Evidence Two: Reducing The Headcount By 25, Making Savings Of €9.25 Million - And Creating An Unexpected Online Solution
One of the major divisions of one of the world's largest companies was "drowning" in management information, not least because ad-hoc and routine reports were being generated as standard practice - and being ignored as equally standard practice.
What was worse, reports were replacing discussion, and decision making was being slowed down significantly.
The real challenge was to identify what reporting was actually essential to the business (all too easy to "slash and burn" only to regret it later), and then ensure it got to only the right people in the right way within the right timescales.
In other words, the challenge was to establish what was business critical information - and what was waste paper? Who was producing valuable information, and who was merely pushing it around the company?
Having undertaken a rigorous assessment and analysis of reporting practices, we produced a Management Information Contract structure that the individual businesses within the Group had to sign up to, and were then required to specify what information they required, from whom, and for what purposes based on an agreed governance structure.
More radically, we proposed a comprehensive online MI hub that reduced costs and time, made information available 24/7, and introduced systems to control the who-when-what-why of changing central MI data. What had been expensive, time consuming and inefficient in hard copy format became fast, flexible, low cost and well managed online.
The Change Dividend
The online solution: the client had not even contemplated having an online solution, never mind one that delivered so many solutions so efficiently and cost-effectively.
The head count impact: we took 1,200 routine and ad-hoc reports out of the business (millions of pages no longer written, produced and ignored). Our analysis showed that this saved the equivalent of 25 highly paid jobs - far higher than the client had anticipated.
Cost savings: overall, we saved the client a minimum of €9.25 million over 5 years against an anticipated €1-2 million.
The Change Dividend summary: measurable savings of 25 jobs and over €9 million was proof of Harlaw's Change Dividend, but the introduction of an online solution was the real bonus because it enabled the company to achieve more for lower cost in less time - and was an entirely scalable and flexible system.