INCREASING PROFITABILITY

Business Challenge
One of the commercial divisions of a large international bank was having profitability and expense control issues due to rapid growth coupled with a decentralized management model. The management team needed to identify and implement changes to reduce administrative expenses across several departments including Finance, administration and IT and internal communications costs.

Solution
This team performed a complete workflow and headcount analysis of all administrative processes across the finance, administration and IT functions. It also included reviewing all expense categories and outside vendor contracts.

Based on this detailed review and recommendations, the project team implemented the following:

• Recommended centralization of certain Finance functions. This included changing the reporting relationship of the finance personnel supporting individual business units within the division. This not only reduced finance costs, but improved consistency of support, reporting and controls.
• Recommended consolidation of administrative support positions across the organization to increase efficiency and to eliminate excess capacity
• Consolidated several administrative business functions across departments to lower costs and improve service levels
• Recommended changes and consolidations to outside IT and network vendor contracts to reduce redundant and unnecessary expenses. This included the consolidation of multiple internal communications networks from three networks to one network
• Recommended a new management reporting process to improve planning, visibility and control of expenses
• Developed a long-term IT strategy and plan to focus IT resources on high value longer term projects that lead to further cost reductions and productivity improvements

Results Achieved
This project resulted in several million dollars in estimated cost savings that improved the profitability of the division.

INDUSTRY SPOTLIGHT

Financial Services
Financial services companies operate in an increasingly competitive market. These companies need solutions that increase operational efficiencies, eliminate excess capacity and manage risk and regulatory scrutiny.

Eagle Hill knows how to help our financial services clients achieve results. Read more.