IT Efficiency Management
European retail bank: Cost reduction
Why did the client approach us?
One year after the merger with another bank, the client was faced with significant losses. In the same way as all other division heads, the CIO was forced to contribute to the recovery of the bank. He asked us to support his organization in the reduction of the IT costs.
How did we address the challenge?
In a first phase, a joint team designed a process that would allow the organization to reduce costs and analyzed the cost structures to provide the IT management the data to define top-down cost reduction targets. In a second phase, the head of IT Production asked us to support his organization with the bottom-up cost reduction. We conducted review meetings with all teams, during which we prioritized all budget items into a consolidated, ranked list. By applying the reduction target on this list, we identified budget items that had to be canceled. Fairness, pre-agreed criteria, a good understanding of the affected processes, and clear communication were key to the success of this project.
Why was it interesting and enjoyable?
Efficiency management projects provide an overview of all activities in an IT organization. In sometimes challenging environments, the art is to unite the client staff in order to identify ways to increase efficiency in the best possible way.