Taking the cost out of transformation programmes

This global telecommunication company had successfully won and implemented a number of very large (>£100m) managed service programmes.  In one programme the customer contract included the development and implementation of new wave fully converged services, transforming the existing legacy services and then operating those services on behalf of the customer for the remainder of the term.

However, with over 600 staff, 170 transformation and operation projects, over 30 suppliers and new technology solutions to manage, the client recognised there were programme risks as well as cost saving opportunities that it had not yet recognised.

Consulting Stream was appointed to identify both risks and margin improvement opportunities for this significant programme.

Business Challenge

Our clients faced issues of:

• Meeting and exceeding outsourced customer’s    transformation and service delivery expectations
• Improving programme profitability
• Improving organisational efficiency
• Identifying shared service opportunities

Our Approach

Consulting Stream planned and implemented a discovery phase, carrying out analysis on both the structural and financial components of the programme. The scope incorporated the business development, transformation, PMO, service management, operations and finance components of the programme. The analysis output identified key areas for improvement and provided plans for 10 work packages, each of which was validated to generate significant cost savings (together totalling >£40m). These savings were based upon efficiencies within the programme itself and opportunities to exploit synergies and shared service activities with parallel managed service programmes. Wider governance improvements for the programme were also planned. 

Consulting Stream was retained to implement two of the packages within the finance area of the programme. Ownership of cross programme activities were appointed “in-house” and Consulting Stream provides ongoing subject matter experts and facilitators to these work packages.

Business Outcome

Subsequent financial analysis showed significant margin improvements and cost savings of more than £12m declared during the first 2 months of work package implementation. Greater margin benefits are expected to accrue over the subsequent months as result of both the cross programme activities and through the renewed focus across the programme on the commercial imperatives. For this reason the assignment has been recognised by the programme’s Managing Director as “great value for money”.

Services Provided

• Programme efficiency
• Programme financial management
• Service Management improvement
• Process improvement
• Programme governance

Skills Deployed

• Programme management
• Service management operations, ITIL
• Finance management
• Change management
• Process re-design

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