the client’s services against peer organisations. Once a comprehensive view of the existing position was developed, we organised several scenario-testing workshops to develop cost profiles, usage patterns and savings options based on potential and planned changes. Additionally, we conducted a business risk and impact assessment to inform the strategic direction.
Findings on savings opportunities and the risk assessment were presented to the global IT infrastructure team and a high-level summary was presented to the IT leadership team.
We were involved in helping the client to identify cost-saving opportunities of more than 30% across all enterprise voice services in the UK.
Using our findings and recommendations, the company embarked on the transformation of its voice services. This included optimising its current services in the short term and consolidating services to provide enhanced, cost-effective and agile collaboration to its employees. It expects to cut its operating costs by up to USD10 million over three years.
Following the success of the programme in the UK, we were asked to undertake a similar piece of work for the US operations. After analysing contractual provisions, spend and usage, we provided market insights and advised on a transformed voice service. We supported the programme with technical project delivery management, support for operational activities, and tracking of financial and contractual objectives.
The programme saved USD1.3 million in the first year and is on track to save an additional USD0.5 million through rationalisation services, as well as creating a much more efficient working environment using a single platform.