Our client was a leading U.S. retail bank with a high cost position and many disparate, manual processes that were hurting firm-wide profitability. We were brought in to help them fix this problem and become a leaner, more competitive company.
Our project objective was first to identify areas of high costs, assess the opportunity in eliminating these costs, and help with the implementation of our recommendations.
Our first step was a current-state process evaluation. We looked at each cost bucket and worked to understand exactly how these costs could be lowered, without shrinking headcount (one of the stipulations of our client).
We benchmarked the data we aggregated from the client against its competitors and “industry-best” firms who were able to keep spending under control. Looking at each bucket we were able to see the areas of greatest leverage, which we then analyzed further to help develop a view of the potential opportunity.
With a detailed description of the client’s potential opportunity, we set out to create an implementation plan that was practical and executable. We wanted to ensure that our client gained the full benefit of our services so we assisted in the execution of the plan as well.
Our client saw a >25% net improvement in operating income after project implementation. Within a year and with our assistance, internal processes had been created to help maintain this savings moving forward. Additionally, the company saw significant growth as management was confident in its new cost position and was now able to focus on improving the businesses top line.