The client’s problem
A large Scandinavian bank was experiencing significant annual cost increase due to enhanced regulatory requirements and development and operations efforts demanded for its solutions. On top of this, there was speculation that some of these operations activities were performed by multiple units in parallel. These “pockets” had to be eliminated, whilst also ensuring the activities were performed effectively by the most appropriate individuals. Finally, their IT platform’s age and embedded technology was starting to cause stability issues which had to be handled to ensure future service provision to its customers as well as legal compliance.
Oleto Associates mobilised a team and executed the work in an intensive 6-month process. First the entire annual cost base at more than DKK 1 billion was analysed and detailed in a market conforming manner at multiple levels. This also included a structure and methodology which could be implemented in the client’s accounting system and thereby enable the client to perform similar allocations and analyses going forward. Secondly, the performance of the entire IT operations setup was evaluated, incl. developing management dashboards, customising key metrics and performing external benchmarking (cost and quality). Thirdly, an improvement initiative catalogue was developed containing 60+ distinct initiatives to improve the quality and cost performance of the IT operations, incl. a cost baseline impact assessment per initiative. Fourthly, a new IT organisation structure was designed to simplify the IT operations setup and ensure transparent responsibility/ownership, incl. allocating formal responsibilities and FTEs. Finally, an implementation plan was developed, incl. prioritisation and sequencing of the 60+ improvement initiatives.
Identified annual savings potential equal to 10% of cost baseline and delivered a detailed plan to harvest them. Furthermore, we provided managers with insightful operations dashboards and external peer benchmarks and aligned the executive management around the organisational transformation. Finally, great focus was placed on utilizing and involving the client employees in the process, thereby boosting their capabilities through hands-on training.